A study of business strategy and plans for bėt (bėt drip), a startup high fashion clothing company in vietnam

INTRODUCTION 1.1 RESEARCH RATIONALE The motivation behind this research is to formulate a strong business development plan for the BĖT streetwear brand to initially enter the Vietnamese

INTRODUCTION

RESEARCH RATIONALE

The motivation behind this research is to formulate a strong business development plan for the BĖT streetwear brand to initially enter the Vietnamese market in online sales, and subsequently penetrating the western/global market It will be taking a comprehensive approach, covering sales, manufacturing, logistics, financial elements, the market, and human resources The purpose of this dissertation is to provide a guideline or a review in the buildup to the brand‟s official launch date, with the goal of higher profit margins, brand sustainability/stability, as well as overall performance and longevity

Because the streetwear market is so saturated with many other brands (red sea market), both online and offline, and worldwide, a course of action must be created that sets the brand apart from the competition This research will help to outline a firm/creative marketing strategy, identify the best approaches to presenting/releasing new products, and take heed from other successful enterprises within the industry

The clothing industry in general has been affected by big brands involved in “fast fashion” such as Shein, Zara, Uniqlo, etc taking a large portion of market share, by flooding the market with not so high-quality products The worst element of this is the environmental damage that is caused as a biproduct of this type of enterprise This leads to another one of the primary reasons behind this research, which is to reduce pollution and harm to the environment CSR and sustainability are one of the core values of the brand, and thus the research will be a direct reflection and analysis of how to best implement this into BĖT

The main objective of the brand is to provide ethically sourced/produced products in high quality that will be accessible to Vietnamese consumers in the target market, as well as globally, with price adjusted for varying markets The research will ascertain the best methods to achieve these goals and the core values of the brand.

RESEARCH OBJECTIVE

The primary focus and objective of this paper is to create the business development strategy for the BĖT streetwear brand Through this the brand will have guidelines and concrete knowledge to move forward pragmatically in its synthesis and birth By observing the achievements and failures of other brands, and drawing from prominent research in this field, the brand will take positive influence, while avoiding the negative By analyzing strengths and weaknesses and implementing them into starting the business the brand should have a leg up on others and a very useful complement to just the standard business plan in itself The research will comprehensively target manufacturing, marketing, human resources, chain of supply, management, logistics, sales, finance/funding management, customer/manufacturer relations, sustainability, CSR, and any other sectors that are discovered in the process The overall aim is also to increase value and efficiency A startup SME has many hurdles to face, and extensive planning is pivotal in this process to optimize the decision-making process as a whole, and to avoid multitudes of pitfalls at all costs.

RESEARCH QUESTIONS

1 What is the business development strategy of BĖT targeting?

2 Why is this business development strategy important to this SME, and what does it seek to achieve?

3 How will this business development strategy be utilized to establish the brand in Vietnam, along with future plans for expansion, while also creating a unique competitive advantage?

OBJECTS OF RESEARCH

The qualitative and quantitative factors that will drive the success and longevity of the BĖT streetwear brand How to ascertain prominent strategies gained through the research and thus apply them to the startup SME

The major question is how do we process all of this data and make it into a relevant guideline for the brand to follow? What are the main factors that have contributed to other brands major successes or failures?

SCOPE OF RESEARCH

-The Scope of Space: The subject of this thesis seeks to create a guideline from the stage of formulation/concept to the final stage of execution/launch as well as the first five year plan for the BĖT streetwear brand Research will bolster and give concrete incentives in moving forward for the brand, through quantitative and qualitative data

-The Scope of Time: The data collected will span from clothing brands within the last decade It will be adapted to the market in 2023, with predictions made from it on the aspect of planning for the future.

RESEARCH METHODOLOGY

The general approach to this dissertation will be qualitative/quantitative data analysis (mixed methods) to delve into both theory as well as hard data on the topic at hand because a business development strategy should be comprehensive of all elements The philosophy of this research should rely both on positivism and constructivism for this same reason Through side-by- side comparison of competition, market research, consumer trend research,

4 innovation research, and financial analysis it will yield a strong business plan for the brand to perpetually grow and thrive within the next five years Descriptive (for current state of brand), exploratory (to generate new ideas and insights), and causal (to establish relationships between variables) research methods will be employed in the areas listed above This will be the bulk of the secondary data that is applied to the thesis Primary data will be collected from sample studies of product quality/customer satisfaction surveys (random sampling) will also be analyzed and computed into quantifiable data Observations from market trends/consumer habits and document analysis of other relevant sources will comprise the remainder of the research The only possible limitations may be access to certain data and the potential for sample/source bias which will be minimized/vetted in any way possible Findings will be presented with an array of charts, graphs, and other visual mediums to show/compare data The main purpose of this research is to rigorously analyze and present clear and concise data for the business development strategy of BĖT (BĖT.drip).

THESIS STRUCTURE

The thesis, including the introduction, contains 7 chapters:

OVERVIEW/CONCEPT/PREPERATION/DESIGN &

MARKET ANALYSIS

The fashion industry on both the high and low ends has experienced major changes throughout this period of globalization, and with the major shift towards online shopping of the last decade The advent and surge of social media emerging in the center stage of everything has completely changed the way we market, advertise, buy, sell, and view products This of course comes with both positive and negative impacts on society and the ecosystem of the world Fast fashion is the most poignant of the negative issues, as it causes massive amounts of pollution, is generally made in very low quality, and takes advantage of cheap labor As a result, this has also led to an increase in more conscientious consumers with more ethical purchasing habits

The focus of BĖT is to move away from this new norm, to provide garments that are made from locally sourced fabrics, with the majority of products being tailored by hand locally, and to have a major focus on CSR meaning treating people and the environment with dignity and respect Even many high-end designers are shifting towards the trends of fast fashion, and in turn losing the thing that made them unique and gave them value in the first place The brand will focus on e-commerce because there is a major shift toward this in Vietnam, as well as worldwide 80% of Vietnam‟s population over 15 years old is using smartphones, and in terms of business fundamentals the nation outperforms all comparable southeast Asian countries 1 In 2019 the

1 Cong Anh, D., (2022) Vietnam targets 85% smartphone usage by end of 2022 Ministry of Information and Communications of The Socialist Republic of Vietnam.

6 retail market was worth $108 billion annually, and FDI grows exponentially every year due to this upward trend According to this study the way to succeed in Vietnam‟s increasingly competitive retail marketplace it is necessary to construct scale across as broad of a network as possible, i.e., social media, online shopping platforms, etc 2

The nation has a significant increase in purchase of luxury goods, particularly because of the rapidly growing middle class as well as a large growth in high net-worth individuals Vietnam‟s luxury goods market was worth $971 million in 2021 and it is projected to grow at 6.67% annually, by

2026 the country should have over 25,812 people with a net worth of $1 million USD and higher and is expected to rise by 59% annually at this point Many high-end brands like Montblanc, Louboutin, Amiri, Off-White, etc have been opening flagship stores in both Hanoi and Ho Chi Minh City The increase in sales of luxury watches and fine wines also indicates that high fashion and luxury goods are becoming more accessible to increasing numbers of people Even though impacted by the Covid-19 pandemic these industries still maintained growth, which is a promising trend in this industry Before the pandemic growth was steady between 12.9%-9.6%, and it is returning to these levels post-pandemic 3

Given these figures entering Vietnam is a promising place to enter the luxury goods market, especially with domestically made clothing that is made ethically and in the highest quality It is important for BĖT to maintain some items that will be more accessible to not just high-end customers, which will be mainly in the domain of T-shirts/socks/accessories that have a lower production value and don‟t require tailoring by hand This will help to

2 McKinsey & Company (2019) Seizing the fast-growing retail opportunity in Vietnam.

3 Nguyen, T (2022) Vietnam‟s Luxury Market: An Appetite for High-End Products

7 increase the brand image and reputation in the spirit of inclusion and accessibility Limited/seasonal pieces that are tailored will be more expensive because it takes more to produce them, and each product will be a limited line As a startup the brand must build its image strategically, and brand image/recognition are crucial to bolster during this initial phase while curating this luxurious image The purpose of this dissertation is to create a business strategy plan for BĖT that will set it apart from the competition in this Red Ocean market, and to provide a guideline for it to grow substantially within five years.

