Executive Summary
Penthouse Boutique is a startup E-Commerce Boutique that will specialize in Women’s Ready to Wear Apparel and Accessories. The
boutique will consist of a well edited selection of emerging and established designers, with no clear distinction. The online boutique will
create a shopping experience that’s user friendly, trust worthy, the ability to personalize and a clear theme. We will also offer at home
luxury services such as wardrobe consulting and a personal shopper service that will be tailored to each client’s needs. Penthouse
Boutique can be thought of as an educational tool that will be used to assist women with building working wardrobes that are structured
around each individual’s lifestyle. We will teach women how to integrate new pieces into an existing wardrobe, as well as revamping
entire wardrobes. Essentially we are building your idea of an “ultimate wardrobe”. The luxury services essentially is a “traveling
concierge service” available in Manhattan and Westchester Country. According to the 2011 Annual Trade Report released March 2013,
women’s clothing stores produced approximately $40 million. It was only from 2007-2009 did we see a slight decrease in annual sales
for women boutique clothing stores, which can be associated with the declining economy.
The market opportunity for online sales is substantial. Apparel and accessories alone are in the $40 Billion sector. According to Forrester
Research, Ecommerce spending in the United States will reach approximately $262 billion this year, up 13.4% from last year’s spending
of $231 billion. The research firm also projected that in 2017, online spending will reach $370 billion, which represents nearly 10% of
the annual compound growth rate from 2012. These numbers illustrate that online spending is steadily on the rise and that there is a
definite market opportunity for our boutique to enter.
Penthouse Boutique will be differentiated from other online boutiques by its willingness to ensure customer satisfaction such as traveling
to the conveniences of the client’s home. Throughout New York City, there is an enormous need for wardrobe consultants and personal
shoppers. Occupying this niche is foreshadowed to be very beneficial to women, but traveling to clients’ homes is noticeably the
distinguishing factor. Once opening, Penthouse Boutique will be the only online boutique in New York that offers essentially a “personal
concierge” service to women. The market place for our luxury service consists of women who have limited amounts of time to shop, get
overwhelmed when shopping, aren’t clear on what is appealing to their body type, professional women, stay at home mom’s, and fashion
forward women who want to stay on top of the latest fashions. According to the New York City Department of planning, population in
July 2012 was estimated to be approximately 8,336,697, which provides us with a substantial amount of women to target. Penthouse
Boutique will be appealing to the woman that enjoys the online shopping experience that allows for personalized shopping, user friendly,
fashionable pieces and constant turnover of merchandise. The boutique will also be appealing to those women who seek out experienced
personal shoppers that can assist with building wardrobe. We will offer private showings of collections for our VIP Personal Shopper
clientele, and those clients will always get access to sales, events, and news updates first. Our success is ultimately hindered upon the
satisfaction of our customers. This is why we will be a customer service driven, orientated boutique.
Market Gap
Currently, the direct competitors of Penthouse Boutique are Otte NY, Intermix, and Scoop NYC. Each of these boutiques has physical
locations as well as online boutiques. Although Intermix and Scoop NYC graduated from boutiques to chain stores, they are still
considered a direct competitor. Otte NY is the most similar boutique in the aspect of price point, customer service driven and designer
selection. Otte NY aims to provide a “luxury shopping experience in store for women with a distinct taste for understated luxury and
contemporary design”. The boutique also offers its store brand of basic, classic silhouettes to help integrate in the process of wardrobe
building. Otte also have a presence online with its ecommerce site. The boutiques mentioned have a central focus of providing a great
shopping experience with slight distinguishing factors from the items carried within the boutique, price point, services and designers.
Intermix and Scoop NYC are essentially the same store. Most if not many of the same designers are offered in both stores physical
location and online boutiques and offer many of the same pieces. The price point of both stores sky rockets well into the high $1500. As
previously mentioned, both stores graduated from boutiques to chain stores, which allows for a higher price point and a more commercial
feel instead of an intimate, warm feeling that is provided from an actual boutique. Both stores have online stores. It’s safe to characterize
both Intermix and Scoop NYC as “brick and mortar”.
Consumers are seeking boutiques that offer great fashion with excellent customer service and a memorable online experience. With the
current state of the economy, consumers are now more consciousness of every purchase. In the target customers mind, they are spending
a large amount of money on high-end clothing and personal shopper services, so they expect to get a personalized shopping experience.
The customer is in search of unique pieces that can’t be found in other boutiques, and they are searching for the tiny details that set one
boutique apart from another. Whether it be that beverages are offered, or in addition to what merchandise the customer asks for
assistance with, that the stylists will take the initiative to gather it’s complimentary piece, which in return will save the client time on
browsing for the counterpart. The target customer wants an experienced, professional who is able to help with defining a style that best
fits their body type. The customer is looking for the stylist to help show them fashion that they didn’t even know they were interested in.
It’s about opening the client’s mind to all things fashion that they didn’t even know existed, while still remaining within the boundaries
of keeping the client comfortable and satisfied.
