P I E C E X P E A C E
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1 P I E C E X P E A C E Unisex, Street Style, Athleisure Locally in Kent Business Plan Prepared January 2018 Contact Information PIECE X PEACE customerservice@piecexpeace.com S Water Street #120, Kent, Ohio TABLE OF CONTENTS
2 PIECE X PEACE 1 Executive Summary...2 Mission Statement Company Overview...3 Products..3 Market Analysis Strategy...6 Organization...6 Financial Plan and Projection...7 References...8 Executive Summary
3 PIECE X PEACE 2 Piece x Peace is a limited liability company. Founded in 2018, we are a forward-thinking clothing store specializing in unisex loungewear. We believe that all it takes is a few basics to complete a wardrobe, and we can provide those pieces better than any other business. Our product line is made up of clothing that can be worn by males and females; these pieces are offered in neutral colors and can easily be mixed and matched. The clothing is made from materials such as cotton and spandex to ensure comfort during athletic activities. We strive to provide clothes that are easy to wear and easy to accessorize. The heart of our operation will always be the customer. Our core values, while simple, are unique in the athleisure market: Communication: We will maintain constant, open communication with our customers to address their needs and desires, as we feel this is the key to a successful company. Comfort: We will create beautiful, one-of-a-kind pieces that are functional and wearable in even the most extreme situations. Coordination: We will strive to work together as a team to solve problems and create new products. SWOT Analysis STRENGTHS WEAKNESSES Strong presence in T-shirt merchandise category OPPORTUNITIES New business that has not yet built brand awareness THREATS Establish the unisex market in Kent Adapting to Kent consumer base Mission Statement To offer gender-neutral, multi-functional, high quality, timelessly designed fashion streetwear brought to our customers at a reasonable price while leading the way for socially conscious businesses Bringing peace into the world one piece of clothing at a time.
4 PIECE X PEACE 3 Company Overview The goal of Piece x Peace is to connect with the needs and desires of our customers. We believe that by fostering a close relationship with our end users we can develop products that exceed their expectations. Our company evolved because we noticed that several big corporations were struggling to communicate with the marketplace and we felt we could stand out from the crowd by integrating consumers insights into our range. This will be our competitive advantage and will be manifested in 3 ways: Fair business practices/wages Athleisure Unisex clothing Piece x Peace is dedicated to treating each person in our supply chain with dignity and respect. We believe in fair wages and stand firmly against child labor. In order to ensure the safety of our all workers involved in the production of our pieces, we will require all of our suppliers to pass a social compliance audit. They must register all facilities with our company and approve random inspections of our factories. Factory workers will be compensated with a living wage and must produce proof that they are authorized to work in the country. Products Athleisure and unisex have been emerging trends for the past several years. Unisex is a style that is made to be worn by both men and women. According to The Atlantic, The unisex clothing of the 1960s and 70s aspired to blur or cross gender lines (Chrisman-Campbell, 2015). It has its roots in the Victorian Dress Reform of the late nineteenth century, when women s rights activist Amelia Bloomer argued that women should be allowed to wear pants under their shortened dresses. The 1960 s saw the rise of second wave feminism and with it, style that was not specific to either gender. While popular, the movement was brief, and androgynous fashion was waning by the next decade. The book Sex and Unisex: Fashion, Feminism, and the Sexual Revolution argues that the reason for the decline in unisex fashion was due to people in the workforce desiring a more conservative look (Paoletti, 2015). Piece x Peace aims to cater to both genders by creating clothing that will not highlight the human form. Gym clothes are not just for the gym anymore. Since the beginning of the decade, fashionable, dressed up sweats and exercise clothing (DiBlasio, 2014) have taken over the fashion industry. NPD analyst Marshal Cohen has stated that athletic clothing now represents over 17% of the total clothing market and is projected to increase to $350 billion by 2020 (Forbes, 2017). After conducting a survey on Qualtrics, it was determined that over half of the participants preferred to dress in athleisure fashion.
