S

Ratti S.p.A’s US Market

AnalysisBy Stoyka Serafini

US Analysis On

S Target Market Analysis for Swim Products in USA

S Marketing Analysis for the Mid-market Products in USA

S Analysis of Emerging Brand in USA Fashion Market.

Swimwear Industry Statistics

S Swimwear market project excepted to reach $20 billion by 2020

S 2015 Annual US spending on women’s two-piece bathing suits

S $8 billion

S Average price for a woman’s bathing suit $24.26

S Average price for a men’s bathing suit $15.62

S Number of bathing suits owned by the average American woman

S Number of bathing suits 4

S 2015 Global annual swimwear industry revenue

S $13.25 billion

International Main Companies

S ARENA (1973)

S marketed Water wear products for competitive swimmers and

swimming fans worldwide, and is universally recognized as one of

the premium brands of high-quality swimwear and equipment

S Has commercial subsidiaries in Italy, France, Germany and U.S.

S Is present in 106 countries worldwide

S Speedo USA (1920)

S Worlds leading swimwear brand

S Teams at Speedo create revolutionary new technologies, designs

and innovations

S 1920’s made history with Racer back, the worlds first non-wool suit

USA Swimwear Companies

S AgonSwim

S Andrew Christian

S Baci Lingerie

S Bare Necessities

S Dolfin Swimwear

S Head

S Hurley International

S Island Company

S Jantzen

S Kanvas

S Melissa

Odabash

S O’Neil

S Ocean Pacific

S Onia

S Patagonia

S Ron jon

S Tyr Sport Inc

S Vensus

Swimwear

S Victoria’s Secret

S Volcom

S Roxy

S RVCA

S Tori Richard

Categories of the

US Swimwear Market

S Most Common

S Swimwear (98%)

S Apparel (54%)

S Accessories

(50%)

S Bags (20%)

S Active Wear

(14%)

S Shoes (14%)

S Least Common

S Underwear and

Lingerie (8%)

S Jewelry (6%)

S Denim (4%)

Swimwear: In General

37%

20%

19%

7%

5%

5%

3%

2% 2%

Swimwear

Apparel

Accessories

Bags

Active Wear

Shoes

Underwear and Lingerie

Jewelry

Denim

Swimwear: Most Common

39%

21%

20%

8%

6%

6%

Swimwear

Apparel

Accessories

Bags

Active Wear

Shoes

Swimwear: Least Common

8%

6%

4%

82%

Underwear andLingerie

Jewelry

Denim

Swimear: MostCommon

USA Swimwear

Target Market

S 2014-2015 Swimwear

S Women’s swimwear (70%)

S In 2012, the Total: $13 billion spent on on swimwear

S In 2012, $8 billion was spent on women’s 2 piece suit in the US

S General Young Ages (18-45)

S General Older Ages (45-80)

S Men’s swimwear (17%)

S General Age (23-70)

S Girls swimwear (10%)

S General Age (1-17)

S Boys swimwear (4%)

S General Age (1-22)

USA Swimwear Target Market

69%

17%

10%

4%

2014 -2015 US Percentage

Women

Men

Boys

Girls

USA Swimwear Apparel

Companies

S In 2015 there are 10 top American Apparel Companies

S Total 2015 Annual Revenue for the Top Ten: 74.5 Billion

S The Top Three American Swimwear Apparel Companies

S Nike

S 2015 Annual Reveue: 30.6 billion

S Ralph Lauren

S 2015 Annual Revenue: $7.6 billion

S Old Navy

S 2015 Annual Revenue: 6.6 billion

S Overall, In 2015 swimwear apparel was consumed by women.

