Cos Brand Research

Brand Research

RMC 300

Michel Cote

COS-Askar Bekishev

Oak+Fort- Mariia Liaskovets

Frank+Oak- Clarajean Elizabeth Lugenge

Topman-Katherine Were

Massimo Dutti- Hewan Wossene

02.15.2016

Brand important information:

• Brand name-COS (Collection of Style)
• Mission statement-COS is a brand for men and women who want modern, functional and considered design. (H&M Ltd.)
• Vision statement- COS is focused on expanding and opening new stores in existing and new markets such as: Czech Republic, Romania, Latvia, Malaysia and Saudi Arabia. (H&M Ltd.)
• Positioning statement- For men and women who are looking for a modern, functional collections of style of high quality timeless pieces (COS official website), COS puts quality and detail in focus of the brand to create modern design and updated classic pieces in exclusive materials at a good price. (H&M Ltd.)

Product:

• Product classification- specialty product.
• Product mix-COS width consists of men’s, women’s and children’s product lines. For this assignment, the menswear is at focus. The length of the product line consists of 12 product categories among which are: tailoring, coats, shirts and etc. The depth of a product category is very deep. For instance, a product shirt of shirts consists of 37 variations. (COS official website)
• The stage of product life cycle -Growth stage. COS is constantly tapping in to the new markets and continues to open new stores in existing ones since it has a real growth potential. As of 2015, 39 new stores have been opened worldwide. (H&M Ltd.) It would be logical to conclude that sales volume also is growing. As of the period from 2009 to 2014 COS grew from 1% to 3% of H&M Group’s total revenue. (BOF article)
• Type of brand-individual brand.
• [pic 1]The style of the product:

[pic 2]

COS provides a timeless collection season after season consisting of modern and understated designs, offering reinvented classics and wardrobe essentials that are made to last beyond the season. (COS official website) Clean and minimalistic approach with a lot of attention to the detail and fit with a color palette based on white, black and grey. COS’ collections are successfully adapting new trends without compromising brand’s unique style.

Price (all prices are in Canadian Dollars and do not include tax):

• The price range- the most expensive item is wool coat with a retail price of $363.20 and the cheapest is a pair of sock with a retail price of $9.24.
• The average price-73$ (COS official website)
• Pricing strategy-COS is using a value-based strategy. The brand’s prices are not low, which is usually the case for cost-based pricing strategy. Value-based strategy aided to the brand in a way that it built a customer loyalty. There are not many brands in a Canadian market that has a similar approach to the style and quality, which leads to a higher profit for COS. It serves its own niche-market that are aware of the prices and perceiving this as an investment. In a way it is true, since the brand produces styles that do not go out of style.

Distribution:

• Territory covered -As of 30th of November 2015 COS has 153 stores in 19 countries. (H&M Ltd.)
• Since COS’ parent company H&M has a vertical distribution so is the COS. (H&M Ltd.)
• Right now COS has only 2 opened store on territory of Canada which are located in Toronto and Montreal. The address of Toronto’s store is 85 Bloor Street West. COS also has a Canadian website which showcases lookbooks and collections but does not work as an online shop. (COS official website)

Promotion:

[pic 3]

COS Promotion Media

COS has several promotional platforms and most of them are digital: Facebook, Instagram, Soundcloud and Pinterest. Also, COS is publishing its own magazine twice a year.

SWOT Analysis

Strengths:

•  COS constantly encourages customers to ask staff about available color choices, new arrivals and size checks in the stock room.
• COS provides an engaging store atmosphere and modern, welcoming space that has a feel of a high-end boutique rather than a fast-fashion store. The store layout and product-packaging all contribute to the brand image and aesthetic.
• COS publishes a magazine that contains rich editorial content and product news as well as articles and interviews.
• COS offers an opportunity to shop for men, women and children all in one store unlike some of its competitors
• COS has a strong online presence among different social medias like Instagram, Facebook and Pinterest as well as their official website which connect with consumers. They all add another level to a customer service by providing a prospect for a dialogue with a customer and making clear brand image.

Weaknesses:

• COS’ pricing strategy of starting their price point where H&M’s ends means it loses younger potential customers with less disposable income and student discount expectations.
• Discounts and promotions are not offered by COS.
• COS lacks on advertising which means the brand is probably missing out on some potential customers who might not be aware of the brand or its presence in Toronto.
• COS’ website does not provide an opportunity for an online shopping in Canada.
• COS is not a strong follower of trends and fads that are happening in fashion industry and therefore missing out on younger customers who are looking for trendy items.

Opportunities:

• COS is said to be the main focus of H&M Group for 2016 in terms of growth.
• COS is planning to continue opening of new stores in existing markets and develop its presence in new markets like Latvia and Czech Republic and etc.
• COS is scheduled to open another store in Canada this fall in Vancouver and plans to open another store in Toronto’s Yorkdale Mall.

Threats:

• According to Statistics Canada website the retail sales for clothing for the last couple of months had a decrease of 1.7% which seems to be a trend and might have a negative effect on COS. (Statistics Canada)
• The soon to be opened Uniqlo store in Toronto will become a huge non-direct competitor to COS since both of the brands are offering classic pieces, but Uniqlo generally has lower prices at a good quality. (Retail Insider)
• Many of COS competitors like Frank+OAK are offering a personalized styling and online consulting with brand advisor on styling, shipping and etc. (Frank + Oak official website)

Added value of COS is high quality timeless pieces.

Value proposition:

1. Quality and detail oriented
2. Exceptional customer service for a high street brand
3. Modernly designed stores that engage a customer into buying
4. Use of exclusive materials
5. Located at a very popular shopping destination for consumers with disposable income (Bloor Street West)

Work Cited

1. H&M Hennes & Mauritz Ltd. Annual Report 2015, 2015. Web. 15th September 2016
2. “About COS.” Cosstores.com. COS, n.d. Web. 15th September 2016.
3. Abnett, Kate. “Quite High-Street Rebel Cos Accelerates Global Epansion.” The Business of Fashion. The Business of Fashion, 29 July 2015. Web. 15th September 2016.
4. Lau, Lucy. “H&M Sister Store COS to Open First Vancouver Shop This Fall.” The Georgia Straight. Vancouver Free Press, 29 June 2016. Web. 16th September 2016.
5. “Retail Sales, by Industry (monthly) (Seasonally Adjusted).” Government of Canada, Statistics Canada. N.p., 19 August 2016. Web. 15th September 2016.
6. “UNIQLO Announces 1st Canadian Store Opening Dates [With Renderings].” Retail Insider. N.p., 24 August 2016. Web. 18th of September 2016.
7. “Frank + Oak Brand| Frank + Oak.” Frank + Oak Brand| Frank + Oak. N.p., n.d. Web. 15th of September 2016.

Images:

1. “Lookbook.” Cosstores.com. COS, n.d. Web. 15th of September 2016
2. “COS on Facebook.” Facebook. N.p., n.d. Web. 16th of September 2016
3. KONDUCTA, GIOR. “COS Magazine.” Tumblr. Tumblr, n.d. Web. 16th of September 2016
4. “COS (@cosstores).” Instagram. Instagram, n.d. Web. 16th of September 2016
5. “COS (cosstores).” Pinterest. N.p., n.d. Web. 15th of September 2016.
6. “COSstores.” Soundcloud. N.p., n.d. Web. 15th of September 2016.