Marketing Men's Attire in New York City

Business Plan for Tailoring Workshop Company: A Tailor Shop on Wheels

This business plan is for the Tailoring Workshop Company (hereinafter alternatively "the company"), a mobile tailor shop for men clothes that will have a Web site and a mobile app available through the Apple Store. The company will focus on tailoring men's suits only. Customers will be able to contact their personal tailor through the company's Web site or via the mobile app, but there will be no physical brick-and-mortar facilities or retail outlet. Customers will be able to create a free online account that enables them to explore all fabric choices and design collections so they can select the combinations that most appeal to them. The mobile app and Web site will facilitate changes so that customers can instantaneously visualize the results of their choices. In addition to using the company's available designs, customers will also be able to create their own custom designs using the Web site's designing tool. Likewise, customers can upload pictures, narrative description of pages from competitors' catalogs and the designs can be created to their satisfaction.

Following the formalization of the final design, customers will schedule appointments for their personal tailor to visit them in their home, office or other place of convenience for measurements. Customers will be able to track the progress of their order using their account with the company's Web site or mobile app and they will receive periodic updates concerning the final delivery date and time. Customers will be able to pay through the company's Web site or during the measurements appointment. All tailoring work will be performed in the homes of the company's principals or in commercial space leased for this purpose. After finishing the order, the company will deliver the finished suits to customers and ensure a proper fitting. Once the company has established a solid reputation for reliability, quality and customer service, the operation can be expanded to cover the rest of the state and eventually the entire nation using the methods and strategies outlined below.

Management

The day-to-day management of the company will be the responsibility of the owner but two private investors will also have a voice in the long-term strategic planning for the company. This approach is highly congruent with the guidance provided by Thomas (2009) who emphasizes that in the tailor sector, "A small, privately owned company in an industry rife with corporate takeovers and IPOs allows [a] firm to maintain close, solid relations with its customers and to remain free to make quick business decisions when needed" (p. 46). Appropriate software such as Tailor Master will be implemented in order to facilitate the management of the tailor shop, including the automated preparation of management reports, inventory, payroll and tax documents. The Tailor Master application will also provide human resource management features as discussed further below.

Human resources

Besides the owner who is an experienced tailor, the envisioned tailor shop will also employ two full-time tailors and two part-time administrative support staff who will be responsible for all social media marketing including responding to online customer feedback. For the tailors, the company will recruit individuals who are skilled at crafting original designs as well as being experienced at making alternations to better fit individual body types (Tailor career information, 2014). Other attributes that will be sought in the company's in tailors include the ability to make accurate measurements, provide recommendations for suit sizes to customers based on those measurements, drawing patterns, operating a sewing machine and working with a needle and thread (Tailor career information, 2014). In addition, the company's tailor force will also be required to interact with customers in a salesperson capacity (Tailor career information, 2014). The U.S. Bureau of Labor Statistics (BLS) (www.bls.gov).reports that there are no formal degree requirements to become a professional tailor but candidates with a college degree will be assigned hiring preferences, especially those with education and experience in marketing, as discussed further below.

Marketing

The company will focus on using social media networks as its primary marketing tools. According to the definition provided by Hensel and Deis (2012, p. 87), "Social media is a type of online media that expedites conversation as opposed to traditional media, which delivers content but doesn't allow readers/viewers/listeners to participate in the creation or development of the content" (2012, p. 87). There are a wide range of popular social media networks currently, including the most popular Facebook, as well as YouTube, Twitter, Flickr, Pinterest, Linkedln, MySpace and many others (Hensel & Deis, 2012).

The results of the most recent (2013) Social Brands 100 rankings survey determined that the best-performing small businesses are those that have a social media network presence on multiple platforms, including Twitter, Facebook and YouTube (Social brands 100, 2013). Indeed, all of the top-performing small retailers maintain a Facebook presence, while almost all (99%) are also on Twitter and 94% have a YouTube presence (Social brands 100, 2013). These core social media networks were followed by Google+ and Pinterest which are used by 60% of small businesses, with Instagram and Foursquare being used by smaller numbers (Social brands 100, 2013).

