Pitch Presentation - Everlane PDF

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Pitch Presentation Example on Company Everlane...

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Final Proposal () Radical transparency - these are often not the first words you think of when talking about the clothing industry. But Everlane, a rule-breaking clothing company, built their business on just that-being completely honest about how their clothes are made, by who, and exactly how much they are making on each garment. The millennial consumer is quickly becoming disenchanted by fast fashion companies who aren’t making bold claims about sustainability and fair practices, so these consumers are beginning to switch to companies such as Everlane who are promising to give you the full picture. On top of that, their designs are well made and timeless pieces that won’t go out of style in 6 months. This strategy is working for them in a big way, Everlane has been racking in millions in profits year over year with no signs of stopping. ) But when you look a little bit below the surface at the sources of Everlane’s products, they don’t actually tell you the names of their factories, where they source their materials, how they review factory ethical practices, what their laborers are being paid, or many of the other radical claims they make on their website. Actually, fast fashion companies Everlane claims to be more transparent than like Zara, H&M and Uniqlo list the names of their factories and are honest about their factory vetting and ethical standards. Companies like Patagonia and All Birds have similar production honesty, yet are utilizing a larger range of organic and recyclable materials and create arguably higher quality products than Everlane. Reformation, one of Everlane’s direct competitors participates in a similar idea of radical transparency, yet puts out a quarterly sustainability report to back up their claims. () Everlane needs to make a change fast if they want to stay on top of their competition as transparency is becoming a more popular model within the clothing industry. Everlane should start by seeking trusted third-party verification for their claims on radical transparency. B Corporation is one third party group that certifies companies who back their claims on environmental remediation, transparency, and quality treatment of employees. They should also strive to use more eco-friendly and recycled material like organic cotton and hemp to create higher quality sustainable clothing. Not only will Everlane be creating better products, they will also be positively impacting their community and environment, which many consumers are starting to highly value in the clothing industry. () It is important for Everlane to make these changes quickly to avoid scandal when it is broadcasted that they don’t have the actual practices to back up the bold claims made on their sleek website. In order to make these changes, Everlane will need to fund research and development of new eco-friendly fabrics that will work with their designs as well as re-evaluating their factory standards and practices. After transforming their fabrics and factory regulations Everlane will be on the right track to a more honest and sustainable future.

Everlane has always targeted consumers who value “minimal” fashion and right now, the company is seeking to expand its designs rather than its quality. This should be revised and done the other way around. Regardless of “looks”, high quality products will usually trump over low quality products. Consumers who buy these high quality products will be more satisfied and less likely to return their products.

Intro:) Everlane is a clothing and accessories company that is changing the way we think about how our clothes are made. Their business model is based on the idea of radical transparency where each part of the manufacturing and pricing process is clear to the customer. They are honest about how much their raw materials cost and tell you exactly how much profit they are making on each item. It seems impossible that this model could be successful, but Everlane has turned out millions in profits several years in a row. Problem: The problem Everlane is running into though, is their competitive advantage lies in their pricing and transparency, not their designs. Once other companies begin to copy this highly successful model of radical transparency, their designs will begin to fall flat. Where other companies such as Reformation are similarly transparent with their practices, their designs are pushing the boundaries of what you think of with sustainable and transparent fashion. Everlane has had the advantage as the first mover in the industry to make their products fully visible to its customers, but it will be difficult to maintain that advantage once other companies begin to replicate their model. So how do they maintain their advantage? Strategy Changes: ( Everlane should be focusing on creating more fashionable and timeless designs rather than focusing on the quality of the clothing they already have. Some of their products don’t compete well against other companies due to its plain design, lower quality, and their non eco-friendly fabrics. While the quality of the clothing is an important factor that should be addressed in the future, having a stronger variety in design is more important since Everlane already boasts better pricing than some of its competitors. How will it be implemented?) In order to maintain this advantage, Everlane needs to shift its brand image to include more elevated designs with eco-friendly fabrics. Their designs are typically on the simpler side and

their fabrics are non-biodegradable, which is a pain point for many companies trying to be leaders in sustainable fashion. As a company they need to shift their image to include higher end and more unique designs, which would require a design campaign as well as a shift in marketing and advertising to include these new designs and fabrics. Everlane already has a strong advertising presence through editorial campaigns and social media, so they could play into these existing channels. This rebranding would also require shifting of their online presence to include their new looks as well as merchandising in their stores. We don’t want to change Everlane’s identity as a brand, but in order to maintain their advantage in the sustainable fashion industry, it is important they mold to the changing needs of customers.

