3. .1 General overview of Arezzo brand
1
Summer 2013 Campaign
Foundation 1972
Trendy
Brand
Easy to wear
Profile
Eclectic
Women
Target 16 – 60 years old
Audience
O F MB EX
Distribution
POS 1
Channels
19 295 878 -
%
Gross 14% 73% 12% 1% Media Plan
Rev.2
Digital Media Print Media TV Media
Point of
BRL 180.00/pair
Sale Price 24 hour interaction VOGUE • ELLE • CLAUDIA GNT • MULTISHOW • REDE
+ 20 channels, • MARIE CLAIRE • Others TELECINE • HBO
Sales including social media, + 46 pages + 350 commercials
BRL 619.1 million
Volume³
websites and blogs + 10 million people + 45 million people
% Gross
+60 million Internet reached reached
64.4% users reached
Revenue
Notes:
1. P = Owned stores; F = Nationwide Franchises; MB = Multibrand Stores (domestic market); EX = Exports.
2. % gross revenue (2011)
3. (LTM = last twelve months – 2Q12). Gross revenue does not include other revenue (not produced by the 4 brands).
4. % total gross revenue (last twelve months – 2Q12) 3
4. .2 Brand Updating
1
1. Strengthening of Arezzo Classic
2. Consolidation of Fast Fashion Strategy
3. Start of GTM Arezzo Project
4
5. .2.1 Brand Updating
1 Strengthening of Arezzo Classic
The continuable products of the brand have been named Arezzo Classic, with
a continuous supply process to mitigate stock outs
Sell In sales of Arezzo Classic 2012
Business Model
(in pairs)
53,084
• Unique logistics process 46,575
• Picking and Packing in an open grid 34,506
29,513
• Weekly and automatic restocking 20,595
28,004
Results Achieved January February March
Janeiro Fevereiro Março April
Abril May
Maio Jun
Junho
• Reduced rupture
Arezzo Classic now responsible for 9% of
• Increased conversion rate
sell-out sales for the chain, with the products
• Improved store profitability not being marked down at sales
5
6. .2.2 Brand Updating
1 Consolidation of Fast Fashion Strategy
Increasingly, fast responses to important international market trends help
reinforce the brand’s position as a pioneer
Participation of Sneakers among footwear
launched in 2012 (in pairs)
Brand that launched the Sneaker trend in Brazil
5%
Agile placing of orders aiming to reduce
development lead time
30 different SKUs in 6 months
95%
Ongoing restocking for stores
+ 200,000 pairs of Sneakers
6
7. .2.3 Brand Updating
1 Start of GTM Arezzo Project
A 6 month in-company project evaluated the business model for the Arezzo
brand, seeking sustainable growth and operational improvements
Research to identify the brand’s positioning potential
Analysis of retail operational benchmarks for the chain’s different stores
Potentialization of the multi-channel strategy
Implementation of the concept to store process
7
8. .3 Brand Updating
1 Start of GTM Arezzo Project: Research
Market research offers important lessons regarding brand positioning and
client demands
Demographic Data Main Messages
Qualitative Research • Arezzo is dominant in the A income class, including the A1 class, in
preference and purchases
Sample: 20 research groups aged • For the B income class, it has entered the competition along with more
18-55 years Brand stature accessible brands, excelling regarding the conversion between
A and B income classes purchases and preference, being the highest in the segment
Purchasers and Non-Purchasers
• For the 18-24 year old segment the level of preference is lower,
Consumer Markets: São Paulo, Rio de Janeiro,
however the 12 month purchases and recent purchases remain high
Recife
• The Arezzo brand is strongly associated with attributes common to
“premium” brands and that carry fashion content
Brand image • No other brand competing in the B class is positioned in this way,
confirming Arezzo’s advantage as a “fashion provider” for this segment
Quantitative Research
Sample: 1580 interview subjects aged18-65 • The consumer segments most "in touch” with fashion and most
years old involved with the category represent ~60% of the total market and
A and B income classes ~55% of the B income class market
Consumer Markets: São Paulo, Rio de Janeiro,
Recife, Brasília, Porto Alegre, Ribeirão Preto, Client profile • The performance of the Arezzo brand in purchases and preference has
Fortaleza increased noticeably in these segments, including among B1/B2
consumers
• The Arezzo brand has the “permission” to move on different levels of
fashion
8
9. .4 Main Challenges for the brand
1
Implementation of GTM Arezzo Project
FLEXIBLE SUPPLY PROCESSES CONCEPT TO STORE
MODEL
Reading of client demand for Perfecting processes placing Potentialize SSS with
pulling products (show room) more emphasis on sell-outs purchasing planning actions
Bets and proposals for and adjustments to product
products made by the creative assortment
team
9
11. .1 Schutz Overview
2
Foundation 1995
Fashion
Brand’s Profile Up to date
Daring
Provocative
Female Target
Audience 18 – 40 years
O F MB EX
Distribution
PDV 1
Channels
22 6 1.551 119
%
Gross 26% 1% 65% 8%
Rev.2
Price at the BRL285.00/pair
Point of Sale
Sales Volume³ BRL282.6 million
% Gross
29.4%
Revenue4
Notas:
1. P = Owned Stores; F = Franchise; MB = Multibrands Store (domestic market); EX = Exports.
2. % gross revenue (2011)
3. (UDM = last twelve months - 2Q12). Gross revenue does not include Other Income (not produced by 4 brands).
4. % Total gross Revenue (last twelve months – 2Q12) 11
12. .2 Latest events involving the brand
2
1. Effective internal actions to serve the
multi-brand channel
2. Retail increase through Company owned
stores and franchises
3. Implementation of changes in the
structure of the merchandising area
12
13. .2.1 Effective internal actions to serve the
2 multi-brand channel
In Oct/2011 we implemented a new structure to the multi-brand channel,
aimed at growth through strengthening management and unique
services …
• Effective commercial management • Service provision through regional
• Implementation of 5 regional showrooms, closer to retailers
coordinating offices • Field service aimed at prospecting
• An increase in the number of
consultants and representatives • Point of sales action (Schutz Club) and
increase in the number of “Schutz Days”,
• Balancing between the sales potential of
thus strengthening retailers’ selling-out
micro-regions and the commercial
coverage area
13
14. .2.1 Effective internal actions to serve the
2 multi-brand channel
…resulting in a sales increase of 21% per release, especially due to the
stronger presence in the country
Annual growth between releases since the internal structural changes:
# cities: +14%
Clients helped: +20%
Client/city: +1%
Average Revenue 21%
$shoes/client: +4%
$/client +6%
$others/client: 87%
14
15. .2.2 Retail increase through privetely
2 owned stores and franchises
In 2012 the brand has broadened its presence in the retail market
through single brand stores significantly …
OWNED STORES FRANCHISES
New stores lojas: 1. Joinville 1
1. São Paulo 1 2. Fortaleza 1
3. Fortaleza 2
2. São Paulo 2
4. Recife 1
3. Curitiba 1
5. Recife 2
4. Belo Horizonte 1
6. Uberlândia 1
5. Belo Horizonte 2 7. Vitória 1
6. Belo Horizonte 3 8. Salvador 1
7. Campinas 1 9. Londrina 1
8. Curitiba 2 10. Cuiabá 1
9. Rio de Janeiro 1 11. Cuiabá 2
12. Goiânia 1
Remodeling/expansion: 13. Campo Grande 1
14. Florianopolis 1
1. Garcia D’Ávila 130 (Remodeling)
15. Florianopolis 2
2. Oscar Freiree 944 (Expansion)
16. São José do Rio Preto 1
3. Iguatemi SP (Expansion) 17. Aracaju 1
4. Morumbi Shopping (Remodeling) 18. Ribeirão Preto 1
5. Market Place (Expansion) • Store project and franchise model tested in 2011
19. São José dos Campos 1
20. Brasilia 1 • More than 20 Franchises in 2012
21. Maceio 1
22. Balneario Camboriu 1 • 5 owned stores expanded/remodeled
23. João Pessoa 1
• New stores with average size of 84m² 15
16. .2.2 Retail increase through privately
2 owned stores and franchises
… with this, retail has become a great deal both for the business and for
the internal management team
Evolution of the sell-out at single brand stores... ...required changes in the internal structure
BRLmillion • Retail team focused on selling-
- Franchises (F)
out, and consisting of no more
than 5 stores/person
- Owned stores (O) ,
,
• Team of franchise consultants
and owned stores already
, ,
, trained
• New franchisees are trained
under the concepts of the brand
and in store operation
Jan Feb Mar Apr May Jun Jul Aug
Integration into RS, by
getting to know both the
#O 18 18 20 20 20 23 - - company and the product
Training in stores,
