GROWING GRASSROOTS: Creating an American Brand for the Future Ken Nisch, Chairman JGA Heath Carr, COO Bedrock Manufacturing
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1 GROWING GRASSROOTS: Creating an American Brand for the Future Ken Nisch, Chairman JGA Heath Carr, COO Bedrock Manufacturing By 2020, Millennials and Gen Z-ers will become the dominant retail customer segment. Millennials will spend more than $200 billion annually, while Gen Z will contribute $44 billion. Sources: NY Times, Move Over, Millennials, Here Comes Generation Z; Entrepreneur, How to Market to Gen Z, the Kids Who Already Have $44 Billion to Spend; Advertising Age, Millennials Want to Party With Your Brand But On Their Own Terms 1
2 Gateway Cities like Miami, Los Angeles, New York, and Chicago are and will remain the shopping destinations for the consumer, both domestic and internationally. New Orleans, Portland, Pittsburgh and Detroit are shaping urban communities to attract Millennials and Gen Z-ers with creative white space, matching their passions with platforms for self-expression, community, and environment. 2
3 These digital natives seek consumption: Drinking, eating, buying in different ways. Beyond consuming, they seek to exercise their maker passion. They are makers of opinion, content, blogs, communities and of course, product. 3
4 Millennials and Gen Z-ers also crave sustainable urban spaces. At the core, there are ESSENTIAL INGREDIENTS to developing successful retail properties of the future. 4
5 SHOPPING DINING We call this: MAKE-TAILING LIVING PLAYING 5
6 Make-Tailers embody a driving force in the sense of community and partnerships. NEW ORLEANS 6
7 NEW ORLEANS MAKE-TAILER: Grandmother s Buttons NEW ORLEANS MAKE-TAILER: Fleurty Girl Owner Susan Davis 95-year-old grandmother donated her collection of buttons and was her inspiration. Buttons used in the jewelry range in age, but the average is between 100 and 130 years old. All jewelry still made in St. Francisville, about two hours northwest of NOLA. Fleurty Girl is a play on the fleur de lis, which also means rebirth. Founder Lauren LeBlanc, single mom of three, started Fleurty Girl on single tax refund. T-shirt designs wink at local colloquialisms and pastimes and pay homage to the city s rebirth after Hurricane Katrina. 7
8 Co-founders Sam Huff and Jevan Lautz grew up in Sisters, Oregon, a small town known for its saddle-makers and tack shops. PORTLAND MAKE-TAILER: Tanner Goods Huff s grandfather s leather box and camera strap sources of inspiration. From inspiration to design to fabrication, everything is done under one roof. PORTLAND 8
9 PORTLAND MAKE-TAILER: Danner Boots Founded by Charles Danner in 1932, superior craftsmanship mattered regardless of economy. Primary factory in Portland for the last 80 years. Danner Boots Heritage: Quality, Craftsmanship, Utilitarian. PITTSBURGH 9
10 Designed and hand manufactured, start to finish, in Pittsburgh studio. Established in 2007, Founder Wendy Downs accidentally created Moop bags after failing to design a dress. Small and talented team, designing, making, packing and shipping each and every Moop bag. PITTSBURGH MAKE-TAILER: Moop Shop Independently Designed. Ethically Manufactured. Made to Love & Last. Purveyor of local artisans Reiko Yamamoto, Studebaker Metals, Tugboat Printshop Founded in 2013, owner Emily Slagel opened the shop with the focus on ethical supply chain. PITTSBURGH MAKE-TAILER: Mid-Atlantic Mercantile 10
11 In 1965, population was 2.5 million J.L. Hudson Dept. Store was 2,124,316 sq. ft., making it only second in size to Macy s in NYC DETROIT DETROIT:THEN 11
12 By 1998, Detroit s population dwindled to 967,360 with residents moving to the suburbs. With a dying downtown shopping district, J.L. Hudson was imploded, becoming the tallest structure to ever come down. 150,000 people engage in CBD daily Positive impact by Bedrock and Ilitch organizations Over 30 independent restaurants in Midtown Over 2M visitors attend special events annually in Midtown Source: Bedrock Real Estate DETROIT:NOW 12
13 BEDROCK S IMPACT Source: Developed over 13M sq. ft. of Detroit space Acquired over 80 properties in 4 years Bedrock Real Estate Expected to have a $1.8 billion economic impact in Entertainment District Owns the Detroit Tigers, Detroit Red Wings, Motor City Casino, Little Caesars Pizza ILITCH S IMPACT 13
14 DETROIT COMMUNITY: Activities/Special Events EMERGING RETAIL: Restaurants/Local Shops These various community-driven activities have influenced how the retail landscape has evolved in emerging neighborhoods. 14
15 Coffee house, art gallery, retail store and educational workspace. Store is tribute to Will s brother, Bob, who ran apparel chain in Metro Detroit. Founder Will Adler, born and raised in Detroit. Midtown location is 8 th and largest store. DETROIT MAKE-TAILER: Will Leather Goods Footprint is more condensed and city right relative to the square footage, with its natural, yet downtown sensibility. Design partners, local artists and fabricators joined with the Whole Foods team to create a fusion of food and place through reclaiming, repurposing, and reimagining. DETROIT MAKE-TAILER: Whole Foods Market 15
16 "Detroit: City of Design" Detroit Creative Corridor presents a film by Stephen McGee 16
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47 KEY TAKEAWAYS MILLENNIALS AND GEN Z-ERS: Will redefine the who, what, when, where and how of shopping through passion for self-expression, creativity, and shifting attitudes towards consumption. MAKE-TAILING: By combining the activities for work, living, play, and making, as a catalyst for organic revitalization of communities, particularly in non-gateway Cities where traditional retail is largely absent. SHINOLA: In choosing Detroit to partner with local institutions supporting legacy and emerging suppliers, demonstrating the value of place and authentic spaces is a model for large and small, well-resourced and bootstrapping entrepreneurs. KEN NISCH Chairman, JGA info@jga.com THANK YOU! HEATH CARR COO, Bedrock Manufacturing info@shinola.com 47
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