5 PIECE X PEACE 4 Our core product line is designed to be unisex and to function as athleisure. By being loosefitting, our clothing can easily be for both men and women. Our key items include a muscle tank, oversized tee, joggers, leggings, crew neck sweater, hooded sweatshirt, sports bra, and zip-up sweatshirt. These pieces are versatile in that our customers can wear them anywhere from yoga class to the grocery store. Piece x Peace designed our clothing line with ease and comfort in mind. The fashion items we chose to produce are a jean jacket, bomber jacket, blazer, flannel top, cargo jogger, leather jacket, denim jeans, and overalls. Much of our clothing represents a twist on closet staples. Basics no longer have to be gender specific. All of our items will be produced in China in order to keep our production costs low. To diversify and round out our product range, we decided to introduce some national brands to our store. Adidas, Timberland, and Fossil were specifically chosen due to their gender-neutral shoes and accessories. We selected the following products: Adidas Superstars, Adidas Primeknit Shoes, Timberlands, Converse Low Tops, Fossil Everyday Watch, Fossil Smart Watch, and baseball hats. We feel these items will be the perfect complements to our clothes. When selecting our materials, we considered comfort, ease, and current fashion trends. Spandex will be used mostly for leggings, as it is flexible and lightweight. We chose to implement cotton in many of our garments because it is breathable and comfortable. Other fabrics we included in our product line are denim, jersey, and jacquard. The colors that have been chosen for our Autumn/Winter 2019 line of unisex clothing are based around the color trend Dark Wonder on WGSN. Our selections fit perfectly within our line as each can be worn by either gender seamlessly. Additionally, they represent four key base colors that will transition well with the five accent colors that we have selected. The base colors are Stretch Limo, Gargoyle, Oyster White, and Coconut Milk; our accent colors include Leather Brown, Lavender Fog, Blue Wing Teal, Vineyard Wine, and Atlantic Deep. Each of our carefully selected colors comes from Pantone and were chosen based on highly reputable trend forecasting services. Market Analysis As of 2014, athleisure has made up 34.2% of the United States sportswear market (Global Sources, 2015). Currently, the three leaders in this category are Athleta, Lululemon, and Nike, respectively (Seeking Alpha, 2017). Piece x Peace has identified the aforementioned companies as our three national competitors. In addition, two small businesses are also considered to be our competition: Beyond Yoga and Spiritual Gangster. While these brands are closely related in price and offer similar clothing style, what sets Piece x Peace apart is the fact that every piece in our line is unisex. Our competitors offer tanks, leggings, sweatshirts, etc. However, they are sold
6 PIECE X PEACE 5 specifically to one gender. Piece x Peace sells the same articles of clothing but in styles that will fit all genders and body types while sticking to the latest trends in the athleisure industry. Acquired in September 2008, Athleta is Gap Inc. s response to the rapidly growing athleisure market. According to their 2015 annual report, Athleta creates versatile and fashionable performance and lifestyle apparel for the fitness-minded woman who lives life on the go (2015). This company offers activewear and gear for numerous activities: yoga, strength training, and even seasonal sports. Products can be purchased in store, online, and through catalogs. In 2014, Athleta brought in $729 million in sales (The Gap, 2014). Based in Vancouver, British Columbia, Lululemon Athletica, Inc. is an athletic