LITERATURE REVIEW

The literature in this dissertation will focus on analyzing the competition, the marketplace climate, and consumer habits This will be ascertained via scholarly articles, news articles, academic works, business reports, statistical reviews, as well as surveys and interviews that will be conducted These will be used to formulate the strongest possible business plan for BĖT

In a recent study in Vietnam, 81% of respondents suggest that online shopping is integral to everyday life This data was collected from a survey conducted by Lazada in cooperation with Milieu Insight This survey consisted of 6,000 online consumers with 1,000 each from Vietnam, Singapore, Malaysia, Thailand, the Philippines, and Indonesia This showed that 59% of Vietnamese e- commerce consumers make a minimum of one purchase online per week, and 85% saying that they have continued to do so more since the Covid-19 pandemic 52% of these Vietnamese consumers also marked a stronger preference for buying from local brands This survey‟s findings indicate that setting up this local high fashion clothing brand across all relevant/available

8 online marketplaces is a very large opportunity 4 BĖT should make a large push with influencers and social media marketing to reach its target customers most effectively

Statistical analysis by Cimigo indicates that Vietnam‟s online shopping hit 60% penetration in 2021 and this figure is only expected to grow, making a focus on online shopping integral for retail in Vietnam today as well as in the future 5 Internet based spending stood at $21 billion this year and is expected to rise 271% to $57 billion by 2025, while e-commerce in southeast Asia will reach $234 billion, which is almost double of 2021 Vietnam has ranked second in all of Southeast Asia for online spending 6 These are very promising figures, particularly Vietnam‟s projected rise to be much higher on percentage than the already favorable calculation of the whole region The research will seek to extrapolate the ultimate way forward for BĖT Throughout the process the ideal business plan will be made

According to studies in a paper by Environ Health fast fashion has an increasing and high number of damaging impacts on the environment It is made using and burning fossil fuels, as well as tremendous amounts of plastic waste This is incurring both human risks, as well as an enormous environmental one On one end they say it is democratizing fashion, but in truth it promotes horrible working conditions, and has almost no regard for the environment The modern-day consumer should be more conscientious about this kind of issue Companies pushing and promoting fast fashion prefer a quick pay-day over doing ethical business and treating their employees with

4 VNA (2022) 81 percent of Vietnamese consider online shopping to be integral to everyday life Vietnam Plus

5 Nguyen, L (2019) Vietnam Online Shopping hits 60% Penetration Cimigo Research Group

6 Vietnam Net (2022) Vietnam ranks 2 nd in Southeast Asia on Online Spending Vietnam Net Global

9 the respect that should be universal Polluting the environment is also a non- issue to these brands Their supply chain shows a total disregard for the environment, and this is easily observable just within the landfills of the world Here we can find countless bi-products of these fast-fashion brands, as well as discarded products These things impact our oceans, our soil, and our people 7

BĖT will focus on moving away from these practices as our chief core value The research will back and reinforce our ability to do this throughout this dissertation.

BUSINESS DEVELOPMENT STRATEGY OBJECTIVES

The main goal of this dissertation as shown through the literature review is to develop the business plan for the BĖT (@bet.drip) high fashion brand by analyzing the market, industry competitors, and consumer spending habits in Vietnam, as well as in Europe and the USA for future expansion It will evaluate all types of factors impacting the challenges that startup brand of this nature will face and determine the best way to move forward in business while avoiding the many pitfalls of this industry

The first element it will highlight is the various business theories that the company intends to uphold and practice; CSR, Innovation Solutions, etc backed by research, and followed up by how the brand will implement them effectively

Thereafter the dissertation will do a competitive analysis through qualitative and quantitative methods of this red sea market This will be done in order to make a plan that optimizes performance and achieves a competitive advantage while staying unique and dedicated to its core values

7 Bick, R., Halsey, E & Ekenga, C.C (2018) The global environmental injustice of fast fashion Environ Health 17, 92.

Finally, it will delve into a financial analysis through mostly quantitative methods This will provide guidelines and a budget plan for the brand, with a constant focus on augmentation and innovation.

RESEARCH MODEL OF THE STRATEGY

The primary objective of this research is the development of a business plan for the BĖT high fashion brand The dissertation‟s focus is to analyze the competition and challenges startups in this industry face, to highlight the core values that will set it apart from the others/how to implement them effectively, and to provide a financial/budgetary guideline for the brand to follow within its limits

The data gathered for this research will be based on scholarly/business related articles on the industry, statistics from annual reports/financial statements of other brands, various academic research, and interviews conducted with experts/professionals in the field of high fashion The goal is to utilize positive data/methods, while highlighting and avoiding the negative side/impacts of the fashion industry in general It is only achievable through proper research/application

SWOT ANALYSIS

Summary: BĖT.drip has a unique opportunity within both the Vietnamese and global market The brand should consider these factors in moving forward and

 Starting in an Emerging Market

 Soft Launch/Previews, gauging positive response and demand

 Starting in a Red Sea Market

 Limited Brand Recognition As a new brand, exposure and brand recognition has to be built, whereas other local brands have it

 Supply Chain Issues, finding manufacturers and sourcing materials can be challenging in the beginning

 Consumer Trust, must be built, as a new brand this takes time

 Growing E-commerce, social media and online shopping provide a great chance to build image/market/sell

Vietnam and worldwide market demand is high

 Collaboration with local artists, a great chance to increase reach/influence

 Collaboration with influencers and micro-influencers to increase image

 Fierce Competition, globally and locally with other major brands

 Uncertainty in the Economy can be problematic during the initial five years

 Counterfeiters, and having designs stolen

 Fashion trends potentially shifting away from streetwear

12 leverage them to its advantage As a startup brand it is always important to remain flexible and adaptable to the market The most crucial element to focus on apart from quality product is CSR, sustainability, and being ethical When selling globally the modern consumer pays attention to this this, hence reducing the carbon footprint and treating people well is essential A heavy social media presence is also a must, this is the key component in growing and maintaining brand image/recognition Another thing to consider is collaboration with the competition, to utilize the recognition they already have and to foster a co-beneficial relationship with one another

Competitor Strengths Weaknesses Opportunities Threats

Unique Designs, Strong Marketing Campaign, Well performing start-up

Price point for Vietnam, only online presence

Niche markets, Global expansion, Increased marketing

New Entrants changing preferences, Supply chain/economic issues

Established Brand, Wide Variety of Products,

Tapping into foreign market, elevating the brand

Global Expansion, Increased digital marketing,

New Entrants, Strong existing competition, supply chain/economic

The competition in the Vietnamese streetwear market is fierce, there are countless brands fighting for the same customers, but these three are a good example of both a fully established brand, and two startups that are almost certainly on the path to the same All these brands have elements that BĖT should mirror in its development, but through this SWOT analysis it is clear that we need to really focus on what sets us apart from them This would be the fact that we make custom items made to order, whereas many of their products can be found on AliExpress What sets BĖT apart is custom made items, made by local tailors with locally sourced, unique fabrics Paradise 4 Saigon and Youth Privilege both only have online stores, although albeit quite

Physical and online presence globally Niche markets issues

Very Innovative, Relatively New, Strong Instagram presence, in touch with customer base