The market gap for women clothing boutique’s that offer a “personal concierge” service in New York is large. There is definitely an
opportunity to capitalize on this particular market gap and fulfill the needs of the target customer. As previously mentioned, currently
there are no women boutique’s that offer the luxury style service that Penthouse Boutique will provide.
Management
Owner and head buyer Tiara Headen, graduated in 2008 from Iona College with a Bachelors of Science, concentration in Biology. After
joining the work field and being true to herself, she decided to further her education at The Fashion Institute of Technology in
Manhattan, New York, where she took a number of courses in Fashion Merchandising Management. Tiara is also a Freelance Stylist part
time. It is being a stylist where she is able to live out her dream and be a part of helping women feel beautiful and confident. It was at
F.I.T. that Tiara was able to do extensive research on the business of fashion and further her knowledge in the fashion industry. Tiara has
experience from working in retail at Victoria Secret and Hollister’s. At both retail establishments, she worked with customers on
merchandise selection, inventory management, restocking inventory, and sales floor presentation. Tiara has also had mentoring from
small boutique owners as well as business owners. Through the New York Business Solutions Center, Tiara has taken a number of
courses for small business owners, ranging from business financial management to marketing your business. She has also studied
bookkeeping, because starting off she will be handling all bookkeeping for the boutique. Tiara Headen is a business savvy individual.
She is very motivated, determined, hard-working, and driven. She is extremely detailed orientated and understands what it takes to run a
successful business after being an employee, conducting research and learning from other successful business owners. Tiara Headen has
a passion for fashion.
Marc Kelly is an entrepreneur, mentor, consultant and coach in the Greater New York Area. He will serve as a business consultant for
the boutique. Marc comes from a strong financial background with a varied skill set and a wealth of experience. Marc earned his B.B.A.
from Iona College and is currently studying in the MBA program at the Zicklin School of Business at Baruch College and will graduate
in May 2013. Marc began his career with premier Wall Street financial firms. An expert in Operations Management and Financial
Advisory. He also currently holds a Series 7, Series 66 and Life, Accident & Health Licenses. Marc has spent the last few years as a
start-up and small business consultant helping companies with business development strategies, marketing strategies and acquiring
financing. Marc also volunteers his time as a mentor for iMentor, a premier youth mentoring group in New York City. He has also
volunteered as a tax preparer for the United Way’s MoneyUp program.
The boutique will be owned and operated by its Founder/Buyer Tiara Headen and a staff of two other employees, while operating as a
Corporation. The boutique will offer a plethora of ready to wear designers, ranging from young, emerging designers, to established
designers, with no clear distinction.
Objectives
Penthouse Boutique’s main objectives are to:
-Establish the online boutique as a reputable, quality, trustworthy E-Commerce site
-Provide employment
-Be an active and vocal member in the community of New York City, and provide continual reinvestment through participation in
community activities.
-Build a strong customer base
-Build solid vendor relationships
-Increase the quantity of merchandise offered online
Keys to Success
- Clearly understand that market, distribution costs and competition, and continually adjust accordingly.
- Continuously review our sales and adjust inventory levels accordingly.
- Advertise in areas that our potential customers will learn about us and the services we offer.
- Keep informed of new trends and new brands.
- Keep enough cash as needed for security on hand, to cover expenses.
- Provide customers with an excellent shopping experience.
-Reduce accountant expenses by producing our own summary projections, bookkeeping, etc. by use of accounting software system.
Startup Summary
Penthouse Boutique is set to launch December 2013. The advantage of opening in December is that there are many holidays in this
month and consumers are consistently shopping. With the New Year approaching many shoppers are also looking to revamp their
wardrobes and enter the New Year with a fresh, new look. This can give the luxury personal shopping and wardrobe consulting services
a boost. The PR Campaign will be conducted 2 months before the store launch, which will create a great amount of buzz and to follow
up the buzz will be the actual launch which is timed perfectly.
Company Location Facilities
Penthouse Boutique’s E Commerce site will be operated as a home base business to begin. Starting the business as a home based
business will allow for a lower overhead and allow for much more money to be saved and put back into the growing business. There is
enough space to store the merchandise properly and to process the orders. It will be very important that all merchandise remains in its
original packaging until time of shipping to ensure that each items remains in the best condition and that no smells seep inside
packaging. As time progresses and the business grows, there is potential to rent a small storage unit where merchandise will be stored
and processed for delivery to the customers. The available storage area is less than 2 minutes walking distance from the home base of the
business, which is very convenient. The home base of the business is conveniently located to the different shipping companies such as
the United States Postal Service, FedEx, and UPS, which will save a tremendous amount of time.
Operational Plan
The online boutique will be available for shopping 365 days out of the year. Orders will be processed and mailed out within 1-2 business
days from the order date.
At the launch of the online boutique, the store will be managed and operated by the owner and head buyer (Tiara Headen).
The boutique will accept all major credit cards including (Visa, Master Card, & Amex) and PayPal. Returns will be accepted within 30
days of purchase as long as original tags remain on merchandise, and the merchandise is returned as it was purchased, unworn. A credit
will be awarded for returns without original tags, of course within 30 days from date of purchase, unworn.
