Filippa KGo-To Market Strategy for Germany

Team:

Katharina Redlefsen, Magnus Hannemann,

Oscar Fernandez, Jacob Claussen, Rolf Martin Falch,

Thassilo Nowacka, Janne Müller-Wieland4.03.2016

‘As a general rule, for every two retail stores opened across Europe,

one store has closed down.’Market Line 2015

TODAY’S GOALS

Understand German Retail Market

Check Brand Awareness

Know Market Development Strategy

Find Store Locations

AGENDA

1 FILIPPA K

2

3

4

5

6

GLOBAL PEERS

GERMAN RETAIL MARKET

LOCATION ANALYSIS

CUSTOMER POTENTIAL

MARKET DEVELOPMENT STRATEGY7

BENCHMARK SWEDEN

FILLIPPA K

FILIPPA K - MISSION & VISIONSUSTAINABILITY AS THE GUIDE TO GRWOTH

“I set out to build a brand with substance and

truth, not dependent on the superficial trends

of the fashion industry.”

Filippa Knutsson

Founder of ‘Filippa K.’

Long Lasting Simplicity

Reducing

Repairing

Reusing

Recycling

Frontrunner

Filippa K – Lease

Secure Labor Standards

Code of Conduct

ELLE Conscious Award

THE LOOK

GLOBAL PEERS

TARGET GROUP FOR FILIPPA K

Actively interested in design

Could afford to choose which brands they bought

Sustainable consumption and tired of bad choices and wasteful shopping

Desires comfort and doesn't want to be reminded of their clothes when they´re wearing them

Busy, educated and confident

30-45 years old- at this age a customer has the buying capacity to choose selectively

Easy, simple, long-lasting fashion

Simplicity as a form of luxury

GLOBAL COMPANIES

GLOBAL COMPETITOR MATRIX

Style

Price

MainstreamClassic Fancy

Mediu

mL

ow

Hig

h

NUMBER AND AVG. PRICE PER ITEM

€#

Mal

eFe

mal

e

NUMBER AND AVG. PRICE PER ITEM

7 27 585 66

200 €

450 €

110 €

350 €

90 €

16 25 20 25 30

130 €

300 €

130 €

280 €

80 €

1952

1858 84

220 €

320 €

150 €

300 €

80 €

1755

3417

3470 €

90 €

50 €

120 €

40 €

€#

Mal

eFe

mal

e

SUSTAINABILITY AT FILIPPA KFRONT RUNNER

SUSTAINABLE MATERIALSTencel fabric

Corozo buttons

RECYCLABLE

TRANSPARENT SUPPLY CHAIN

MINIMAL USE OF RESOURCES

MINIMAL WASTEOptimized sewing patterns

LESS CHEMICALS

MINIMAL EMISSIONS

RESPECT FOR PEOPLE & ANIMALS

LONG-LASTING DESIGN & QUALITY

PERFECT FIT & COMFORT

LONG-LASTING SIMPLICITY

SUSTAINABILITY AT FILIPPA KFRONT RUNNER

BENCHMARKSWEDEN

SUCCESS FACTORS SWEDEN A BENCHMARK

Scandinavian design tradition

Filippa K as ‘Wonder of Swedish Fashion’

Chain store concept throughout Sweden

Mayor Players in Swedish

Fashion Industry

Issues Swedish fashion brands present in all Scandinavian markets

Importance of cities as markets

Importance of traveling and the resulting preferences

Potential Germany and the Netherland are well established markets for Swedish

fashion

Germany is by tradition Sweden largest export country

GERMAN RETAIL MARKET

TOTAL APPAREL RETAIL GROWTH UNTIL 2019

7,4%GERMANY

Now 58 Bil.€

2019 62,3 Bil.€

Denmark

5,7%Now 4 Bil.€

2019 4,2 Bil.€

Sweden

Now 6,7 Bil.€

2019 7,0 Bil.€

5,7%

Source: Market Line Research 2015

MARKET SEGMENTATION AND DISTRIBUTION

Womenswear

54,4% Menswear

31,4%Kidswear

14,3%

Retailers OthersDepartment

StoresDiscountersSupermarkets

58.6%

26.3%

7.6% 6.5%0.1%

83.4%

1.4% 4.9% 0.1%10.2%

Source: Market Line Research 2015

TOP SHOPPING METROPOLISES

Berlin

Hamburg

Munich

Cologne

Frankfurt

Düsseldorf

Demographic

Forecast (%)

2012-2030

Retail Relevant

Purchasing Power

Index 2013

Source: CBRE 2014

3%

5%

-0.3%

10%

10%

8%

TOP SHOPPING METROPOLISES

Berlin

Hamburg

Munich

Cologne

Frankfurt

Düsseldorf

Demographic

Forecast (%)

2012-2030

Retail Relevant

Purchasing Power

Index 2013

114.2

110.1

107.2

123

108.7

97.3

Source: CBRE 2014

CITY ANALYSIS ON RENT PRICE VS. PURCHASING POWER AND AVG. FREQUENCY

Berlin

Bonn

DortmundDüsseldorf

Essen

Hamburg Neuer Wall

Hamburg -Mönckeberg

Karlsruhe

Köln

MunichMarienplatz

MunichTheatinerstr.

Stuttgart

75

125

175

225

275

325

375

88 93 98 103 108 113 118 123 128

Avg.

