Logistics Homework Paper on Location Strategy for Fashion and Design Business

Internal Memo

TO:                  Senior Management Team

FROM:           

RE:                  Location Strategy for Fashion and Design Business

DATE:           

I am writing to let you know about the location strategy that your business will use to enter the clothing and fashion design in the United States (U.S). The triumph or failure of a business organization depends on its locality. The right location will enhance the likelihoods of a business success. On the other hand, wrong location will upsurge the likelihood of business failure. A sound business can be in an extremely good location but somewhat outside the control of the owner that can happen and affect the business. The company will form a combination of ‘unique’ fashion and design to act as acreativity emblem and individuality of clothing industry of the U.S. The company will offer chic and high quality clothing at realistic prices, and will apprehended as a prospect to institute a brand position both internationally and domestically, linking every facet of the industry from product design to final sales and the operation of their stores worldwide.

Primarily offing for an extremely brand cognizant consumer group, the company envisages itself as a principal global casual wear firms focusing on high sales and productivity growth. For your fashion and design business, such goals could be established based on the well-known plans such as cheapest manufacture, low cost management, marketing plans, prioritizing requirements of the customer and most importantly, the location of the business. Having various stakeholders with experience in social media, and other diverse backgrounds will make your company among the largest U.S clothing retailers. However, it will not be smooth for the business to enter the market because of the infancy, and there will be a lot of downturns chiefly on the company’s global expansion. For example, expansion programs in the U.S. saw an unrestrained upset in profits, forcing fast cloth retailing businesses to open because of competition. How you will conduct your business is key, based on yourexperience.

The leading cities for the American shopping for fashions and design include, New York City, which has several departmental stores for legendary New York retailers with designer merchandize at incredibly low prices. In addition, there is the Los Angeles shopping with various shops for designs and fashions. The New York City has several nearby competing cities including Manhattan, Connecticut, Toronto, Washington DC, Union City, Guttenberg, Yorkville, Fairview among others.

Therefore, I suggest that you locate your headquarters at Los Angeles. People in Los Angeles like shopping for fashions, design, and would normally like deciding the right attire to wear. With more than 61 million U.S. women aged between 25 and 54 spending more than $34 billion in clothing every year, there should be some errors made in apparel choices. Further, the company’s main competitors’ offices are located in Los Angeles. Moreover, Los Angeles has the proximity to service facilities like banking institutions, schools for clothing and design, as well as post offices. In addition, the city has good infrastructure and is well connected to other cities by airports, railways and roads network.  However, there are individuals with business and management skills in Los Angeles. 

When the headquarters are located in Los Angeles, it is easy to exercise control over production and stores because the management will be able to oversee every facet of the business. Also is advisable to locate the design studio to Los Angeles because there are many fashion designers and designing schools, such as Fashion Institute of Design and Merchandising, Los Angeles, Academy of Art University, San Francisco, Otis College of Art and Design, California College of the Arts and Academy of Couture Art. The clients will greatly influence the manner in which a product is designed and how it grows. When designing the products for the business, it is critical to get information from the potential customers about the type of product or design that they desire. For instance, when designing clothes, a design team will show the prospective customers various designs and make alterations in accordance to their likes and dislikes.

Further, the accessibility to materials and the growth of novel and high technology materials in Los Angeles will influence on the final design of a product. Moreover, it is important to locate the retail space to Los Angeles because there is a big market there as well as several customers. Information received from the chamber of commerce or the Census Bureau, local library about the population, income and age of customers in Los Angeles will enable you clearly understand the clients. Also, you have to clearly examine the accessibility, visibility and traffic of the customers. Los Angeles has many shoppers but the business will be successful only if that the business encounters the definition of its target market. This is essential because small retail stores may gain from the traffic of adjacent bigger stores.

Further, Los Angeles has fair rules, policies and procedures that relate to retail store location.  The local city hall as well as the zoning commission for information on guidelines regarding signage is fair and attractive. You should be able to be aware about any restrictions affecting retail operation and future planning that might change the customer traffic, like rod construction. Further, you should be able to abide with the laws that might affect the retail operation. For instance, is it possible to use the space in front of your store for promotions or are their limits for operating hours? Los Angeles is an advanced economy and will allow 24 hours of operation as well as fair business rules and regulations.

