VERTICAL
INTEGRATION
BRIAN WINSTON
WINSTON COLLECTIVE
PRESENTED AT SCAD
May 27th, 2014
BIO

33 Years of Industry Experience

Retail- Specialty Department Store (Sales, Floor
Management, Buyer, Divisional)

Wholesale- Manufacturing base in Montreal,
Toronto, Italy, and Asia- Showrooms in New York
and Toronto

Brand Development & Consulting

Launches and projects

Representation Business (15 Collections, North
America: New York and Toronto)
•
Sn.Canadian Apparel Expert)- Columbia, Peru,
Bolivia and Equador- Development of Product,
Packaging, Sales, Branding and Logistics
WHAT IS VERTICAL INTEGRATION?
Vertical Integration is a style of management control
that combines the various stages of business into
one supply chain. This supply chain would
encompass such different stages as : production,
design, warehousing, distribution, logistics and the
final sale of the goods to the consumer.
The results of this generally lead to reduced
operational costs, faster and more efficient ways of
doing business and in the garment world- getting
the product to the next step in the supply chain.
THE
FORMULA

Extensive market research through tradeshows , e marketing and fashion shows.
(Constantly Evolving)

Not limited by age or demographics

Key audience (Young educated “fashion focus”- high degree of trend involved)

Constant flow of goods as opposed to stop/start in traditional market.

Functions- closely linked geographically (Cost Savings)

Tight Control (Financial)

Greater Demand due to Limited Production Bigger Sales

Quick Response/Turn around, Strong Merchandising

Communication (Info Technology and Human Resources),

Sales Analysis, Product Life Cycles

Large Up Front Capital Intensive

Good Credit Status because of competitive advantage
UNDERSTANDING A
COMPANY’S BRAND
DNA of Brand History
-
Unique Selling Proposition
-
Quality
-
Differentiation from Competition
-
Styling
-
Prices
-
Marketing
-
Environmentally Conscious
-
Social Responsibility
BUSINESS PLAN
FINANCIAL INFORMATION
 How will Vertical Integration help company cut cost?
 Existing Financial Snapshot
 Discussion with Senior Management (CEO, CFO and COO)
 Projected Goals (Financial, Branding, Merchandising)
 Market Research
 Development of Plan and Related Cost Options
 Consultation with Strategic Partners (Real Estate, Architectural &
Store Planning, Contractures, HR)
 Realistic Revenue Plan/Stream
PRODUCTION
CHART
LOCATION, LOCATION, LOCATION!
 Market Research
 Traffic/ Foot traffic Flow
 Location Appropriateness/Customer Base
 Neighbors- Traffic drivers
 Most Cost Efficient use of space (Size of Store)
 Warehousing could be in less expensive location
 Matches need and price budget
 Negotiation of Lease (Flat, Percentage, & Combo)
NEW YORK- MADISON AVE
TORONTO- YORKVILLE
PARIS- CHAMP ELYSEES
LONDON- BOND STREET
LOCATION FOUND!
 Hire Architectural/Store Planner
 Work with Merchandising and Visual Teams
 Retail Construction (Fixtures)
 Planning/Building Visual Brand Awareness
 Senior Executive Input
 Final Costing and Plan
 Approval of Landlord
HUMAN RESOURCES
 Find Qualified Staff with prior experience/clientele in the field
 Full Understanding the Brand DNA
 Ambassadors of the Brand- Projecting the ideal image where
possible.
 Further Training/Education of Staff ( Comprehensive and
Knowledgeable)
 Proper Management in Place
PRODUCT MARKETING

Merchandising and Visuals

Research to what the market demands and requires-Price to Value Equation

Plan to produce product within a certain price, quality and stylistic niche- Global
Ethics -Sustainability

Merchandising Plan- same format in all stores, color presentation ( same T in all
colors) - Joe Fresh – what makes a difference

Image to the World- magazines, e advertising, radio, in store displays and attention, TV,
etc.

We live in a world of information overload

Visual Display becomes important and make a major impact at the store level. An
original and thought provoking Display Director ( Simon Doonan Barney’s)-

