2. How it all Started
Free People was created by Dick Hayne in the 1970s. It originated as a wholesale business,
selling young women’s clothing to independent boutiques.With his growing success he
decided to open the first Free People store in West Philadelphia. Since then Free People has
expanded into a lifestyle brand for creative, young, fashion conscious women seeking unique
clothing to reflect their own uniqueness. In 1984 the Free People wholesale division was
established. Free People has since then grown into an interactive e-commerce website, brick
and mortar retailer, and continues to operate through wholesale endeavors.
3. “Just who we wanted to reach: a 26-year-old girl,
smart, creative, confident and comfortable in all
aspects of her being, free and adventurous, sweet
to tough to tomboy to romantic. A girl who likes
to keep busy and push life to its limits, with
traveling and hanging out and everything in
between. Who loves Donovan as much as she
loves The Dears, and can't resist petting any dog
that passes her by on the street.”-Free People
Name: Jessica De Grasse
Age: 27
Status: Single
Occupation: Freelance make up artist/musician
Location: SF, CA
Interests: Music, fashion, art, traveling, love
Activities: Band practice, attending shows with
friends, dinner parties, road trips
Hobbies: Writing, singing, painting, antique
shopping
4. Merchandise mix: Free
People caries contemporary
clothing for women,
swimwear,intimates,
sleepwear, accessories,
shoes, gifts, and have
recently added active wear.
5. MERCHANDISE MIX:“Merchandise designed and developed by our brands generally yields higher gross
profit margins than third-party branded merchandise, and helps to keep our product offerings current and
unique.The ever-changing mix of products available to our customers allows us to adapt our merchandise to
prevailing fashion trends, and, together with the inviting atmosphere of our stores, encourages our core
customers to visit our stores and websites frequently.”- www.sec.gov
www.sec.gov
6. •Always something new
•Exclusively developed/designed internally
•Newly popular/emerging designers merchandise
•Ever changing mix of products
•Varying price points
•Specialty “high cost” items: one of a kind gowns, antique
jewelry etc.
7. Free People retail stores are currently located in enclosed shopping malls, specialty retail centers and
upscale street locations. For example, South Coast Plaza, and Free People Hollywood. They also sell
through other specialty retailers such as Nordstrom.
•Unique
•Sensory pleasing
•Inviting
•Cozy
•Open
•Friendly
•Creative
•Seasonally reflective
STORE MODEL/ENVIRONMENT
13. In Store Recommendations:
Nordstrom
According to our segment research
Nordstrom is frequented by our Target Market. Upon
observing the Free People section at Nordstrom we found
that it did not have a strong
presence in the store. Their was minimal signage and
merchandise was widely spread, and did not have a strong
visual impact.
•More Signage
•Integrate accessories
throughout the section, instead
of the large wall display
•Visual Displays
•Free People designated
employee
•Create the FP vibe
•Free Catalogues
14. ✴Always something NEW
✴Connected to social media
✴Interactive-moving
advertisements & short films
✴Aesthetically pleasing and in
touch with their target market
✴Relevant, constantly changing, &
evolving to keep consumers
frequenting stores/website
Website Features
✴What really makes their
website so appealing...? The
effortless translation from
their brick and mortar retail
to e-commerce!
Customers still feel as
though they are getting an
experience!
22. Free People uses cause-related marketing for special events and promotions. However,
it is not one of their major marketing strategies.
23. Free People strives to offer customers an experience.
Wether they are visiting one of their brick and mortar
locations, browsing through a catalog, or visiting their
website, Free People leaves a memorable impression of
their brand. Everything Free People does is saturated in the
creative, bohemian lifestyle they are promoting. From their
reusable cloth bags to their lifestyle blog. Free People has
successfully created omnichannel paths which seamlessly
connect their various websites. They have successfully
captured the market they are selling to. So now that they
have the attention of their target market, how do they turn
these admirers into purchasers?