Limited market presence (IG only), Limited Distribution

Strategic Partnerships, Emerging Markets, More marketing avenues

New Entrants changing preferences, supply chain/economic issues

14 successful for new brands Mikenco has been around for a longer time, and is quite famous in Vietnam, they have physical stores all over the country BĖT must take notes from these brands, but at the same time make strides to stand out from the competition

DESIGN PROCESS

The inspiration behind BĖT stems from multiple sources such as classical and Japanese art, old streetwear of the 1980‟s, film, urban aesthetic, old school hip-hop, and more to create timeless pieces while also developing a defined uniqueness to the brand‟s image With each collection, the inspiration can vary, as well as within each item itself

One of the main concepts with BĖT‟s design is to ensure fluid and versatile use of items, such as being able to mix-match sets with shirts, socks, and so on In doing so, this creates more value and use for consumers, as well as allowing the brand to build upon each new collection with previous ones While the brand can be seen stylistically as streetwear, it also has elements of maximalism Maximalism is a design style that leans big into bold colors, patterns and textures and stems from the art deco and pop art eras

In addition, functionality plays a large role in the designs Not only are items versatile in their use but they are convenient for everyday life One way in which we do this is through our incorporation of multiple pockets with large holding capacity and zippers (both visible and hidden) in BĖT‟s design Through previous market testing, we found consumers highly value these added details of practicality

There is not one rigid way in which the design process first starts This allows us the room for creativity when it comes to designing For instance, we may begin with a broad category of an item that we need to add to the collection (ex: “tracksuits”) then from there we narrow down the

15 style/functional elements, color, and material before going into making the first test-sample On the other hand, the process may BĖT‟s start with a fabric we find intriguing which then inspires a design As a result of this unrestrictive process, BĖT‟s design team is able to foster creativity while also conceptualizing and refining ideas into unique and innovative pieces that resonate with the brands identity.

MATERIAL AND PRODUCTION

In the dynamic world of fashion, traditional mass-production methods are increasingly being challenged by more sustainable and customer-centric approaches such as made-to-order production For the production of BĖT clothing, the brand will utilize a combination of factory-made items in bulk and made-to-order production This approach allows for the customization of the manufacturing process to meet the needs of the business and adapt to customers‟ preferences while also reducing risk and overhead costs Not only does made-to-order production align with sustainability goals but it also caters to the ever-evolving demands from consumers Other key points for our choice of a made-to-order production process include the following:

One of the most significant advantages of made-to-order production is the drastic reduction in overproduction According to the Ellen MacArthur Foundations “A New Textiles Economy” report, the fashion industry generates vast amounts of waste, with up to 92 million tons of textile waste production annually Made-to-order production helps minimize waste by only producing items when an order is confirmed 8

8 Ellen MacArthur Foundation (2017) A New Textiles Economy: Redesigning Fashion‟s Future

By producing clothing and items on demand, brands can optimize their material usage This approach reduces the need for excess raw materials and minimizes environmental impacts normally associated with resource extraction and processing 9

Made-to-order production allows the brand to offer customization and personalization options to customers This not only enhances customer experiences but also creates a deeper connection between consumers and the brand 10 In addition, when expanding to western countries with typically larger standard sizes, this ability to customize and alter sizes to fit the demographic of the region can significantly reduce cost and eliminate overhead stock

Inventory Reduction and Cost Savings

A made-to-order system can notably reduce inventory costs since the brand only needs to produce items as they are ordered This helps prevent inventory obsolescence and markdowns, contributing to improved profitability and overall financial performance 11

9 McDonough, W., & Braungart, M (2002) Cradle to Cradle: Remaking the Way We Make Things

10 Bhardwaj, V., & Fairhurst, A (2010) Fast fashion: Response to changes in the fashion industry The International Review of Retail, Distribution, and Consumer Research, 20(1), 165-173

11 Lu, Y., & Chen, A N (2020) The impact of made-to-order production on supply chain coordination: A structural model Sustainability, 12(9)

Streamlining the production process to match demand can lead to a more efficient supply chain Brands are then able to reduce lead times and respond quickly to changing fashion trends 12

Adopting a made-to-order production can help enhance a brand's reputation for sustainability, attracting eco-conscious consumers and investors 13

Made-to-order production offers numerous benefits, ranging from sustainability to enhanced customization and cost-efficiency It addresses the critical issue of overproduction and waste while also optimizing material usage Consumers are increasingly recognizing the importance of environmental responsibility, making made-to-order and an optimal choice that also enhances the customer experience through customization, fostering brand loyalty

From a financial perspective, made-to-order production leads to cost savings by eliminating the need for excessive inventory, preventing costly markdowns, and streamlining supply chains for efficiency Overall, made-to- order production aligns with the growing demand for sustainability and economic feasibility, making it a strategic choice for BĖT in today‟s evolving fashion market.

SUPPLIER RELATIONSHIPS AND ETHICAL SOURCING

In the constantly changing landscape of the fashion industry, the maintenance of robust supplier relationships and ethical sourcing practices

12 Shen, B., Zhang, J., Cheng, M , (2023) Supply Chain Integration in Mass

Customization Annals Of Operations Research.

13 Caniato, F., Caridi, M., Moretto, A (2012) Environmental Sustainability in Fashion Supply Chains: An Exploratory Case Based Research International Journal of Production Economics, 135(2).

18 have gained significant attention This section delves into the vital role of supplier relationships and ethical sourcing with the BĖT brand, emphasizing their implications for reputation, sustainability, and consumer trust

The maintenance of supplier relationships and the commitment to ethical sourcing practices are fundamental aspects of a brand‟s strategy The fashion industry, like many others, is acutely affected by the power of reputation A brand‟s image can either propel it to success or lead to its decline Ethical sourcing practices play a critical role in shaping said reputation Establishing ethical sourcing practices ensures that a fashion brand‟s products are manufactured in compliance with fair labor practices and environmental standards 14 Any deviations from these standards can expose the brand to negative publicity, which can in turn significantly damage its reputation Ethical considerations surrounding sourcing practices are now scrutinized more closely than ever by consumers and the media, making it extremely important for BĖT to act responsibly and transparently in its sourcing choices Sourcing materials from local markets and supporting local suppliers is one-way BĖT plans to mediate ethical sourcing risks

Furthermore, today's fashion industry is increasingly focused on sustainability Consumers have grown to steadily favor brands that prioritize sustainability in their supply chain Ethical sourcing practices are inextricably linked to sustainability, and aligning these sustainability efforts is an overarching trend in the industry, where sustainable fashion practices have transitioned from a niche market segment to a widespread movement This transition reflects a changing consumer landscape characterized by heightened

14 Rao, P (2002) Ethical decision making in the garment industry Management Decision, 40(3), 232-242.

19 awareness of environmental and social responsibilities 15 When entering the market, the BĖT brand must be aware of these social and environmental issues in order to gain consumers approval and promote a positive brand image when it comes to ethical sourcing

In addition to the broader sustainability imperative of today, ethical sourcing practices also contribute to building consumer trust The fashion industry has entered an era of conscious consumerism, where consumers seek assurance that their purchases align with their values Maintaining open supplier relationships and ethical sourcing processes supports this trust 16 Given this, BĖT should seek to transparently communicate its ethical practices so that it may resonate more effectively with these conscientious consumers One way it can do so is by publicly posting on its website and through its social media pages, making a point to highlight its sustainability practices

Besides ethics and sustainability, strong supplier relationships contribute to quality control Collaborative relationships with suppliers enhance a brands ability to maintain quality and consistency in product manufacturing 17 Moreover, supplier relationships play a crucial role in ensuring supply chain resilience Building strong ties with suppliers will allow a brand to navigate unforeseen distributions more effectively, such as

15 Barnes, L., & Lea-Greenwood, G (2010) Fast fashion in the retail store environment

International Journal of Retail & Distribution Management, 38(10), 760-772

16 McNeill, L., Moore, R., & Paladino, A (2006) The effects of environmental knowledge and concern on consumer willingness to purchase clothing made from organic cotton Clothing and Textiles Research Journal, 24(4), 276-291.