The Top Ten

U.S.A. Swimwear Apparel

41%

10%9%

8%

7%

6%

6%

5%

4%4% Nike

Ralph Lauren

Old Navy

Gap

Levi Strauss & Co

Michael Kors

Coach

Tommy Hilfiger

American Eagle

Under Armour

Swimwear Apparel

Target Market

S Majority of the Target Market is Women

S Classes: Lower Class, Middle Class to Upper Class

S Nike, Ralph Lauren and Old Navy do provide apparel for:

S Men

S Women

S Children

S Price Range

S Various upon designer name and brand

S Old Navy is the cheapest: $26-$70

S Nike is ranges from: $70-$150

S Ralph Lauren is the most expensive: $200- $500

Women as Majority

S Women are most likely to spend their money on swimsuits and

apparel

S Women’s midmarket apparel market size is still expected to grow

globally

S In 2004, about 74% of the midmarket were mature markets. Only 26%

were the emerging markets

S In 2010, about 63% of the mid market were mature markets and only

37% were the emerging markets

S By 2025, about only 45% of the midmarket mature markets are

expected to grow, while 55% of the emerging markets are expected

to grow

National Center for the

Middle Market

S Provides knowledge, leadership, and innovative research on the

U.S. Middle Market

S Collaboration between The Ohio State University’s Fisher College

of Business, SunTrust Banks Inc, Grant Thronton and Cisco

Systems

S About the U.S. Middle Market

S Revenues between $10MM-$1Billion

S Nearly 200,000 companies

S 44.5 million jobs

S Could generate more than $10 trillion in combined revenues annually

USA Middle Market

S U.S. Middle Market

S 5th Largest Global Economy

S More than $10 trillion in annual revenue

S Businesses

S Nearly 200,000 businesses

S Nearly 48 million total jobs in 2014

S 1/3 of all U.S. Jobs

S Annual Revenue (1Q 2016)

S $10mm-$1Billion

Middle Market Products

Environmental Analysis

S Global

S Expansion trend

S Asia and Europe growing markets and opportunities

S Price of imported materials (cotton)

S Legal Regulatory

S Trade regulation elimination

S Cost reduction with offshore manufacturing

S Lower tariffs with Free Trade Agreement

S Economic

S Driving forces increases demand and competition in the market

S Environmental

S Eco-friendly materials development and careful material selection

S “Go Green” in supply chain, product offerings

S Brand image enhancement

Middle Market Products

Environmental Analysis

S Technological

S Online transaction replacement for real-time ones

S Social networking marketing tools

S Ecommerce for purchasing, comparing prices and sales

S Brand loyalty reduction with Internet sales

S Political Factors: Middle Market fashion companies have to abide and understand the Trans-Pacific Partnership (TTP) with 11 other countries.

S If any Middle Market fashion companies want to expand overseas there are certain rules and guidelines that they have to follow.

S Social Factors: Middle Market fashion companies brands names are very well known to most American consumers

S Cultural Factors: gender images, peer group pressure, brand loyalty, design trends

S Demographic Factors: upper class, middle class and lower class

Porter’s Five Forces

S Porter’s Five Forces for Middle Market Fashion Company Products

S Competitive Rivalry: High

S Many different middle market fashion brands that compete for creative and innovative ideas, large industry size and it is fast growing

S Bargaining Power of Customers: Medium to High

S Seasonal sales give consumers the upper hand in saving more money and allows them to buy more products

S With newer products or designs, consumers do not have a say on lowering the prices

S Threat of New Entrants: High

S Word of mouth marketing strategy, high capital requirements

S Bargaining Power of Suppliers: Low to Medium

S Medium pressure on prices, high dependent manufactures

S Threat of Substitute Products: High

S Increase in the usage of e-shopping, increase in the usage of discount stores

S Wide range of similar product and collaborations with popular brands

U.S.A. Middle Market

S Small Middle Market Companies

S Revenue total range: $10M-$50M

S Usually family owned firms

S Medium Middle Markets

S Revenue total range: $50M-$100M

S Large Middle Markets

S Revenue total range: $100M-$1B

Middle Market In General

S Middle Market has grown 4.6% in 2016

S 2016 Middle Market Confidence in the Economy has increased

S Local Middle Market confidence has increased by 5% to total 81%

S USA National Middle Market confidence has increased by 6% to total 73%

S Global Middle Market confidence has increased by 4% to total 51%

S Employment of Middle Market has varied

S Small Middle Market Companies employment has decreased by 2.1%

S Middle Company Market employment has grown 3.6%

S Large Middle Market Companies employment has grown 2.2%

Middle Market Sectors

S Middle Market is made up of 8 different sectors

S Business Services (8%)