With the assistance from a design firm and the integration of Shopify which is an online platform that is used to help launch E
Commerce sites and provide an easy to use software system, day to day functions will run smoothly and allow for tracking of customers,
notification of orders placed, monitor product availability, and the list goes on. Shopify is instilled to help sites be user friendly for
consumers and those operating their sites.
Products/Services
Penthouse Boutique will offer high fashion ready to wear clothing and accessories. The designers will range from established to
emerging designers. The boutique will consist of dresses, pants, denim, tops, outerwear, and accessories. The online boutique will offer a
wardrobe consulting and personal shopping service. This service will be provided in a way to help educate women on building a working
wardrobe that suits their lifestyle demands. Not only will the clients be able to consult in store, but we will also travel to their home. At
the current moment in the fashion market place, there are not many small boutique stores that offer a service consisting of wardrobe
consulting and personal shopping. The stores that do offer this service are the major department mega houses such as Macy’s, Neiman
Marcus, Bloomingdales, etc. Even the big name retail stores do not offer the option to have these service brought to the client’s home.
The boutique will also have a look book containing all designs that are offered as well as other ready to wear pieces from designers that
are in store. What will make this service unique and special is the fact that not only will we use in house designers, but we will offer the
option to do special orders to the design houses. Another feature to the wardrobe consulting/personal shopping service will be the styling
aspect. The styling aspect is for those clients who may need help selecting an entire look for an event. The merchandise will be taken to
the client’s home for convenience and one on one consulting sessions. With this aspect comes the opportunity for the client to use our
service on a regular basis. Convenience and satisfaction for the client is the number one goal. As growth occurs, there will be exclusive
pieces from designers as well as a store brand. The store brand will be developed for the one of a kind, pieces that will not be offered
anywhere else. The in-house brand will consist of apparel and accessories.
What makes Penthouse Boutique special and set apart from other E Commerce sites is that not only are we offering quality, fashionable
pieces that are available for purchase 24/7, 365 days out of the year, but we are also providing a luxury shopping services to our clients.
We are offering a service aimed at helping women in the convenience of their home create “their ultimate wardrobe”. Not only will inhouse designers be available, but designers that are not offered in store can still be attained. The fact that we are willing to go above and
beyond to ensure customer satisfaction sets Penthouse Boutique apart from other online boutiques in the fashion marketplace.
Penthouse Boutique will also partner up with fashion schools in the New York area, and offer internships to deserving students. Learning
forums where a fashion insider shares their experiences in the fashion industry and offers advice on a given topic, within the realm of
fashion or business will also be offered periodically. Besides this partnership, the boutique will also partner with Dress For Success,
which is an organization that helps provide disadvantaged clients with professional advice and wardrobe consulting on entering the work
field and how to remain successful in the work field while literally dressing the clients for success. This will be a great way to help
educate women on building a working wardrobe, whether on a budget or not.
Inventory
Penthouse Boutique will maintain and manage its inventory via Shopify’s Inventory Planner. The Inventory Planner intelligently
calculated monthly product replenishment quantities based on the history of sales, advices on increasing/decreasing the variety of goods
based on popularity of price ranges and tags, and lastly, it enables effective stock reduction by suggesting the best candidate for sales
promotion. The Inventory Planner helps to monitor, plan and optimize inventory by saving time using automatic replenishment
suggestions, increasing sales by optimizing pricing and assortment and creating effective promotions.
Inventory will be accounted for a minimum of once every week. The process of placing orders with vendors will typically take two
weeks. It will take approximately 2-3 weeks for the merchandise to arrive, which means that we need to have at least a six week worth of
merchandise on sale that can last us until each new shipment arrives.
The Inventory Planner is the best method to ensure effective management of the E Commerce site as a whole.
Market Analysis:
Industry Description and outlookThe fashion industry is a globalized sector that aims to meet the demands for apparel, while dictating what trends should be worn.
Currently the fashion industry is a multi-trillion dollar industry. NYC Fashion Industry alone employs 173,000 people, accounting for
5.7% of city workforce. The industry generates nearly $10 billion in total wages with tax revenues of 1.7 billion. According to the
Annual Retail Trade Survey, from 1992-2010, an average of $18,468 million annual purchases are made in women’s clothing stores.
Compared to men’s clothing store which had an annual of $4,785 million purchases annually. There is a clear distinction, that women
will go out and spend money. In most recent years, we have experienced a depression which affected our economy tremendously, and
therefore caused consumers to be money conscious more than they were in the past. There has been much progress within our economy.
According to the Retail Trade Survey by way of The US Census Bureau, stated that sales were up 0.9% from July 2012 and 4.4% above
last year. Based on data from the Advanced Monthly Retail Trade Survey and Administrative records, women’s clothing stores in June
2012 produced $3,428 million and in July 2012 $3,485 million. Which shows a steady rise in the sales, and constant increase in sales
produced in retail. Therefore appearing to be promising as the economy improves with the help of the people.