17 Lamming, R (1996) Squaring lean supply with supply chain management International Journal of Operations & Production Management, 16(2), 183-196.

20 those experienced during the COVID-19 pandemic 18 These relationships are instrumental in maintaining a stable and adaptable supply chain in the face of unexpected challenges

In conclusion, supplier relationships and ethical sourcing practices are integral components for BĖT‟s brand strategy for long-term success Ethical sourcing practices not only can shield the brand‟s reputation but also align it with the industry's shifting landscape towards sustainability Transparent supplier relationships cultivate consumer trust, while collaborative ties bolster quality control and supply chain resilience In an industry characterized by rapid changes and growing consumer consciousness, focusing on these aspects is not merely a strategic choice — it is an imperative to thrive.

SEASONAL COLLECTIONS AND TREND FORECASTING

Staying relevant is an ongoing challenge for brands To address this, successful fashion brands, including BĖT, need to be aware of trends and seasonal forecasting to ensure that its collections resonate with the target audience This section explores the significance of trend and seasonal forecasting and the process of trend analysis and how BĖT can leverage this information

Trend forecasting is not merely a matter of predicting what will be in fashion next season It serves as a means for fashion brands to gain a profound understanding of the shifting consumer desires and their preferences However, forecasting should serve as a source of inspiration for brands, allowing them to interpret trends in a way that resonates with their established aesthetics 19 For streetwear brand like BĖT, which caters to a

18 Sarkis, J (2020) Research in reverse supply chains: Overview and future prospects Omega, 102, 102409.

19 Cachay, K (2016) Fashion Forecasting Bloomsbury Publishing.

21 youthful and trend-conscious demographic, this insight is invaluable While, understanding what‟s currently capturing the interest of its audience is key to maintaining and expanding its customer base, BĖT can adopt this perspective of trend analysis to remain attuned to trends, but rather than simply replicating trends, it can use them as a canvas to express it already unique design and brand image

One approach to staying original while incorporating trend analysis is what is known as “subversion of trends.” Coined by Okonkwo, in her piece

Luxury Fashion Branding: Trends, Tactics, Techniques, she suggests that brands can take popular and prevailing fashion trends and reinterpret them in distinctive and unconventional ways This approach allows brands to maintain their originality while still engaging with dynamics of the changing fashion industry 20 By subverting trends, BĖT can offer unique and fresh perspectives, setting it apart in a competitive market The fusion of trend is also another technique BĖT can explore For example, combining two or more seemingly disparate trends, the brand can create something entirely new 21 This approach allows BĖT to ride the wave of what's popular while crafting distinctive pieces that capture attention

Additionally, studying and understanding the cyclical nature of fashion trends can be a valuable asset for BĖT both for trend forecasting as well as design inspiration and process By understanding and harnessing this cyclical pattern, BĖT can make its collection with a sense of timelessness and familiarity while adding its own original twist For example, recognizing the resurgence of flare jeans or 80s sportswear, BĖT can incorporate these

20 Okonkwo, U (2007) Luxury Fashion Branding: Trends, Tactics, Techniques Palgrave Macmillan.

21 Hines, T., & Bruce, M (2007) Fashion Marketing: Contemporary Issues Routledge.

22 elements into its designs, by drawing inspiration from the past This not only capitalizes on consumer‟s sense of nostalgia but also taps into the appeal of these styles Such approach can allow BĖT to create pieces that resonate with a broader audience, as they are able to blend designs with elements of the familiar while bringing something new and exciting to consumers Moreover, incorporating cyclical trends allows BĖT to maintain a connection with its heritage and the larger fashion narrative, emphasizing that fashion is an ever- evolving cycle where past influences constantly reappear This balance between the timeless and the contemporary, ultimately will allow BĖT to create designs that feel both classic and relevant.

SAMPLE TESTING

In our fashion brand, the process of sample testing is a critical step to ensure our products meet and exceed our customer‟s expectations Below is the process and steps we use through sample testing:

During the quality testing phase, each sample undergoes a rigorous examination Our experts look over details such as stitching, fabric, and detailing to ensure that each element aligns with our brand‟s standards This assessment involves keeping an eye out for imperfections and abnormalities, such as loose threads or uneven seams Any quality issues at this stage will be rectified to ensure the final product is up quality standards

Every garment is worn by fitting models Fit testers evaluate the comfort, size, and how the piece moves At this stage we examine how the garment stretches, hangs, and conforms to the body This step is crucial to ensure that the design both looks and feels good when worn

Durability testing helps to evaluate the garment‟s resilience Samples are subjected to testing such as friction, tension, and wear Through this testing phase we will identify weak points and potential areas for damage and test the wear and tear to ensure the longevity of the products

The clothing should be able to withstand numerous wash cycles The wash testing phase will examine how well the garment keeps its shape, color, and texture after multiple washes For the sample we apply 50 machine washes for items we deem machine-washable; whereas other items meant for hand washing, we apply a similar procedure, depending on the care instructions we‟ve established This testing ensures that the product maintains its integrity over time

In conclusion, our sample testing process ensures our products meet the highest quality standards and customer expectations This process covers quality, fit, durability, and testing protocols, as well as real-life wear and various washing conditions This rigorous process guarantees our creations are not only stylish but also long lasting and reflecting the core values of our brand and dedication to creating quality pieces

BRANDING & MARKETING/ SALES & DISTRIBUTION 24

BRANDING ELEMENTS

The branding elements for BĖT rely heavily on our logo, name, and brand identity and imagery We began by creating a simple, clean logo that is easy to remember and stylish A level of minimalism is also found in our piece, where sleek clean lines and minimalist font, for example T-shirts from our EGO series all have simple “I” statements with limited design Other minimalist elements can be found in our leather products as well However, we also incorporate elements of maximalism too with colorful patterns and designs in some of our other collections This combination allows us to speak, stylistically, to a larger audience, while the combination of these two designs styles and products creates our own unique style Our packaging and branding materials carry this minimalism in them as well BET‟s packaging is all black using high quality luxury and eco-friendly materials The first experience and impression the consumer has before receiving their products is the packaging/box itself With that in mind, we want that first interaction to elicit feelings of luxury, exclusivity, and to supplement our brand identity All items also come with a black envelope that has a signed certificate of authenticity which also includes the product number, in doing so we want to further develop this notion of exclusivity while also creating items that, in the long run, can be vintage and collectable Shopping with BĖT is a luxurious experience, that can be exhibited in some of these packaging mock-ups for the brand on the next following pages

Many elements of our products, from the fonts to the typography of our products, define our brand image We sample from many various color palettes and differing themes in our pieces When we use artwork from artists, we will always credit the artist directly on the item and pay respect to whatever history or culture it derives from if there is no artist to be found Our tags and labels will generally be made of metals or high-quality fabrics and bear our logo The packaging design is a direct reiteration of our brand name, and either bears BĖT or @BĖT.drip on it.

