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THE EXPANSION OF SIMON CARTER 1
Quincy I. Carter
The Expansion of Simon Carter into New York
THE EXPANSION OF SIMON CARTER 2
TABLE OF CONTENTS:
Abstract:……………………………………………………………….. pg. 4
Introduction:…………………………………………………..……….. pg. 5
Part I: Analyzation of current Market ……………………………….. pg. 5
 Where are they now……………………………………………. pg. 5
 SWOT Analysis ……………………………………………….. pg. 6
1. Table 1.0 …………………………………………………… pg. 6
 PESTEL Analysis ………………………………………………pg. 6
1. Political Factors …………………………………………… pg. 6-7
2. Economic Factors …………………………………………… pg. 7
3. Social Factors ……………………………………………… pg. 7
4. Technology Factors …………………………………………pg. 7
5. Environment Factors ………………………………………… pg. 7
6. Legal Factors ……………………………………………… pg. 7-8
 Simon Carter Brand Business Objectives ……………………… pg. 8
 Business Canvas Model ………………………………………pg. 8-9
1. Table 1.1 …………………………………………………… pg. 8
 7 P’s of Marketing Analysis …………………………………… pg. 9
1. Table 1.2 …………………………………………………… pg. 10
2. Product ……………………………………………………pg. 10
3. Price ………………………………………………………pg. 10
4. Place ………………………………………………………pg. 10
5. Promotion …………………………………………………pg. 11
6. People ……………………………………………………… pg. 11
7. Packaging/Process ………………………………………… pg. 11
8. Physical Evidence ………………………………………… pg. 11
 What needs to happen ………………………………………… pg. 11
 Risk of entering new Market ………………………………… pg. 12
 De Bono’s Thinking hats of Simon Carter …………………… pg. 12
1. Blue Hat …………………………………………………… pg. 12
2. White Hat ………………………………………………… pg. 12
3. Red Hat …………………………………………………… pg. 13
4. Green Hat ………………………………………………… pg. 13
5. Yellow Hat ………………………………………………… pg. 13
6. Black Hat …………………………………………………pg. 13
Part II: New Strategic Direction Plan ………………………………… pg. 13
THE EXPANSION OF SIMON CARTER 3
 Where is Simon Carter headed ……………………………pg. 13-14
 Breakdown of various market entry methods ………………… pg. 14
1. Joint Venture ……………………………………………… pg. 14
2. Franchise …………………………………………………… pg. 15
3. Wholesale …………………………………………………pg. 15
4. Agent ……………………………………………………… pg. 15
5. Distributors ………………………………………………… pg. 15
6. Concession………………………………………………… pg. 15
7. Department Store ………………………………………… pg. 15
8. Own Stand Alone ……………………………………… pg. 15-16
 Timescale for Simon Carter …………………………………… pg. 16
 Conclusion ……………………………………………………pg. 16
References ……………………………………………………… pg. 17-19
THE EXPANSION OF SIMON CARTER 4
Abstract:
The Simon Carter brand has been around for over 30 years. Currently the brand is solely
located in the United Kingdom with a few concessions in other countries. This will
examine the current state of the Simon Carter brand from a SWOT and PESTEL analysis
along with using the Business Model Canvas, 7 P’s of the Marketing Mix and De Bono’s
Thinking Hats. Likewise in section II it will analyze the new proposed location of Simon
Carter along with the culture, customers, lifestyle, and its competitors. More importantly
this section analyzed a timescale of how to effectively implement a successful plan on
bringing Carter into the new proposed location.
THE EXPANSION OF SIMON CARTER 5
Introduction:
The UKFT (United Kingdom Fashion and Textile Association) has a host of
brands that have been very successful in the United Kingdom. Some of those companies
that have succeeded, and withstood the test of time in an industry that is ever changing
include Orla Kiely, Lulu Guinness, Dashing Tweeds, Jenny Packman, and Tatty
Devine just to name a few. However, one company that is apart of the UKFT that has
truly made a difference in the Fashion Industry is Simon Carter. Winning the 2013
Drapers Award for Menswear of the Year, Carter’s brand has proven to be exquisite and
at the top of its game with minimum to no problems. Though, how did such a brand
become so successful?
With an original career path in medicine Simon soon realized that his true path in
life was in the world of Fashion. Starting his career in fashion as a trainee buyer for
Fenwick’s, a customer brought in a motorcyclist brooch from the 1930’s to sell. As
payment for the days wages Carter was given the brooch and it sparked an idea for what
would soon be a defying change in men’s fashion. After tracing down a manufacturer in
Cornwall, he had 100 of these brooches created and went to the streets in an attempt to
sell them. Once he went out to sell them he was rejected by every store on Kings Road,
Chelsea, when finally the last place he went to brought 50 of the 100 brooches. In that
moment the Simon Carter brand was born the year was 1985. This moment was when the
face of the cufflink was changed forever. Launching his first official menswear collection
in the late 1990’s Carter would soon prove to be what he is now referred to as “The King
of Cufflinks” (http://www.menswearstyle.co.uk/2013/09/30/interview-with-simon-
carter/775).
Part I: Analyzation of current market
Where are they now?
Having stores solely in the United Kingdom the brand is looking to expand to
other places to build its brand awareness. Currently the Simon Carter brand has locations
in Mayfair, Bloomsbury, Crystal Palace, Wendover, Illkley, and Blackheath.
However, some products of the brand can be purchased in places like House of Fraser,
John Lewis, Selfridges, and Henry Tibbs. Carter has made great strides in this industry
over the past 30 years. Maintaining a strong brand image and British following, the brand
lacks the following of consumers in other countries that would ensure global success for
brand that has a potentially bright future.
S.W.O.T Analysis:
A SWOT analysis was conducted to examine where Simon Carter currently is and
where they are headed. It will also analyze where they can improve their company image.
The strengths of the company that also contribute to its success is its traditional British
look, the Simon Carter Heritage, the unique selling point of the using natural fibers.
THE EXPANSION OF SIMON CARTER 6
Other strengths are that Carter’s brand is inspired by his love of antiques, and the use of
Social media to enhance the awareness of the brand. The brand does not have many
weaknesses but the ones they do have include minimum globalization, big name
competitors like Ted Baker and Hackett, finally Carter’s brand is exclusively a menswear
brand with minimum to no woman products. Opportunities that are offered to the brand
to further their success are that its target market is geared towards a multitude of men,
expertise in Menswear fashion, looking to have products made in the UK, participating in
a few trade shows, and the unique selling point of antique inspired goods along with the
use of natural fibers. Finally, the threats that surface for the brand would contain its lack
of global awareness, and minimum creation of goods made in the United Kingdom.
Tab2le 1.0SWOT Analysis of SimonCarter
PESTEL Analysis:
Political Factors:
According to the United Kingdom Clothing, footwear and fashion: international
trade regulations there is a range of import-specific regulations that must be complied
with by all businesses in this sector. The key issues relate to the Tariff, duties, Intrastate
and intellectual property (IP) (https://www.gov.uk/clothing-footwear-and-fashion). The
United Kingdom’s vitality of prosperity is based on overseas trade and inward
investments. The trade and investment policies of the UK aim towards the advancement
of its businesses to succeed internationally and they encourage overseas companies to
work with them in the globalization of various brands
(https://www.gov.uk/government/topics/trade-and-investment).
Economic Factors:
Due to the current economic crisis worldwide the world of Fashion has truly been
affected by what has transpired over the course of the years. For example, in a report in
THE EXPANSION OF SIMON CARTER 7
regards to the Economic crisis it states that “Britain will at some point default on its debts
to foreigners (as it has done at least twice before), this is INEVITABLE because ALL
countries eventually DEFAULT on their debts, it is only a question of when i.e. in the
next few years or delay bankruptcy for many decades and therefore results in the relative
risks of default which the market prices”(http://www.globalresearch.ca/the-economic-
crisis-in-the-uk-inflation-and-debt-default-bankruptcy/18691).
