Fashion Nova, Schemes and Mind Maps of Marketing

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Fashion Nova

“Instagram Brand”

Jacqueline Ramos, Jennifer Huerta, Cynthia Soriano, Jenniffer Quezada BUF 3500: Brand Image Marketing Professor Dicky Yangzom

Table of Contents

• Type of Brand/ Competitors Pg. 3-
  • ● Mission Statement Pg. Positioning the Brand
  • ● Internal and External Marketing Pg.
  • ● Cultural and External Influences Pg.
  • ● Target Market Pg.
  • ● Logo and Typography Pg. Brand Identity
  • ● Personality and Packaging Pg. 10-
• Products/ Promotions Pg. 12-
  • ● VIPP Pg. Brand Communication
  • ● Advertising Pg. 15-
  • ● Co-branding Pg. 17-
• Brand Growth Strategies Pg. 19-
• Sketches Pg. 21-
• References Pg. 27-

The brand “Nasty Gal” has been on top for many years but hasn't has much success compared with Boohoo. “Boohoo has earned favour with shareholders for turning out ultra-fast fashion that can go from development to shopping cart in less than a mont, even more quickly than H&M or Zara/ (The boohoo executive team’s deep experience in sourcing and production has given them a leg up amongst competitors.)” (Sherman, 2017) By the ending of February 28, 2017, Boohoo has made a net revenue of roughly $380 million being that it has increased 51 percent. Profits being 97 percent to $40 million and a gross margin of about 55 percent, comparing to its rival H&M.(Sherman, 2017) Boohoo is ahead of Nasty Gal but however Fashion Nova has been been doing a lot better and as well producing at a higher and faster rate than both competitors. “We launch 500 new styles a week,” said Saghian. “A lot of the big brands may bring 500 fresh styles in a year. But people don’t get tired of us.” in a recent BuzzFeed interview. (Vecchia, 2017) The way our CEO began marketing was the realization that websites that sold the same product as it’s Fashion Nova store was gaining popularity in 2013 but at a higher price. He understood he needed a way to get the people’s attention, being the reason why he utilized Instagram and posted his best sellers on models.

Mission Statement

The mission of Fashion Nova has been about valuing the customer and their personality. A sense of confidence inside and out. At a reasonable price where are customers comfortable with our garment’s pricing. “We at Fashion Nova believe the customer is the Star. The girls who rock our styles are adventurous, inspirational and badass. A Nova Star is always the best dressed girl in the room. Her confidence is what truly shines, but her Fashion Nova outfit adds that extra sparkle. We strive to provide awesome service, unbeatable prices and the hottest trends. Our company is based in the heart of Downtown Los Angeles and has five retail locations in Southern California. In addition, we ship globally to Nova Stars around the world. We are always on the lookout for the newest and most daring styles. Whether it’s that perfect dress for a night out, a cute outfit for running errands or a classic ensemble for brunch with the girls, there’s something for every occasion in our collection.” About Fashion Nova. (n.d.).

Cultural and External Influences

Fashion Nova performs research about their consumers and recognizes that shopping online is easier and convenient. Most of their consumers spend most of their time on social media finding the next trend while Fashion Nova is monitoring the current trends in order to beat their competitors and gain more audience. Fashion Nova every year increases their sales because they utilize celebrities and brand ambassadors in order to gain a wider audience which increases their chances of consumers making a purchase from them. Once consumers realize that celebrities wear Fashion Nova and know that it is affordable then it pushes for higher sales because anyone can make a purchase from them and allows for consumers to want to dress like their favorite celebrity. Fashion Nova understands that social media has taken over for their consumers and utilizes Instagram as a way to reach their target audience. They know who their competition is and tries to outsource them by using social media to monitor what the current trends are in order to sell them at a better price point as their competitors. Fashion Nova explores their options by not just using celebrities to promote their brand but their own consumers as well. When you make a purchase from Fashion Nova you are encouraged to take a selfie with their clothing on and tag them in it. Fashion Nova uses their sources very well in order to beat the competition (La Vecchia, 2017).