ONLINE PRESENCE

Our social media presence is a huge part of our brand image and how we promote our business as well The website is a quite direct showing of products with some artistic elements, but it is mainly just for the purpose of online sales The Instagram page on the other hand is a place where we will showcase various forms of art alongside our products This is both to provide

33 more than just an online shopping experience, and to connect with artists worldwide which is a goal of our brand

We also plan to create a type of forum on fashion and streetwear culture on our Instagram platform, so that there is a constant discussion about the very culture that we are a part of Having a presence online like this should be conducive to convert into sales The idea behind this is making a page that target customers will follow for more than just viewing the products alone, but also to engage in and view/read subjects that interest them

A final element that we really need to drive home in our online presence is our focus on CSR Being a sustainable and environmentally friendly company is more than just a trendy thing to do, this is the way forward for all businesses worldwide in the present-day We never want to become a fast-fashion brand, like Zara or Shein, even though these are massively profitable Their business model goes against our core values because they do not respect the environment and contribute massively to global pollution and waste This facet of our business model will be displayed and promoted in our online presence.

MARKETING STRATEGY

Our marketing strategy is quite straightforward because our brand will be/is marketing mainly via social media Instagram and Facebook provide an amazing set of tools and software for this task The built-in demographics and ability to target specific consumer groups is exactly what is needed This makes running ads an easy and cost-effective job Our target customers fall into four categories that are highlighted in the marketing segmentation chart Our main age target is 18-25 and 25-35, and for all genders Their interests will likely include hip-hop, street culture, fitness, and fashion It can be fit to all personality types that are into all types of genres of music, lifestyles, and hobbies The minimalistic style can interest all types of people worldwide

3.3.1 KPI Analysis from Market Testing

The KPI for BĖT is based on a market testing analysis that we conducted over the course of one month The idea behind this is before making the official launch that we need to test the waters We must identify customer demand, get to know our customers, distinguish, and properly target our target customers, as well as getting feedback on our product quality We conducted this analysis via selling through social media, which will be one of our main avenues of selling products The three platforms we used were Facebook, Instagram, and TikTok Facebook being the most popular avenue for online sales in Vietnam, although Instagram is also significant We were able to attain a high level of reach on these two platforms by spending $150 per week on advertising A slight advantage was given on these platforms because our brand has already been cultivating a following for a little bit over a year The two targets that were not hit were conversion rate and revenue

35 growth Essentially this is because the targets set were high, and this was a first attempt All of the other KPI gave a good indication otherwise, particularly the ROI on the marketing investment

3.3.2 Marketing Channel ROI from Market Testing

The sample market testing analysis that was conducted yielded results that were significantly favorable, apart from TikTok The reason for this is that the brand has no TikTok presence, and our team is more familiar with the metrics and operation of Facebook and Instagram TikTok has recently opened more avenues for marketing and opening stores on the platform, but this will take more time to properly utilize On the other hand, the other two platforms yielded excellent returns BĖT has been building its presence and promoting its brand image for a solid year before this trial analysis, so that provided a large advantage in running this sample study Facebook surprisingly didn‟t yield as high of a result as Instagram, given that it is the top social media sales platform in Vietnam, but it still netted over 300% ROI Instagram was more successful than that also because the brand cultivates its page regularly and has almost 5k followers Many followers had already been waiting for the brand to start selling products, and that in combination with the marketing push gave concrete results with 548% ROI

Hipster Hip-Hop Sporty Artsy

Buying Habits: Frequency Influence Choices

Street Savvy Sustainability Image Pop-Culture

Event-Based: When worn Why worn How worn

Analyze based on loyalty to our brand or other brands, and why

This market segmentation chart breaks down our target customers by human demographics, geographic location, psychological factors, and behavioral factors It helps to visually identify these various customers through various means so that we can better understand, organize, and identify who is buying what, where Thia is essential data for us to utilize in how exactly and to whom we will market on Instagram and Facebook These platforms also have built-in tools to show exactly who is viewing our pages and buying our products, which is a significant advantage over our standard website Over time we will know exactly who is buying which of our products and it will assist in completely streamlining the process down the road.

COMMUNITY BUILDING AND USER-GENERATED CONTENT 37

Harnessing user-generated content (UGC), customer reviews, and social media engagement is a powerful way for BĖT to build loyal and enthusiastic customer community The impact of community building has a substantial impact on brand loyalty as well as the importance of promoting word-of- mouth marketing The ways in which BĖT plans to primarily utilize UGC is through social media post, online reviews, and video content

For social media posts, we will use both paid and unpaid UGC While unpaid UGC is what typically comes to mind, BĖT can take advantage of paid influencers throughout Vietnam who promote various products in an authentic manner and who also have a large following of our target audience This will allow BĖT to cultivate brand recognition while also being supplied with new video and photo marketing content that we can use across platforms at an extremely affordable cost, with price per post being around $10-50 USD, depending on influencer specs

Additional ways we plan to develop UGC is through video contests For example, video contests will have previous customers feature a particular item from BĖT Ideally this will be one of the lower-priced items, such as a T-

38 shirt or socks from the brand, because then the pool of potential engagement is higher since the price point is accessible to more people Consumers will be asked to create a video featuring said item and post it on social media with the hashtag, and motto of the brand: „Not 4 Everyone‟ and the winner for the best video will receive a $100 gift card for the store We also plan to continue to use this hashtag long-term as well as #BĖTdrip.

LIMITED EDITION AND EXCLUSIVE DROPS

One element of our brand that we intend to incorporate is limited edition collections and exclusive drops As we are starting off the brand, the majority of the higher price-tagged items will be limited edition due to their highly customizable elements, finite fabric, and more detailed craftsmanship Other items such as t-shirts, socks, etc., which can be easily made in large quantities and quickly, will be in our long-term collections Long-term collection items are also on the more affordable end and may or may not be phased out depending on their popularity Limited edition collections will also include future collaborations we have planned with artists (see chapter 8 for more information)

Exclusive drops is another aspect of BĖT that we will integrate into the brand Our exclusive drops will highlight collaborations with both local and international artists Adding artists that each have their own dedicated following and creating a collaboration between us two can help our brand reach new audiences, this cross-pollination of audiences can then further lead to a broader brand exposure 22 Exclusive drops between fashion and artist collaborations are often perceived as collectible items that appeal to both art

22 Patrick, S., Ramona, T., Franziska, S (2023) Luxury Brands and Art Collaborations as a Leverage on Brand Equity and Artist Equity ResearchGate.

39 enthusiasts and fashion aficionados, a perception that can not only help drive BĖT‟s sales and brand loyalty, but also increase its image of exclusivity

In conclusion, these fashion collaborations with artists for exclusive drops can help provide the brand with increased visibility, unique designs, cultural relevance, collectability, and powerful storytelling opportunities that will allow BĖT to continue its ongoing evolution and innovation

DISTRIBUTION CHANNELS

Regarding sales and distribution, the brand will be fully online to start, because this is much more streamlined than jumping right into opening a physical store, which has become less popular because of globalization and the shift to online shopping The main sales channels that will be used are Facebook and Instagram, as well as the company website Some more simple items will be available on hand, while other more complex ones will be made to order

As for distribution channels, or how the product goes from manufacturer to end consumer, this will utilize a quite simple process Products are made by contract with local manufacturers, tailors, screen- printing shops, etc and hence stored in our warehouse/office From there we have an employee in charge of sending out orders in Vietnam and worldwide There are naturally advantages and disadvantages to this and a conventional setup of having a factory of your own Having a factory is ideal for getting the best price on manufacturing, but for a startup this requires a large amount of capital investment The advantage of our method is that it allows us time to grow our brand image, demand, and sales before we commit to a larger investment It also gives us a large amount of flexibility in how we operate and in finding the best possible manufacturer

SUPPLY CHAIN MANAGEMENT

Supply chain management has a massive impact on sales and distribution If the supply chain is not efficient the business will naturally fall apart A business must provide its products as quickly as possible to its consumers, otherwise they will not become return customers Our focus is on streamlining this process while maintaining a high level of CSR Being in Vietnam gives us an edge on this because we are in the same country as our manufacturers The element that needs to be refined more is getting our products overseas as swiftly as possible This will be handled by the higher price we put on international sales, because they need to be able to cover customs duties and shipping rates in a rational way

