Re-Inventing Goodwill
CURATED by Goodwill NYNJ
Fashion Institute of Technology Alexis Helbert, Fashion Business Management Alin Intravisit, Fashion Business Management Brianna Destratis, Fashion Business Management Lara Voronkov, Fashion Business Management
DECEMBER 2017 Table of Contents 1
Table of Contents Table of Contents ...... 1 Overview ...... 2 Part 1: Research ...... 2 Market Analysis ...... 2 Consumer Analysis ...... 5 Competitive Landscape and Best Practices ...... 6 Customer Survey Results ...... 11 Research Conclusions ...... 11 Part 2: Recommendations ...... 12 “Curated” by Goodwill ...... 12 Website Pages & Features ...... 12 Mobile Application ...... 14 Technology Overview ...... 15 The User Experience ...... 15 Advertising ...... 17 Part 3: Management ...... 18 Merchandise Selection ...... 18 Pricing Strategy ...... 18 Staffing Requirements ...... 19 Third-Party Service Providers ...... 19 Part 4: Budgeting ...... 19 References ...... 20 Appendix A: Brand List...... 23 Appendix B: Web-Development Proposal ...... 25 Appendix C: Budget Calculation ...... 26 Appendix D: Implementation Calendar ...... 27 Appendix E: Survey Results ...... 28 Endnotes ...... 34
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Overview 2
Overview The goal of the “Curated” project is to expand the Goodwill customer base and increase net
profit. The project will transform Goodwill from a traditional brick-and-mortar store to an
omnichannel retailer, innovating and offering unique merchandise from its NYC thrift-stores.
The project also aims to increase donation volume by offering a new method for collecting
donations.
Part 1: Research The research for the project helped us understand the current fashion business environment and
where Curated will fit in it. This report evaluates current market trends for e-commerce, m-
commerce, omnichannel and current practices. Finally, an evaluation of current competitors was
conducted as well as a customer-survey.
MARKET ANALYSIS
Using market analysis, we aim to understand the conditions and potential of the current market.
E-COMMERCE
Today, e-commerce is the center of business strategy. The e-commerce retail market today is
growing at a 10% annual growth rate1. Researchers predict e-commerce will be 17% of U.S.
retail sales by 2022. This year, the U.S. will spend over $400 billion online2.
While consumers primarily use their mobile to access the internet, PC users are more intense
digital consumers and spend 17% more on e-commerce rather than mobile-only customers3.
Among generations, millennials are the highest e-commerce consumers with 65% quick
purchases4.
With e-commerce at such a high, challenges arise. One bad interaction can cost a brand a lot of
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negative backlash, especially with younger consumer who have access to spread word of mouth
through social platforms. Every interaction counts and must create an overall easy experience for
the customer. 60% of consumers are less loyal to brands after just one poor experience with their
website or app, meaning you’re only as good as your last interaction5.
Research shows countries with the highest percentage of mobile-friendly sites see the greatest
share of mobile transactions. To get ahead, a retailer must commit to improving site navigation
and usability for the mobile consumer. 46% of mobile transactions occur on mobile-friendly e-
commerce sites6.
M-COMMERCE
Although e-commerce brings in much more sales than m-commerce, shopping via mobile apps
currently delivers up to 54% of all mobile transactions, a 7% increase from 20157. The largest
issue retailers face with mobile apps is not getting customers to download an app, but retaining
app users. Within the first 90-days of downloading an app, only 22% of customers keep the app
on their device8. As a response, m-commerce is attempting to evolve to better fit a consumers’
needs. One popular trend in mobile apps is one-click purchasing. This allows customers to
purchase an item with the single click of a button. In second-hand consumer-to-consumer apps,
such as Poshmark, users are able to follow brands and receive notifications for new search
results. This gives the consumer awareness whenever a potentially desired item arrives, creating
an advantage to having a mobile app: they have a chance to purchase an item before others see it.
There is a bigger advantage to loyal mobile-app customers: mobile app customers are twice as
likely to shop again from the retailer compared to mobile e-commerce users. These users also
have a higher average price of shopping cart. Retailers leading in mobile apps drive 90% more
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conversions. Those retailers anticipate consumer needs, highlight relevant items and reward
customers for frequent visits9.