24. • Similar Target Market
• Strictly e-commerce: Trends &
apparel can be integrated quicker
• New Appeal
• International Brand Recognition
• Larger Target Market
• Cheaper Prices
Competition:
“Free People stores also face competition from small boutiques that offer an individualized shopping
experience similar to the one we strive to provide to our target customers. In addition, some of our
suppliers offer products directly to consumers and certain of our competitors.”- www.sec.gov annual
report 2013
25. Price Zone Analysis
Although the quality of Free People’s clothing is superior to their competition, their price point is
still too high for many items. They do not have the international brand recognition and luxury image
that some of their higher priced items call for. Their price points for some items do not reflect the
buying patterns of their targeted consumers often leading consumers to cheaper alternatives.
High Quality
Low Quality
High PriceLow Price
Forever 21
H&M
Nasty Gal
Free People
26.
27.
28. S T R E N G T H S W E A K N E S S E S
✴Visual company, understands
their target markets appreciation for
a visual experience
✴Strong brand identity
✴Wide range of merchandise that changes with
trends & customer preference
✴Quality of clothing is superior to their
immediate competitors: H&M, Forever 21, Nasty
Gal
✴Consistent and similar experience
throughout omni-channel paths
✴Innovative/unique marketing
O P P O R T U N I T I E S
✴Limited niche market
✴Higher price point than competitors
✴Weak international brand recognition compared to
competitors
✴Department store lacks experience
✴Designer reference on website
✴International Growth
✴More in store events
✴New niche markets
✴New social media platforms
✴Wholesale for emerging new markets
✴Pop up shops
✴Growing space inside department stores (visual
displays, stronger reflection of brand)
✴Integrated marketing
T H R E A TS
✴Competitors have already obtained “first movers
advantage, ex: H&M
✴Fast Fashion
✴Luxury brand, higher quality similar price points
✴External forces-economic changes
✴Saturated Market
✴Modern, futuristic clothing on the rise
29. Tell customers the story behind high priced
specialty items...
Why is is special, luxurious, and worthy of
this high price point?
“Silk chiffon maxi gown with intricate black bead embellishment on
front and around waist. Low scoop back with cutout opening at lower
back. Zips up left side of dress. Fully lined. Top layer of skirt portion
has two tall slits on the front. A dramatic and gorgeous piece made to
turn heads.” *Mara Hoffman
Add images of the story of the dress
Production/design story. Create need/exclusivity
Behind the scenes
30. Accessory Stories
Edgy custom cut pyramid moonstone. Design inspired by ancient Egypt.
*By Katie Diamond
*Sterling Silver with 18k Vermeil, Purple Amethyst *Sterling Silver with 18k
Vermeil, White Moonstone
32. online recommendations
✴Tell customers the designer name with
the image thumbnail
✴The customer does not have to click to find out who
designed garment
this will create garment exclusivity, desire, and add
easily accessible garment differentiation.
✴Use Instagram to promote online sales
specials
✴Instead of “We love how she is wearing
this”....
✴“New barely there bralettes
just in, online only. Head over to
fp.com and get free shipping on all
bralettes for today only!
BEFORE AFTER
Beachriot//Stone Cold Fox
Focus on brand recognition of
featured designers & exclusive sales offers
33. Age: 25-35
Income: 30,000+
Education: Newly graduating, higher
disposable income
Marital Status: Single
Occupation: Art Director
Activities: Going out, shopping, creative
endeavors
Methods of Shopping: Department stores+
online
Income spent on clothing per month: 300+
Fashion resources: Vogue, Fashion Blogs,
social media
Fashion Personality: Unique, explorative,
exclusivity/fashion
story is key
Aspirational shopper who is aware of high
fashion brands and has a higher disposable
income for apparel/accessories. Appreciates
the lifestyle Free People portrays but does not
associate the brand with luxury.
Target Market
34. Reevaluating of target market-Creating a sense
of luxury for high price point items-Behind the
scenes, telling consumers the story of the
garment. Vogue editorials. Expanding and
appealing to a market with a higher disposable
income.
Better representation of brand image through
department retailers, creating an overall Free
People vibe
Creating merchandise differentiation through
website, easily accessible brand recognition on
thumbnails
Use Instagram for informative sales promotions,
since it is their customers most commonly used
source of social media
Keep exploring emerging markets through
wholesale endeavors
Free People Focus