A brief description of some of the most popular social media networks in provided in Table 1 below.

Table 1

Current popular social media networks

Social Media Network

Description

Facebook

By far the most popular social media network today, this social media network is privately operated and is ranked as the most used social network worldwide. By May 2010, Google announced that more people were visiting Facebook than any other Web site in the world. As of October 31, 2013, about 500 million people were members of this social media network and fully half of these members use their Facebook accounts every day (How many people use Facebook 2014).

YouTube

Founded in 2005, YouTube is the world's most popular online video community, where millions of people discover, watch and share originally-created videos. YouTube provides a forum for people to connect, inform, and inspire others across the globe and acts as a major distribution platform for original content creators and advertisers, large and small. YouTube uses Adobe Flash Video technology to display a wide variety of user-generated video content, including movie clips, TV clips, and music videos, as well as amateur content such as video blogging and short original videos.

Twitter

Twitter gained a lot of popularity because it offered more different options such as micro blogging and because it was used by some celebrities. According to Bulearca and Bulearca, "Of all social media platforms, Twitter stands out, in terms of both characteristics and growth. Launched in 2006, Twitter gained most of its popularity as a micro-blogging tool in 2009, when it reached 58.5million users world-wide, a 949% increase since September 2008" (2012, p. 297).

MySpace

In 2006, MySpace became the most popular social networking website but was overtaken in 2008 by its competitor Facebook which became the most popular social networking site worldwide. Approximately 43.2 million users visit MySpace on a monthly basis. The company employs approximately 1,000 employees. A unique feature of MySpace is the ability for users to customize their profile information to give detailed information about themselves and what they are interested in.

Source: Adapted from Edosomwan, Prakasan, Kouame, Watson & Seymour 2011 unless otherwise indicated

Social media networks provide small business retailers such as men's tailor shops with a forum in which they can communicate their brand value and attributes in a cost-effective fashion (Edosomwan et al., 2011). Men's tailor shops can also benefit from the addition of social media networks to their marketing efforts in a number of ways, including the following:

Promoting open communication between employees and management;

Enabling employees to share project ideas and work in teams effectively, which helps in sharing knowledge and experiences;

Promoting better content, such as Web cast and videos, rather than just simple text;

Helping to communicate collaboratively between current and potential customers, in receiving feedback, product definition, product development, or any forms of customer service and support;

Encouraging company's employees to become members of a well-recognized community; and,

Becoming a good venue for discussions provided companies ensure that the employees are adhering to the rules and etiquettes of social media (Edosomanwan et al., 2011, p. 80).

In fact, consumers' use of social media has become the most popular activity on the World Wide Web in recent years (Prosser 2014). For instance, according to Prosser, "More consumers use social networks each month than use email accounts, and 40 per cent of social media users have purchased an item after sharing, commenting, pinning, tweeting, liking or 'favoriting' it" (2014, p. 3). In addition, the selection of the optimal social media network relates to the nature of the enterprise, with some social media networks provided some advantages over others for the purposes of small business retailers such as men's tailor shops. For instance, to date, Facebook has proven highly effective for small hotels and restaurants while LinkedIn and Twitter have been more effective for sole practitioners such as men's tailors (Prosser, 2014). In many cases, small business retailers use a so-called "shotgun" approach by establishing a presence of multiple social media network platforms (Prosser 2014). In this regard, YouTube, Google+, Instagram and Pinterest have been found to be particular effective for small business retailers such as men's tailors that can provide high-quality image of their products (Prosser, 2014).