It is crucial to our brand to have a flawless chain of supply Logistically speaking we will utilize priority shipping most likely through DHL which should make the margin of error very small Another concept is to keep some products already in the US and Europe to make shipping very easy Our made-to-order product will understandably take longer to receive, but with these a customer can be guaranteed that they will get the exact size and fit that they desire We should keep a large amount of inventory available progressively, which will reflect the number of units that we move per month

As the brand grows, we will adjust these numbers and operations to reflect our current level of demand This is one of our strategic advantages with the business model that we have chosen It cuts down capital spending and focuses on brand growth before any unnecessary losses end up being accumulated In the environment of the current market for a clothing brand of this nature, and a startup, this is the best way to move forward and develop in a pragmatic way

E-COMMERCE AND ONLINE SALES

There has been a shifting trend in almost all aspects of sales toward e- commerce in the past decade In turn, almost all sectors of business have reacted and adapted to this phenomenon This can be easily observed with Amazon, Lazada, Shopee, Alibaba, etc having a stranglehold on the market, and driving many physical stores out of business in the process This is why our market entry is completely online based Online sales make up most of all transactions worldwide present-day 23 Even traditionally in-person type of transactions like buying cars or property have shifted to online sales This has had a major impact on supply chain management worldwide Therefore, it's more advantageous to shorten or cut down the chain of supply to fewer steps in the process The proximity between manufacturer and end customer is tightening because maximum efficiency is the goal Sales are secured online via strong brand image and presence This is why our brand has been cultivating its following and image in the previous year, so that we have a head start when we officially enter the market

Streetwear brands, both startup and established, will face many challenges when selling products online, but this avenue also creates many new opportunities, the challenges include many elements Marketing costs are one of these, to have significant reach online a brand must invest significantly into advertising, and design strong ads for target customers If there is a creative marketing team this challenge can be turned into an advantage Competition is also always a challenge in any business, the way to counteract this is through creativity and striving to forge a unique product and experience for customers The most successful brands have all done this, they make moves to make themselves stand out from the rest This leads into another

23 Koen Van, G (2023) E-commerce Worldwide: Statistics & Facts Statista.

44 significant challenge which is combatting counterfeits The bigger and more famous the brand the more they must deal with knockoffs A way to combat this is to build intentional unique flaws into collection pieces, or to make unique QR codes with each item Sizing and fitting can also be a prominent challenge, especially when selling on the western market This can be dealt with via the made to order process Opportunities for our business model include ease of marketing because it can be done quite seamlessly via social media, with quite a low overhead cost Other costs that can be mitigated are rent, utilities, and staff because of operating fully online Brand image/authenticity and global reach also have significant opportunities because of the fully online business model Social media provides a built-in audience that grows itself once it‟s up and running Lastly ease of access to data is another major benefit for this business model, social media and the website provide immediate analytics on our customers/target market.

INTERNATIONAL SALES AND EXPORT STRATEGIES

International sales and export strategies will be achieved through several different avenues These include market research, where we will identify our target market, and demand levels The focus of this should be on various cultural and fashion trends, by keeping up to date with these we can create the most innovative products that will keep customers locked on our brand development The brand must also pay attention to the legal side, making sure to pay all taxes, tariffs, and duties, as well as having a solid trademark

Branding is another important element in this process, the marketing must reflect first Vietnam since this is our initial domain, and thereafter it must translate globally as well The main course of action for doing this is through hip-hop and urban culture, as well as high fashion This is how we will establish our online presence We will take payment mainly in VND

45 locally, and USD globally The website will be completely user friendly and offer all types of shipping options Staff will be multilingual and able to answer any questions that customers may have regarding our products As previously mentioned, pricing will be scaled according to our two main markets Vietnam will have the lowest price, because our target customer base needs to be able to afford our products on the average salary, so this will reflect our competition‟s prices a bit The western pricing will be higher because people in that market have a higher average income and henceforth more cash available

Shipping within Vietnam is an ideal logistic environment, it‟s cheap, easy, and extremely professional A customer can expect to receive goods within 1-3 nights depending on where they are located and what type of shipping they choose Exporting to the western market is where it becomes more complex because of customs duties and the distance that the products must travel The end goal is to have inventory in all locations, but while shipping from Vietnam the brand will have to operate within the best of its ability to get products to customers asap at the best price

Quality control is one of our most prominent targets, delivering the best product possible made from the best materials is one of the core values of the brand We achieve this via combining customer feedback with our own creative perspective, and always sourcing top notch materials Quality is what sets a brand apart from the competition and imitators, thus it must be the crucial focus for us The way forward is to start strong as has already been done, and henceforth to constantly adapt and improve on that.

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

The main feature of our CRM is always being attentive and putting our customers‟ needs first every time as a priority To begin we do this via a heavy inclination towards personalization and providing a luxurious/VIP type of

46 experience for them We will always address them by name and make them feel like they are part of the movement This will include promotional gifts with our items, automatic entry into giveaways, and a tailored shopping experience based on their purchase history and preferences By keeping close track of this it will be easier to give personalized discounts, and to reward our customers for their loyalty to the brand through various programs

Segmentation through multiple channels is another important aspect of our CRM This requires us to keep track of customer behavior through all our various platforms, with this we can refine our marketing to fit all our different types of customers It‟s a key point to gather our customer data and utilize it in the best way possible to have a comprehensive perspective on their various behaviors and insights The easiest way to achieve this is via software made for this purpose Customer feedback is extremely important to our business model for marketing, CRM, product development, logistics, etc We need to understand and be in touch with the customers through and through, this is one of the key points in our growth strategy Through the feedback we will also create user-generated content that we can use in our marketing strategy This kind of engagement can be compensated through our customer rewards programs It‟s an essential task to follow up with customer engagement even after purchases are made; asking customers how they feel about the products and what they like about them/what can be improved on

CUSTOMER EXPERIENCE/ GROWTH & EXPANSION

IMPORTANCE OF CUSTOMER EXPERIENCE

The customer experience (CX) is crucial to creating value for a brand and the customer experience should meet customer expectations across all of BĖT‟s digital touchpoints in order for the brand to grow Since BĖT will primarily be an e-retail brand, online interactions, and touchpoints with customers through social media, website, advertisements, etc must be a unified customer experience.

TOUCHPOINTS AND INTERACTIONS

BĖT‟s customer touchpoints include the following: website, social media, customer support, and email marketing These touchpoints play a pivotal role in shaping the brand‟s identity and the experience it offers our customers

Starting with the website, we will create a consistent design and navigation, while incorporating BĖT‟s branding elements/colors/fonts to create a seamless and familiar online experience This coherence across the website and webpages will help customers easily recognize and steer through BĖT‟s online presence

The website must have a user-friendly design and ensure uncomplicated navigation Essential elements of the website must include a smooth checkout process, search and filter functionality, customer support, security, analytics, and be optimized for mobile phones

In addition, high quality images are necessary for the website to showcase products and allow customers to see details Images, and other aspects of the website must incorporate Search Engine Optimization (SEO) to aid BĖT‟s online presence and drive organic traffic to its site SEO techniques

48 for BĖT‟s website include: optimizing meta titles and descriptions, short and keyword-rich URLs, product descriptions including main & LSI keywords, schema markup, SEO focused blogs, and internal/external linking 24 The website also needs to be optimized for loading speed to ensure a seamless experience, while compressing images which use a Content Delivery Network (CDN) and helps with load times for the website to provide faster delivery content 25