Mobile apps must provide an advantage to mobile e-commerce, or they will become irrelevant.
OMNICHANNEL
Omnichannel is a sales approach that provides customers with an integrated shopping experience
across a multitude of online and offline sales channels. In 2017, 79% of customers shop
omnichannel. These customers are more loyal than those of a single channel10. Omnichannel
retailing is a user-centric approach, where brands must utilize information from social media,
geo-location and shopping experience; all to create a frictionless and personalized experience
across all touch points. To achieve this, retailers must arm themselves with a strategy.
On the front end, social media is one key touchpoint. Social media has long been a tool in
retaining a customer base. Now, with options like “Shop” on Instagram and Facebook, social
media is able to lead customer from a content platform to a transaction platform. Another key
trend is personalization. 70% of US customers expects a personalized experience from online
businesses11. 53% of customers think it is important for a business to recognize them as the same
person across all platforms12. The goal is to understand customer habits – where, when and how
they shop13.
For back-end strategies, the most important aspect is data. Data allows for accurate targeting,
leading to optimal profit. Data allows personalization. This includes improved recommendations
and geo-targeting. For example, a retailer can use data to timely communicate promotions by
sending coupons to consumers’ phone, when they are in the vicinity of the physical store. In
terms of speed, data can help optimize inventory visibility and inventory location. Companies
must be able to see real-time inventory across channels, so they know where a product is
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available and how fast they can get it to a consumer. Retailers usually involve partners to achieve
this. United Parcel Service, for example, uses traffic information to change delivery routes to optimize
vehicle utilization and schedule compliance14. Nowadays, physical stores are also utilized as a
showroom for e-commerce and distribution centers to fulfill the need for speed. To conclude, the
second biggest challenges for the fashion industry today is competition from omnichannel retailing.
To increase brand value in the eyes of the 2017 consumer, a company must excel in its
omnichannel approach.
CONSUMER ANALYSIS
From a consumer perspective, the following factors are most important to digital commerce:
Convenience: This is the most important element for e-commerce shopping, from searching and
finding the right items, to adding to cart and checkout. Consumers today expect impeccable
performance and support. They are also becoming accustomed to fast delivery times as retailers
are constantly competing to deliver products more quickly15.
Value: Price is a key consideration – low priced items, free shipping, promotions, and sales are
critical for today’s price-sensitive consumers. They are becoming less loyal: among millennials,
two-thirds say they “are willing to switch brands for a discount of 30% or more”16.
Assortment: Consumers are becoming more selective, which boosts demand for more
unconventional and signature items along with better prices and exclusivity. Customers want it
all. “No one wants to [put a bag on the table] when a lot of ladies have the same bag with the
same style. They want to find something special.”17.
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Experience: Users say it is important for them to have a fun and exciting shopping experience.
Ease of navigation, reactive website, sufficient product information18.
Company Mission: In addition to product value, consumers also base purchasing decisions on
whether a company mission aligns with their values19.
COMPETITIVE LANDSCAPE AND BEST PRACTICES
To begin compiling a business strategy and position a new brand, there must be an understanding
of the current competitors. This report focuses on eight retailers from the consignment sector and
traditional retailers who are identified as competitors to Goodwill today.
THE REALREAL
The RealReal is a luxury consignment retailer, selling primarily online. The RealReal sells high-
end womenswear, menswear, accessories, art and home goods. All items are authenticated before
being listed on site by a trained team of employees, making The RealReal a highly trusted re-
seller of luxury goods. To gain access to the website, users must create an account. Thanks to
this, the company can easily send promotional emails to customers. Initial sign-up grants new
customers a $25 credit. There is an additional $25 credit when customers refer a friend. There
are two memberships offered: The first level, “First Look”, is a $10/month membership
including limited sale access, waitlist notifications, and exclusive promotions. The second level,
“Platinum”, is a $30/month membership including “First Look” benefits with unlimited free 2-
day shipping. Gift cards are also available for purchase. All items are listed with a description,
estimated retail, condition, and guarantee of authenticity. Items can be shared on Facebook,
Pinterest, and Twitter. Items can be saved to a customer’s account with a click of a button.
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TRADESY
Tradesy is an online platform for consignment. The seller begins with taking a snapshot of the
product they want to sell and upload it. Tradesy will enhance the image and propose a price.