Los Angeles is a city with a wide population; cheap labor as well as ready market. However, economic policies of Los Angeles favor capitalism and businesses will be able to compete fairly in the market. In locating the head office in Los Angeles, the human resources department will have an opportunity to design features and policies for business models and objectives. They will actively challenge design with various questions. Additionally, there will be availability of staff with experience in clothing and fashion because of the growth of the industry in in the city. Nevertheless, the business will constantly evolve and take advantage in novel opportunities and technologies since technology in the city is growing at very alarming rate. Health, security wellness as well as benefit programs like pay and insurance of the management and the workers will be addressed properly in Los Angeles because of the availability of infrastructure and economic stability. With an expert in clothing and design, your company will venture in Los Angeles market in a unique way, thereby beating gaining competitive advantage especially over James Perse. New York City, Los Angeles and other fashion shopping cities have good educational platforms in terms of fashion.

By having three key founders with different experiences in backgrounds of clothing and design, business knowledge, and social media experience, you should make an effective use of these resources to enter the market. With the rise in the use of e-commerce, the business should alter its operative plans to acclimate it. Because of strong business and management skills, the business will make its brands more personal and market its products in a unique way as well as communicate with its clients in novel ways. Having a professional in business management, the business will create a website and applications to allow clients create online communities and share content, which include videos, pictures, personal messages, ideas and other data about themselves.

However, as the business intends to grow, changes must occur. This is an essential element in space planning and the firm should anticipate the need to accommodate future alterations in the organization. There are two major superficial sources of changes that can occur in your business. The first one can be accredited to the outward changes, usually outside the control of the firm like the technical changes and innovations, globalization, competition, regulation and de-regulation, as well as consumer behavior. An example is an organization’s investment in information technology (IT). Technological changes in the infrastructure for the office, combined with space re-configuration, have the probability of enhancing the efficiency of the work environment, thereby positively affecting the company’s structure and systems. When amenities are built or upgraded, the firm will endeavor to antedate its information technology demands for the next years to ensure that its space can meet those needs. Also, internal pressures from the business, such as proposals and initiatives to improve capability and flexibility to acclimatize to changes within the business may develop the culture of uniting staff and enhance communication, thereby improving the image of the business to attract clients and retain staff. Therefore, location of the business will be essential to ensure that the business has the opportunity to accommodate these changes.

As the management team, you should be aware of three major competitors in the industry who include;

  • James Perse

 James Perse applied a quixotic approach in every step during definition and development of the brand. Since 2003, the company’s retail store was located in Los Angeles, whereby the retail milieu acts as a medium for transmission of the company’s culture, values and ideas. It is also obtainable at top specialty retailers like Nordstrom, Barneys New York and Saks Fifth Avenue as well as globally. Further, they have online shopping site since 2007 reaching a wider audience. Presently, they have opened a boutique hotel to capture the lifestyle is in expansion. This calls for preparation to deal with this high competition.

  • Pickwick and Weller

Pickwick and Weller is Culver City-based Company involved in designing and selling its own line of custom T-shirts. However, the company’s venture into e-commerce has yielded a lot to the company. The success of e-commerce is mostly binary. Given the vast costs and operative challenges to build a fruitful online retail business, startups in this group normally grow either exponentially or rapidly. It is purely too pricy to uphold an e-commerce business that does not find evocative grip, therefore, preparation for e-commerce is necessary.

  • Warby Parker

Warby Parker is a brand of prescription fashionable sunglasses and eye glasses in the U.Sinitiated in 2010. The company ventures in online sales and has a few numbers of showrooms in within the country. The firm has various retail stores in Los Angeles, New York City and Boston. In addition, it has showrooms in Oklahoma City, Philadelphia, Chicago, Charleston, Nashville, Miami Beach and Richmond.

Finally, there are wonderful opportunities, infrastructure, human resources, security, economic stability, as well as high competition with the many wonderful boutiques in Los Angeles and most trade takes place in the city. Direct rivals include boutiques that carry some of the products that your firm devices to carry or those to move with ease. Indirect opponents are those boutiques in Los Angeles that emphasis on a diverse target market or do not move in lines that the firm will use, in addition to famous boutiques in other urban places. You should aim at success in locating your headquarters in Los Angeles and enjoying proximity of services and opportunities in the city, such as good infrastructural development, roads, railways, airports, healthcare and other services. Location of the retail space as well as a studio is also essential for the business. I hope that your efforts to enter the Los Angeles, as well as the global market will be fruitful. Thank you.