Target Market

Due to the fact that Fashion Nova’s main social platform is on Instagram and Youtube, it provides them better access to communicate with their consumers. Instagram is a completely viral platform and like many of our beloved social media platforms, it is an effective place to connect and communicate with customers constantly (Michielin, 2017). By posting on a daily on their instagram page, it catches the eye of possible consumers on average of women between the ages of 18-25 (Michielin, 2017). Fashion Nova connects with their consumers on a personal level and aims to grab the attention of the millenials. With the use of the “#fashionnova” and tagging “@fashionnova” it helps the consumers show the brand how they are wearing theri fashion nova pieces and the brand reposts a huge amount of those post on their page. The act of being able to like and comment customer’s post and vice versa, it brings the company and the consumer to a generally personal level that no posting ads on magazines or commercials can do (Michielin, 2017). So therefore, Fashion Nova makes sure to keep up with their online audience.

Personality and Packaging

Fashion Nova is entirely focused on social media. It is basically an “Instagram Brand” or in other words a viral brand. It stays relevant through its influencers on Instagram and celebrity endorsers. The CEO Richard Saghian has realized that runways are dying out and that people are looking through their Instagram news feeds for fashion inspiration so they took advantage of that (Miranda, 2017). Fashion Nova’s saturation of Instagram feeds across the country lies in its network of about 3,000 social media influencers which consist of a combination of fashion and lifestyle bloggers with ten thousands of followers each (Miranda, 2017). The fashion bloggers who work for them promote their products through Instagram which keeps them relevant. Fashion Nova has built an operation capable of turning a viral celebrity photo into clothing ready for shipping at a frantic speed (Miranda, 2017). They make sure their products get to their customers as fast as they can. They have a social media team that monitors what is being worn online and then send what is trending to their design team which then they produce a sample product in less than 24 hours. Then they send them to their factories in LA where depending on the quantity they can have the design ready to sell within a week or two (Miranda, 2017). They want to keep their customers happy and they want them to be updated with the latest trends at an affordable price. They send their packages through USPS priority mail, both domestically and internationally. When the shipment is expedited, it is sent through FedEx (FashionNova, 2018). Fashion Nova can be returned in stores but they are only located throughout Southern California but must be returned in original condition. They do not accept returns on beauty products, body suits, undergarments and final sale items. If you like to make an exchange it has

to be made within fourteen days of the purchase date (Store Returns, 2018). In order to make a return online you have thirty days of the delivery date with a completed return slip and you need to specify the order number. Returned merchandise must me unworn, and unwashed with all the Fashion Nova tags attached, but defective merchandise must be reported within two days in order to get the credit back (Online Returns, 2018). There standard shipping is six dollars which is delivered within two to three business days. If you want your merchandised delivered within one business day is would cost you fifteen dollars. When you make a purchase of over seventy-five dollars the shipping cost is free which will be delivered within two to three business days. International orders will be a fee of ten dollars and will be delivered between five to ten business days. International orders over one hundred fifty dollars has a free shipping cost which will be delivered five to ten business days also. International express orders charges twenty-five dollars for shipping and will be delivered within two to five business days (Fashion Nova, 2018).

Fashion Nova wearers were giving the brand promotion online by tagging their pictures with the brand’s Instagram. Their influencers also provide promotions through a specific code they provide under the caption of their photos on Instagram. Fashion Nova also offers daily sales every few weeks and offers their consumers 20% off their first purchase if they sign up with their email for exclusive discounts and alerts to new styles.

VIPP

Value: Fashion Nova was created to give women the hottest trends, “awesome services”, at an unbeatable price. Identity: Fashion Nova is entirely focused on social media. It is basically an “Instagram Brand” or in other words a viral brand. They have an undying appreciation for the female form. Product mix: Fashion Nova is a private independent e-tailing brand who target the mass market, and mass produce and distribute internally and globally. Fashion Nova offers fashion forward products ranging from jeans, dresses, shirts, and shoes all at an affordable and reasonable price. Brand marketing mix: Fashion Nova promotes their company through social media. They use communtion channels such as Instagram, Twitter, Facebook, and Youtube in order to interact with their consumers.