Social Factors:
In todays society it is likely that when goods are purchased, people become
ambassadors for a brand without willingly knowing. For instance, in the 80’s a big thing
is fashion were leggings and leg warmers. This trend affected society because once young
ladies saw it on television on the music stars, it prompted them to flock to stores to
purchase the goods and wear them. This goes to prove that in society fashion is widely
made popular according to who is wearing it. The same method applies to Simon Carter
once individuals begin to see his products around it will raise awareness of the brand.
Technological Factors:
Simon Carter unlike others is very present in the social media circle. To begin
with, Carter’s Facebook, Twitter and Instagram page displays what is currently going
on with the brand and things to look forward to
(https://www.facebook.com/SimonCarterLtd/ https://twitter.com/kingofcufflinks). In
addition, to having those social media accounts, if a consumer goes to the brands website
there is a link that takes them to the blog that Simon host’s
(http://www.simoncarter.net/blog/). Finally, the company has a website that is very easily
navigated and helps the consumer with all their needs
(http://www.simoncarter.net/collections/categories.html).
Environmental Factors:
Since the current world of Fashion is moving towards the lifestyle of
sustainability, many things have changed in respects of why the environment has affected
this tremendously. This factor is important because of the increasing scarcity of raw
materials, pollution targets, doing business as an ethical and sustainable company, carbon
footprint targets set by governments (this is a good example were one factor could be
classes as political and environmental at the same time). These are just some of the issues
marketers are facing within this factor. More and more consumers are demanding that the
products they buy are sourced ethically, and if possible from a sustainable source
(http://www.professionalacademy.com/news/marketing-theories-pestel-analysis).
Legal Factors:
When it comes to the legality of the United Kingdom and its fashion and textile
industry its concerns are health and safety, equal opportunities, advertising standards,
consumer rights and laws, product labeling and product safety. In order to trade
successfully to other countries the companies in the UK should have an understanding of
what is and is not permitted in trading. Due to each country having its own trading rules
and regulations it becomes complicated to trade globally.
THE EXPANSION OF SIMON CARTER 8
Simon Carter Brand Business Objectives:
Presently, the Simon Carter brand is aimed towards the crowd of men who are
between the age’s 18- 60. With such an enormous audience this may present problems
when it comes to Carter’s brand objectives. Since Simon Carter is under the UKFT the
objectives are set based on what they expect from their companies. Initially, the first
objective is that a constructive dialogue with Government and politicians, the reasoning
is because they are apart of organizations such as BATEAG (British Apparel and Textile
Export Advisory Group) and the EURATEX (European Clothing and Textile
Association). Following this, the UKFT expects its companies to a skilled and trained
workforce. This objectives indicates that the Department of Business Innovation and
Skills and the Department of Culture, Media and Sport to ensure that government policy
and programs support the industry. Next, they require a level of economic and business
playing field with Europe and Internationally. Meaning that if UKFT companies are
going to trade with other countries then they are advised properly to help in successful
globalization. In addition, a sustainable environment for the UK and a commitment to
rebalancing the economy. The UKFT plays a vital and active role in the development and
implementation of environmental policy in the UK and the EU for the clothing and textile
industries. Finally, the UKFT helps keep stable regulatory framework in the UK. This
objective suggests that the UKFT is instrumental in the development of a huge range of
Standards that many members use on a daily basis and every Standards Committee in the
UK looks at clothing and textiles has UKFT representation, which brings involvement in
the setting of European and International Standards
(http://www.ukft.org/business.php?page=business&mcat=2&catid=49).
The Business Model Canvas:
Table 1.1 The Business Model Canvas
The above table (TABLE 1.1) is of the Business Model Canvas. This model is a
strategic management and entrepreneurial tool. It allows you to describe, design,
challenge, invent, and pivot your business model. In the expansion of Simon Carter the
ideal key partners would consist of the UKFT, the USFIA (United States Fashion
Industry Association) (http://www.usfashionindustry.com), and a partner that would help
THE EXPANSION OF SIMON CARTER 9
in the business venture of Carter entering into the American Market. Key activities of the
brand would comprise of the brand getting American customers to come into the new
location and purchase goods and raise the brand awareness. Also, they will have to have a
certain manner of promotions that would grab the consumer in the American market. Just
as they are needed as partners the UKFT and USFIA would be excellent choices in the
helping the brand and should help the brand with various resources that might be needed
in this endeavor. Due to the fact that Simon Carter already has a stylish way of packaging
its goods they could potentially come up with other innovative ways to make customers
want to buy more goods from them. This can also help in the aspects of making
customers who are on the fence, loyal customers and generally building the brand
awareness.
The next important factor is the customer relationship. This is crucial because it
can either help in the success of destruction of a company. The brand must have people
working for them who are knowledgeable about the brand, who are convincing so they
can influence shoppers to buy the products, and most importantly in order to maintain a
positive customer relationship the brand must prepare an atmosphere that makes
consumers want to shop at the location. The various channels for Simon Carter would be
via the Internet, in store sells, through the already existing retailer establishments and via
the locations where Simon Carter products can already be purchased. The current
customer segmentation contains men ages 18-60. These men are stylish, fashion forward
and knowledgeable about the world of fashion. Although the cost for the brand will have
to be revamped slightly they can still make a great profit if they follow the contingent
plan that they put into place. Due to the change of cost in duty and taxes in other
countries the prices will be affected to some extent. The revenue streams will come from
places such as the Internet, in store sells, through the already existing retailer
establishments and via the locations where Simon Carter products can already be
purchased.
Seven P’s of Marketing Analysis:
Currently in the Simon Carter brand many things determine the success of the
company. Although they are under the advisement of the UKFT they still have things to
figure out for the brand in terms of where they want to be in the future. One particular
item that can be looked at in order to analyze the potential growth of the brand is the
Seven P’s of Marketing Mix. The seven P’s of marketing is what businesses use in order
to successfully operate; the seven P’s of marketing include PRODUCT, PRICE, PLACE,
PROMOTION, PACKAGING/ PROCESS, PHYSICAL ENVIRONMENT, and
PEOPLE. The importance of the Seven P’s is so that a brand can continually evaluate
and reevaluate their business activities, also customers and needs change rapidly, they
must continually revisit these seven Ps to make sure their on track and achieving the
maximum results possible for them in today's marketplace
(http://www.entrepreneur.com/article/70824).
THE EXPANSION OF SIMON CARTER 10
Table 1.2 The 7 P’s ofthe MarketingMix
Product:
The product range for Simon Carter can be divided into two groups, with two sub
categories one geared towards the younger target market ages 18- 25 known as the West
End and the more mature line, which is simply Simon Carter. The first group is the
product range for the clothing goods; the second part is for the accessories that Simon
Carter offers. The clothing goods consist of formal and casual shirts, trousers, jackets,
and suits. On the other side of it are the accessories goods, which feature his signature
cufflinks, watches, luggage, bracelets, necklaces, gloves, underwear, belts, socks,
scarves, tie slides and pocket squares. These items have proven to help in the ever-
growing environment of Simon Carter.
Price:
The price of Carter’s products range from a mere £15 for a pair of underwear, all
the way up too £350 for a two-piece wool suit with products and prices in-between that
meet the quality of the goods considering they are all created with natural fibers. There
are rarely sales at the Simon Carter brand however, on the website items that have been
created and have not sold according have been marked down to lower prices. The brand
allows its customer to pay via cash, credit or debit when purchasing goods. The goods at
Simon Carter can be shipped to either United Kingdom locations or Japanese locations.
Place:
As previously stated in “Where are they now”, the brand has several locations in
the United Kingdom. The brand has 1 in 5 locations that consumers can physically walk
into which include Mayfair, Bloomsbury, Crystal Palace, Wendover, Illkley, and
Blackheath. Items can also be purchased at House of Fraser, John Lewis, Selfridges, and
Henry Tibbs.