According to First Industry Profile, The US clothing store industry includes about 100,000 stores with combined annual revenue of about
$165 billion and is expected to grow at a reasonable rate within the next two years. The key growth drives to get the economy back on
track include consumer spending levels and popular clothing styles. Stores specializing in women’s clothing combine to 50 percent of the
industry’s revenue.
The fashion industry has changed significantly throughout the years. Discount stores are becoming more popular than some of the
longstanding name brands. As the times are changing, and the needs of the consumers change, it will be important to access retail
strategies to remain a stable company.
Target Market
The target market is 21-35 year old fashion conscious, fashion forward women, whose occupation range from professional working
women to stay at home mother’s and socialites. The individual has a salary ranging from $60,000 to $100,000. According to market
research firm Nielson, households with incomes of $100,000 and above, spend on average $8,000 a year on clothing. The target market
is a mixture of the “Millennials” or Generation Y and Generation X. The Millennials range from the young age of 10 to late 20’s. My
focus will be age 21 to late 20’s. The Millennials are brimming with potential and are very tech savvy, so they appreciate all things
technology related. Millennials are generally susceptible to internet campaigns and advertising that use corky approaches. One of the
most important things to note about the Millennials is that this group of individuals typically has disposable incomes, because their
parents provide some financial support. Generation X consists of an age bracket ranging from 32-48 years of age. Focusing up to the age
of 35. The individuals in Generation X are reaching their earning and buying potential right around this point in their life. This
generation generally exhibits value orientated shopping habits. If a purchase cannot be justified with a legitimate value, then many times
the consumer will not feel that if is worth purchasing. These consumers have the ability to affect the purchasing decisions of their family
members and friends. In order to reach this more mature group, it’s imperative that the boutique demonstrate to Generation Xers why the
merchandise is of value to them. In the fashion industry you can’t solely rely of the prestige of designer name brands. There needs to be
proof that the clothing offered is of value to purchase.
The critical needs of potential customers is clothing that is up to date with the current trends in fashion. The consumers are searching for
good quality items that can transition them from season to season. The women are looking for classic pieces, with a slight edge. The edge
factor would correlate to the current trend of the moment. Potential customers are in need of a store that is one stop shopping, where they
can assemble an entire outfit. They are also searching for stylists who can assist with shopping as well as personal shoppers that can
revamp wardrobes. Many times women want to change their wardrobes, but aren’t exactly sure how to go about doing it. The boutique
will offer a personal shopping service, where consumers can consult with their very own personal shopper. The personal shopper will
also be very useful for those career women who don’t have the time to go shop for themselves. The women will be able to consult with
the wardrobe consultant/personal shopper on what they are looking for. The consumers want great customer services as well as a
memorable experience. Consumers are in search of unique pieces.
The wardrobe consulting/personal shopping service is a very small sector of the entire fashion industry. In past years relatively few
people wanted to enter the personal shopping field compared to other careers. Just to show how much the industry has progressed and
become a more attractive career, back in 1997, the Economic Census by the U. S. Census Bureau list 2,670 firms in the miscellaneous
personal services category which included personal shopping service. The firms generated $1.2 billion and employed 25, 526. The
number of personal shopping firms has increased significantly and more and more people want to join the fast growing field. The
wardrobe consulting/personal shopping service will target women who don’t have time to shop for them, women who don’t have an idea
where to start when it comes to shopping, women who don’t enjoy shopping, and women who are willing to pay a professional to make
them look good. The personal shopping service will also be attractive to those women who consider dressing for success to be an
investment in their future. Women will come to the boutique and take advantage of the service because we as professional stylists will
offer a luxury, personal shopping experience. We are not there just to sell clothes. We are building solid client relationships, and educate
women on how to dress for their body types and helping women understand that fashion is not just about clothes, it’s about a lifestyle.
Distinguishing Characteristics
Currently, Penthouse Boutique’s top competitors are Shopbop, Intermix, Scoop NYC & Netaporter. Below is a S.W.O.T Analysis of
Penthouse Boutique. The analysis was used as a tool to evaluate the business in depth.
Strengths
Weaknesses
-Strategic market segmentation and implementation strategies
-Implementing an aggressive focused marketing campaign with clear goals and strategies
-Clear understanding of target market
-Unique & creative approach to services offered to clients
-Customer service orientated business
-Not just your typical E Commerce business: online store & at home luxury services
-Lack of reputation in comparison to competitors
-Limited financial base compared to established
competitors
-No loyal customer base for start-up business
-Inability to provide instant gratification by offering all sizes
in all merchandise
Opportunities
Threats
-Specific niche: offering luxury services that are essentially a personal concierge service that is
offered in store and at the client’s home.
-Offer fresh, emerging brands that aren’t as well- known as other brands
-An industry that seems somewhat immune to recession compared to other industries.
