Balenciaga: Retail Analytics Report

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[...] KEY PERFORMANCE INDICATORS MERCHANDISING NET PROFIT Turnover – expenses = 185.104k – 132.136k euros Can reduce its expenses in terms of employee costs, prices, order optimization CUSTOMER RETENTION Know how much new customers the brand gain Rate important for stores : customer loyalty at the heart of the concerns with personalized contact through tablets. [...]

[...] Balenciaga: Retail Analytics Report BRAND PRESENTATION HISTORY OF BALENCIAGA BRAND CREATION founded by the Spanish Cristóbal Balenciaga in : was aquired by PPR group : popularity becoming important 2015 : Demna Gvasalia was appointed artistic director of Balenciaga Mission : ambition, creation, innovation, leadership OFFER, CODES, VALUES Elegant - Sophisticated - Sculptural - Streetwear - Androgynous - Modern Ready-to-wear collections, leather goods, shoes, accessories, glasses and perfumes Contemporary, minimalist, avant-gardist, streetwear and androgynous style Optimistic & engaged brand BRAND PRESENTATION BRAND EVOLUTION Digital communication : e-shop / social network ➔ Goal – interact with customers, promote the image and provide experience Create specific environment around the brand : - many stores have been opened (control brand image - univers) Disruptive brand : - Products, materials, production processes used - Diversity with models (SS 20) ➔ at the heart of its challenges : evolving in this direction Eco-responsible brand : - Last Fashion show : very “sustainable” setting – 6500m2 of blue velvet de-woven & recycled – 2500 m2 of carpet recycled – 2500m2 of lighting are given to a company that re-lets them (3years) Most important contributors to the turnover of Kering BRAND PRESENTATION DISTRIBUTION - 156 stores in mature market and Asia Advantages: own place, own sales, respect brand image, experience New concept stores on Madison Avenue: video screens, 3D models, personalisation workshop = provide experience & build loyalty Selective distribution strategy : to respect the image of the brand Same way: flagship Saint Honoré - On the Balenciaga website and sites of department stores or online distributors The average growth rate : 87% Online sales site available in 97 countries Millennials : sensitive to this method - Franchises - Outlets stores - Duty free shops - Specialized stores MYSTERY SHOPPING BRAND EXPERIENCE 5 stores visited : Cannes, Monaco, Rome, Milan, Nice in Galerie Lafayette WELCOME Security at the door, employees waiting next to them Greet us, following by welcoming us in the “Balenciaga World” Offer to put bags aside behind a counter Always smiling, ask if this is the first time Balenciaga ATTITUDE & BEHAVIOUR Welcoming and friendly Approachable, but stay at a distance Well trained; speak 3 to 6 languages Employees generally all wear the same “uniform” CLIENT DISCOVERY Very intuitive and airy : enough room to move and is not overwhelmed Customers that are “just looking”, walk freely Customer that have something in mind, lead to the category or product CREATE DESIRE Present the latest products, or the latest fashion show Lightning and position add values Bags, accessories and shoes put forward Try the products creates a desire to buy CONVINCE & CONCLUDE Assess the needs and style of the customer Offer to order the product Creating a relationship between product and customer More likely to spend if excellent customer treatment PERSONALISATION About personal experience lived, mostly personalised Offering advices and products depending on customer Offer drinks, so customer feel important Employee dedicated to customers needs BRAND EXPERIENCE BRAND EXPERIENCE CLIENT LOYALTY Loyal customers. Attract fashionistas. [...]

[...] Usually located on the second floor or the negative floor KEY PERFORMANCE INDICATORS MERCHANDISING SALES PER SQUARE FOOTAGE Depends of the location, size, numbers of visitors Ex Nice : 5 items / 20 square meters = 0,25 = 4m2 for one piece of sale : good ratio Pay attention to the enhancement / experience offered / range of product SALES PER EMPLOYEES : HOW MANY SALES Adapt compensation strategy : increase sales / 3 : 16,667€. Persuasive, proposed experience appeals to consumers : despite geography & number of sellers CONVERSION RATE Allows to see attractivity : compare numbers of sales to numbers of visitors Nice : 5 purchases / 35 = 14,3% Attractive offers, demonstrate the commercial efficiency of salespeople, merchandising, instore digitalization and the experience provided. [...]

[...] Exchange with the customer post-visit (Whatsapp, private email . ) Loyal clients have a sales person designated to them CRM / CLIENTELING High level of service Close and personalized relationship Omnichannel strategy : collects data on tablets Real-time access to inventory MERCHANDISING VISUAL MERCHANDISING ARCHITECTURE Since Alexander Wang redesign to reflect the brand Black and white, noble and strong materials Mirrors, lights, and glass windows to inspire an avantgardist spirit "Museum of fashion” INSIDE DISPLAY Furniture: classic, minimalist, black and white metallic clothing racks illuminated tables for small accessories wall-sized shelves for shoes and bags Men and women products are separated, each having their own accessory area MERCHANDISING VISUAL MERCHANDISING PRODUCTS View of their products from outside so no window display - shoes generally one sided - each piece only once, in the smallest size - each rack of clothes with 10 or 15 pieces - not be displayed more than 3 times Bags in hot zones, shoes and other accessories in “warm" zones Small accessories and perfumes towards the cashier MERCHANDISING ZONES RED ZONE The “hot spot”, the first point of eye-contact and accessible area Seen from outside of the store and found at the front New products and classics displayed on the first floor GREEN ZONE The “warm zone” Easy to access Usually located on the left of the store BLUE ZONE The "cold zone" Not highly visible or not easily accessible Used for 2 types of products, the less sold ones the most precious products. [...]