THE EXPANSION OF SIMON CARTER 11
Promotion:
As far as promotion goes Carter believes in supporting local newspapers and
magazines in the areas that his store locations are. When talking to Carter about how he
promotes the brand he said that he uses local magazines such as “THE GUIDE”, “THE
TRANSMITTER”, Facebook, Twitter, Instagram, and attended Top Draw Trade
Show.
People:
The people who shop at Simon Carter are men who are 18-60 years of age. These
men go for the traditional British look and look forward to seeing Simon’s heritage shine
through onto the garments and other goods. The individuals who work at the locations are
friendly and helpful, and willing to lend a helping hand if needed. When going to visit the
Mayfair store I was greeted by Marketing Manager Jess, she explained the background
of the company and helped with the understanding of the brand and its location.
Packaging/Process:
The way the brand runs is rather intriguing, considering that it is a small
company. All products are presented as gifts depending on which collection individual
shops from. West End products are presented in a black box with a partial British flag
with the words West End engraved on it, on the other hand Simon Carter products are
presented in a cinnamon color box with the company name across it.
PhysicalEvidence:
One of the most tell-tell signs that one has entered a Simon Carter store and/or are
wearing a product of the brand is that the locations are heavily decorated with antiques.
Simon says “Underpinning all Simon Carter products are the core qualities of original
design, the best quality, and excellent value for money. Despite the expansion of the
business I believe that a whimsical English touch of individuality still runs through all the
products, just as it did in those early days” (http://www.simoncarter.net/works.html).
What needs to happen next?
In order to successfully enter into a new market the Simon Carter brand must
figure out what is the best way for them to enter into the new market. Upon deciding the
location they must understand why this particular place works for the company and
exactly how they are going to enter this market. Once they have figured those terms out
they must then scope out the key differences in their current location as compared to the
new location. Following that the brand must analyze the culture of the area and examine
whom their competitors are in the area. Proceeding this they must analyze the customer
segmentation in the area in which they choose to enter into. Aside from the above stated
items that need to be decided the company must figure out what risk must be taken in
order to enter the market but also how those risk will impact the company as a whole.
THE EXPANSION OF SIMON CARTER 12
Risk of entering new Market:
When entering a new market for any company many risk may arise that may
prove to be detrimental to the success of the company. For the Simon Carter brand one of
the biggest risk that might arise for the company is the competition in the proposed area
and the consumers in the area. This might pose as a risk because it could quickly
discourage the company from wanted to stay in an area that it is not likely to thrive in but
this can also be treated as an opportunity for the company. If the company truly believes
they can survive amongst the new target market and its new competitors then they will
have to use promotional tools along with varying products to grab the new audiences
attention.
De Bono’s Thinking Hats and Simon Carter:
Table 1.3 De BonoThinkingHat
Blue Hat:
In the Simon Carter brand this hat would be used to analyze how the company
will successfully enter into the new proposed market. This hat will also help in the effort
to examine if entering into this new market is what’s good for the company and if the
brand will thrive in its new location. Opportunities that are offered to the brand to further
their success are that its target market is geared towards a multitude of men, expertise in
Menswear fashion, looking to have products made in the UK, participating in a few trade
shows, and the unique selling point of antique inspired goods along with the use of
natural fibers. (See Table 1.0 for reference)
White Hat:
This hat is used to survey the new area and see what competitors are in the area
along with a host of other objectives. This hat will help in figuring out what products will
be sold along with if they should still target the same exact clients as they currently do.
THE EXPANSION OF SIMON CARTER 13
Red Hat:
The red hat is what will be used to determine how entering the new market will
affect the current brands image. The brand can also analyze with this hat the positive and
negatives of the market.
GreenHat:
This hat can be used to govern what new products are being created, together with
examining new innovative ways to become successful in the new market and make
Simon Carter not only a British brand but also a worldwide brand.
Yellow Hat:
The yellow hat examines the positives and opportunities for the Simon Carter
brand. The strengths of the company that also contribute to its success is its traditional
British look, the Simon Carter Heritage, the unique selling point of the use of natural
fibers. Other strengths are that Carter’s brand is inspired by his love of antiques, and the
use of Social media to enhance the awareness of the brand. (See Table 1.0 for reference)
Black Hat:
Finally, this hat is to analyze the weaknesses and threats to the company. The
brand does not have many weaknesses but the ones they do have include minimum
globalization, big name competitors like Ted Baker and Hackett, finally Carter’s brand is
exclusively a menswear brand with minimum to no woman products. The threats that
surface for the brand would contain its lack of global awareness, and minimum creation
of goods made in the United Kingdom. (See Table 1.0 for reference)
Part II: New Strategic Direction Plan
Where is Simon Carter headed?
The Simon Carter brand has proven to be a company that is stable in their current
environment but they will also do well in locations similar to the current one on the
United Kingdom. The proposed location of Simon Carter is to bring the brand into the
United States of America, particularly New York. The reason why New York would be
an ideal place to put the brand is because it is a hub of Fashion driven individuals, not
only is it minutes away from Manhattan but more importantly it is the place where stars
go to do shopping and is likely to thrive due to the fact that celebrities like shopping in
locations where fashion is alive and well. The best way for Carter to enter into the new
market is by having several small pop-up stores, however, contingent on how well the
pop-up stores do the ultimate goal is to have a flagship store.
The new region is surround by other locations that are closely related to fashion
and the world that is the arts. Surrounding the newly selected New York region are
locations like Greenwich Village (West Village), East Village, Little Italy, Tribeca,
Chinatown, and minutes away from New Jersey. The key differences from Simon
Carter’s London locations and the newly proposed location is that, in London the retail
THE EXPANSION OF SIMON CARTER 14
shops are closed off and hidden like the gems that they are, on the other hand New York
is a wide open space and brands as such are seen and visible without being difficult to
find. Unlike London, the New York lifestyle and culture is very upbeat and fast paced.
The great thing about moving to a city like New York is that just like the London culture,
individuals are engrossed in Theatre, Music, Art, and Fashion, the Simon Carter brand
will melt right in to the New York Culture.
Moving into the city, Simon Carter will be presented with competitors that have
been in the industry longer but also his competitors have such a large following that the
consumers loyalty lies with that specific brand. A few of Simon’s new competitors will
be Prada, Tory Burch, Alexander Wang, Tiffany & Co., and Marc Jacobs. The
aforementioned brands have in their own rights taken the fashion world by storm and
have made places like New York home and have a large clientele. Being surrounded by
Greenwich Village (West Village), East Village, Little Italy, Tribeca, Chinatown, and
minutes away from New Jersey the audience for Simon Carter has already changed. In
this new location Carter’s brand will be introduced to people who are apart of the LGBT
Community (Lesbian, Gay, Bisexual, Transgender Community), MEN WITH
CHILDREN in various age brackets, the Italian Community, the Asian Community,
and individuals who are conjoined with the theatre, film and art work.
As previously stated the Simon Carter brand should begin by having a pop-up
store, once they see how the store is successful and if consumers are likely to purchase
the products then it is proposed that the brand (contingent on its success) upgrade to a
flagship store that will potentially bring in more customers and verify that the Simon
Carter brand belongs in New York. The impact of the new market is that seeing as though
not many Americans are informed of the Simon Carter brand then they are not likely to
shop there due to the fact that they are not aware of the expectancy of the brand. Thus the
reason for suggesting pop-up stores so that can help in the determination on whether a
flagship store should be opened. One risk factor that should be taken into consideration is
the Supply Chain; currently Carter’s brand has their goods made in China and the United
Kingdom. The biggest conflict that may occur is the difference in duty and taxes on
goods coming from those areas. Simon Carter’s products will not be charged duty if they
are being shipped from China however; they will have to pay landing fees to the customs
agents. Essentially, the supply chain will not be affected by having a location in New
York (http://www.dutycalculator.com/new-import-duty-and-tax-
calculation/saved_calculations/view_details/187573671/).