#F 1 1 2 2 4 6 - - encompassing the several
functions of the team 16
17. .2.3 Changes in the structure of the
2 merchandising area
Collections propelled by a clear understanding of sell-out allowing for a bigger
assertiveness of products
• Strengthening of the role of merchandising as a link between the technical,
commercial and planning areas
• Planning of the line based on different categories and retail price ranges
• A better understanding of the final and multi-brand clients
17
18. .3 Consolidation of the communication and
2 marketing strategies of Schutz
Flagships: concept stores that offer clients a more refined buying
1 experience
Events: strengthening of the relationship with clients in new
2 collections and opening of stores
Social Media: increasing communication between final clients
3 through social networks in order to foster commitment and sales
Spontaneous Media: presence of the brand in the main fashion
4 columns, editorials, and specialized magazines
18
19. .3.1 Flagships
2
Mario de Gusmão 285
• Second flagship in the
Northeast
• Opening in November
Oscar Freire 944 Dom Luis 495 Garcia D’Ávila 130
• Twice as big as the size of the chain’s
• First flagship in the Northeast • Store being remodeled for
biggest store
• A postcard from Fortaleza (Praça the new project
• The productivity of the sales before
Portugal) • Opening in the end of
the expansion was maintained,
October
~R$60mil/m²
19
• 70m² in the store for “non-shoes”
20. .3.2 Events
2 Schutz has put its expertise in practice with events in the multi-brand channel with
the Schutz Days…
• 126 events held between Aug 5 and Sep 29
• 10 big events with a sell out between BRL25
Schutz Day Strategy
and BRL102 mil
• A sell-out event for the multi-brand’s
best clients
• Using standardized materials:
• Printed invitations
• Customized glasses and bottles
• Brand’s displays and bags
• Product/trends training
• Schutz’ exclusive visual merchandising
on the day of the event
• Preparation of stock for the clients to
stand the peak of sales
• Report from salespeople after the event
(pictures, sales results)
• Contest for best Schutz Day of the
chain as a motivational factor
21. .3.2 Events
2 … and has taken its expertise to retail successfully
Schutz has consolidated the model of store opening... ...and brand-name events
• 1st store of the brand: lunch with VIPs, press and an event at the store • Events held in 2012
• Opening sales of BRL20-96 thousand, with flagships
Release of
summer
collection
Goiânia
S.J. Rio Preto
Salvador Promenade
Chandon
Florianópolis Belo Horizonte Vogue’s
Fashion
Night Out
Campo Grande 21
22. .3.3 Social Media
2 Social media has consolidated as an important communication channel with the
brand’s clients
460,000 fans on Facebook (14th
brand)
An average of 110,000 fans on
Facebook talking about the brand (2nd
brand)
140,000 followers om Instagram
900,000 monthly visits to the brand’s
website www.schutz.com.br
22
23. .3.4 Spontaneous media
2
In September alone, the brand was mentioned 49 times .... ... besides the positive effect with Madison 655
• Presence of the brand in the main fashion Repercussion on
In only 10 days... opinion makers’ pages
columns, magazine editorials and
• Mentioned 49 times
specialized magazines in spontaneous
digital media
• 16 citations in
spontaneous press
media
− Vogue
− Elle
− Harpers Bazaar
− Folha de SP
− Isto É
− Outras...