Once the item is sold, Tradesy will send a shipping kit to the seller. If the buyer changes his/her
mind, Tradesy will take the returned item. However, Tradesy does not accept returns on items
valued $50 or less value. Tradesy focuses heavily on authenticity, and uses technology to detect
suspected knock-offs. Tradesy’s categories include clothing, accessories, designer, and wedding.
For marketing, Tradesy has a blog and presence on social media platforms. Customers and
sellers can easily buy and list products on the mobile app.
THREDUP
ThredUp is the world’s largest online marketplace for secondhand clothes. On their website,
filters such as Designer, Premium, Shop by Brand and Shop by Style allow customer to discover
the right product easily. ThredUp offers discounts for first-time shopper, coupons and clearance
events. ThredUp has an Instagram feed gallery with the hashtag #secondhandfirst, to showcase
their customers’ style. ThredUp also has a blog, ThrEDIT, and partnerships with influencers.
They offer free shipping on purchases over $79. Free returns are available within 14 days of
purchase. “ThredUp Everyday” is a status for customers who spends over $150 a month. With
“ThredUp Everyday”, the shipping is free on all orders.
On the donor side, ThredUp offers a consignment service. Customer can order a Clean Out kit,
which comes with plastic bags and a shipping label. Items that cannot be consigned are returned
or donated. ThredUp reports show, 29% of their sales come from desktop and 71% from mobile.
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BEACON’S CLOSET
Beacon’s Closet operates in e-commerce and brick and mortar stores. Beacon’s Closet selects its
merchandise based on season. Additionally, they select only vintage merchandise or trending
merchandise that is less than 3 years old. They do not include items with too much ‘wear’ or
damaged items. Beacon’s provides 35% of the item’s retail price in cash or 55% in-store credit to
their consignors. Beacon’s will donate merchandise they can’t accept for re-selling to charity.
Beacon’s is active on social media and features user-generated content of customer wearing their
merchandise. They also pride themselves on donating a portion of profit to select charities.
AMAZON
Amazon is one of the world’s leading e-commerce companies. Amazon Prime is an annual
subscription offered at $99 a year. With an Amazon Prime subscription customers have free two-
day shipping for Amazon fulfilled items in the U.S. Additionally, some items qualify for same-
day delivery and 2-hour delivery for eligible zip codes. Members also gain access to the
streaming service “Prime Video”, “Prime Music” and exclusive benefits. All Amazon orders are
eligible for free returns. Additionally, Amazon sells low-price products through its in-house
brands such as “Amazon Basics” and other private-label merchandise, including apparel.
EBAY
eBay is a multinational e-commerce corporation, bringing together buyers and sellers in an open
marketplace. The company is best known as an online auction website. In addition to its auction-
style sales, it includes "Buy It Now" shopping.
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The eBay mobile application allows customers to follow specific searches, notifying them when
new search results are listed on the website. When a customer watches an auction item, the app
notifies them when the auction is coming to an end, reminding them to place their bid.
The eBay return policy depends on the sellers’ policy, however, there is full buyer protection
with a money back guarantee in the case that an item doesn’t arrived or isn’t as described. eBay’s
customer service is available 7 days a week to help resolve buyer-seller issues.
eBay features extensive filters including free shipping, items from specific countries, shipping
days guarantee and more. Buyers can also search for specific price ranges and different item
categories generate their own filters, such as apparel sizing, color, fabric content and more.
H&M
H&M is an apparel company operating via brick-and-mortar, e-commerce, and m-commerce.
The prices of H&M are its main competitive edge. The target customers of H&M are young
women and juniors who follow trends. Usually, they are working-class customers.
H&M provides customers with free shipping on orders over $40 and items can be returned for
free by mail or in-store within 30 days. One of H&M’s strongest suits is bringing designers
closer to the masses. Its collaborations constantly gain press coverage due to the nature of high-
street designers involved; such as Versace, Kenzo, Alexander Wang and more. H&M remains
current through its elaborate store events and social media: Facebook, Instagram, Twitter,
Pinterest, YouTube, Snapchat on which the company has millions of followers.