The content and feedback that small business retailers such as men's tailors use in the social media networks are also highly important. Rather than simply broadcast how good a company is, small business owners should approach the process gradually, building relationships with consumers over time (Prosser 2014). According to Prosser, "The best social media activity mixes commercial imperatives with customer interaction and an element of fun or wider interest" (2014, p. 4). In addition, it is important to note that small business owners should monitor where their sales are coming from in order to determine the most effective social media network offerings. In this regard, Prosser adds that, "Attracting 10,000 Twitter followers might be a big success for a business that wanted to raise its profile, but if none of them become customers, a business that wanted more sales would be disappointed" (2014, p. 5). The research to date confirms that a growing number of small business retailers such as men's tailor shops are incorporated social networking sites into their marketing communication strategy. According to Kunz and Hackworth, "Many have recognized that social networking is about linking people with common interests. Companies such as American Eagle, Gap, Ice.com, Victoria's Secret, Macy's and Nike have experimented and/or incorporated the use of social networking" (2011, p. 3).

An important point made by Barry (2012), though, is the need to encourage customers to share their positive experiences with their suits with others to promote additional future business. For example, Barry emphasizes that, "Consumers have embraced digital media and are increasingly confident about interacting and transacting online. With trust in traditional sources of influence decreasing, they are turning to their peers or communities online for advice and to share information and opinion" (2012, p. 30). This point is also made by Kunz and Hackworth (2011) who note, "Consumers are more likely to buy something that is recommended to them, rather than when it is 'marketed' to them; this is even more likely when the recommendation comes from someone that they trust" (2012, p. 2).

Savvy men's suit designers have long recognized that word-of-mouth advertisement and consumer testimonials represent powerful marketing methods, and the impact of these alternative approaches has become even more significant with the introduction of social media networks. For example, Kunz and Hackworth (2011) emphasize that, "While the economy has changed the way consumers shop, and how they spend, what has not changed is that consumers trust the opinions of friends and family, as well as people they do not know, usually more than anything the retailer has to say" (p. 3).

The company will also draw on best industry practices in the men's tailor sector. Some of these best practices can be discerned from the marketing efforts used by the nations' leading men's suit designers and manufacturers. For example, beginning in the early 1990s, American men started to receive growing pressure in the workplace as well as home concerning their business attire (Craik, 1993). In this regard, Craik reports that, "Attitudes were changing. More men worked in sedentary occupations, especially in office jobs. These required different kinds of clothing, hence the growing popularity of the business suit as a practical, multi-purpose garment and the basis of the wardrobe for the white-collar workplace" (1993, p. 127).

Today, the trend towards wearing stylish business suits has become even more pronounced, and many American men are confronted with the new predicament concerning where to purchase their clothing (Smalley, 2009). This trend has also heated up the marketing environment for companies designing and manufacturing men's suits. For instance, Smalley emphasizes that, "That question has set off a heated marketing battle among the normally buttoned-down world of men's clothing shops, which are fighting for market share in one of the few bright spots of the fashion world; 12% more suits and other tailored wear were sold [in 2008] than in 2000" (2009, p. 37).

In response to this trend, a growing number of tailor shops are incorporating information technology into their business model to achieve and sustain a competitive advantage. In this regard, Smalley points out that, "To appeal to former dot-comers whose closets are filled with khakis and polo shirts, some suit sellers, whose wares were once a symbol of Old Economy thinking, have adopted some New Economy tech and swagger" (2009, p. 37). Indeed, even some of the well established and traditional men's clothiers have integrated IT solutions to enhance their marketing efforts. For example, Brooks Brothers, nearly two centuries old and perhaps the world's most well-known and conservative men's tailor, has implemented innovative approaches to its marketing initiatives. According to Smalley, "At its flagship store on New York's Madison Avenue, it's replaced a tailor's tape measure with a scanning device that plots 200,000 points on the body in 12 seconds (men wear boxers in the small scanning room, paneled in mahogany, of course)" (p. 37). The scanned customer measurement data are then communicated to one of Brook Brothers suit manufacturing factories where they are transformed into a $700 digitally tailored suit that can be delivered in less than 3 weeks (Smalley, 2009). This approach means that Brook Brothers can provide a competitively priced custom-made suit in about a third of the time that is required for other custom suit manufacturers (Smalley, 2009).

