RAG & BONE expansion plan.

2. Founded in 2002, rag & bone had one very clear vision in mind: to make clothes that
they and their friends would love to wear every day. With no formal fashion
training, Marcus Wainwright & David Neville set about learning how to make jeans.
They believed that denim represented the history, authenticity and fundamentals of
classic work wear that they would strive to reflect in their designs.
•rag & bone launched their men's line in Spring 2004
•Expanded the label to offer a full women's collection by Fall 2005
•The Fall Winter 2007 season marked the introduction of rag & bone accessories for
both men and women
•Won the 2007 Swarovski Award for emerging talent in menswear
•In 2010, David Neville and Marcus Wainwright were named Menswear Designers of the
Year by the CFDA.

3. Guided by a strong British tailoring influence, we produce classic yet modern
sportswear for men and women that is known for being understated and wearable.
Each piece, whether it be a tailored shirt or a pair of jeans, is framed by the
constants of high quality fabric, classic construction and perfect fit with a
handmade feel.

4. We operate 11 stores worldwide, four of which are in New York City.
Flagship stores are also located in Washington D.C., Boston, Dallas,
London, Los Angeles, Seoul, and Tokyo. rag & bone is also available in
high-end boutiques and exclusive department stores in over 39
countries worldwide. rag & bone operates an e-commerce store at
www.rag-bone.com
CURRENTLY:

5. INTERNATIONALIZATION:
“If
you
can
make
it
here,
you
can
make
it
anywhere.”
Expansion strategy: “Focused approach”, brand
oriented, opportunistic.
•We fight for premier retail space! (ex: Houston
Project, Fillmore Street SF)
•Every move is thoughtful, they enter areas
where their target market likes to shop, and
where they can expand to new markets
•Irving Place Capital (ICP) announces a minority stake
in rag & bone= growth!

6. AUSTRALIA
•Similar to the U.S
•National language: English
•Commercial Scale Culture
•Developed Infrastructure
•Religious & apparel
freedom-freedom to express
•Predominately Christian
•Melbourne, Fashion capital
of AU
•Enjoy art, sports,
fashion, social activities
•Low Context Culture
•Sophisticated buying
behavior
•Opportunity
•Premier Location
•Responsive and
growing Market
•Similar culture

7. ENTRY STRATEGY: We will enter the
Australian market as a
wholly owned subsidiary,
and operate as a global
business.
This way,they will be able
to have more control,and
stay true to their to their
brand image, and product!
A con of opening a wholly
owned subsidiary is that it
can be expensive for a
company, however, with the
help of our new investors,
we plan to overcome that
struggle.
Our brand prides themselves
on their British heritage,
and New York style. This
will appeal to the
Australian market, because
they are similar to the
American consumers.

8. CURRENCY:
The Austrian Dollar in
comparison to the US dollar
is a little higher. One US
dollar is .93743 to the
Australian Dollar.

9. Australia's population is about 20.1 million with 80 percent of
Australia’s population being European ancestry with the other 20 being
Asian heritage. Nearly three quarters of Australians live in the
metropolitan cities and coastal areas.42% of the population are
between the ages of 25-54 with the median age being 37 years old.
Australia has much in common with Great Britain and the US.
The top 4 largest and most populated cities in Australia are
1.) Sydney
2.) Melbourne
3.) Brisbane
4.) Perth

10. The Westfield Sydney: Is a mix of top Australian and international
designers
Oxford Street: a street filled with Fashion boutiques, home ware,
cafes and restaurants
Collins Street in Melbourne: Home of some of the worlds most
luxurious brands.
Current major retailers are Gap, Abercrombie & Fitch, Apple, Zara,
Fossil and Costco. Coles-Myer is the largest retail store in
Australia.
RETAILING DOWN UNDER

11. •Australian retail is currently on the rise. With a 29 percent
growth in online retail sales since the end of 2012, and an 40
percent rise with international sales.
•Retailing in Australia is still about connecting with
customers
•Behind in technological advances, social media, etc.
•Increasing dominance of multiformant retailers

12. •Australian retail sales figures have continued their upwards trajectory
in January 2014, according to the Australian Bureau of Statistics (ABS).
•Australian retail turnover rose 6.2 per cent in January 2014, compared
to January 2013.
Total retail sales for January 2014 were $22.9 billion.
•The result comes off the back of 5.7 per cent year on year growth in
December.
•Month on month growth – January 2014 versus December 2013 – rose 1.2 per
cent.
A growing market:

13. Online retailing on the
rise:
online sales growing at around 26%
over the past 12 months
while traditional retail
sales grew at just 1.7%
Still more than
90% of all retail sales
are through bricks and
mortar stores, majority of
shoppers still prefer the
brick and mortar
experience
E COMMERCE:

14. Rag and Bone currently operates a U.S online store. They offer free
shipping.
They do ship to Australia, but there is a $30 shipping fee.
We want to open an online store for Australia, because Australians are
shopping online, and would be more likely to shop Rag and Bone if they
had free shipping.
Technology is on the rise, and more Australians are interested in omni
channel retail.
E
-
c
o
m
m
e
r
c
e

15. Ownership Advantages-
Lifestyle brand with the downtown New York appeal, strong brand identity.
Superior knowledge of retail innovations
Location Advantages-
Free trade agreement with the U.S
Internationalization Advantages-
Australia has a similar culture and lifestyle. Rag and bone will benefit
from their expanding into their diverse and accepting market.

16. • Retail space is limited: rag & bone negotiates for prime retail
space
• Reverse Seasonality: Our product is diverse (denim), we will offer
some exclusive merchandise for the au consumer (similar to Tokyo
strategy)
• Higher Conversion rate: It is standard for prices to be higher in AU
to make up for tariff fees/import/export fees (Free trade policy)
Risks
&
Concerns
&
Concerns

17. •Respond quickly to retail innovations
•Omnichannel retailing
•In Store Experience
Keys to Success

18. Why this expansion will succeed:•One of the worlds strongest economies
•Growing population
•Large disposable income for fashion goods
•Similar Culture to the U.S
•Premier retail location, Melbourne Australia’s fashion capital
•Art is an important part of Australia and part of what differentiates
our company
•Strong brand identity appeals to Australians market
•Strong retail sales- upwards trajectory
•Competitive advantage in omnichannel retailing
•

19. AUSTRALIA
WELCOMES
RAG &
BONE
XX
Located in the premier shopping district of Australia’s
Fashion Capital, Melbourne
755 Collins Street
AUSTRALIA
WELCOMES
RAG &
BONE
XX

20. Collins Street,
Melbourne
AU
AU
Rag and Bone will open its
flagship store on Collins
Street, Melbourne
Collins street is known for its
designer stores in heritage
buildings, five-star hotels,
private clubs and exclusive
jewelers
Considered the top end of town

21. RAG & BONE
ADVOCATES
We will advertise our launch in Australia through popular Australian
fashion Bloggers.A great example is Tuula Vintage

22. We want to use Australian celebrities in our ads
Miranda Kerr has worked with us before, so it’s only natural to
continue to work with her!
Using Australian icons will create more support from our new
Australian market
We do not want to stray from our current marketing style. We just
want to incorporate Australian models, celebrities, and appeal to
the Australian market even more

23. LAUNCH PARTY:

24. ON BEHALF OF RAG & BONE, THANK YOU