TJX COMPANIES
TJX Companies is a conglomerate that includes Marshalls, HomeGoods, and TJ Maxx. These are
off-price retailers, selling items retailers no longer want or have too much of. Marshalls and
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HomeGoods sell exclusively in brick and mortar stores. Worldwide the company has over 3,800
stores, the majority of which are US based. TJ Maxx website offers free shipping over $89 and
free returns to stores and by mail. They offer a rewards credit card with discounts and a “Reward
Access” membership offering new shipment notifications and giveaways.
COMPETITIVE LANDSCAPE PRICE POINTS
The Tradesy ThredUp Beacon's Amazon eBay H&M TJX RealReal Lowest Price Top $20 $4 $1 $11 $2.38 $1 $5 $6 Highest Price Top $8,925 $8,085 $540 $85 $954 $7,000 $70 $700 Lowest Price Bottom $20 $5 $1 $12 $4 $1 $10 $6 Highest Price Bottom $2,075 $8,350 $300 $79 $995 $5,575 $129 $25 Lowest Price Dress $25 $5 $3 $9 $4.50 $1 $13 $8 Highest Price Dress $7,500 $20,985 $1,100 $85 $2,594 $30,000 $99 $2,500 Lowest Price Shoes $25 $8 $6 $16 $11 $1 $18 $15 Highest Price Shoes $3,500 $17,010 $450 $150 $2,495 $10,000 $60 $20
This price point evaluation demonstrates the competitor’s pricing strategy, which serves as a
guide to the Curated pricing strategy.
BEST PRACTICES
The research of current practices from competing retailers allowed us to learn from their
experience, as well as identify and evaluate which methods work and which do not.
Mobile apps are used by loyal customers, and therefore those need to have an edge to draw the
customer to a download. Macy’s, for example, focuses on unique discounts while Neiman
Marcus focuses on personalized recommendations to shoppers20.
60% of retailers are prioritizing their budget allocation to improving omnichannel capability, e-
commerce and digital marketing21.
The competitive landscape research reveals what best-practices retailers are utilizing:
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TheRealReal Tradesy ThredUp Beacon's Amazon eBay H&M TJX First Time Discount X X X X Refer a Friend Reward X X X Free Consignment X X X Luxury Authenticity X X X Charitable Aspect X X X X X Free Shipping Over $X X X X X X X Free Returns X X X X X X X User Generated Content X X Mobile Optimized Website X X X X X X X X Auto Filled Forms X X X X X X X X These practices demonstrate what investments we must make to draw new customers and gain
their loyalty.
CUSTOMER SURVEY RESULTS
To further understand the needs for launching Curated, a survey was conducted among current
Goodwill customers. The survey received 101 total responses. The survey results reflect the
response of customers who participated in the survey, and don’t necessarily reflect the complete
customer set. The complete questions and results can be found in Appendix E.
When asked what would encourage them to donate more to Goodwill, responders said that free
pickup, and a better understanding of the Goodwill mission and activities would facilitate this.
When asked if they are willing to pay more for higher quality items 81% said no or maybe.
Customers also said they don’t like “the return policy and the service for donation”. Only 13% of
responders say they shop on mobile-apps. However, 80% of responders are 47 years old or more.
RESEARCH CONCLUSIONS
In our market analysis and competitive landscape research, we have concluded some best-
practices must be implemented on our website. These will include: mobile optimization, auto-
filled forms, free shipping over $100, free returns within 30-days, user-generated content, luxury
authentication, free consignment, first time discount and friend referral rewards.
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Based on our customer survey we concluded launching a sub-brand is essential, “Anyone who
shops at Goodwill is not looking to spend a lot of money no matter the quality” says a survey
responder. Customers associate Goodwill with low prices and will not be willing to pay more.
The survey did not determine the success of a website and mobile-app, however, based on our
research we believe Curated will target a new customer base. Our recommendation is to begin
the project as a website-only to test the success rate of desktop and mobile e-commerce first.
The survey also helped in realizing Goodwill needs more advocacy in terms of its social
contribution and a new method for donations.
Part 2: Recommendations
“CURATED” BY GOODWILL
Curated by Goodwill NYNJ will be an innovative retail approach operating within e-commerce
and m-commerce channels. Curated will offer its customers high-value brands, unique and
trendy merchandise along with vintage items. Curated will launch as a sub-brand of Goodwill, in
order to transform consumer perception from Goodwill to a new exciting brand of thrift stores.