-Build solid relationships with vendors
-Offer great fashion at reasonable prices compared to top competitors
-Build strong relationships with clients via our customer service orientated attitude
-Fulfilling an unfilled market: personal concierge service offered at home
-Offer more exclusive pieces & store brand
-Pop up stores throughout NYC
-Create more job opportunities as the business grows
-Open a physical location in the future
-Exclusive store brand
-Existing competition
-Delays of shipment of merchandise & advertised
merchandise availability
-The possibility of forecasting unsuccessful trends
-Increase in competition
-Change in shopping habit
In the most recent years due to the recession, many consumers are only making purchases if an item is on sale. Many people feel that if
they do not have a coupon or the item isn’t on sale then it’s better to wait and risk the item not being there, then making the purchase at
that moment. The sales minded consumer really came full circle when retailers had to lower their prices, and have more sales often due
to the economy. Now consumers are accustomed to this and don’t want to buy items at full price. This alone can play a huge impact on
my business. In order to counter this mindset it will be important to break the vicious cycle of discounting. Top notch service online, user
friendly aspect and exclusive items will be a great way to shift the consumer’s mindset. Exclusive items are difficult to come by, so the
demand for those items will be high, which in turn will create a sense of urgency in the consumers mind. This is aimed at instilling in the
mind of the consumer, that if they do not purchase the item at that moment, it will not be there when they return or wait on it to possibly
go on sale. All the major holiday sales purchasing trends could possible present an impact because all consumers are expecting a great
sale. In this situation, it will be important to already have the consumers prepped from the beginning so, they know that the merchandise
is proportionate to the price. It’s all about how a situation is first presented. Another crucial time that could possibly impact my business,
is directly after major holidays (i.e. Christmas, Valentine’s Day, etc.) when consumers are low on money. Individuals are more money
conscious especially after having spent a lot of money during the holidays. Sponsoring events where the consumers are able to learn
from a fashion insider such as revamping wardrobes for the New Year is an effective way to counter the urge of a consumer to not want
to spend. The seasonal style shift would also have an impact on the business. Mainly the shift from winter to spring, summer to fall and
fall to winter. The impact is positive for the boutique. The need and desire for women to update their wardrobe with the current trends of
the moment is the driving motivation behind the burst of consumer sales online right at the transition of the seasons. The urge to shop
continues on into the season and then begins to level off and be constant with not so many high peaks. At the end of the season when the
transition into the next season is about to occur, many items go on sale, so that boutiques can rid the merchandise and make room for the
upcoming seasons trends. Though it’s great to have a good prediction of when the bursts of production will be brought in, it’s the in
between time that must have focus so that production can remain at a good number. With the proper marketing technique this will be
done. Lastly, is that opportunity to offer Pop Up Stores throughout New York City. The great thing about a pop up store is that while it is
put in place to gain exposure for in this case a startup company, the overhead cost is low, there is a low risk associated, marketing for
pop up stores allows for businesses to extend their reach into new locations and target new market niches and lastly unload old
merchandise. A pop up store is just another distinguishing characteristic that will allow for an additional revenue stream which will
overall benefit the business in all aspects.
Economics
Entering the market as a new company, could present a few barriers. The retail industry has been challenged, thanks to the ongoing fall
out from recent financial crisis. The current financial state is causing consumers to be very conscious of the way they spend money and
the reason must be justifiable. Consumer debt levels are declining, but still remain high compared to previous years. Surveys show that
consumers are focused on paying their debt down and not adding to it. Health care costs in America are currently at a high rate, and
present a challenge to many consumers, which decrease the discretionary spending amount. Another barrier is the high unemployment
rate across the country, which definitely presents a problem to the retail industry, because consumers just don’t have the money that they
once had, and the ability to spend as they once did. Initially, there will be a small hurdle that the store must overcome, and that is
consumer acceptance and brand recognition. But not to worry, that will only be in the beginning. Once strong vendor relationships are
established, the high production costs will gradually decrease. Brands want to see that their merchandise is being presented to the public
in a positive, successful way. It is then that there will be more ability to negotiate with the pricing and fees for shipping. The main
barriers that the company must overcome are rebuilding the confidence that consumers once had in the retail industry. This will be
achieved by presenting merchandise that will convincingly offer a high level of value and durability for the price. This will give
consumers the confidence that their money is well and being wisely spent. Quality and utility as well as fashion will play a huge role as
well in giving consumers their confidence back. Fashion will remain important, but quality will come first in the mind of consumers. The
products that Penthouse Boutique offers will provide quality, utility, and fashion will have a tremendous advantage over products that
just offer fashion alone. We will also offer brands that possess high brand reputation above style. The brands that will be handpicked will
be a brand that supports our company’s philosophy of clearly putting customer satisfaction and high value above all else. The bonus will
be that the brands also offer great styling and high social values. The last way that the company will overcome the barrier of low
consumer confidence is by remaining price conscious. It is our goal to keep all fashion and accessories offered in the store under $900.
This may seem high, but in the market that Penthouse Boutique is entering, many retail stores offer pants that cost $900 alone. So, we
will offer high fashion, quality, and stylish fashion at a reasonable price and will be able to justify our pricing with the quality, and
unique pieces that are offered.
Competitive Analysis
Penthouse Boutique will be located in the Upper East Side of Manhattan, New York where the primary competitors will be Scoop NYC,
Intermix, and Otte. Otte Boutique offers understated luxury and contemporary design. This boutique is also geared to helping women
build functional wardrobes using emerging and established designers. Otte offers ready to wear apparel, shoes, jewelry, and accessories.