apparel retailer. Since its inception in 1998, this business has aimed to produce yoga-inspired clothing for both men and women. Lululemon has described their target customer as, a sophisticated and educated woman who understands the importance of an active, healthy lifestyle. She is increasingly tasked with the dual responsibilities of career and family and is constantly challenged to balance her work, life and health. We believe she pursues exercise to achieve physical fitness and inner peace (2014). According to Market Watch, Lululemon brought in $1.59 billion in sales in the fiscal year 2014 (2017). Nike, the world s largest supplier of athletic shoes, had sales in excess of $19 billion in 2014, making it our largest national competitor. Business Insider states that Nike s target market is made up of three groups of people: women, young athletes, and runners (Lutz, 2015). Despite running being the brand s core focus, the category has not been performing well over the past few years. Piece x Peace has the opportunity to establish ourselves in this gap in the market by producing clothing specific to runners. We also compete with several small businesses, the most prominent of which are Spiritual Gangster and Beyond Yoga. Spiritual Gangster features several product categories including men s, women s, kid s, swim, activewear, and accessories at a contemporary price point. Their clothing is inspired by yogis, athletes, artists, and musicians worldwide (Spiritual Gangster, 2018). Beyond Yoga, a local brand, creates athletic clothing for women in sizes XXS-XXL. They promote body positivity and pride themselves on producing 100% of their items in the United States. Additionally, Beyond Yoga offers in-store yoga sessions, an opportunity on which Piece x Peace has to capitalize. The target customer of Piece x Peace is broader than that of our competitors. After conducting a survey on Qualtrics, we have determined our target market to be both men and women in Kent, Ohio. The age range we cater to is 20-39, with 59.5% of our respondents falling into the age bracket. Their hobbies include sports and leading a healthy lifestyle. Of the people who were surveyed, 56.19% responded positively to the idea of wearing unisex clothing. Strategy
7 PIECE X PEACE 6 As a new business, it is imperative that we create brand awareness through which we will eventually gain customer loyalty. Arguably, the most effective form of advertisement in the digital age is a company s social media presence. To stand out and connect with our customers, we will be active on Twitter, Facebook, Instagram, Snapchat, and Pinterest. We believe it is extremely important to maintain an open line of communication with the people who shop at our store. This way, we can take suggestions on how to improve the business for our customers and slowly build our market share. Piece x Peace would not exist without our customers, which is why we have prepared to reward them for sticking by us. We will be offering frequent discounts and customer loyalty cards in order to increase traffic to our store. Customers can also send us suggestions on how to improve their shopping experience. Organization Piece x Peace is a limited liability company. This particular structure was selected for two reasons: 1) We needed the legal protections provided in this structure (personal liability is limited) and 2) we only wanted to pay taxes on earnings once (LLCs are pass through tax entities, and they avoid the double taxation issues faced by corporations). As a bonus, it is the least complex of all possible business structures (The Company Corporation, 2018). Our company is made up of seven like-minded individuals dedicated to treating everyone in the supply chain fairly and equally. We are: Allie Reich, Chief Executive Officer Jessica Bock, Chief Operations Officer Ashley Wilson, Vice President Haley Haddix, Brand Ambassador Maddy Perella, Marketing Analyst Yuexin Huang, Creative Director RaShaan Arnold, Social Media Strategist/Public Relations Financial Plan and Projection Six month plan:
8 PIECE X PEACE 7 Season: Buyer: Department: Fall / Winter 2019 Jessica Bock Piece X Peace Actual - This Year Plan Feb Mar Apr May June July Total Beg. Month Stock $34, $39,349 $35,689 $52,160 $37,519 $29,969 $228,773 Sales $21,857 $25,063 $22,732 $33,223 $23,897 $19,089 $145,715 Sales % Total 15% 17.20% 15.60% 22.80% 16.40% 13.10% 100% Markdowns $1,739 $4,988 $4,617 $11,315 $3,563 $2,309 $28,500 Markdown % Total 6.10% 17.50% 16.20% 39.70% 12.50% 8.10% 100% Purchases $28,445 $26,390 $43,820 $29,896 $19,910 -$8,572 $140,128 End Month Stock $39,349 $35,689 $52,160 $37,519 $29,969 $194,685
9 PIECE X PEACE 8 References Athleisure apparel market stays strong. (2015, April 24). Retrieved from Chrisman-Campbell, K. (2015, April 24). How Unisex Clothing Became a Symbol of the 20th Century's Culture Wars. Retrieved from The Company Corporation. (n.d.). What is an LLC? Form a Limited Liability Company incorporate.com. Retrieved from
10 PIECE X PEACE 9 DiBlasio, N. (2014, December 23). Retailers rush to tap Millennial 'athleisure' market. Retrieved from The Gap, Inc. (2015) Annual Report. Lululemon Athletica, Inc. (2015) Annual Report. Retrieved from Lutz, A. (2015, April 7). Nike is going after 3 kinds of customers. Retrieved from Market Watch. (2018). lululemon athletica inc. Retrieved from Paoletti, J. B. (2015). Sex and unisex: Fashion, feminism, and the sexual revolution. Seeking Alpha. (2017, March 23). Lululemon: Running Out Of Steam? Retrieved from
11 PIECE X PEACE 10 Spiritual Gangster. (2018). ABOUT US. Retrieved from Team, T. (2016, October 6). The Athleisure Trend Is Here To Stay. Retrieved from
12 Piece X Peace Start of Block: Default Question Block Q1 What is your gender? o Male (1) o Female (2) o Other (3) o Choose not to answer (4) Q2 What is your age range? o 15 & Under (1) o years old (2) o years old (3) o years old (4) o 35+ years or older (5) Q3 Where do you live? o On campus (1) o Close to Campus (2) o Commuter (3) o I dont go to school (4) Page 1 of 3
13 Q4 What does Fashion mean to you? o Look Cool & Hip (1) o Look Mature (2) o Being Comfortable (3) o A way to express my inner self (4) Q5 What does Athleisure mean? o Workout clothes (1) o Fashionable clothing but still have the ability to workout & be comfortable (2) o I dont know (3) Q6 What matters to you most when you are working out? o Cut off shirt to show off my muscles (1) o Tight pants to show off my booty (2) o I just want to be comfortable (3) o I just want to look good (4) o LOL I dont workout (5) o Heck, I don't workout but I wear workout clothes (6) Page 2 of 3
14 Q7 What is your go to look? o Athleisure - Hat, Sneakers, Sweatshirt, Leggings, Joggers (1) o Hottest New Trends - Fur, Snake skin heels, Sequins (2) o Street Styles - Adidas, Ripped jeans, Leather jacket (3) o I really dont care (4) Q8 How do you feel about wearing unisex clothing? o I could rock it (1) o I think it would be pretty cool to shop at a unisex store (2) o I would never do this (3) o I'd have to try it on (4) o I would be too intimidated to go in the store (5) Q9 Thank you! o Good luck with unisex clothing! (1) o You should try a different idea! (2) End of Block: Default Question Block Page 3 of 3
15 Default Report Piece X Peace February 12th 2018, 7:28 am MST Q1 - What is your gender? # Answer % Count 1 Male 21.43% 45 2 Female 78.57% Other 0.00% 0 4 Choose not to answer 0.00% 0 Total 100% 210