Based on our research we concluded the best for Curated is to begin the first phase with a
website launch, followed by a second phase of a mobile application launch. The Curated website
will be completely mobile-friendly allowing mobile e-commerce and easy mobile transactions.
WEBSITE PAGES & FEATURES
The website will run on Shopify hosting. It will contain the following sections:
Home Page: Serves as a general introduction to Curated with links to the shop, the about us
section and the donation section. The footer of this page, as well as the complete website, will
include user-generated content from Instagram and other social links.
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Shop: Within the online store, the customer has three possible routes: category, brand, and style.
The category shopping will include the following categories and sub-classes:
Shopping by brand will include all currently available brands on site.
Shopping by style can vary based on current trends and merchandise coming in store. It will
initially include the following (additional style examples: Bohemian, Romantic, 70s, 90s):
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Sorting: Merchandise can be sorted by date added, price, and name.
Filters: Merchandise can be filtered by price, size, color, style, brand, and category.
Merchandise Details: Item description, photo zoom, fiber content (if available), and comments.
Item Location: Item location will be shown; the customer can choose to pick up in store.
Donate: A form in which customers fill out their personal information and donation request.
Blog: Features of trends, advantages of shopping with Curated, stories from Goodwill and more.
About: The about section is strongly connected to the Goodwill mission. It will feature the story
of Curated, the Goodwill history, testimonials by individuals influenced by Goodwill and more.
Contact Us: The contact us section is a traditional contact information and contact form page.
Members-Only Features: The primary feature for members on the website is the wish list.
Users will be able to “Love” items and receive notifications upon price drops. Additionally,
members will have their shipping, billing and credit card information automatically stored. Users
who refer a friend will receive a 10% promotional code.
MOBILE APPLICATION
As our research exposed, app users are valuable but difficult to retain. To download the app,
first-time users will receive a 10% discount code for Curated. To keep customers interested in
the app, we will offer unique features. The Curated app will offer brand following and push
notification when new items by the brand are uploaded to the website. The app will allow
customers to follow unlimited brands. Additionally, a customer that has items on their wish list
will receive notifications if an item from it goes on sale. When desired, customers will also
receive notifications when new merchandise arrives. Notifications on the app will be easily
manageable. The application will also feature mobile-exclusive promotions.
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TECHNOLOGY OVERVIEW
The current inventory software Goodwill Industries uses is NCR Counterpoint. To begin using
inventory with the software, training will be provided by CK Systems. The inventory will be
integrated with Shopify, a supported checkout platform for e-commerce. Shopify also supports
store pickup and delivery via Zapiet. The web platform for the site will be hosted with Shopify.
Function Software Inventory NCR Counterpoint Checkout Shopify Web Hosting Shopify Store Pickup Zapiet Click and Collect, Shopify App Wish List Soft Pulse Wishlist + Share + Reminder, Shopify App
THE USER EXPERIENCE
Launching Curated will create three user journeys: the front-end journey of donors and
customers and the back-end journey of employees.
THE DONOR JOURNEY
Donors will be able to donate their bags through a pick up / shipping option. Goodwill survey
responders confirmed a free pick-up option will encourage more donations to Goodwill.
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THE EMPLOYEE JOURNEY
The employee journey begins by receiving new merchandise in-store to the process of
merchandise selection and website upload. Additionally, when employees encounter luxury
items an external company will authenticate the item and price it accordingly. The company will
provide an authenticity certificate the customer will receive upon purchase.
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THE CONSUMER JOURNEY
The consumer begins by gaining awareness of the Curated brand (see advertising below). The
consumer visits the website and evaluates whether the products will satisfy their need. Finally,
once a purchase is made the consumer becomes a brand advocate by posting on social media.
These journeys summarize the desired user experience for the Curated website.
ADVERTISING
To establishing brand awareness, Curated will set advertising as follows:
In-Store: The Goodwill stores will feature signs for the new Curated website. Store receipts will
print a QR code leading to the website & app download.
Word-of-Mouth: Local universities will be asked to inform their students of the new website.
Additionally, our research showed consumers perceive influencers to be more authentic than
traditional company branding. The Curated team will contact influencers to support the Curated
brand on social media and post blog collaborations (e.g. Kalel, clothesencounters on YouTube).