Likewise, Joseph A. Bank, a men's suit retailer that has 140 outlets, has implemented digital solutions for its marketing efforts. For example, Smalley reports that at Joseph A. Banks, "Store managers are touring college campuses and hawking group discounts to fraternities and any other group they can find. Once they have a customer, Bank executives try not to let go, and send them thank-you e-mails and reminders to shop online at its build-your-own-suit Web site" (2009, p. 37). In addition, recognizing that many young men entering the business world may lack the fashion acumen they need to dress smartly, Joseph A. Banks has developed a brochure that explains the fundamental differences between business-casual attire and formal business suits. The outcome of these marketing efforts has been truly impressive. For instance, Smalley reports that, "All that aggressive marketing has paid off. Two weeks ago the company announced sharply higher earnings. And since September, its stock has risen from below $5 to more than $20" (2009, p. 37).

Another major actor in the tailor shop sector is the Men's Wearhouse which also maintains a prominent Web presence but this enterprise has also integrated extensive print and television media advertisements into its marketing mix. In addition, representatives from the Men's Wearhouse have also appeared on national television talk shows to promote their products by providing men with timely guidance concerning men's suits. For example, Smalley reports that, "The company has also worked with morning news shows around the country to produce how-to-dress segments, covering different cuts of suits and what to wear to an interview. It's also started renting tuxedos to the prom crowd, so they know of the store when it comes time to buy their first suit" (2009, p. 37).

Furthermore, the Mean's Wearhouse marketing focus has been on improving the image of men's suit in the minds of up-and-coming members of the business world. According to Smalley, the Men's Wearhouse is "trying to sell attitude these days more than anything. It's been running full-page ads in newspapers like The Wall Street Journal with the headline introducing a revolutionary concept in business attire -- the suit" (2009, p 37). Some of the information provided by the Men's Wearhouse is pragmatic, while other guidance is more light-hearted. For instance, Smalley adds that the Mens' Wearhouse advertisements "show a twenty-something guy smirking, surrounded by copy that explains buttons on cuff look good but serve no purpose (kind of like your last boss) and 100% wool holds its shape as well as a crease (wrinkled khakis are so Y2K)" (2009, p. 37).

Some indication of the effectiveness of these marketing efforts and trends in purchasing can be discerned from the fact that the Men's Wearhouse has expanded its portfolio of men's suits in the $200-range by 50%, indicating that there are more young and middle-income men purchasing suits today (Smalley, 2009). Moreover, the company has consistently stressed the stylishness of their men's suit line to the exclusion of other merchandise, and the payoff has been significant. In this regard, the cofounder of Men's Wearhouse, Richard Goldman, notes that, "There was a time when we said, 'Geez, everyone knows we sell suits and maybe we should talk about other stuff. Now we're saying, 'Yes, everyone knows we sell suits, but suits are okay, and actually can be cool'" (cited in Smalley, 2009, p. 37).

Although there are no signposts to help men's tailor shops gauge the market for suits, some indication of the strength of the market can be gained from how well the economy is performing. According to one men's suit designer, Joseph Abboud, the most accurate predictor of what men will be wearing in the future can be found in the performance of the stock market. In this regard, Abboud advises that, "When times are tough, people are going to be dressing more professionally. Troubling events abroad, and fears about homeland security, are also a boon to suit sellers" (cited in Smalley, 2009, p. 37). Given the ongoing threat from ISIS and continuing trouble brewing in the Middle East and elsewhere around the world, it is reasonable to suggest that the market for men's suits will remain strong for the foreseeable future. As Smalley points out, "This is a time of war, and men will be dressing for power. People don't want to seem frivolous. For a lot of men, those are more than enough reasons to get back in a suit. Anything to avoid standing in front of their closets, utterly stumped about what they should wear to work" (2009, p. 37).