Social media platforms, particularly in the Southeast Asia market, will primarily be the touchpoint in which consumers interact with and are exposed to the brand Maintaining a consistent posting schedule, adhering to the brands image, and establishing a uniform voice in captions and messaging are essential This consistency ensures that the brand‟s social media presence is not only visually appealing but also communicates a cheap and unified message to the audience

Customer support is another critical touchpoint Providing high-quality support through various channels (email, live chat, phone, messaging, etc.) is key In today's high-paced tech world, customers expect prompt and uniform assistance According to Toister Solutions, 90% of customers consider instant customer service crucial or very important, and 89% of consumers say a quick response to an initial inquiry influences their purchase decision Companies with longer response times risk customer dissatisfaction and slow response times cause 52% of customers to stop purchasing from a company 26 With this data, it is incredibly important for BĖT to develop efficient and timely customer support that will respond to customer inquiries within a timeframe

24 Michael, B., Babur, S., Matthijs, W (2013) Search Engine Optimization: What Drives Organic Traffic to Retail Sites? ResearchGate

25 Paul, S (2022) How A CDN Works to Speed Up Ecommerce Sites Nexcess.

26 Mohammad, Y (2023) 10+ Customer Service Response Time Statistics (Latest Data) Online Dasher

49 of 15 minutes This can be achieved by a designated customer support employee, and eventually incorporating AI customer support technology so the position is completely automated with a human-like feel that matches the brand‟s identity.

CUSTOMER FEEDBACK AND DATA ANALYSIS

Understanding the role of customer feedback and data analytics is vital for enhancing BĖT‟s customer experience in the context of our online retail brand Customer feedback, whether gathered through surveys, reviews, or direct inquiries, serves as an insight into our customers‟ needs and preferences When analyzed, this feedback is instrumental in identifying struggles that the customers may encounter, allowing our brand to address issues related to website navigation, checkout processes, product availability, and more

Another key benefit of customer data analysis is personalization By collecting and dissecting customer data effectively, we have the option to create tailored experiences for our customers and develop niche market segments specifically tailored to our consumer base This personalization, based on an understanding of preferences and behaviors, can then influence product recommendations and content 27

Data analytics further provides insights of unveiling trends and preferences, which can help guide the brand to developing products as well as inventory management By analyzing purchase histories, search patterns, and social media discussions, BĖT can identify which styles, colors, or materials are gaining popularity For example, if the data shows that there is a growing

27 Albert, T., Goes, P.B., Gupta, A (2004) „GIST: A Model for Design and Management of Content and Interactivity of User-Centric Websites MIS Quarterly 28(2): 161-82.

50 interest in reusable materials, our brand can adjust our products to incorporate more reusable materials into our designs

To collect and utilize customer data effectively, we will enact various strategies For example, implementing surveys and feedback forms on the website to solicit data on customer preferences, opinions, and experiences Another component of data analytics we will concentrate on is tracking customers‟ online behavior and interactions on our website There is a plethora of customer behavior tracking tools we can utilize, some of these tools we plan to integrate include Google Analytics, Hotjar, Mixpanel, Kissmetrics, and more

Google Analytics will allow BĖT to track metrics such as page views, bounce rates, session duration and conversion rates as well as information about the sources of website traffic to help us understand how customers are finding our site

Hotjar is a heatmap tool that visualizes a user behavior on the website and better helps us understand how customers interact with specific pages and gather user feedback Mixpanel is another tool we plan to use, due to its comprehensive user analytics such as user flow analysis, event tracking, user segmentation and A/B testing Kissmetrics, on the other hand, has a strong focus on conversion funnel tracking and is specifically designed to help monitor and optimize the entire journey of the custom, from first interaction to conversion and retention, which can help us better understand and improve the whole conversion process

The combination of all these tools, and others like them, will provide us with comprehensive data analysis that will allow us to gain a holistic view of our customers, pinpoint issues, and make data-informed decisions to enhance our customers experience, improve conversion rates; and ultimately, optimize our online touchpoints and business as a whole

SCALING AND GROWTH

Starting the business with a smaller range of products, aiming at a defined-target market, will enable us to create and grow our brand step by step In addition, keeping our minimum order qualities low as well as incorporating made-to-order manufacturing allows us to gradually scale while keeping both costs low and maintaining quality 28 Furthermore, this business model prevents overdoing production and product lines, while granting us the ability to focus on keeping our collections high quality and niche

However, as we continue to grow and establish our presence in the market, our long-term plan for scaling includes opening our own small-scale manufacturing facility for made-to-order We will hire individual seamstresses, that way we can ensure each item is crafted with attention to detail and measures up to our quality standards This approach towards the longevity and expansion of the brand also aligns with our strategy of keeping minimum order quantities (MOQ) low and manageable From previous market research, we found that many independent manufactures in Hanoi often require high MOQs, which have the potential to lead to excess inventory and operational inefficiencies; something our brand is trying to avoid Instead, we aim to produce only what is in demand and minimize waste and associated overhead costs as much as possible This incremental process, from small- batch production to our own in-house manufacturing, will keep us agile and adaptable to market trends and consumer preferences while ensuring we don't sacrifice quality or originality.

COLLABORATIONS AND PARTNERSHIPS

28 Saniuk, A., Waszkowski, R (2016) Make-To-Order Manufacturing- New Approach to Management of Manufacturing Processes, IOP Conf Ser.: Mater Sci Eng 145022005.

The digital age of today has completely revolutionized customer behavior and understanding how to take advantage of this can be a leading driving force to the success of BĖT We intend to harness the power of social media and collaborations with social media influencers, artists, emerging designers as well as local and international nonprofits and charities

Partnering with local Vietnamese social media influencers, both micro- influencers are larger ones, can help us tap into their dedicated following and elevate our brands visibility, reach, and engagement In turn, we can also simultaneously boost user generated content through a series of strategic marketing campaigns, giveaways and more to develop buzz and brand recognition around our brand

One way of achieving this is developing an influencer marketing strategy similar to that of Swedish watch designer Daniel Wellington (DW) Starting with a small $20,000 investment, within 3 years his brand was able to sell $228 million in watches, in large part due to this strategy The strategy is simple and effective, they reached out to a plethora of influencers and offered free products, since our margins are low this can be a cost-saving strategy for us as well, especially compared to traditional forms of marketing These UGC campaigns became so popular, others then started buying their watches and posting with their hashtag in order to get featured on the brand‟s official page DWs then used these images on their product page, Facebook, Instagram, Pinterest, and more 29

We believe a similar systematic approach to UGC and influencer marketing can help expose and build our brand Initially, we will start this

29 Michael, H., Ertan, A., Diana, W (2020) Navigating the New Era of Influencer

Marketing: How to be Successful on Instagram, TikTok, & Co., Sage Journal,

53 localized with Hanoi influencers and then with Ho Chi Minh City Influencers Artistry is at the heart of BĖT and we recognize the immense potential that collaborating with artists can have on our brand Unfortunately, it is not uncommon for even big brands to steal undiscovered artists and designers, often not giving creative credit Most famously in Vietnam, up-and-coming fashion designer Tra My Nguyen, very publicly, had her master‟s art project exhibit ideas stolen by Balenciaga 30 At BĖT, we want to be the type of brand that does the opposite; and instead, is known for highlighting and collaborating with artists, both locally and internationally

We have already begun this with our „BĖT Feat Artists: International Crew.‟ With each purchase we give a free 8x10 high-quality foam poster featuring an artist‟s work, on the back is a brief description of the artist and their work along with their social media information, as well as our brands The idea behind this firstly is that we want to “bring a little art into everyday life” for our customers Secondly, these posters double as free marketing, customers place these in their house, they become conversation starters, and in turn, a tool for word-of-mouth marketing