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Digital Marketing: Today, Retailer invest more in Google Shopping ads to expand their
company profitability. In 2016, 78% of retailers used PLAs22. Curated will have targeted
advertising via Google and use pay-for-click.
NYC MTA Advertising: Transit advertising gains a large and diverse audience in metropolitan
cities. Starting with New York City, Curated’s home base, we will advertise on Subway cars.
Part 3: Management
MERCHANDISE SELECTION
Merchandising selection is part of the employee journey. The process is as follows:
1. Quality check: Check signs of wear and tear, disqualifying damaged items.
2. Brand List: Based on a brand list (Appendix A), check for high-value items. When an
item by a luxury brand is donated, it will be authenticated by an authentication service.
3. Trends: Identify trends among donated items as well as relevant vintage items.
Merchandise selection training video: http://bit.ly/2AAZobY
PRICING STRATEGY
The Curated pricing strategy is inspired by research of competitor’s pricing and an interview
with a successful vintage seller. The price will range from standard Goodwill prices to $100 an
item. When a high-end luxury item is donated, an authentication process will be conducted, and a
luxury-brand expert will suggest the price post-evaluation. To offer competitive pricing, Curated
must evaluate all items with the following guidelines:
Original Price: When the original or an estimate of the original price is known, the item will be
priced at 10%-25% of its original based on its condition.
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Online offering: When the item is unique to Curated, the pricing will be more flexible.
However, when the item exists at other online stores Curated will offer a competitive price.
Vintage Value: Vintage items will be priced based on their current demand and uniqueness.
This price will be within the standard price range and decided on by a fashion-savvy employee.
STAFFING REQUIREMENTS
CURRENT EMPLOYEE TRAINING
Select employees will be trained and re-train their colleagues. For photography, employees will
be sent to a photography course specializing in apparel product photography. CK Systems will
conduct inventory management training.
NEW STAFF
A Goodwill employee will be hired to overlook the website. They will be responsible for website
customer service, Curated social media, pick-up requests, shipping requests and website content.
THIRD-PARTY SERVICE PROVIDERS
Service Provider Shipping Service USPS Truck Rental (Upon Pick Up Need) U-Haul Luxury Authentication Service Authenticate First
Part 4: Budgeting After reviewing several web-development companies and proposals, the recommended web
development company is Paper Tiger. A full proposal and quote within Appendix B.
The required budget for the Curated website totals in $133,006. The mobile app budget requires
an additional $155,400. Total estimate is $288,406. Full budget details are within Appendix C.
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State of Mobile Commerce. (2016). Criteo. Retrieved from
http://www.criteo.com/media/5333/criteo-mobilecommercereport-h12016-us.pdf
TJX - Smart for our Business, Good for the Environment. (2017). Tjx.com. Retrieved 1
November 2017, from
http://www.tjx.com/responsibility/environmental-sustainability/
Wang, Lau and Gong. How savvy, social shoppers are transforming Chinese e-commerce.