The boutique most recently launched its store brand. Intermix and Scoop NYC have a higher price point that retails at approximately
$2000. The stores offer emerging and established designers. Penthouse Boutique will also compete with the large department stores such
as Bloomingdales, Bergdorf Goodman, Saks and Barney’s. Having a solid niche in tact will be very important to be successful.
Competitive Advantage
The primary competitive advantage is going to be one on one, personal styling/personal shopping service that will be available in the
Westchester and Manhattan, New York area. The individual time taken aside to consult with a client, will give us the necessary
information to better serve. The one on one time will allow for the customer to be treated with VIP status and have the option to order
merchandise from the online boutique that may not be in store or out of stock. Currently, there are no Women Online Boutiques that
offer one on one, personal styling/shopping service that offers the option to order items which may not be available online. This will be
the deciding factor that will separate us from just being another online boutique with what many like to refer to as “over-priced clothes”.
According to Forbes.com, the five major areas that account for a great shopping experience are: engagement with the consumer,
executional excellence, brand experience, expediting, and problem recovery. Along with great customer service, the plan to offer
exclusive pieces, a brand label and place a huge focus on accessorizing looks. Building solid supplier relationships and creating the
exclusive pieces will put the company in the right direction to build our brand name up and establish a strong customer base. The fact
that our mission is to educate women and not just sale clothes is an additional competitive advantage. The largest competitive advantage
is that fact that the boutique is going to have a personal shopping/styling service. We will provide one on one time with customers to
educate ourselves on what they are looking for and how we can best service them. We will even go as far as doing Wardrobe Edits,
where we go to the client’s home and revamp the wardrobe completely. Currently, there are no stores that offer this type of service. Otte,
Intermix and Scoop NYC which are direct competitors, have sales associates at their physical location that will help you if you need
assistance, but there is no set service that is in place for personal shopping/styling, and definitely not an at home wardrobe makeover. We
are bringing the VIP in store treatment to the convenience of the client’s homes. The consumers will not be looked at as just another
shopper, they are our clients. We will work to build solid relationships with our clients, so that they know we are there help them build
solid wardrobes that can transition with them over time whether that be chatting online or at their home. Other stores that are still my
direct competitors but not top are stores such as Top Shop and Zara. Both stores only offer their store brand. Between the two, only Top
shop offers the personal shopping service in store. On the other hand will be able to offer a plethora of designers and if there is
something in store that is not available, we will make a way to get access to it for my client and have it delivered. Zara is a store that has
been successful off of gaining “inspiration” from top designers, many of which will be offered in the boutique. So, not only are you
paying for a replica of the actual designers merchandise but the quality is not top quality. Immediately, Penthouse Boutique has a
competitive advantage. We are offering the original design and a high quality item, which is what consumers are searching for especially
now. I’m offering stability, highly reputable brands, and great prices and style all at the same time.
Being that Penthouse Boutique will be an online site, will definitely give us a competitive edge over our competitors. The most
significant advantage is the small overhead that is required to maintain an online shop. Online retailing despite its rapid growth in recent
years, still accounted for just 4.6% of total U.S. retail spending in the third quarter of 2012, according to the U.S. Department of
Commerce. This means that online retail has huge potential to keep taking an ever large slice of the consumer spending pie. According to
Forrester Analyst Sucharita Mulpuru told Bloomberg News that, in many cases online retailers can have better offers because their
economics are more favorable. This is definitely true because, although Penthouse Boutique will have its actual physical store, all that
will be needed for the most part is the supply of merchandise to ship to the customers. So, while we are gaining money, at the same time
we are still keeping our costs low for the online store, which puts the boutique in a good position to increase its sales, due to the small
amount of money going out for the up keep of the business.
Penthouse Boutique will also offer our store on mobile devices where people using their devices can research the merchandise and shop
online at the same time. Mobile Commerce is a growing industry, and once again allows for low overhead for selling the merchandise.
Along with the Mobile Commerce, will be the frequent shopper discounts and online coupons. Using the techniques of mainline retailers
such as offers via the web and mobile devices, will exhibit our effort in looking at the long term value of customers rather than the short
term sales. Frequent buyers will be the first to be offered new merchandise or sale prices as reward for loyalty.
Marketing Strategy
Positioning
Penthouse Boutique is positioning itself as a top online boutique, while distinguishing itself from other boutiques via the Wardrobe
Consulting/Personal Shopping service. The boutique will leverage its competitive edge by providing a superb, user friendly, luxury
shopping experience that cannot be offered anywhere else, but at this boutique.
Penthouse Boutique’s competitive edge is one that the market is familiar with but has never seen done in a way that the boutique will do
it. This positioning will be achieved first by offering quality, well-constructed, fashionable ready to wear pieces. With the fashion in
order, comes the luxury shopping experience that is offered to the clients. The area in the market that Penthouse Boutique will occupy is
one that women are in need of. The need is a wardrobe consulting/personal shopping service. The key feature to Penthouse Boutique’s
service is that we are not only offering in house designs, but we are offering access to other designers that may not be carried on the site.