Hig

hest R

en

t P

rices in E

UR

Purchsing Power Index

Bubble Size: Avg. Frequency per Hour on Saturday

Reference: Munich Marienplatz: 14000+

Source: Engel&Völkers 2015

LOCATION ANALYSIS

CITY OF HAMBURG

Source: ESRI / CITY of Hamburg 2015

CENTER OF HAMBURG WITH DISPOSABLE INCOME

National avg.: 20,900€Data: esri 2015

Source: ESRI / CITY of Hamburg 2015

CENTER OF HAMBURGDISPOSABLE INCOME WITH POPULATION DENSITY

Source: ESRI / CITY of Hamburg 2015

TARGET AREA: HARVESTEHUDE INDEX: 115 (West-Germany: 100)

Target Area

Source: ESRI / CITY of Hamburg 2015

CUSTOMER POTENTIAL

People Interviewed: 100

WHICH MEDIA DO YOU USE WHEN IT COMES TO FASHION?

Magazines 73% | Blogs 52% | Facebook 45% | Pinterest 20% | Twitter 9%Instagram 51% |

Scandinavian

POTENTIAL CUSTOMER PERCIEVED FILIPPA K AS…

Quality

Modern

S

u

s

t

a

i

n

a

b

l

e

Stylish

Cle

an

Classic Simple

& Elegant

DO YOU KNOW FILIPPA K IS SUSTAINABLE ORIENTED?

YES

88%12%

72k

541k

31k

231k 274k115k

33k210k

355k

45 50 10 40 2,000 40 6 30 40

Followers

79k

1000k

8k219k

413k37k 51k 210k 396k

1,300 910 150 1,800 4,600 500 600 3,200 1,500

2k

24k

1k6k

36k

k

11k

20k27k

771 1,500 355 714 2,900 0 3,300 3,500 2,400

✖ ✔ ✔ ✔ ✔ ✔ ✔ ✔✖

Avg.

Likes

per Post

ONLINE COMMUNICATION ITENSITY

USER RESPONSE IN SOCIAL MEDIA RATIO

Drykorn

Filippa K

Lala Berlin

& Other StoriesSandro

Kooples

COS

HIGH

LOW

Source: Obtained Online Data

ORIGINAL CONTENT IN SOCIAL MEDIA

Kooples

& Other Stories

Lala Berlin

DrykornSandro

Acne

Filippa K

HIGH

LOW

Qualitative Analysis

FILIPPA – K MARKET DEVELOPMENTSTRATEGY

MULTI-CHANNEL STRATEGYSALES

Growth in all channels

Hamburg: AEZ / Nikolai Quartier

Online: Control Distribution and Discounts

Focus on boutiques, selected department

stores & CS in Hamburg and Munich1.

2.

Today

Open New

Concept Stores

Berlin

Hamburg - Eppendorf

München

Control Online Sales

Zalando

Filippa K - Shop

Boutiques

Online Boutiques

Go into Multi-

Branded Stores

Earned

MULTI-CHANNEL STRATEGYCOMMUNICATION

BoughtOwned

In-Store

Adverts

Advertising

TVCTraining

Brochures

PR / Online

Social Media

Bloggers

Add BOUGHT media to EARNED & OWNED

activities (maybe TV campaign)

Primary focus on EARNED & OWNED media

Secondary focus on BOUGHT media

(ads in selected magazines)

1.2.

3.

Today

MAGAZ

INES

STORE LOCATION RECOMMENDATION

TARGET AREA: HARVESTEHUDE INDEX: 115 (West-Germany: 100)

Target Area

Source: ESRI / CITY of Hamburg 2015

EPPENDORFER BAUM SHOPPING AREA AS PRIME RETAIL LOCATION

Multi-Branded Retailers

Liedloff

Petra Teufel

Anita Hass

GOSCHE

Paula

Classico

Mili (Nordic Style)

Queen for a Day

Concept Stores

Liebeskind

MAC

Palmers

Source: ESRI / CITY of Hamburg 2015

ATTRACTIVE FLOORSPACE WITH HIGH VISITOR FREQUENCY

4.000€Rent per Month

251m² 138m²Total Sales Floor

Source: Dannemann Immobilien – 27.02.2016

QUESTIONS?

THANKS!

0 2 4 6 8 10 12 14 16

Quality

Modern

Sustainability

Stylish

Clean

Classic

Simple & Elegant

Scandinavian

What Do You Associate With Filippa K?

People Interviewed: 100

Answered: 41

0 20 40 60 80

Female

Male

Gender

0 10 20 30 40 50 60

20-29

30-39

40 -

Age

People Interviewed: 100

0 5 10 15 20 25 30 35 40 45

No

Yes

Do You Know Filippa K Is Sustainable Oriented?

People Interviewed: 100

Answered: 45

0 2 4 6 8 10 12

Sustainable

Classic

Durable

Simple

Similar

Unknown Brand

Timeless

How Is Filippa K’s Image in Comparison With The Other Brands?

People Interviewed: 100

Answered: 45

8

20

52

73

51

9

45

0 10 20 30 40 50 60 70 80

Other

Pinterest

Modewebsites / Blogs

Magazine

Instagram

Twitter

Facebook

Which Media Do You Use When It Comes To Fashion?

People Interviewed: 100

0 10 20 30 40 50 60 70

Tiger of Sweden

Kooples

Drykorn

Lala Berlin

Sandro

Acne

Stella McCartney

Filippa K

Do You Know?

People Interviewed: 100

Answered: 86