The marketing message for the company envisioned in this business plan will also focus on the quality of the men's suits provided rather than the price because top-notch men's attire cannot be manufactured from shoddy materials. This aspect of the company's marketing message is a central importance because many male consumers have become accustomed to bargain basement prices for clothing at big chain stores such as Walmart or Target but these suits lack the style, quality and overall appearance that custom-make suits provided. In this regard, Walters (2014) emphasizes that, "It's very sad - we've become so used to the cheap price that everyone expects everything to get cheaper and cheaper. But it's not sustainable. Even smart shops have sacrificed quality to keep their prices low" (p. 13).

Indeed, some tailor shops have resorted to cutting more corners than just the fabric and have transformed the custom tailor shop into a true "cut-rate" operation. As Walters points out, "They cut costs, buying material from China or India, use cheaper thread and use single stitching instead of double stitching. For the smaller, bespoke producers, cost-cutting like that doesn't makes sense because you only save a small amount. But for the large producers the overall savings can be thousands" (2014, p. 13). Clearly, the envisioned enterprise will not enjoy the economies of purchase scale that can be achieved by the Men's Wearhouse or Joseph A. Banks so the focus will by necessity be on high-quality suit design and manufacture.

A common theme that quickly emerges from the review of the relevant literature is the need for the provision of fashion guidance for men's tailor shop customers who may not be fully apprised of what types of suits are regarded as acceptable attire in which circumstances, and men's tailor shops can carve out a real niche in an otherwise highly competitive environment by providing this type of advice. For example, certified public accountants recognize the need to dress appropriately but may be unclear concerning what is required. In this regard, Fortune and Francis (2009) advise that they are "still very conscious of the need to dress correctly" and "the written dress code at Paneth, Haber & Zimmerman states only that personal appearance is important, but the equally important unwritten code is that men must wear a suit and tie - not a sports jacket - every day" (2009, p. 40).

The importance of wearing the right suit cannot be overstated, and this importance is a recurring theme for professionals in particular. Some indication of this importance can be discerned from the following observations by one executive CPA:

I think those outside the profession, our clients, have an idea of how CPAs dress. They imagine us relaxing at home, still wearing our suits. I don't want to disappoint them. Before I came here I worked on the bookkeeping staff at a much more casual firm. Now I have to take great care every day to make sure I look professional. Basically, there's not a day when you won't catch me looking my best. I own gray, blue and brown suits, which I wear with white shirts, sometimes blue. I 'dress to impress' - it's part of gaining respect. (cited in Fortune & Francis, 2009, p. 40)

There are some regional differences in men's professional attire that affect purchase rates, though, but fortunately for the envisioned tailor shop, these regional differences mean that New York remains a prime location for men's suits sales. While companies in the Midwest and eastern United States have a more relaxed dress code, companies competing in New York City regard a formal business suit for men as a prerequisite for doing business (Fortune & Francis, 2009, p. 40). This importance of this seemingly trivial aspect of the business world can be seen by the following anecdote: "An example of how complex this issue is: One casual-dress Friday I bumped into one of my clients who was visiting someone else in our office. He chewed me out for my casual attire. He said, 'If we're going to pay you professional rates, I expect you to dress like a professional'" (cited in Fortune & Francis, 2009, p. 40). Taken together, it is clear that "clothes do make the man" and that suits command instant respect.

In addition, a tailor shop marketing plan must take into account the level and type of competition that exists in the area, what level of demand exists and what pricing regimens are prevalent for these tailoring services (Tailor shop business plan, 2014). At present, there are approximately 900 or so independent tailor shops operating in the New York City area. Some indication of the current tailor shop operations can be discerned from the list of the description of the offerings provided by what have been described as some of the best tailor shops in New York City in Table 2 below.

Table 2

Five best tailor shops in New York City

Name/Location/Web site