One of their most important communication channels is on Youtube. Saghian works with a network of more than 3,000 influencers. Fashion Nova sends PR packages to the most influential fashion bloggers. The fashion bloggers make videos such as, “Is Fashion Nova Worth the Hype?,” “ Fashion Nova in real life,” and countless other videos where they get thousands to a million views. The use of social media marketing has helped Fashion Nova become one of the most grew by 600 percent in 2017 and is profitable, but he declines to reveal its revenue. But for context, Boohoo, another fast-fashion retailer that has 3.1 million followers Instagram, had a revenue of £294.64 million in 2017, which translates to $411.43 million. (Hughes, 2018)

Co-branding

Fashion Nova has become one of the most influential brands in such a limited amount of time. The company went from being an online store, to opening their first brick and mortar store in Los Angeles and now debuting their first design collaboration with Belcalis Almanzar, also known as rapper, Cardi B. Before being known as one of the biggest rappers in the Hip-Hop industry, Cardi B has always been a fan of Fashion Nova. For fashion events, Cardi B is seen in high-fashion labels like Moschino and Alexander Wang, Cardi is still just a regular girl from the Bronx and loves her high-street wear. (Rutherford, 2018)There are countless Instagram videos and pictures where Cardi B is seen wearing Fashion Nova. For example, there is an Instagram video Cardi in Fashion Nova jeans on her Instagram and it got more than 8.5 million views. In the video she is seen stating, "Wanna know how rich people like me stay rich? By staying on a budget. These pants right here are Fashion Nova." ( Pougher, 2018) Not only has Cardi B seen in Fashion Nova outfits but she also mention the love she has for the brand in her lyrics for her song, "She Bad." Cardi B raps "I could buy designer, but this Fashion Nova fit all that ass." Cardi B has always wore Fashion Nova throughout her career so it was no surprise for this new design collaboration. The brand's CEO Richard Saghian said, "I can’t think of a better fashion icon for our first design collaboration than Cardi B. Cardi loves the brand and was wearing it before she became famous. She’s the ultimate fashion muse and has incredible style." (Pougher, 2018)

Brand Growth Strategies

Fashion Nova is a recently new company created by Richard Saghian. He opened the first Fashion Nova store in 2006 at the Panorama Mall in Panorama City, California. The ceo, Richard Saghian is very intimate and to himself when it comes to his company. Therefore he does not practice licensing his brand. Instead he is invested in global and brand extension. When Richard Saghian first started the company, he stated that he had a goal of 100 stores across the United States. Richard Saghian stated that it takes more “effort to launch a store is far more harder than it is to increase revenue online. So why open up more stores when I can open up to more countries?” (Hughes, 2018) Instead of focusing on expanding and opening more brick-and-mortar locations, the company spends the time on Instagram posting every 30 minutes throughout the day and talking to his customers, who are usually 16 to 35 years old. (Hughes,

2018. Fashion Nova ships both domestically and internationally. It takes two shipping days for all domestic orders. The shoppers who live within a 40-mile radius of Los Angeles, if they order by 1PM they will receive it via Postmates on the same day. (Hughes, 2018) The company focuses on brand extension by finally announcing their new mens line. There is no confirm date on when the company is going to launch the men’s line or what is going to be featured but both men and women are excited for this new line. There has been funny endless Twitter and Instagram memes and tweets from the consumers who wanted to share their input on the growing brand. For example, one Twitter user stated his excitement about his future, “$24.99 fit from Fashion Nova's men department” (Valentine, 2018) Fashion Nova tries to act like a vertically integrated company but is so new to the retail business that it has not practice the strategy in depth. Fashion Nova design and buying team

works with more than 1,000 manufacturers on product — during the summer months, 80 percent of the clothes are produced in L.A. and during the colder months, 80 percent are made overseas. (Hughes, 2018) According to Saghian, they are able to be faster than other companies because they partner with L.A.-based manufacturers, which means they can have samples made within 24 hours of creating the concept. After 48 hours the items are ready to be shot on models, who are in the office Monday through Friday to pose in the 600 items Fashion Nova releases each week, (Hughes, 2018) making the company into an ultra-fast fashion company.