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RASTRO

MARIA NOELLE BOTELLO

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Strategic and Customer Orientation

Gap has promised to use sustainable cotton by 2021 …but what about acquiring a sustainable brand?

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Consumers and Market Opportunity

  • Ethical fashion market is expected to reach $8.25 billion in 2023
    • North America = fastest growing region
  • 2/3 of consumers state sustainability is important to limit impacts on climate change.
  • 32% of consumers would pay more for brand that is committed to sustainability
  • Consumer segment: Fashionista
    • Mainly women from middle to upper class
    • Motives: Recognition and Self-expression
    • Very high concern toward trends

Who would be more willing to invest in sustainable clothing?

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Competitive Landscape

Some companies leading the way in sustainability

  • “12.5% of global fashion companies have pledged to adopt more sustainable practices by 2020” (BBC News)
  • More than half of the industry players want at least half of their products to be made with sustainable materials by 2025 (Forbes)
  • Number of sustainable apparel items available worldwide surged from 58,000 SKU in 2016 to over 353,000 in 2018 – a 500% increase (Forbes)

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How are we meeting customer’s sustainability needs and positioning the brand?

  • Enable and Encourage Repair
    • Offering warranty and repairs on all products
    • Providing tips on website about how to take care/repair any product (video/blogs)
  • Care for employees
    • Support groups
    • Improve conditions in all parts of the supply chain
    • Health Insurance due to COVID-19
    • Gap Face masks
  • Viable alternatives/materials
    • Always innovating to find new materials
    • Ex: Pineapple fiber or hemp

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Product Assortment �(Loungewear)

  • Earth colors as a reminder of taking care of the environment
  • Staying inside while being connected to nature

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Matching Sets

Head Accesories

Slippers

Face Masks

Kimono/Robes

Dresses

-Pants

-Tops

-Sweaters

-Shorts

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Pricing Strategy

  • Head accesories:
    • Scrunchies
    • Headbands
  • Slippers
  • Face Masks
  • Dresses
  • Kimonos

  • Matching Sets (sold separately):
    • Pants
    • Shorts
    • Tops
    • Sweaters

$5.99-12.99

$9.99-19.99

$25.99-35.99

$9.99-19.99

$25.99-49.99

$29.99-45.99

$25.99-40.99

$25.99-35.99

$25.99-40.99

$35.99-49.99

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Initiatives to meet customer needs

Top initiatives consumers believe retailers should embrace: (McKinsey & Company)

  1. Label clothing as sustainable
    1. Specify materials and processes
  2. Advertise sustainability in all campaigns
  3. Allow shoppers to trade in clothes for discounts
    • Ex: bring an old pair of pants to get 10% off

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Customer Experience and Engagement

  • Linking online and in-store shopping experiences.
  • Consistency
  • Customer’s Journey:

For these 3, we will implement mainly digital marketing strategies

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In-store Technology

  • Virtual Rail
    • Customers can see clothing in real size on a screen

  • Interactive Kiosks
    • “Insta opinion” – Customers take pictures in real time and they are rated by other customers in the kiosks
    • Online purchasing at the store – get unavaibale sizes

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Digital Marketing Strategies

  • Option for customers to leave reviews along with pictures of them wearing the product on the website

  • Giveaways!
  • Style Guides
  • Brand Ambassadors
    • Natural people!
  • Email Marketing Campaigns
    • Personalized content
    • Reminder about shopping cart
    • Behind-The-Scenes

 *43% of consumers now use online instead*

(McKinsey & Company)

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Financial Strategy

  • Pricing:

  • Profitability:
    • Premium pricing allows to cover eco-friendly raw material costs and fair wages
    • Low-cost digital marketing strategies
    • Web-based sales
    • Low inventory costs driven by specific target segment

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Financial Strategy

  • Opportunities:
  • Increase in online shopping
  • Consumers are becoming consicous of climate change (long-term)
  • Consumers are willing to pay more for sustainable fashion (long-term)
    • COVID-19 and climate change

  • Risks:
  • Ensure sustainability in the supply chain
  • Cost of production might increase as competitors become more sustainable (long-term)
  • Economic crisis due to COVID-19 (short-term)

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APPENDIX

MOOD BOARD