There are several different methods on how Simon Carter can break into the
American market. Below is the list of various ways to penetrate the market and the
meaning of each penetration method.
Joint Venture:
A joint venture partner is a business arrangement in which two or more parties
agree to pool their resources for the purpose of accomplishing a specific task. This task
can be a new project or any other business activity. In a joint venture (JV), each of the
participants is responsible for profits, losses and costs associated with it. However, the
venture is its own entity, separate and apart from the participants' other business interests
(http://www.investopedia.com/terms/j/jointventure.asp).
THE EXPANSION OF SIMON CARTER 15
Franchise:
A type of license that a party (franchisee) acquires to allow them to have access to
a business's (the franchisor) proprietary knowledge, processes and trademarks in order to
allow the party to sell a product or provide a service under the business's name. In
exchange for gaining the franchise, the franchisee usually pays the franchisor initial start-
up and annual licensing fees (http://www.investopedia.com/terms/f/franchise.asp).
Wholesale:
The sale and distribution of goods to users other than end consumers.
Wholesaling involves selling merchandise to retailers, wholesalers and merchants, or to
industrial, commercial and institutional users. A wholesaler can act as a middleman,
brokering deals between these businesses. Wholesaling often occurs when large
quantities of merchandise are reassembled, sorted, then repackage, and distribute in
smaller lots (http://www.investopedia.com/terms/w/wholesaling.asp).
Agent:
An individual authorized by another person, called the principal, to act in the
latter's behalf in transactions involving a third party. Banks are frequently appointed by
individuals to be their agents, and so authorize their employees to act on behalf of
principals (http://www.allbusiness.com/glossaries/agent/4946227-1.html).
Distributors:
An individual or company that supplies stores or businesses with goods that they
require to operate daily (http://www.merriam-webster.com/dictionary/distributor).
Concession:
A negotiated contract between a company and a government that gives the
company the right to operate a specific business within the government's jurisdiction,
subject to certain conditions. A concession agreement may also refer to an agreement
between the owner of a facility and the concession owner or concessionaire that grants
the latter exclusive rights to operate a specified business in the facility under specified
conditions. Regardless of the type of concession, the concessionaire usually has to pay
the party that grants it the concession ongoing fees that may either be a fixed amount or a
percentage of revenues (http://www.investopedia.com/terms/c/concessionagreement.asp).
Department Store:
A large store that has separate areas in which different kinds of products are sold
(http://www.merriam-webster.com/dictionary/department%20store).
Own Stand Alone:
A company that is able to operate without control from another system, company,
etc. (http://www.merriam-webster.com/dictionary/stand-alone).
The best way for Simon to enter the market to open a pop-up store or potentially a
flagship store is through a Joint Venture. This seems perfect for the brand because if
Carter had a joint venture with a brand that produces antique inspired furniture, it would
THE EXPANSION OF SIMON CARTER 16
fit with his overall brand image of being inspired by antiques. I believe that having a
venture like this will ultimately increase the general look of the Simon Carter brand while
helping another brand succeed also.
Timescale for Simon Carter
The Simon Carter timeline will be divided into a ten-year time frame. Throughout
the entire ten-year process the only way to advance to the next year is going to depend on
how successful the brand year in the prior. In years one and two Carter will open a pop-
up store in SoHo, New York. This will last for approximately six years every two years
moving to a different location. In years three-four the brand will locate to the Garment
District followed by Greenwich Village in years five-six. Finally in the timeline if the
six-year plan proves to be successful then in year seven Simon Carter’s first flagship
store in New York will open based on the six-year plan and what location was most
successful.
Conclusion:
In conclusion the ideal location for the Simon Carter brand is New York. Based
on the current locations of the Simon Carter brand in London, New York seems to be a
replica of the United Kingdom. Through a SWOT and PESTEL analysis it was
determined what was good and bad for the brand and how various socio and economical
issues affect the brand and its expansion. An examination of the UKFT’s objectives was
also looked at to see how the brand would be affected in its expansion. Also looking at
the 7 P’s of the Marketing Mix along with any risk that might affect the expansion.
In part 2 we analyzed the strategic direction of the brand and where it could
potentially be headed. It was also examined how Simon Carter would break into the new
market, along with an analysis of the new culture, competitors and customers. One of the
major things observed in part 2 was if the supply chain would be affected and how tax
and duties played a roll in brand expansion. Finally, the timescale of how the brand was
going to potentially be over a course of time was implemented.
THE EXPANSION OF SIMON CARTER 17
References:
Allbusiness.com. 2014. agent Definition | Business Dictionaries from AllBusiness.com.
[online] Available at: http://www.allbusiness.com/glossaries/agent/4946227-1.html
[Accessed: 31 Mar 2014].
Ballymenaprimary.org. 2014. Ballymena Primary School. [online] Available at:
http://www.ballymenaprimary.org/skills_thinkinghats.php?p=3 [Accessed: 31 Mar
2014].
Carter, S. 2014. Simon Carter | Musings in trains, planes and automobiles. [online]
Available at: http://www.simoncarter.net/blog/ [Accessed: 31 Mar 2014].
Chaffey, D. 2014. A great framework for defining online business models - Smart
Insights Digital Marketing Advice. [online] Available at:
http://www.smartinsights.com/digital-marketing-strategy/online-business-revenue-
models/summarising-business-models-use-the-business-model-canvas-diagram/
[Accessed: 31 Mar 2014].
DutyCalculator. 2014. Import duty & taxes calculation result. [online] Available at:
http://www.dutycalculator.com/new-import-duty-and-tax-
calculation/saved_calculations/view_details/187573671/ [Accessed: 31 Mar 2014].
Facebook. 2014. Simon Carter Ltd.. [online] Available at:
https://www.facebook.com/SimonCarterLtd [Accessed: 31 Mar 2014].
Global Research. 2014. The Economic Crisis in the UK: Inflation and Debt Default
Bankruptcy. [online] Available at: http://www.globalresearch.ca/the-economic-
crisis-in-the-uk-inflation-and-debt-default-bankruptcy/18691 [Accessed: 31 Mar
2014].
Gov.uk. 2014. Clothing, footwear and fashion: international trade regulations - Detailed
guidance - GOV.UK. [online] Available at: https://www.gov.uk/clothing-footwear-
and-fashion [Accessed: 31 Mar 2014].
Gov.uk. 2014. Trade and investment - Topics - GOV.UK. [online] Available at:
https://www.gov.uk/government/topics/trade-and-investment [Accessed: 31 Mar
2014].
Innovation for Growth. 2014. What is the Cultural Web?. [online] Available at:
http://www.innovationforgrowth.co.uk/Blog/?p=631 [Accessed: 31 Mar 2014].
Investopedia. 2009. Joint Venture (JV) Definition | Investopedia. [online] Available at:
http://www.investopedia.com/terms/j/jointventure.asp [Accessed: 31 Mar 2014].
Investopedia. 2009. Franchise Definition | Investopedia. [online] Available at:
THE EXPANSION OF SIMON CARTER 18
http://www.investopedia.com/terms/f/franchise.asp [Accessed: 31 Mar 2014].
Investopedia. 2011. Wholesaling Definition | Investopedia. [online] Available at:
http://www.investopedia.com/terms/w/wholesaling.asp [Accessed: 31 Mar 2014].
Investopedia. 2009. Concession Agreement Definition | Investopedia. [online] Available
at: http://www.investopedia.com/terms/c/concessionagreement.asp [Accessed: 31
Mar 2014].
Konstantin von Brocke. 2014. Konstantin von Brocke. [online] Available at:
http://vonbrocke.wordpress.com [Accessed: 31 Mar 2014].
Menswearstyle.co.uk. 2014. Interview with Simon Carter. [online] Available at:
http://www.menswearstyle.co.uk/2013/09/30/interview-with-simon-carter/775
[Accessed: 31 Mar 2014].
Merriam-webster.com. 2014. Distributor - Definition and More from the Free Merriam-
Webster Dictionary. [online] Available at: http://www.merriam-
webster.com/dictionary/distributor [Accessed: 31 Mar 2014].