The second feature to the service is the “concierge service” that will travel to the convenience of the client’s home in the Manhattan &
Westchester Country area to ensure client satisfaction. The boutique will also offer a tailoring service to our Personal Shopper clients to
ensure proper fit of garments. Currently, there are not any boutiques that offer this luxury style, customer service orientated type of
service. Our competitive edge is that we have recognized an unserved niche and the serving of this demand, while providing an amazing
E Commerce Site to do unlimited amounts of shopping.
Strategy
Penthouse Boutique is a startup business, which means that remaining within a marketing budget will be imperative. Budget will be
important, but it is also important to realize the significance of an effective marketing strategy. With the help of a Public Relations Firm
Haute PR we will be able to utilize our initial $5,225 PR budget and develop a tailored marketing plan to build a well-known brand. We
aim to not only be a boutique but to be a brand. The collaboration with Haute PR which is a firm that specializes in publicity for
branding in fashion, we will be able to effectively communicate to the public and build a name for ourselves. With the Account
Executive’s years of experience within the fashion industry, we will be able to tap into exclusive, top magazines, blogs, social network
sites, online media, newspapers, TV, and celebrity seeding to build press for the boutique. On a monthly basis, a budget of $5225 will be
available for social media, blogs, online media, newspapers and magazines that will be directed by Haute PR Firm.
Branding will be a very important for Penthouse Boutique. Haute PR will help Penthouse Boutique find its respective position within the
market place and assist with building name recognition. Initially the first goal is to build buzz about the upcoming launch of Penthouse
Boutique. Interviews with top magazines and interviews with fashion bloggers will be conducted in order to get the boutique’s name out
and generate conversation. After the buzz has been generated, we will then have the launch of our E Commerce site for Penthouse
Boutique. This is aimed at introducing the public to the new boutique, what products we offer, the services we offer, our mission, and
press interviews. After the launch, the next step is to maintain the buzz and create ways to remain relevant within the industry and
increase the traffic with the online boutique.
With scheduled monthly meetings, we will meet with Haute PR and discuss the most effective ways to maintain the conversation about
the boutique and ways to build up our client base. Some of the most common ways to continuously engage with the public is to prepare
periodic mailings that will offer a percentage off of an item or total purchase. The contact information will be obtained a time of check
out. This will be a simple way of making an effort to have repeat customers which could in return, lead to a referral. Penthouse Boutique
will also engage within the Social Media networks. We will create a boutique Facebook Account, Instagram Account, and a Tumblr
Account. Preparing multiple posts per week on the different Social Networks will allow us to reach out to the public and keep them in
the loop of what’s going on within our boutique. We can notify of new labels coming to the store, sales, boutique events, fashion forums
we are holding and anything related to the boutique that could be of interest. To market the personal shopping/styling service, there will
be advertisements in the form up pop ups that will ask the online shoppers to click on a certain area if they are interested in the personal
shopper or wardrobe consulting. The website will also have a tab that will discuss all services offered. There will also be drawings
throughout the year for customers to win free wardrobe consultations. The boutique will also partner with Dress For Success Charity.
There will be a designated donation area in the Westchester area and Manhattan area where customers can donate articles of clothing and
receive 10% off of their next purchase. This is a great way to give back to the community and provide another incentive to shop on the
site. In order to get new customers, we will have occasional girls night out, where the customers can come with their friends to enjoy a
night out where there will be merchandise from the online boutique, beverages, orderves, mini deserts, music, contests, etc. The food will
be catered by a close friend that is opening a catering business, who also wants to get her name out. This will help keep the costs of
catering to a minimum. The barter system will come in handy in this specific situation.
Last but not least, is that obvious that we are not just selling clothes and accessories. We are selling a lifestyle. So, dressing apart of what
we are offering to our customers is a must. We will be looked upon as fashionistas, so one must remember that first impressions are
lasting impressions. Each person is a potential customer, and although we may be targeting a specific market, we have potential for
overall expansion of marketing growth.
Growth Strategy
Initially, the goal is to build a solid foundation for the online boutique to become successful, gaining a loyal customer base and become a
reputable, well-known boutique. For the future, we will be able to increase the levels of the inventory and the development of more
exclusive merchandise will be available. Along with the exclusive items from designers, will be the creation of the store brand label. The
Store brand will guarantee unique items that will only be available at Penthouse Boutique. There could also be an option to potentially
ship internationally. Penthouse Boutique is aiming to become one of the top selling online boutiques worldwide.
Communication Strategy
At the start of each season, we will send out a mass mailing to the emails of our customers of the store newsletter, updating the
customers with trends of the upcoming season. Our Wardrobe Consulting/Personal Shopper service will be promoted. There will also be
a rewards cards mailed out to customers who spend over a certain dollar amount. The point’s card will give customers an incentive and
motivation to shop more frequently online at the boutique. Our social media tactics will be a huge communication strategy to reach our
customers. Your personal style is a tremendous marketing tool in itself. Therefore, dressing apart and will be imperative. We ultimately
want consumers to compliment an outfit and ask where it was purchased. We will also have effective communication via email, live
chats, product description, boutique blog and user generated communication (i.e.: customer reviews, comments, shared images, and
question and answer sections). Of course our communication strategies developed within our monthly meeting with our PR Firm will be
instituted.