S Manufacturing (9%)

S Wholesale (17%)

S Retail (16%)

S Finance, Insurance, Real Estate (11%)

S Construction (6%)

S Healthcare (7%)

S All Others (27%)

S Includes: Mining, Agriculture, Transportation and Communications

Middle Market Sectors

8%

9%

16%

16%

11%

6%

7%

27%

Business Services

Manufacturing

Wholesale

Retail

Finance, Insurance, Real Estate

Construction

Healthcare

All Others

U.S.A Middle Market

Target Market

S Middle Market Target Market

S Lower Class, Middle Class and Upper Class

S Both Men and Women

S Depending upon financial circumstances a consumer might depend upon middle market products prices and services

S Consumers buying products middle market are trying to find ways to save money

S Reasons for consumers to purchase products in Middle Market

S Cheap and affordable prices

S Can easily find good sales and bargains

S Can easily save money buying many clothes on sale

S Consumers can easily figure out a reasonable budget that they know they can spend on clothes

S Buy saving money on sale clothing and bargain deals, consumers can then focus on purchasing more important matters

S Wanting to raise a family

S Buying a house or moving

S saving for a new vehicle

S Gas prices, grocery shopping, bills, taxes and so on

Middle Market Fashion

Companies

S J. Crew Group

S 2016 Q1 for J.Crew

Total Revenue:

$480,756,000

S J.Crew’s Madewell

Total Revenue:

$72,463

S 2016 J.Crew Company

Q1 Total Revenue:

$567,500,000

S Chico’s

S 2016 Total Revenue:

$2,642,309

S Gap/Old Navy

S 2016 Total Revenue: $15,797,000

S Abercrombie & Fitch

S 2016 Total Revenue: $3,518,680

S American Eagle Outfitters

S 2016 Total Revenue: $3,521,848

S Calvin Klein/Tommy Hilfiger

S Owned by PVH Corp

S 2016 Total Revenue: $8,020,300

S Calvin Klien: 36% of the revenue

S Tommy Hilfiger: 42% of the revenue

S Heritage Brands: 22% of the revenue

Middle Market Fashion

Companies Market Share

1%

8%

24%

47%

10%

10%

J.Crew

Chico's

PVH Corp: Calvin klienand Tommy Hilfiger

The Gap Corp

Abercrombie & Fitch

American EagleOutfitters

Fashion Market U.S.A

S In 2016, the average Fashion Designer earns an salary of

$60,272 per year or more if their brand and style is well known

S The average Fashion Designer is paid $19.00 an hour

S Most people with this job move on to other positions after 20

years in this career

S Fashion Designers that are not forward thinking or innovative

thinkers will struggle to receive brand recognition and brand

loyalty

S Total Pay various if the fashion designers brand is well known

Fashion Designer Tasks

S Main Tasks of a Fashion Designer

S Develop design ideas based on targeted demographic and

preferences of management or clients.

S Supervise assistants creating patterns and producing samples of

articles of clothing.

S Follow fashion trends by researching customer preferences,

attending fashion shows, and reading fashion publications.

S Draw patterns and specifications for articles of clothing, determining

factors such as design, colors, materials, and methods of

production.

S Promote designs by displaying samples of clothing at sales

meetings and fashion shows.