Merriam-webster.com. 2014. Department store - Definition and More from the Free
Merriam-Webster Dictionary. [online] Available at: http://www.merriam-
webster.com/dictionary/department%20store [Accessed: 31 Mar 2014].
Merriam-webster.com. 2014. Stand-alone - Definition and More from the Free Merriam-
Webster Dictionary. [online] Available at: http://www.merriam-
webster.com/dictionary/stand-alone [Accessed: 31 Mar 2014].
Simoncarter.net. 2014. Simon Carter London - accessories. [online] Available at:
http://www.simoncarter.net/collections/categories.html [Accessed: 31 Mar 2014].
Simoncarter.net. 2014. Simon Carter London - about. [online] Available at:
http://www.simoncarter.net/works.html [Accessed: 31 Mar 2014].
Simoncarter.net. 2014. Simon Carter London. [online] Available at:
http://www.simoncarter.net [Accessed: 31 Mar 2014].
Switch Digital, W. 2014. Marketing Theories – PESTEL Analysis • Professional
Academy. [online] Available at:
http://www.professionalacademy.com/news/marketing-theories-pestel-analysis
[Accessed: 31 Mar 2014].
Tracy, B. 2014. Marketing, business - The 7 Ps of Marketing. [online] Available at:
http://www.entrepreneur.com/article/70824 [Accessed: 31 Mar 2014].
Twitter.com. 2014. Simon Carter (kingofcufflinks) on Twitter. [online] Available at:
https://twitter.com/kingofcufflinks [Accessed: 31 Mar 2014].
THE EXPANSION OF SIMON CARTER 19
Ukft.org. 2014. UKFT Business Publications, Manifesto, Sources, British Textile Colour
Card, Making an Exhibition of Yourself, Textiles in Action, Risky Business. [online]
Available at: http://www.ukft.org/business.php?page=business&mcat=2&catid=49
[Accessed: 31 Mar 2014].
Usfashionindustry.com. 2014. USFIA - United States Fashion Industry Association.
[online] Available at: http://www.usfashionindustry.com [Accessed: 31 Mar 2014].

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Official Simon Carter Paper

  • 1. THE EXPANSION OF SIMON CARTER 1 Quincy I. Carter The Expansion of Simon Carter into New York
  • 2. THE EXPANSION OF SIMON CARTER 2 TABLE OF CONTENTS: Abstract:……………………………………………………………….. pg. 4 Introduction:…………………………………………………..……….. pg. 5 Part I: Analyzation of current Market ……………………………….. pg. 5  Where are they now……………………………………………. pg. 5  SWOT Analysis ……………………………………………….. pg. 6 1. Table 1.0 …………………………………………………… pg. 6  PESTEL Analysis ………………………………………………pg. 6 1. Political Factors …………………………………………… pg. 6-7 2. Economic Factors …………………………………………… pg. 7 3. Social Factors ……………………………………………… pg. 7 4. Technology Factors …………………………………………pg. 7 5. Environment Factors ………………………………………… pg. 7 6. Legal Factors ……………………………………………… pg. 7-8  Simon Carter Brand Business Objectives ……………………… pg. 8  Business Canvas Model ………………………………………pg. 8-9 1. Table 1.1 …………………………………………………… pg. 8  7 P’s of Marketing Analysis …………………………………… pg. 9 1. Table 1.2 …………………………………………………… pg. 10 2. Product ……………………………………………………pg. 10 3. Price ………………………………………………………pg. 10 4. Place ………………………………………………………pg. 10 5. Promotion …………………………………………………pg. 11 6. People ……………………………………………………… pg. 11 7. Packaging/Process ………………………………………… pg. 11 8. Physical Evidence ………………………………………… pg. 11  What needs to happen ………………………………………… pg. 11  Risk of entering new Market ………………………………… pg. 12  De Bono’s Thinking hats of Simon Carter …………………… pg. 12 1. Blue Hat …………………………………………………… pg. 12 2. White Hat ………………………………………………… pg. 12 3. Red Hat …………………………………………………… pg. 13 4. Green Hat ………………………………………………… pg. 13 5. Yellow Hat ………………………………………………… pg. 13 6. Black Hat …………………………………………………pg. 13 Part II: New Strategic Direction Plan ………………………………… pg. 13
  • 3. THE EXPANSION OF SIMON CARTER 3  Where is Simon Carter headed ……………………………pg. 13-14  Breakdown of various market entry methods ………………… pg. 14 1. Joint Venture ……………………………………………… pg. 14 2. Franchise …………………………………………………… pg. 15 3. Wholesale …………………………………………………pg. 15 4. Agent ……………………………………………………… pg. 15 5. Distributors ………………………………………………… pg. 15 6. Concession………………………………………………… pg. 15 7. Department Store ………………………………………… pg. 15 8. Own Stand Alone ……………………………………… pg. 15-16  Timescale for Simon Carter …………………………………… pg. 16  Conclusion ……………………………………………………pg. 16 References ……………………………………………………… pg. 17-19
  • 4. THE EXPANSION OF SIMON CARTER 4 Abstract: The Simon Carter brand has been around for over 30 years. Currently the brand is solely located in the United Kingdom with a few concessions in other countries. This will examine the current state of the Simon Carter brand from a SWOT and PESTEL analysis along with using the Business Model Canvas, 7 P’s of the Marketing Mix and De Bono’s Thinking Hats. Likewise in section II it will analyze the new proposed location of Simon Carter along with the culture, customers, lifestyle, and its competitors. More importantly this section analyzed a timescale of how to effectively implement a successful plan on bringing Carter into the new proposed location.
  • 5. THE EXPANSION OF SIMON CARTER 5 Introduction: The UKFT (United Kingdom Fashion and Textile Association) has a host of brands that have been very successful in the United Kingdom. Some of those companies that have succeeded, and withstood the test of time in an industry that is ever changing include Orla Kiely, Lulu Guinness, Dashing Tweeds, Jenny Packman, and Tatty Devine just to name a few. However, one company that is apart of the UKFT that has truly made a difference in the Fashion Industry is Simon Carter. Winning the 2013 Drapers Award for Menswear of the Year, Carter’s brand has proven to be exquisite and at the top of its game with minimum to no problems. Though, how did such a brand become so successful? With an original career path in medicine Simon soon realized that his true path in life was in the world of Fashion. Starting his career in fashion as a trainee buyer for Fenwick’s, a customer brought in a motorcyclist brooch from the 1930’s to sell. As payment for the days wages Carter was given the brooch and it sparked an idea for what would soon be a defying change in men’s fashion. After tracing down a manufacturer in Cornwall, he had 100 of these brooches created and went to the streets in an attempt to sell them. Once he went out to sell them he was rejected by every store on Kings Road, Chelsea, when finally the last place he went to brought 50 of the 100 brooches. In that moment the Simon Carter brand was born the year was 1985. This moment was when the face of the cufflink was changed forever. Launching his first official menswear collection in the late 1990’s Carter would soon prove to be what he is now referred to as “The King of Cufflinks” (http://www.menswearstyle.co.uk/2013/09/30/interview-with-simon- carter/775). Part I: Analyzation of current market Where are they now? Having stores solely in the United Kingdom the brand is looking to expand to other places to build its brand awareness. Currently the Simon Carter brand has locations in Mayfair, Bloomsbury, Crystal Palace, Wendover, Illkley, and Blackheath. However, some products of the brand can be purchased in places like House of Fraser, John Lewis, Selfridges, and Henry Tibbs. Carter has made great strides in this industry over the past 30 years. Maintaining a strong brand image and British following, the brand lacks the following of consumers in other countries that would ensure global success for brand that has a potentially bright future. S.W.O.T Analysis: A SWOT analysis was conducted to examine where Simon Carter currently is and where they are headed. It will also analyze where they can improve their company image. The strengths of the company that also contribute to its success is its traditional British look, the Simon Carter Heritage, the unique selling point of the using natural fibers.