(2017). McKinsey & Company. Retrieved from
https://www.mckinsey.com/industries/retail/our-insights/how-savvy-social-shoppers-are-
transforming-chinese-e-commerce
Wertz, J. How To Humanize E-Commerce. (2017). Forbes. Retrieved from
https://www.forbes.com/sites/jiawertz/2017/12/03/how-to-humanize-e-
commerce/#3086b92b45ac
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Appendix A: Brand List 23
Appendix A: Brand List Luxury Contemporary Mid Range Alexander McQueen Acne AG Jeans 3.1 Philip Lim Barneys New York Abercrombie & Fitch Alexander Wang J Brand Adidas Alix of Bohemia Brooks Brothers Anne Klein Armani BCBG Anthropologie Bvlgari Coach Band of Gypsies Alice and Olivia Betsey Johnson BB Dakota Burberry Calvin Klein BDG Chanel DKNY Birkenstocks Celine Hugo Boss Citizens of Humanity Aquazzura Club Monaco Cole Haan Christian Loubitain Juicy Couture Converse Badgley Mischka BOSS Eileen Fisher Alberta Ferretti Bloomingdales Element Coach Kate Spade Free People Nina Ricci Kith Guess Diane von Furstenburg Rebecca Taylor J.Crew Lanvin Lacoste Kenneth Cole Marchesa Marc Jacobs Kensie Dior Micheal Kors Levis Dolce and Gabbana Rebecca Minkoff Loft/Ann Taylor Fendi Rag & Bone Lucky Brand Balmain Ralph Lauren Lululemon Givenchy Sam Edelman Madewell Paco Robanne Supreme Missguided Gucci Tommy Hilfiger Motel Jimmy Choo Tory Burch Nasty Gal John Galliano UNIF Nike Isabel Marant MSGM Paige Louis Vuitton Jill Stuart Silence and Noise Manolo Blanik Victoria Beckham Steve Madden Etro 7 For All Mankind Ted Baker Moncler All Saints Tna Erdem BCBGeneration Tommy Bahama Emilio Pucci Rachel Roy Topman Elie Saab Canada Goose Topshop Narciso Rodriguez Kenzo Ugg Moschino Diesel UO Prada Kendall + Kylie Urban Renewal Saint Laurent Kenzo Vans
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Appendix A: Brand List 24
Public School Mulberry Vince Camuto Miu Miu Max Mara Wilfred
Altuzarra Karen Millen
Anna Sui
Ashish
Balenciaga
Blumarine
Bottega Veneta
Carolina Herrera
Chloe
Christiopher Kane
Derek Lam
Dsquared
Hermes
Issey Miyake
Jason Wu
Jeremy Scott
Jil Sander
Just Cavalli
Missoni
Pierre Balmain
Proenza Schouler
RED Valentino
Roberto Cavalli
Rodarte
Salvatore Ferragamo
Self-Portrait
Sonia Rykiel
Stella McCartney
The Row
Tom Ford
Ulla Johnson
Valentino
Valentino
Vera Wang
Veronica Beard
Versace
Viktor & Rolf
Vivienne Westwood
Yves Saint Laurent
Zac Posen Zimmermann
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Appendix B: Web-Development Proposal 25
Appendix B: Web-Development Proposal
Paper Tiger
The company Paper Tiger has a team of Shopify experts and the ability to create custom-apps for
the Shopify platform. According to Marc Debiak (2017), the company guarantees to complete
the project within the specified budget with a ‘no surprise’ policy. Based on the project
requirements, the timeline for web development will be:
Discovery & UX UI Design & Back-End Final Testing & Design Platform Setup: Development Launch January February March April Deadline: April 27th.
PDF Proposal Download: http://bit.ly/2AVeMmM
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Appendix C: Budget Calculation 26
Appendix C: Budget Calculation
Expenditure Once Monthly Annually Per 100 Total Units Technology Shopify (web hosting) $29 $348
In-store Pickup $49 $588
Wish List $5 $60
Inventory Training $690 Mobile-app hosting $450 $5,400
Development Website (Paper Tiger) $90,000
Mobile App $150,000 Advertising Subway Car Ads (1% trains) $1,760 Bus exterior ad (per 1) $500 Google PLA / per click $21
Photography Camera $6,000
* Equipment for 12 stores Backdrop $120
Backdrop Stand $360
Lighting $240 Mannequin (Female) $1,200
Mannequin (Male) $1,200
Tripod $180 Photography Course (each) $340 Shipping Materials Tape $300
Shipping Labels $27 Boxes $51
Tissue Paper $3,500
Stickers $20
Bubble Wrap $4,500
Promotional Pamphlet $98
Luxury Authentication Authentication $500
Certificate $300
Value Estimate $500 Additional Staff New Employee *$13/h wage $2,333 $28,000
Totals All $254,010 $2,866 $34,396 $288,406
Website Only $104,010 $2,416 $28,996 $133,006
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Appendix D: Implementation Calendar 27
Appendix D: Implementation Calendar Phase Date Duration Comments (Weeks) Competitive analysis & site Discovery & UX Design January 2018 3 outline by web development company. Dedicated employee to take care Hiring Dedicated Employee January 2018 2 of website responsibilities UI Design & Platform Setup Interface design based on site February 2018 4 layout. Training Employees for Inventory 1 CK Systems will train employees February 2018 Management how to manage inventory. Functional code developed by Back-End Development March 2018 4 web development company. Based on training and Store Employees Collect March – April 2018 6 merchandise selection guideline, Merchandise for Website gather items to add to Curated. A course with a professional Employees Trained for Apparel March 2018 1 photographer, specializing in Product Photography product photography. Web development verifies there Final Testing April 2018 3 are no flaws and website complies with requirements. Uploading Merchandise and Content April 2018 2 Upload merchandise to website. Website Launch May 2018 - - Heavy-advertising period to gain Advertising June – Nov 2018 24 brand awareness. Evaluate the success of Curated Begin Mobile-App Planning December 2018 - and the need for a mobile app.