Porter’s Five Forces

Fashion Market Brands

S Porters Five Forces for Fashion Designer Brands

S Competitive Rivalry Within Industry: Medium to High

S Very competitive and very aggressive. Each Designer is expected to maintain a very high standing of creativity and presentation

S Bargaining Power of Customers: Medium

S Majority of fashion designers will not lower prices or have a bargain deal due to the lavish material fabrics that they have to buy use to create their clothes

S Threat of New Entrants: Low-Medium

S Large capital resources are required to create a new brand, needs to be huge investments in marketing in order to create brand recognition and loyalty

S Bargaining Power of Suppliers: Low-Medium

S Majority of designers do not manufacture their materials, they have to rely to diverse supplier bases that restricts suppliers bargaining power

S Threat of Substitute Products: Low-Medium

S Majority of the new and old fashion brands create the same products, but add their own style, design, and fashion forward thinking to diverse themselves

S Middle Class and Upper Class are still demanding for top fashion brand names

S One major threat is counterfeit products that has the potential to dilute any fashion brand name value

Environmental Factors

S Technological

S Online transaction replacement for real-time ones

S Social networking marketing tools

S Ecommerce for purchasing, comparing prices and sales

S Brand loyalty reduction with Internet sales

S Political Factors: If emerging fashion brands want to expand overseas, those brands have to abide and understand the Trans-Pacific Partnership (TTP) with 11 other countries.

S If any emerging fashion brand want to open stores overseas there are certain rules and guidelines that they have to follow.

S Social Factors: Emerging fashion brands companies are not as very known to most upper class and middle class American consumers at first, but as time goes on then they become more well known

S Cultural Factors: gender images, brand loyalty, design trends, fashion forward trends

S Demographic Factors: upper class and middle class

Environmental Factors

S Global

S Many different emerging American fashion brands are hoping to expand

S Have to consider price of imported materials (cotton)

S Legal Regulatory

S Trade regulation elimination

S Cost reduction with offshore manufacturing

S Lower tariffs with Free Trade Agreement

S Economic

S Driving forces increases demand and competition in the market

S Environmental

S Eco-friendly materials development and careful material selection

S “Go Green” in supply chain, product offerings

S Brand image enhancement

Council of Fashion Designers

Of America

S Council of Fashion Designers

S Founded in 1962

S Is a not-for-profit trade association

S There are more than 400 members

S CFDA membership is by invitation

S Members are:

S Womenswear Fashion Designers

S Menswear Fashion Designers

S Jewelry Fashion Designers

S Accessory Designers

S Their mission is to strengthen the impact of American Fashion in the Global Economy

S During the time period of recognition, most emerging companies would truly benefit joining this membership once they have been fully recognized

Council of Fashion Designers

Of America

S Application Process: Applicants must meet certain criteria, submit a visual presentation of their work, accompanied by a detailed written application and letters of recommendation

S Benefits of Membership

S Fashion Designers are able to attend a new members party to start of their membership program

S There are Biannual Membership meetings to discuss about the newest fashion trends, design work and using their design work to provide national service to America

S They help to nurture and advise emerging design talent

S They provide scholarships to design/fashion college student and even internships at their fashion brand companies

S CFDA also teach at a annual fashion education summit for fashion students

S They provide the program Avenue to Industry that addresses to students the main difficulties that they will face in their first job, the program is to advice them