• 205 thousand likes
• Support of celebreties which wear and cite in the Schutz profile
the brand
23
24. .4 Brand’s main challenges
2 Focus on monobrand stores and owned stores
• Mapped-out points
• Suppliers in line with the number of opened stores
• 2013 franchisees are being identified
Strengthening of market-share of the multi-brand channel
• The channel which is the heart and the foundations of the brand
• An important point of contact between clients and Schutz
• Benefited with the opening of single brand stores
Expansion of webcommerce and better use of social network
information
A channel that has an important potential, still being appraised
• A resourceful source of information and communication with the final client
Strengthening of the bags market
• Internalization of the entire development cycle
• The shoes cycle should be as agile and keep the same structure
24
26. .1 Anacapri Brand Overview
3
Foundation 2008
• Pop • Comfort
Profile Brand • Flat shoes • Colorful
• Accessible
Female
Target 12 - 60 years old • Same construction: small • Fast service: shop floor inventory
Variations = new models and standard modeling
O MB
PDV 1
Distribution
• Simplified procurement
channel
8 767
• Vertica display for all products
%
Gross 41% 59%
Rev2 • R&D: Agile development • Lean team and a smaller store
Price at the
R$ 99.00/pair
point of sale
Sales volume³ R$ 25.9 million
% Gross 2.7%
Revenue4
Notas:
1. P = owned stores; F = Franchise; MB = Multibrands Store (domestic market); EX = Exports.
2. % gross revenue (2011)
3. (UDM = last twelve months - 2Q12). Gross revenue does not include Other Income (not produced by 4 brands).
4. % Total gross Revenue (last twelve months – 2Q12) 26
27. .2 Anacapri – Evolution
3 Main areas of progress for the brand
1. SOURCING
2. MULTI-BRAND CHANNEL
3. COMMUNICATIONS AND MARKETING
27
28. .2 Anacapri – Evolution
3 Sourcing
Gains in scale and improved delivery levels
Gains in scale
Sales growth at owned store and multi-brand channels;
Greater flexibility and speed in production cycle;
Better quality at a lower cost.
Increase delivery service level
• Greater interaction between the following departments: development vs. production vs.
logistics
• Reduced lead time
28
29. .2 Anacapri – Evolution
3 Multi-brand
Structuring and redistribution of the sales team with focus on
branding and wallet share
Staff structuring: improved sales results and search for efficiency in the
service costs
Redistribution of regions for commercial staff: optimization of geographic
distribution
Focus on wallet share: service differentiated by strategic client type based on
sales volume and most frequent restocks
Channel assisting in the strengthening of Branding: Visual Merchandising
display and material per family, reinforcing product positioning and trainings
29
30. .2 Anacapri – Evolution
3 Communication and Marketing
Reinforcement of “pop, cool” positioning, undoing the brand’s image as
being “popular” i.e. too accessible
FOCUS on positioning:
POPULAR => POP and COOL!!
Investment focused on social media and
partnerships = great reach and high return with
low investments in marketing
30
31. .2 Anacapri – Evolution
3 Communication and Marketing
Social Media: strengthening of branding, brand communication and tool to
promote increased product turnover
Evolution of Likes – FACEBOOK:
31
32. .2 Anacapri – Evolution
3 Communication and Marketing
Partnerships with noteworthy similarly positioned brands
Main objectives:
2011
• Reinforce positioning:
Strong brands aligned with Anacapri positioning
• Demystify:
Impression of “popular” i.e. too accessible
positioning
• Creation of advertising agendas:
Spontaneous media and social networks
2012
32
33. .2 Anacapri – Evolution 2012
3 Communication and Marketing
Partnership 284 l ANACAPRI - Summer 2013
34. .3 Main Challenges for the brand
3 Adjustment of processes for consolidation of the Anacapri business model
ARCHITECTURAL PROCESS
BRANDING
PROJECT IMPROVEMENT
Reinforcement of branding; Renovation of architectural project; In 2012: structuring of multi-brand
sales team + marketing and
Strengthen the pop and cool Study of a variety of models before communications;
concept coming to final decision;
Staff growth pegged to results of the
operation and leveraging in the
New partnerships aligned with Exercise and choice of the best overall structure of Arezzo&Co;
positioning. aspects of current stores.
Strengthening of the commercial
structures to develop the Anacapri
brand and distribution channels.
36. .1 Alexandre Birman
4 Brand update
Globally distributed and present in almost 200 prestigious points of sale al over the world, the
brand moved its head office to NY - USA
Brand update The brand has two flagship stores in São Paulo
Hiring of a new head of the brand
Strengthening the presence in the
USA
Opening of the 2nd flagship store:
Iguatemi Mall - SP
36