Experiential Marketing- the actual experience of purchase- immediate appeal-Apple
Store-
•
Packaging (Further Advertising)- and Brand Awareness especially if it is able to be
reused continuously-
BARNEYS NEW YORK- SIMON DOONAN
PACKAGING
PUBLIC RELATIONS/BRAND
DEVELOPMENT
 Discussions regarding Public Figure EndorsementsSports/Theatre/Film/Political Figures and their immediate families
 Charitable Link In’s- introducing the brand to and through a group of
people who are doing charitable work
 PR Professionals- who are connected to media, high society types and
through the use of connections start to build the brand
 Media Campaigns- go after the niche and next tier of the media to
obtain FREE exposure
 Referral – reward existing customers for introducing the brand to their
friends and family . Hence F/F Days at many of the large stores.
 Social Media- Linkedin, Twitter, Facebook, Pinterest, Instagram, Google
Plus
PUBLIC FIGURE
ENDORSEMENT
Beyoncé
Kate Husdon
Tom Brady
CUSTOMER BUYING EXPERIENCE
 Practical versus Emotional Shopping Patterns.
 Men are more driven to need and women more to emotion “What
speaks to me/reaches out to me” ?
 Events- Scene- Fashion Shows-Film Festival Designer, World Wide
Brand Designer- An event to be seen at and with whom.
 FUN: Party Events- always looking for the next betterment
 Great Value
 Environmentally friendly
CUSTOMER GRATIFICATION
 Will customer come back?
 Customer Service ( CRM ) and What is too much and what is
relevant in todays market.
 Continuing to develop product lines- customers need to be wooed
back with new arrivals, something that reaches to them that they
“must” have something new.
 Feedback through online surveys – What can we do better?
 One happy customer tells 2 people and one unhappy person tells 10
people.
 Stuff happens in large organizations- the key is how it is handled and
how the customers becomes re enchanted with the brand. Crisis
management .
CLIENT QUALIFIED
 Ability to Finance Operations
 Organized Business Infrastructure
CASE STUDY:
COLOMBO
ITALIAN ELLE
COVERCOLOMBO
MANUFACTURING PROCESS
Raw Cashmere arriving into factory
MANUFACTURING PROCESS
Raw Cashmere is checked and
Brushed For imperfection
MANUFACTURING PROCESS
Raw Cashmere is checked and brushed
for imperfection with prickly branches
MANUFACTURING PROCESS
Discarded fluff from
cashmere
Cleaning- packed and
sent to Lands End
MANUFACTURING PROCESS
Testing Strength of Yarn
MANUFACTURING PROCESS
Microscopic Inspection of Yarn
MANUFACTURING PROCESS
Samples allotment of Yarns
MANUFACTURING PROCESS
Spinning of Yarn into Cashmere Cones
MANUFACTURING PROCESS
Finished Cashmere Cones
MANUFACTURING PROCESS
Washing of Cashmere Cones
MANUFACTURING PROCESS
Color dyeing of
yarn- up to 330
pantone colors
MANUFACTURING PROCESS
Color dyeing process
MANUFACTURING PROCESS
Color dyeing process
MANUFACTURING PROCESS
Test dips
MANUFACTURING PROCESS
Storage of test dips
Fabric Samples
MANUFACTURING PROCESS
Cones being Set-up for Fabric Weaving
MANUFACTURING PROCESS
Fabric Weaving with Cones
MANUFACTURING PROCESS
Continuing of Fabric Weaving
MANUFACTURING PROCESS
Continuing of Fabric Weaving
MANUFACTURING PROCESS
Rolled and put into bolts
MANUFACTURING PROCESS
Greige Fabric in Storage
MANUFACTURING PROCESS
Finish Roll of black cashmere
MANUFACTURING PROCESS
Specific type of confirmed order for customer- Stripe
MANUFACTURING PROCESS
Outsourcing for major designers of
the world- Contract Negotiations for
Hermes.
MANUFACTURING PROCESS
Finished scarves for
major designers
Individual booth
Aerial View
Selection of Fabric
Famous Designers Shop PV for Fabrics and Inspiration- Michael Kors
Famous Designers Shop PV for Fabrics and Inspiration- Valentino
Famous Designers Shop PV for Fabrics and Inspiration- Giorgio Armami
Famous Designers Shop PV for Fabrics and Inspiration- Rei Kawakubo
Multilevel Fashion Retail Store
Famous Designers Shop PV for Fabrics and InspirationDsquared2-the Famous Canadian Twins
RETAIL STORES
Flagship:
• Milano
Boutiques:
• Austria- Vienna
• Italy- Roma, Porto Cervo, Bergamo
• France- St. Tropez, Paris
• Korea- Seoul, Daegu, Busan
In-Store Boutique:
• Barneys New York
COLOMBO KOREA
Store Format- In Mall
LUXURY BY
DISPLAYS
100% Vicuna- Coat with Sable Collar ($35,000 USD)Sold 5 in the US last year. New York, BeverlyHills
MERCHANDISE
PRESENTATION BY
COLOR
COLOMBO- ST.TROPEZ
IN-STORE PRESENTATION
COLOMBO MILANO
THANK YOU!