  • 6. THE EXPANSION OF SIMON CARTER 6 Other strengths are that Carter’s brand is inspired by his love of antiques, and the use of Social media to enhance the awareness of the brand. The brand does not have many weaknesses but the ones they do have include minimum globalization, big name competitors like Ted Baker and Hackett, finally Carter’s brand is exclusively a menswear brand with minimum to no woman products. Opportunities that are offered to the brand to further their success are that its target market is geared towards a multitude of men, expertise in Menswear fashion, looking to have products made in the UK, participating in a few trade shows, and the unique selling point of antique inspired goods along with the use of natural fibers. Finally, the threats that surface for the brand would contain its lack of global awareness, and minimum creation of goods made in the United Kingdom. Tab2le 1.0SWOT Analysis of SimonCarter PESTEL Analysis: Political Factors: According to the United Kingdom Clothing, footwear and fashion: international trade regulations there is a range of import-specific regulations that must be complied with by all businesses in this sector. The key issues relate to the Tariff, duties, Intrastate and intellectual property (IP) (https://www.gov.uk/clothing-footwear-and-fashion). The United Kingdom’s vitality of prosperity is based on overseas trade and inward investments. The trade and investment policies of the UK aim towards the advancement of its businesses to succeed internationally and they encourage overseas companies to work with them in the globalization of various brands (https://www.gov.uk/government/topics/trade-and-investment). Economic Factors: Due to the current economic crisis worldwide the world of Fashion has truly been affected by what has transpired over the course of the years. For example, in a report in
  • 7. THE EXPANSION OF SIMON CARTER 7 regards to the Economic crisis it states that “Britain will at some point default on its debts to foreigners (as it has done at least twice before), this is INEVITABLE because ALL countries eventually DEFAULT on their debts, it is only a question of when i.e. in the next few years or delay bankruptcy for many decades and therefore results in the relative risks of default which the market prices”(http://www.globalresearch.ca/the-economic- crisis-in-the-uk-inflation-and-debt-default-bankruptcy/18691). Social Factors: In todays society it is likely that when goods are purchased, people become ambassadors for a brand without willingly knowing. For instance, in the 80’s a big thing is fashion were leggings and leg warmers. This trend affected society because once young ladies saw it on television on the music stars, it prompted them to flock to stores to purchase the goods and wear them. This goes to prove that in society fashion is widely made popular according to who is wearing it. The same method applies to Simon Carter once individuals begin to see his products around it will raise awareness of the brand. Technological Factors: Simon Carter unlike others is very present in the social media circle. To begin with, Carter’s Facebook, Twitter and Instagram page displays what is currently going on with the brand and things to look forward to (https://www.facebook.com/SimonCarterLtd/ https://twitter.com/kingofcufflinks). In addition, to having those social media accounts, if a consumer goes to the brands website there is a link that takes them to the blog that Simon host’s (http://www.simoncarter.net/blog/). Finally, the company has a website that is very easily navigated and helps the consumer with all their needs (http://www.simoncarter.net/collections/categories.html). Environmental Factors: Since the current world of Fashion is moving towards the lifestyle of sustainability, many things have changed in respects of why the environment has affected this tremendously. This factor is important because of the increasing scarcity of raw materials, pollution targets, doing business as an ethical and sustainable company, carbon footprint targets set by governments (this is a good example were one factor could be classes as political and environmental at the same time). These are just some of the issues marketers are facing within this factor. More and more consumers are demanding that the products they buy are sourced ethically, and if possible from a sustainable source (http://www.professionalacademy.com/news/marketing-theories-pestel-analysis). Legal Factors: When it comes to the legality of the United Kingdom and its fashion and textile industry its concerns are health and safety, equal opportunities, advertising standards, consumer rights and laws, product labeling and product safety. In order to trade successfully to other countries the companies in the UK should have an understanding of what is and is not permitted in trading. Due to each country having its own trading rules and regulations it becomes complicated to trade globally.
  • 8. THE EXPANSION OF SIMON CARTER 8 Simon Carter Brand Business Objectives: Presently, the Simon Carter brand is aimed towards the crowd of men who are between the age’s 18- 60. With such an enormous audience this may present problems when it comes to Carter’s brand objectives. Since Simon Carter is under the UKFT the objectives are set based on what they expect from their companies. Initially, the first objective is that a constructive dialogue with Government and politicians, the reasoning is because they are apart of organizations such as BATEAG (British Apparel and Textile Export Advisory Group) and the EURATEX (European Clothing and Textile Association). Following this, the UKFT expects its companies to a skilled and trained workforce. This objectives indicates that the Department of Business Innovation and Skills and the Department of Culture, Media and Sport to ensure that government policy and programs support the industry. Next, they require a level of economic and business playing field with Europe and Internationally. Meaning that if UKFT companies are going to trade with other countries then they are advised properly to help in successful globalization. In addition, a sustainable environment for the UK and a commitment to rebalancing the economy. The UKFT plays a vital and active role in the development and implementation of environmental policy in the UK and the EU for the clothing and textile industries. Finally, the UKFT helps keep stable regulatory framework in the UK. This objective suggests that the UKFT is instrumental in the development of a huge range of Standards that many members use on a daily basis and every Standards Committee in the UK looks at clothing and textiles has UKFT representation, which brings involvement in the setting of European and International Standards (http://www.ukft.org/business.php?page=business&mcat=2&catid=49). The Business Model Canvas: Table 1.1 The Business Model Canvas The above table (TABLE 1.1) is of the Business Model Canvas. This model is a strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent, and pivot your business model. In the expansion of Simon Carter the ideal key partners would consist of the UKFT, the USFIA (United States Fashion Industry Association) (http://www.usfashionindustry.com), and a partner that would help
  • 9. THE EXPANSION OF SIMON CARTER 9 in the business venture of Carter entering into the American Market. Key activities of the brand would comprise of the brand getting American customers to come into the new location and purchase goods and raise the brand awareness. Also, they will have to have a certain manner of promotions that would grab the consumer in the American market. Just as they are needed as partners the UKFT and USFIA would be excellent choices in the helping the brand and should help the brand with various resources that might be needed in this endeavor. Due to the fact that Simon Carter already has a stylish way of packaging its goods they could potentially come up with other innovative ways to make customers want to buy more goods from them. This can also help in the aspects of making customers who are on the fence, loyal customers and generally building the brand awareness. The next important factor is the customer relationship. This is crucial because it can either help in the success of destruction of a company. The brand must have people working for them who are knowledgeable about the brand, who are convincing so they can influence shoppers to buy the products, and most importantly in order to maintain a positive customer relationship the brand must prepare an atmosphere that makes consumers want to shop at the location. The various channels for Simon Carter would be via the Internet, in store sells, through the already existing retailer establishments and via the locations where Simon Carter products can already be purchased. The current customer segmentation contains men ages 18-60. These men are stylish, fashion forward and knowledgeable about the world of fashion. Although the cost for the brand will have to be revamped slightly they can still make a great profit if they follow the contingent plan that they put into place. Due to the change of cost in duty and taxes in other countries the prices will be affected to some extent. The revenue streams will come from places such as the Internet, in store sells, through the already existing retailer establishments and via the locations where Simon Carter products can already be purchased. Seven P’s of Marketing Analysis: Currently in the Simon Carter brand many things determine the success of the company. Although they are under the advisement of the UKFT they still have things to figure out for the brand in terms of where they want to be in the future. One particular item that can be looked at in order to analyze the potential growth of the brand is the Seven P’s of Marketing Mix. The seven P’s of marketing is what businesses use in order to successfully operate; the seven P’s of marketing include PRODUCT, PRICE, PLACE, PROMOTION, PACKAGING/ PROCESS, PHYSICAL ENVIRONMENT, and PEOPLE. The importance of the Seven P’s is so that a brand can continually evaluate and reevaluate their business activities, also customers and needs change rapidly, they must continually revisit these seven Ps to make sure their on track and achieving the maximum results possible for them in today's marketplace (http://www.entrepreneur.com/article/70824).