Sales Strategy
In order for Penthouse Boutique to be successful and compete on a national level and have tremendous sales, it’s imperative to follow
certain basics. The first strategy is to merchandise to elevate fashion cachet. Meaning to showcase the luxury online boutique with the
current top online boutiques. Showcasing the boutique beside top boutiques will strategically work in our favor. We ultimately are
giving customers access to luxury fashion, great quality and design at a fraction of what some of the top online boutiques are retailing
pieces for. The next strategy is to merchandise great products that customers want. This means to focus on offering merchandise that
meets the mundane needs of customers, while still offering pieces that the consumers can still fall in love with. The third basic strategy is
merchandise to win at the key category and key product. Penthouse Boutique is not in the business of competing to win in every category
of clothing. We will consistently identify and win at key categories and key items. We will offer luxury wardrobe staples that are simple
and adaptable and can be worn casually or dressed up. Jeans and shoes are not categories that we will offer or compete in. We know our
market and the merchandise that will be appealing. Another sales strategy will be to merchandise full-price, full margin. Creativity and
integrity is the key to persuading customers to pay full price. Without these elusive ingredients, the boutique and its products will just
become commodities. We will create value with each item, provide great story telling in such a way to compel the customer to want it at
that instance and that they are getting a steal by purchasing it then instead of later. The final sales strategy is to merchandise for an omnichannel success. We will do this by leveraging the e-commerce opportunity by expanding product assortment, by offering exclusive
online shops within the online boutique. We have to strive for the Penthouse Boutique merchandising landscape to reach beyond the
online site to cover fashion magazines, all the essential social media platforms and in the end everything will come together. Every
execution is integrated and unified across channels with the goal of helping create impressive financials.
Risks
Being an owner of a Women’s E Commerce Site, presents risks that must be tackled head on in order to overcome them. Consumer
tastes and preferences change rapidly. With the media and “celebrities” playing such a huge factor in everyday lives now, consumers are
looking to “celebrities” for style and trends. Trend assessment is a risk that buyers take during every buying season. Typically, trends in
the fashion industry are fickle, every changing and often elusive. In order to be successful, we at Penthouse Boutique must capitalize on
the latest trends and recognize when such trends are declining. One mistake could result in excessive inventory, undermined credibility
and even confused brand identity for the store. To avoid these mistakes, extensive research will be done before each buying season,
industry experience will play a role, and gaining a clear understanding of what consumers want. Another risk could also be incurred with
marketing strategy. It is imperative to target the appropriate audience and offer merchandise that corresponds with the demographic. The
brand must also be able to adapt to changing economic conditions. All steps necessary will be taken in order to avoid errors in our
marketing strategy, which is why we will enlist in the help of an experienced, reputable, knowledgeable Public Relations Firm as well as
our experience within the industry.
Organization and Management
Owner and head buyer Tiara Headen, graduated in 2008 from Iona College with a Bachelors of Science, concentration in Biology. After
joining the work field and being true to herself, she decided to further her education at The Fashion Institute of Technology in
Manhattan, New York, where she took a number of courses in Fashion Merchandising Management. Tiara is also a Freelance Stylist part
time. It is being a stylist where she is able to live out her dream and be a fraction of helping women feel beautiful and confident. It was
at F.I.T. that Tiara was able to do extensive research on the business of fashion and further her knowledge in the fashion industry. Tiara
has experience from working in retail at Victoria Secret and Hollister’s. At both retail establishments, she worked with customers on
merchandise selection, inventory management, restocking inventory, and sales floor presentation. Tiara has also had mentoring from
small boutique owners as well as business owners. Through the New York Business Solutions Center, Tiara has taken a number of
courses for small business owners, ranging from business financial management to marketing your business. She has also studied
bookkeeping, because starting off she will be handling all bookkeeping for the boutique. Tiara Headen is a business savvy individual.
She is very motivated, determined, hard-working, and driven. She is extremely detailed orientated and understands what it takes to run a
successful business after being an employee, conducting research and learning from other successful business owners. Tiara Headen has
a passion for fashion.
Marc Kelly is an entrepreneur, mentor, consultant and coach in the Greater New York Area. Marc comes from a strong financial
background with a varied skill set and a wealth of experience. Marc earned his B.B.A. from Iona College and is currently studying in the
MBA program at the Zicklin School of Business at Baruch College.
Marc began his career with premier Wall Street financial firms. An expert in Operations Management and Financial Advisory. He also
currently holds a Series 7, Series 66 and Life, Accident & Health Licenses.
Marc has spent the last few years as a start-up and small business consultant helping companies with business development strategies,
marketing strategies and acquiring financing.
Marc also volunteers his time as a mentor for iMentor, a premier youth mentoring group in New York City. He has also volunteered as a
tax preparer for the United Way’s MoneyUp program.