Possible Strategy Issues: - Growing competition in their industry structure(sustainable, transparent clothing and clothing production), how are they continuing to differentiate themselves from companies who are trying to copy and imitate their business model and keep their advantage as a first mover? - Problem with Everlane is their competitive advantage lies in their pricing and transparency, not their designs. Their clothing is more - Lack of return policy for European customers; slow shipping - Everlane needs to fix its shipping policies and make sure the products are being sent to customers in more timely manners - No third party certification that backs up their claim of “radical transparency”- lacks evidence to back up their claim of transparency and economic sustainability in comparison to clothing companies like Patagonia or Allbirds which are certified B corporations with high quality products. Also does not include ALL the materials related to making their clothing so transparency isn’t exactly “radical.” - Quality of Everlane’s clothing should be a top concern as this is one of the biggest factors Everlane emphasizes and claims is what differentiates them from other clothing brands. - Not capitalizing new innovative materials like organic/recycled cotton, hemp, or tensile wood fiber.

Company - Everlane Competitors - Reformation, Outdoor Voices, Cuyana, TOBI Environment - Sustainable, transparent clothing brands that are honest with their customers Everlane launched in 2010 with a concept that was, until then, unheard of in the fashion industry. It would offer the customer a full breakdown of how much it cost to make each product,

from the price of the raw materials and transportation to exactly how much of a markup Everlane would take. Millennial shoppers were attracted to Everlane’s vision of radical transparency, and the brand has grown exponentially over the years. Founder and CEO Michael Preysman has taken the concept of transparency beyond price to offering customers a glimpse into the company’s supply chain, which is both ethical and environmentally sound. On the brand’s website, customers can get a glimpse into the factories where products are made and see photos of the workers making the garments. In 2017, five years after saying he would rather shut down Everlane than open a physical store, Preysman launched the brand’s first permanent brick-and-mortar location in New York. The brand is continuing to roll out new locations, each equipped with a proprietary new point-of-sale system that makes the transition from shopping online to in-store more seamless for the customer. In 2018, Everlane embarked on an ambitious project to eliminate virgin plastic from its supply chain, and get rid of single-use plastic throughout its offices and supply chains. It developed a line of outerwear made from recycled water bottles, and is combing through every item in its collection, remaking all plastic elements with recycled plastic. As part of this campaign, Everlane is encouraging consumers to eliminate plastic from other aspects of their lives. The brand now offers pamphlets in stores and videos online to encourage customers to live more eco-friendly lives. Resources - Proprietary Technology - Location - Brand - Finance Capabilities - Manufacturing - Design - Engineering - New Product development - Marketing - Customer Service Everlane - Strategic Importance 1. Manufacturing 2. Design 3. Brand 4. Customer service 5. Marketing 6. Location 7. New product development 8. Engineering 9. Finance

10. Proprietary technology Industry as a whole 1. Manufacturing 2. Design 3. Brand 4. New product development 5. Location 6. Marketing 7. Finance 8. Customer service 9. Engineering 10. Proprietary technology

Five Forces Threat of New Entrants - low threat of new entrants - There is a low threat of new entrants due to the niche market, it is difficult for companies to be profitable while remaining completely transparent with their customers Threat of Substitutes - low threat - It is hard to find fair prices for sustainable clothing with an honest message Buyer Power - high - Customers can purchase whatever items they want, they do not necessarily have to choose this brand Supplier Power - low/medium - There are a handful of suppliers that provide the same kind of materials, Everlane can choose whichever company that is more suitable for their clothing production Existing companies - high - Many other companies are also focusing on the same mission to provide clothing using recycled materials Competitive Advantage - “Radical Transparency”: Differentiation from competitors, they explain why they price each product the way they do - New demand from buyers (demand for sustainable and transparent companies) - Differentiation through their locations (San Francisco and New York), people in these cities have a high demand for this type of brand and are willing to spend the money on conscious clothing

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Very differentiated and volatile shifts in consumer preferences leads to higher space for innovation Strategic innovation: developed a new way of doing business in which the customer is fully aware of the company’s profit margin

Diversification: In its current form, Everlane doesn’t offer as much diversification in its products as some of its top competitors due to its reliance on a simplistic (minimalistic) style. By increasing its diversity of clothing and fashion while maintaining its transparency, it could potentially grow into a more attractive company. -Attractiveness - Targeted customers are consumers who are conscious and willing to go out of their way to make positive environmental changes, big or small. Having a larger diversity of products that align with its eco-friendly system may incentivize customers to purchase new clothing as well as attract new customers who may find the new products as well as the company’s transparency attractive. -Cost of Entry / Better Off Test - The cost of entry for new clothing is rather low, but it’s a hit or miss usually with fashion. Customers will either like it or dislike it. Less popular designs can be omitted from production or made on sale while newer, more popular fashions can be sold to customers....