In addition, other collaborations we would like to do with partnering artists include developing unique designs, patterns, and visual narratives featured in our clothing and limited-edition releases Collaborating with different types of artists such as illustrators, graffiti artists, painters, poets, photographers, etc will open the door to a plethora of artistic styles and audiences, while supplementing our brand‟s identity Not only will this be aesthetically unique, but it also is an embodiment of our commitment to fostering and showcasing local creativity As the brand progresses, these artist

30 Oscar, H (2020) „I am not your moodboard‟: Graduate fashion designer accuses

54 collaborations will be instrumental in differentiating BĖT and offering our customers clothing that is distinctive, collectible, and possesses a level of artistic significance

Another form of collab that we will aim for is to work with emerging designers, specifically up and coming individuals in Vietnam‟s fashion scene, such as students that are finishing programs in school This provides a unique opportunity to someone that is about to begin their career and gives us access to unique and fresh creative perspectives These are also the types of designers that we can offer internships and similar possibilities to as well, in a mutually beneficial type of exchange This will give them early exposure while helping them to build their budding resumes too While for us it provides radical and cool new ideas from another creative mind We can use social media to reach these designers through various groups and pages We will also reach out to local design/fashion colleges to put it on their bulletin boards and announcements, as well as attending end of year fashion shows to network with prospective individuals

The last type of collaboration we will seek to do is with non-profits and various charities This is important in both our aim to be a sustainable brand, as well as promoting an altruistic and philanthropic image The idea here is making single/limited-release items, where our profits go towards a valuable cause such as medical research, humanitarian relief, or other worthy causes for people in need Spreading positivity is a direct reflection of our core values, and spreads awareness to important causes There are many creative directions that can be taken in this spectrum to help people around the world

We will also be sure to choose worthy causes, where we know that the money will go directly to those in need, and not get lost in the process

CONCLUSION

CONCLUSION

To conclude, the path forward for BĖT is very clear We are entering a highly competitive market, and we should be prepared to handle that There are countless other streetwear and fashion brands in Vietnam and globally The most important thing for us to keep in mind is to always strive to be unique and to deliver products that no one else is making The way to do this is by staying close to the core value of ethical and local sourcing By making products from materials/fabrics that are not commonly used, and by tailoring innovative products, we forge our true brand image So many brands in streetwear essentially just copy and paste from one another, and this is the habit that we will avoid at all costs When it comes to certain items like T- shirts of course overlap is unavoidable, and apart from having nice material with good quality prints there are only several other features that can be added which we have in concept phase already Our bigger pieces being made from locally sourced fabrics is our winning ticket It will be harder for counterfeiters to replicate these items when we use traditional Vietnamese fabrics and have the items made by individual tailors instead of going with big factories Many start-ups just use Ali-Express to source and make their products, which can be good quality, but to the trained eye one can see that they are essentially selling the same products just with slightly different designs BĖT wants to be known as a brand that innovates and makes its own products from scratch, this is the experience that we want to provide for our customers

Another important factor to implement moving forward is finding our sweet spot within pricing, because although we plan to be a luxury brand, especially as we further develop and make more niche pieces Having this is

56 mind we will make one end of our products more accessible to a broader customer base, this includes T-shirt, shorts, socks, and other accessories These items will have a price that can be accessed by our 18-25 customer range, such as university students and people that are just entering the workforce in their respective careers The price that we‟ve found ideal for this is the 500k-800k (200k on accessories) VND range (for Vietnamese market) This means that although the customer may have to save up for the product a little bit, it‟s not out of reach for them For western market customers these items will carry around double this price ($45-$65), which essentially has the same effect while having their base salary in mind Our bigger pieces in the starting collections are more expensive because it takes a lot more time and work to get them made For example, the hoodie/pant set being priced at 3.6 million VND for Vietnamese market This price is still accessible to wealthier customers in the same age range, and the 25-35+ demographic As we progress prices will scale up while still maintaining this model, where on one end many people can access the entry level products, and for the higher level it will naturally cost more The guarantee is that everything will be of the best quality possible, and sustainably sourced

Marketing and online presence are another element that should be touched on briefly Our online presence goes hand in hand with our marketing, especially through Instagram, as we develop, we will cultivate our Facebook page in a way like the IG page because FB is the main social media platform for online sales in Vietnam We must utilize a large amount of customer feedback to create a form of word-of-mouth marketing that exists in our heavily digital age Our digital marketing that we ran in our market tests gives us a good indication of how to proceed in the first five years We met and exceeded almost all our targets in these sample runs with a quite minimal investment ($1200/1 month) Henceforth this will be our main marketing

57 push, all through social media, specifically Instagram and Facebook We tried to do TikTok as well, but we haven‟t used the platform yet and have no presence/followers on that one We estimate that we can continue to meet all of our targets through this method, and it is also the most pragmatic choice because although we have a website, our brand‟s main storefront will be the Instagram page Marketing content will be created via photoshoots with models, product photography, and customer made feedback marketing (this will be attained through rewards program/giveaways) We will also film/photograph our production process as another form of marketing because customers like to see how what they‟re buying is made The brand will incrementally increase this investment as we grow, but the current forecast looks to be positive based on our testing results

Lastly, we will briefly touch on our brand‟s scaling and logistics Logistically speaking we have a very good situation within Vietnam, because shipping services are swift, professional, and with a low cost We‟ve had no issues whatsoever in getting products where they need to go within the country in a timely manner What needs to be worked on more in this phase is international shipping once we start to sell worldwide after the official launch The plan is to go primarily with DHL, but as discussed previously we need to do this in the most cost-effective and efficient way The perceived solution is in the move to make products more expensive for the western market so that all costs will be compensated within the price of our products As far as scaling goes, we will follow the model that we have since our inception, which has been one of growing step by step, with capital investment reflecting that The idea behind this is that we did not want to immediately pour $100k-150k into launching the brand that has to start from zero The approach taken is one that has been focused on growth first, and capital investment to reflect what step we are on in the development To begin we

58 started with some design concepts, and then completely focused on building our social media page Once this started growing, we went back to designing more products, with the difference that this time there was an audience of potential customers to see and engage with them After one year we have almost 5k real followers on Instagram, which is a significant achievement This has been achieved via the work of our creative director and social media manager and gave us the basis to run our market tests with positive results Though the brand has the goal of having its own factory, at the moment we are first focused on scaling up gradually and attaining that level when it is financially logical based on our numbers At this point our scaling is focused on the official launch and sustainable growth, and our business model provides the perfect habitat for this to happen.

FINAL ANALYSIS

To bring this work to a close there must be a final analysis of everything discussed in this work, as well as some essential questions about where the brand sees itself in the next five years There are several important things to note First it is crucial that we take detailed notes from our competitors and their successes and failures, this must be done in a fluid fashion, through constant observation of them Simply put, this is because innovation must be in our mind at every moment, and one of the best places to move from is by knowing how to operate differently, more efficiently, and cleverer than our peers The upcoming official launch is our most important step to date, and we must have every element that we‟ve worked on ready to roll for this step We‟re entering the market in an ideal location because Vietnam is an emerging economy, as well as a global hub for garment production We also have the competitive edge of knowledge of and access to the European and North American market We should focus on keeping our staff/team small but highly capable, as we are beginning to hire people now,

59 we will focus on a few internships with design/business students We will also need a few highly skilled people in paid positions Although in the first phase we will only be selling in Vietnam, we will still operate as a global brand immediately at launch Another essential thing for the brand is focus on our core values: ethics at every level, superior quality in everything, and sustainability CSR is at the heart of our business, and every employee/facet of the company must have this in its very soul The final note of this business development strategy is three dynamic, adaptable questions that should frequently be considered/asked as we develop

1 What is currently the most crucial element to our growth?

2 What can we do to further build our community‟s loyalty to us?

3 What sets us apart from the rest, and are we staying unique?

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