S Annual Award ceremonies, increase in brand recognition and brand loyalty

U.S.A Emerging

Fashion Brands

S Marissa Web

S Started in

2013

S William Okpo

S Started in

2005

S Karolyn Pho

S Started in

2012

S Jonathan

Simkhai

S Sarah Flint

S Started in

2013

S Mathieu Mirano

S Started in

2012

S Rosie Assoulin

S Started in

2012

S Harbison

S Friends &

Associates

S Started in 2013

S Alder New York

S Started in 2011

S Houghton

S Started in 2011

S August Getty

S Started in 2014

The Top Six

USA Emerging Brands

S William Okpo

S Founded by Darlene and Lizzy Okpo

S Named after their father

S Sarah FlintS Known for her shoe

designing

S Jonathan SimkhaiS Women’s wear

designer

S Harbison

S Women and men’s designer

S Karolyn Pho

S Women’s designer

S Rosie Assoulin

S Women’s designer

CFDA Winners

and Members

S 2015 Winners from the Top Six Emerging Fashion Brands

S SWAROVSKI AWARD FOR WOMENSWEAR

S Rosie Assoulin

S WOMENSWEAR DESIGNER OF THE YEAR

S Ashley Olsen & Mary-Kate Olsen

S 2014

S ACCESSORIES DESIGNER OF THE YEAR

S Ashley Olsen & Mary-Kate Oslen

S Both twins have received many recognitions for their work

S 2014 Members

S Rosie Assoulin

S Jonathan Simkhai

Emerging Brand Prices

S William Okpo

S Price Range: $120-

$500

S Sarah Flint

S Price Range: $525-

$1000

S Jonathan Simkhai

S Price Range: $95-

$3000

S Harbison

S Price Range: no prices are shown on designer’s website

S Karolyn PhoS Price Range: Only

show T-Shirt for $45

S Rosie AssoulinS Price Range: $595-

$3490

U.S.A. Emerging Brand Prices

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

WilliamOkpo

Sarah Flint JonathanSimkhai

KarolynPho

RosieAssoullin

Lowest Price

Middle Price

Highest Price

Diversification for Emerging

Fashion Brand

S The main market strategy for emerging fashion brands and old

fashion brands names is diversification

S There are three different types: Concentric, Horizontal,

Conglomerate

S Concentric: is used when a company wants to expand its product line

to include similar products produced within the same firm

S Horizontal: is used when the company wants to produce unrelated

products that appeal to a similar market

S Conglomerate: is used when a company expands to operate in two or

more unrelated industries.

S For emerging fashion brand names they are divided between the

concentric diversification and the horizontal diversification

Ansoff’s Product/

Market Matrix

S For the Ansoff’s Products/ Market matrix

S Emerging Fashion brands are still developing New Product Diversification, New Present Market Development and New Production Development

S Diversification- How does each emerging fashion brand product differ from other emerging fashion brand products

S Factors: Designs, material of the fabric and the overall appearance of the product

S New Present Market Development

S Depending how fast the emerging fashion brand sales are growing, emerging fashion brand names might look into other segments of the fashion market

S New Segments: Shoes, accessories and handbags

S New Production Development

S If there is a growth in sales, emerging fashion brands are going to look into a new product to design

S New Product Process: drawing/ sketching, designing, colors. materials and then price range

Diversification in Emerging

Fashion Brands

S William Okpo (Started in 2005)

S Concentric Diversification: Trying to illustrate the unique aesthetic

that celebrates a immigrants cultivated sense of style against

American cultural sensibilities for women

S Sarah Flint

S Horizontal Diversification: Showcases feminine, delicate

embellishments in her designs to create beautiful and timeless shoes

S Jonathan Simkhai

S Concentric Diversification: Focuses his version on “his girl” the

modern cosmopolitan woman

Diversification in Emerging

Fashion Brands

S Harbison

S Concentric Diversification/Horizontal Diversification: Focuses his

version on beautiful, luxuries womenswear and accessories

S Karolyn Pho

S Concentric Diversification: Uses delicate balance between an artful,

avant-garde ideal with the ease of classical American design

S Rosie Assoulin

S Concentric Diversification: Achieves the beauty of creating women

clothing by reinterpreting the wondrous sights, sounds, and feelings

we all encounter in life through her designs

Work Cited

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Work Cited

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S Middle Market Center. "1Q 2016 Middle Market Indicator." Reports 6.3% Revenue Growth. Middle Market Center, 2016. Web. 22 Mar. 2016.

S "Mid-market Brands Among Fastest Growing Retailers." The BigCommerce Blog. BigCommerce, 08 Aug. 2015. Web. 11 May 2016.

Work Cited

S Estucado, Jeanine. "Porter's Five Forces: J.crew." Prezi.com. Prezi, 14 May 2014. Web. 18 Apr. 2016.

S Vitez, Osmand, and Kristen Osborne. "Types of Diversification." WiseGeek. Conjecture, 2016. Web. 12 Apr. 2016.

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S PVH. "2015 Annual Report." PVH. PVH, 2015. Web. 12 Mar. 2016.

S Remy, Nathalie, Jennifer Schmidt, Charlotte Werner, and Maggie Lu. "Unleashing Fashion Growth City by City." McKinsey & Company. McKinsey & Company, 2010. Web. 3 Apr. 2016.