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17 Q2 - What is your age range? # Answer % Count 1 15 & Under 0.00% years old 17.14% years old 59.52% years old 9.05% years or older 14.29% 30 Total 100% 210
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19 Q7 - Where do you live? # Answer % Count 1 On campus 23.33% 49 2 Close to Campus 30.48% 64 3 Commuter 11.43% 24 4 I dont go to school 34.76% 73 Total 100% 210
20 Q8 - What does Fashion mean to you? # Answer % Count 1 Look Cool & Hip 10.00% 21 2 Look Mature 5.24% 11 3 Being Comfortable 25.71% 54 4 A way to express my inner self 59.05% 124 Total 100% 210
21 Q9 - What does Athleisure mean? # Answer % Count 1 Workout clothes 12.86% 27 2 Fashionable clothing but still have the ability to workout & be comfortable 72.86% I dont know 14.29% 30 Total 100% 210
22 Q4 - What matters to you most when you are working out? # Answer % Count 1 Cut off shirt to show off my muscles 2.86% 6 2 Tight pants to show off my booty 6.19% 13 3 I just want to be comfortable 60.95% I just want to look good 10.95% 23 5 LOL I dont workout 8.10% 17 6 Heck, I don't workout but I wear workout clothes 10.95% 23 Total 100% 210
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24 Q3 - What is your go to look? # Answer % Count 1 Athleisure - Hat, Sneakers, Sweatshirt, Leggings, Joggers 46.19% 97 2 Hottest New Trends - Fur, Snake skin heels, Sequins 3.81% 8 3 Street Styles - Adidas, Ripped jeans, Leather jacket 31.90% 67 4 I really dont care 18.10% 38 Total 100% 210
25 Q5 - How do you feel about wearing unisex clothing? # Answer % Count 1 I could rock it 40.00% 84 2 I think it would be pretty cool to shop at a unisex store 16.19% 34 3 I would never do this 10.48% 22 4 I'd have to try it on 30.95% 65 5 I would be too intimidated to go in the store 2.38% 5 Total 100% 210
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27 Q11 - Thank you! # Answer % Count 1 Good luck with unisex clothing! 92.72% You should try a different idea! 7.28% 15 Total 100% 206
28 . Style Description Color Cost Retail #1 Muscle Tank Grey $8.00 $49.00 #2 Oversized Tee White $12.24 $54.00 #3 Joggers Dark Blue $17.79 $98.00 #4 Leggings Black $23.00 $ #5 Crew neck Sweater Grey $22.50 $99.00 #6 Hooded Sweatshirt Olive $27.50 $ #7 Sports Bra Maroon $12.00 $52.00 #8 Zip-Up Sweatshirt Dark Grey $19.50 $ TOTAL TREND LINE Style Description Color Cost Retail #1 Jean Jacket Denim $33.70 $ #2 Bomber Jacket Olive $18.70 $ #3 Blazer Heather Grey $41.08 $ #4 Flannel Top Dark Green $10.32 $79.50 #5 Cargo Jogger Grey $18.84 $ #6 Leather Jacket Black $58.87 $ #7 Denim Jeans Denim $17.50 $ #8 Overalls Black Denim $18.99 $ TOTAL Accessories Li Style Description Color Cost Retail #1 Adidas Superstars Grey $68.00 $ #2 Adidas Prime Knit Shoe White $68.00 $ #3 Timberlands Wheat $70.00 $ #4 Timberlands Black $70.00 $ #5 Timberlands Grey $70.00 $ #6 Converse Low Tops White $20.00 $50.00 Converse Low Tops Black $20.00 $50.00 #7 Fossil Everyday Watch Leather $50.00 $ Fossil Smart Watch Silver $ $ #8 Baseball Hats Black $3.99 $15.00 TOTAL Merchandise Total- $32,036.85
29 Units Total Cost Total Retail IMU% CMU% 95 $ $4, % 83.67% 95 $1, $5, % 77.33% 85 $1, $8, % 81.85% 85 $1, $10, % 80.51% 65 $1, $6, % 77.27% 65 $1, $7, % 75.00% 45 $ $2, % 76.92% 65 $1, $7, % 83.47% 600 $10, $51, E Units Total Cost Total Retail IMU% CMU% 50 $1, $9, % 82.98% 50 $ $8, % 89.49% 50 $2, $9, % 79.25% 75 $ $3, % 87.02% 45 $ $6, % 85.28% 50 $2, $12, % 76.36% 75 $ $6, % 87.32% 45 $ $7, % 87.17% 440 $10, $65, ine Units Total Cost Total Retail IMU% CMU% 25 $1, $4, % 60.00% 25 $1, $4, % 60.00% 25 $1, $4, % 63.16% 25 $1, $4, % 63.16% 25 $1, $4, % 63.16% 25 $ $1, % 60.00% 25 $ $1, % 60.00% 5 $ $ % 60.00% 5 $ $1, % 60.00% 60 $ $ % 73.40% 245 $10, $28,150.00
30 S M L 30% 35% 20% S M L 30% 35% 20% % 35% 20% 30%
31 XL XL 15% 100% % 100% % 100%
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