  • 10. THE EXPANSION OF SIMON CARTER 10 Table 1.2 The 7 P’s ofthe MarketingMix Product: The product range for Simon Carter can be divided into two groups, with two sub categories one geared towards the younger target market ages 18- 25 known as the West End and the more mature line, which is simply Simon Carter. The first group is the product range for the clothing goods; the second part is for the accessories that Simon Carter offers. The clothing goods consist of formal and casual shirts, trousers, jackets, and suits. On the other side of it are the accessories goods, which feature his signature cufflinks, watches, luggage, bracelets, necklaces, gloves, underwear, belts, socks, scarves, tie slides and pocket squares. These items have proven to help in the ever- growing environment of Simon Carter. Price: The price of Carter’s products range from a mere £15 for a pair of underwear, all the way up too £350 for a two-piece wool suit with products and prices in-between that meet the quality of the goods considering they are all created with natural fibers. There are rarely sales at the Simon Carter brand however, on the website items that have been created and have not sold according have been marked down to lower prices. The brand allows its customer to pay via cash, credit or debit when purchasing goods. The goods at Simon Carter can be shipped to either United Kingdom locations or Japanese locations. Place: As previously stated in “Where are they now”, the brand has several locations in the United Kingdom. The brand has 1 in 5 locations that consumers can physically walk into which include Mayfair, Bloomsbury, Crystal Palace, Wendover, Illkley, and Blackheath. Items can also be purchased at House of Fraser, John Lewis, Selfridges, and Henry Tibbs.
  • 11. THE EXPANSION OF SIMON CARTER 11 Promotion: As far as promotion goes Carter believes in supporting local newspapers and magazines in the areas that his store locations are. When talking to Carter about how he promotes the brand he said that he uses local magazines such as “THE GUIDE”, “THE TRANSMITTER”, Facebook, Twitter, Instagram, and attended Top Draw Trade Show. People: The people who shop at Simon Carter are men who are 18-60 years of age. These men go for the traditional British look and look forward to seeing Simon’s heritage shine through onto the garments and other goods. The individuals who work at the locations are friendly and helpful, and willing to lend a helping hand if needed. When going to visit the Mayfair store I was greeted by Marketing Manager Jess, she explained the background of the company and helped with the understanding of the brand and its location. Packaging/Process: The way the brand runs is rather intriguing, considering that it is a small company. All products are presented as gifts depending on which collection individual shops from. West End products are presented in a black box with a partial British flag with the words West End engraved on it, on the other hand Simon Carter products are presented in a cinnamon color box with the company name across it. PhysicalEvidence: One of the most tell-tell signs that one has entered a Simon Carter store and/or are wearing a product of the brand is that the locations are heavily decorated with antiques. Simon says “Underpinning all Simon Carter products are the core qualities of original design, the best quality, and excellent value for money. Despite the expansion of the business I believe that a whimsical English touch of individuality still runs through all the products, just as it did in those early days” (http://www.simoncarter.net/works.html). What needs to happen next? In order to successfully enter into a new market the Simon Carter brand must figure out what is the best way for them to enter into the new market. Upon deciding the location they must understand why this particular place works for the company and exactly how they are going to enter this market. Once they have figured those terms out they must then scope out the key differences in their current location as compared to the new location. Following that the brand must analyze the culture of the area and examine whom their competitors are in the area. Proceeding this they must analyze the customer segmentation in the area in which they choose to enter into. Aside from the above stated items that need to be decided the company must figure out what risk must be taken in order to enter the market but also how those risk will impact the company as a whole.
  • 12. THE EXPANSION OF SIMON CARTER 12 Risk of entering new Market: When entering a new market for any company many risk may arise that may prove to be detrimental to the success of the company. For the Simon Carter brand one of the biggest risk that might arise for the company is the competition in the proposed area and the consumers in the area. This might pose as a risk because it could quickly discourage the company from wanted to stay in an area that it is not likely to thrive in but this can also be treated as an opportunity for the company. If the company truly believes they can survive amongst the new target market and its new competitors then they will have to use promotional tools along with varying products to grab the new audiences attention. De Bono’s Thinking Hats and Simon Carter: Table 1.3 De BonoThinkingHat Blue Hat: In the Simon Carter brand this hat would be used to analyze how the company will successfully enter into the new proposed market. This hat will also help in the effort to examine if entering into this new market is what’s good for the company and if the brand will thrive in its new location. Opportunities that are offered to the brand to further their success are that its target market is geared towards a multitude of men, expertise in Menswear fashion, looking to have products made in the UK, participating in a few trade shows, and the unique selling point of antique inspired goods along with the use of natural fibers. (See Table 1.0 for reference) White Hat: This hat is used to survey the new area and see what competitors are in the area along with a host of other objectives. This hat will help in figuring out what products will be sold along with if they should still target the same exact clients as they currently do.
  • 13. THE EXPANSION OF SIMON CARTER 13 Red Hat: The red hat is what will be used to determine how entering the new market will affect the current brands image. The brand can also analyze with this hat the positive and negatives of the market. GreenHat: This hat can be used to govern what new products are being created, together with examining new innovative ways to become successful in the new market and make Simon Carter not only a British brand but also a worldwide brand. Yellow Hat: The yellow hat examines the positives and opportunities for the Simon Carter brand. The strengths of the company that also contribute to its success is its traditional British look, the Simon Carter Heritage, the unique selling point of the use of natural fibers. Other strengths are that Carter’s brand is inspired by his love of antiques, and the use of Social media to enhance the awareness of the brand. (See Table 1.0 for reference) Black Hat: Finally, this hat is to analyze the weaknesses and threats to the company. The brand does not have many weaknesses but the ones they do have include minimum globalization, big name competitors like Ted Baker and Hackett, finally Carter’s brand is exclusively a menswear brand with minimum to no woman products. The threats that surface for the brand would contain its lack of global awareness, and minimum creation of goods made in the United Kingdom. (See Table 1.0 for reference) Part II: New Strategic Direction Plan Where is Simon Carter headed? The Simon Carter brand has proven to be a company that is stable in their current environment but they will also do well in locations similar to the current one on the United Kingdom. The proposed location of Simon Carter is to bring the brand into the United States of America, particularly New York. The reason why New York would be an ideal place to put the brand is because it is a hub of Fashion driven individuals, not only is it minutes away from Manhattan but more importantly it is the place where stars go to do shopping and is likely to thrive due to the fact that celebrities like shopping in locations where fashion is alive and well. The best way for Carter to enter into the new market is by having several small pop-up stores, however, contingent on how well the pop-up stores do the ultimate goal is to have a flagship store. The new region is surround by other locations that are closely related to fashion and the world that is the arts. Surrounding the newly selected New York region are locations like Greenwich Village (West Village), East Village, Little Italy, Tribeca, Chinatown, and minutes away from New Jersey. The key differences from Simon Carter’s London locations and the newly proposed location is that, in London the retail
  • 14. THE EXPANSION OF SIMON CARTER 14 shops are closed off and hidden like the gems that they are, on the other hand New York is a wide open space and brands as such are seen and visible without being difficult to find. Unlike London, the New York lifestyle and culture is very upbeat and fast paced. The great thing about moving to a city like New York is that just like the London culture, individuals are engrossed in Theatre, Music, Art, and Fashion, the Simon Carter brand will melt right in to the New York Culture. Moving into the city, Simon Carter will be presented with competitors that have been in the industry longer but also his competitors have such a large following that the consumers loyalty lies with that specific brand. A few of Simon’s new competitors will be Prada, Tory Burch, Alexander Wang, Tiffany & Co., and Marc Jacobs. The aforementioned brands have in their own rights taken the fashion world by storm and have made places like New York home and have a large clientele. Being surrounded by Greenwich Village (West Village), East Village, Little Italy, Tribeca, Chinatown, and minutes away from New Jersey the audience for Simon Carter has already changed. In this new location Carter’s brand will be introduced to people who are apart of the LGBT Community (Lesbian, Gay, Bisexual, Transgender Community), MEN WITH CHILDREN in various age brackets, the Italian Community, the Asian Community, and individuals who are conjoined with the theatre, film and art work. As previously stated the Simon Carter brand should begin by having a pop-up store, once they see how the store is successful and if consumers are likely to purchase the products then it is proposed that the brand (contingent on its success) upgrade to a flagship store that will potentially bring in more customers and verify that the Simon Carter brand belongs in New York. The impact of the new market is that seeing as though not many Americans are informed of the Simon Carter brand then they are not likely to shop there due to the fact that they are not aware of the expectancy of the brand. Thus the reason for suggesting pop-up stores so that can help in the determination on whether a flagship store should be opened. One risk factor that should be taken into consideration is the Supply Chain; currently Carter’s brand has their goods made in China and the United Kingdom. The biggest conflict that may occur is the difference in duty and taxes on goods coming from those areas. Simon Carter’s products will not be charged duty if they are being shipped from China however; they will have to pay landing fees to the customs agents. Essentially, the supply chain will not be affected by having a location in New York (http://www.dutycalculator.com/new-import-duty-and-tax- calculation/saved_calculations/view_details/187573671/). There are several different methods on how Simon Carter can break into the American market. Below is the list of various ways to penetrate the market and the meaning of each penetration method. Joint Venture: A joint venture partner is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it. However, the venture is its own entity, separate and apart from the participants' other business interests (http://www.investopedia.com/terms/j/jointventure.asp).