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Appendix E: Survey Results 28
Appendix E: Survey Results Source: Goodwill Survey, Dec 2018, n=101.
Results reflect the response of customers who participated in the survey and don’t necessarily
reflect the complete customer set.
• Primarily women responded to the survey.
• 80% of survey responders are over the age of 47.
• 52% of survey responders have a household income of under $100,000.
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Appendix E: Survey Results 29
• 98% of survey responders shop at Goodwill.
• Only 13% of survey responders shop on mobile apps. • 32% of survey responders shop via e-commerce.
• 57.5% of survey responders shop online once a month or more.
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Appendix E: Survey Results 30
• Survey responders often chose to describe their style as casual or eclectic.
• Survey responders often shop with retailers included in the competitive landscape. • Survey responders often choose off- price retailers.
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Appendix E: Survey Results 31
• Survey responders did not express a strong preference for any brand.
• Survey responders often say they would like to have a better donation experience. • Survey responders say they would donate more if they understood the Goodwill mission more clearly.
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Appendix E: Survey Results 32
• Survey responders mainly seek casual clothing and home products. • 50% of responders are somewhat likely to look for vintage items: t- shirts, denim, luxury.
• 81% of survey responders are unlikely to pay more for an item at Goodwill. • A survey responder says, “Anyone who shops at Goodwill is not looking to spend a lot of money no matter the quality”.
• Survey responders shop at Goodwill because they love the variety and affordability of items.
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Appendix E: Survey Results 33
• Survey responders often mention they don’t like the Goodwill return policy and high- pricing for some unjustified instances. • Shoppers find it difficult to shop in store in terms of organization and store shopping experience.
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Endnotes 34
Endnotes
1 State of Fashion 2018, The. (2017). McKinsey & Company, p. 16
2 Keyes, D. (2017). E-Commerce will make up 17% of all US retail sales. Business Insider.
3 Wang, et al. How savvy, social shoppers are transforming. (2017). McKinsey & Company.
4 E-commerce is Fueling U.S. Retail Growth. (2017). Nielsen.com.
5 Wertz, J. How To Humanize E-Commerce. (2017). Forbes.
6 State of Mobile Commerce. (2016). Criteo, p.5.
7 State of Mobile Commerce. (2016). Criteo, p.11
8 Perro, J. (2017). Mobile Apps: What’s A Good Retention Rate?. Localytics.com.
9 State of Mobile Commerce. (2016). Criteo, p.27.
10 Sopadjieva, et al. (2017). A Study of 46,000 Shoppers Shows That Omnichannel Retailing Works. Harvard
Business Review.
11 State of Fashion 2018, The. (2017). McKinsey & Company, p. 45.
12 How Will Retailers and Brands Utilize Omnichannel? (2017). Criteo.
13 Bayer et al. (2013). When product complexity hurts true profitability. Accenture.
14 Kumar, et al. (2017). Building omnichannel excellence. McKinsey & Company.
15 Singh, P. (2017). What’s Next in E-Commerce. Nielsen.com.
16 State of Fashion 2018, The. (2017). McKinsey & Company, p. 16.
17 State of Fashion 2018, The. (2017). McKinsey & Company, p. 44.
18 Singh, P. (2017). What’s Next in E-Commerce. Nielsen.com, p.18.
19 State of Fashion 2018, The. (2017). McKinsey & Company, p. 17.
20 Nichols, J. (2017). Five Best Practices To Boost The ROI Of Your Retail Mobile Sales Efforts. Forbes.
21 State of Fashion 2018, The. (2017). McKinsey & Company, p.25.
22 State of Mobile Commerce. (2016). Criteo, p.5.
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