  • 15. THE EXPANSION OF SIMON CARTER 15 Franchise: A type of license that a party (franchisee) acquires to allow them to have access to a business's (the franchisor) proprietary knowledge, processes and trademarks in order to allow the party to sell a product or provide a service under the business's name. In exchange for gaining the franchise, the franchisee usually pays the franchisor initial start- up and annual licensing fees (http://www.investopedia.com/terms/f/franchise.asp). Wholesale: The sale and distribution of goods to users other than end consumers. Wholesaling involves selling merchandise to retailers, wholesalers and merchants, or to industrial, commercial and institutional users. A wholesaler can act as a middleman, brokering deals between these businesses. Wholesaling often occurs when large quantities of merchandise are reassembled, sorted, then repackage, and distribute in smaller lots (http://www.investopedia.com/terms/w/wholesaling.asp). Agent: An individual authorized by another person, called the principal, to act in the latter's behalf in transactions involving a third party. Banks are frequently appointed by individuals to be their agents, and so authorize their employees to act on behalf of principals (http://www.allbusiness.com/glossaries/agent/4946227-1.html). Distributors: An individual or company that supplies stores or businesses with goods that they require to operate daily (http://www.merriam-webster.com/dictionary/distributor). Concession: A negotiated contract between a company and a government that gives the company the right to operate a specific business within the government's jurisdiction, subject to certain conditions. A concession agreement may also refer to an agreement between the owner of a facility and the concession owner or concessionaire that grants the latter exclusive rights to operate a specified business in the facility under specified conditions. Regardless of the type of concession, the concessionaire usually has to pay the party that grants it the concession ongoing fees that may either be a fixed amount or a percentage of revenues (http://www.investopedia.com/terms/c/concessionagreement.asp). Department Store: A large store that has separate areas in which different kinds of products are sold (http://www.merriam-webster.com/dictionary/department%20store). Own Stand Alone: A company that is able to operate without control from another system, company, etc. (http://www.merriam-webster.com/dictionary/stand-alone). The best way for Simon to enter the market to open a pop-up store or potentially a flagship store is through a Joint Venture. This seems perfect for the brand because if Carter had a joint venture with a brand that produces antique inspired furniture, it would
  • 16. THE EXPANSION OF SIMON CARTER 16 fit with his overall brand image of being inspired by antiques. I believe that having a venture like this will ultimately increase the general look of the Simon Carter brand while helping another brand succeed also. Timescale for Simon Carter The Simon Carter timeline will be divided into a ten-year time frame. Throughout the entire ten-year process the only way to advance to the next year is going to depend on how successful the brand year in the prior. In years one and two Carter will open a pop- up store in SoHo, New York. This will last for approximately six years every two years moving to a different location. In years three-four the brand will locate to the Garment District followed by Greenwich Village in years five-six. Finally in the timeline if the six-year plan proves to be successful then in year seven Simon Carter’s first flagship store in New York will open based on the six-year plan and what location was most successful. Conclusion: In conclusion the ideal location for the Simon Carter brand is New York. Based on the current locations of the Simon Carter brand in London, New York seems to be a replica of the United Kingdom. Through a SWOT and PESTEL analysis it was determined what was good and bad for the brand and how various socio and economical issues affect the brand and its expansion. An examination of the UKFT’s objectives was also looked at to see how the brand would be affected in its expansion. Also looking at the 7 P’s of the Marketing Mix along with any risk that might affect the expansion. In part 2 we analyzed the strategic direction of the brand and where it could potentially be headed. It was also examined how Simon Carter would break into the new market, along with an analysis of the new culture, competitors and customers. One of the major things observed in part 2 was if the supply chain would be affected and how tax and duties played a roll in brand expansion. Finally, the timescale of how the brand was going to potentially be over a course of time was implemented.
  • 17. THE EXPANSION OF SIMON CARTER 17 References: Allbusiness.com. 2014. agent Definition | Business Dictionaries from AllBusiness.com. [online] Available at: http://www.allbusiness.com/glossaries/agent/4946227-1.html [Accessed: 31 Mar 2014]. Ballymenaprimary.org. 2014. Ballymena Primary School. [online] Available at: http://www.ballymenaprimary.org/skills_thinkinghats.php?p=3 [Accessed: 31 Mar 2014]. Carter, S. 2014. Simon Carter | Musings in trains, planes and automobiles. [online] Available at: http://www.simoncarter.net/blog/ [Accessed: 31 Mar 2014]. Chaffey, D. 2014. A great framework for defining online business models - Smart Insights Digital Marketing Advice. [online] Available at: http://www.smartinsights.com/digital-marketing-strategy/online-business-revenue- models/summarising-business-models-use-the-business-model-canvas-diagram/ [Accessed: 31 Mar 2014]. DutyCalculator. 2014. Import duty & taxes calculation result. [online] Available at: http://www.dutycalculator.com/new-import-duty-and-tax- calculation/saved_calculations/view_details/187573671/ [Accessed: 31 Mar 2014]. Facebook. 2014. Simon Carter Ltd.. [online] Available at: https://www.facebook.com/SimonCarterLtd [Accessed: 31 Mar 2014]. Global Research. 2014. The Economic Crisis in the UK: Inflation and Debt Default Bankruptcy. [online] Available at: http://www.globalresearch.ca/the-economic- crisis-in-the-uk-inflation-and-debt-default-bankruptcy/18691 [Accessed: 31 Mar 2014]. Gov.uk. 2014. Clothing, footwear and fashion: international trade regulations - Detailed guidance - GOV.UK. [online] Available at: https://www.gov.uk/clothing-footwear- and-fashion [Accessed: 31 Mar 2014]. Gov.uk. 2014. Trade and investment - Topics - GOV.UK. [online] Available at: https://www.gov.uk/government/topics/trade-and-investment [Accessed: 31 Mar 2014]. Innovation for Growth. 2014. What is the Cultural Web?. [online] Available at: http://www.innovationforgrowth.co.uk/Blog/?p=631 [Accessed: 31 Mar 2014]. Investopedia. 2009. Joint Venture (JV) Definition | Investopedia. [online] Available at: http://www.investopedia.com/terms/j/jointventure.asp [Accessed: 31 Mar 2014]. Investopedia. 2009. Franchise Definition | Investopedia. [online] Available at:
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