MeDusa Bags x Macy’s

From Israel with love: Fashion accessories with the power to capture the
imaginations and the spending power of modern consumers

We live in a world where modern consumers set a premium on the new and unexpected. This makes it especially challenging for department stores, such as Macy’s, to attract and retain the customers they need to be successful. Fast fashion companies, such as Zara and H&M, have been highly successful in attracting millennial consumers with a business model that focuses on low price points, trending styles, and a constant flow of new products. The new partnership created between Macy’s and Etsy presents a unique opportunity to introduce into the predictable products and store presentations of a department store the excitement of the artisanal creations sought out by consumers on Etsy. Among the most successful artisans featured on Etsy is MeDusa Bags, a
collection of fashion accessories created by designers Adi and Gili, working from their home base in Israel, with a focus on colorful bags in unique shapes (Fig. 1) crafted entirely from sustainable materials (MeDusa Bags, 2012).

Macy’s and Etsy are both facing challenges of their own for moving forward with their
business models to retain and grow market share. After six consecutive quarters of decline, Macy’s recently announced the closure of nearly 15% of their retail stores. This sudden closure will result in the loss of thousands of jobs, as well as possibly up to $1 billion in sales (Egan, 2016). Etsy also is facing the challenges of an ever changing economy, as more and more of their top selling artisans venture off on their own, leaving their Etsy home to go it on their own and to avoid the risk of counterfeiting and overexposure (Lutz, 2015). Now is the time for Macy’s and Etsy to make a bold move towards rejuvenating their respective companies. In order to gain the traction needed to head into the right direction, this newfound team must now partner up with a seller who can draw in a new target market, and showcase the full potential of this collaboration.

MeDusa Bags is the perfect brand for the job. Featuring bold, trendy designs, an environmentally friendly message, and a mission to spark the imagination of all who encounter them, MeDusa Bags is the missing link to maximize the power of this collaboration.

When potential customers scroll through the handbag section of Macy’s.com or visit a
Macy’s store, this is what they see. While the assortment of handbags is broad and covers a wide range of prices, the styling is traditional, and the colors are generally neutral (Macy's, 2016). Modern consumers, especially millennials, are most often attracted to visually compelling products at attractive prices. This is where the need for MeDusa Bags is shown.

Picture the word “imagination”. What comes to mind? Colors, swirls, intricate designs, and life fill the air, which is exactly what MeDusa Bags strives to do (Fig. 2). According to their website, “MeDusa represents a young and contemporary urban lifestyle that is evident in our collections’ shapes, visibility and materials. Strong and vibrant colors dominate our items and strengthen the brand’s connection to contemporary fashion” (Gili, n.d.). During my personal interview with one of the brand’s co-founders, Adi Gal, she explained to me, “Our colorful bags are making a splash in the fashion and accessory industry. Their unique appearance makes them… upgrade any outfit and form a look” (Gal, 2016). This fun and innovative product line is exactly what Macy’s needs to grab the attention of new customers, and for Etsy to showcase the talent of the artisans they nurture online.

MeDusa Bags brings not only a sense of vibrancy and life to Macy’s, but a great deal of success and knowledge in their field as well. With four years of experience on Etsy, over a thousand sales, products in over thirty stores, and an average product rating of five stars, MeDusa Bags is more than equipped to tackle the challenges and to take advantage of the opportunities that come from collaborating with a large department store, like Macy’s (MeDusa Bags, 2012). Bringing together the national market presence of Macy’s, the creativity of Etsy, and the imagination of MeDusa Bags creates the perfect blend for moving these companies in a way that maximizes the potential of this unique business partnership (Fig. 3).

Figure 3. SWOT Analysis of Macy’s and Etsy Collaboration (2016)

Figure 4. Hannah (2016)

Before we dive in to the heart of MeDusa Bags, it’s important to characterize and define the target customers of this collaboration. Meet Hannah (Fig. 4). Hannah is a 20-year-old college student with a love for unique, creative, and trendy fashion statements. She just moved into her first apartment, and is currently working towards a degree in Business Management, so her budget is a bit on the lower side when it comes to fashion purchases. She works a part time job as a waitress at a local restaurant, and enjoys spending her weekends either reading a good book at the park, or exploring around town to find new boutiques and restaurants. She is adventurous, determined, and an innovator. When it comes to fashion, she cares more about the uniqueness and quality of an item, than its popularity.

Figure 5. Kelly (2016)

Next up is Kelly (Fig. 5).  Kelly is a 27-year-old Marketing Associate for a successful advertising agency in New York. She lives in a loft apartment in Manhattan, and is always on the go. Due to the nature of her position, she can typically be seen running to meetings, or hopping on a flight to assist her team on the latest project. Since her meetings are usually with senior executives, she always looks her best, and enjoys splurging on statement accessories and accents to spruce up the normal business casual looks. When not at work, she enjoys spending a night out on the town with her friends, or sipping wine on the balcony while she listens to her favorite Sara Bareilles album. Kelly recently became vegan, and is always on the lookout for chic, quality items that will complement her current style and career, yet are beneficial to the environment.

In order to capture the target market’s attention, Macy’s and Etsy will need to feature just the right products from MeDusa Bags. Having a variety of items that mesh well together, yet offer something for everyone, is key in order to create the most successful launch for all parties involved. With coin purses, wallets, clutches, cross body bags, totes, and back packs to choose from, this assortment will provide the best results, and will maximize the opportunity for a larger UPT rate. Depending on the size of the store, the assortment plan (Fig. 6) will vary in terms of style and units on hand. This product line will launch in sixty Macy’s stores in both urban and suburban markets, with room for expansion as the brand takes off. See Appendix A for an overview of the styles in the collection.

Figure 6: MeDusa x Macy's Product Assortment (2016)

Since the products themselves feature such a bright and colorful variety, it’s important to keep the displays as pure and simple in color as possible. In order to showcase these products, it is best to have a feature shop located in the handbag department, rather than tossed in with the rest of the Etsy shop. MeDusa is the Hebrew word for “jellyfish”, and a huge source of inspiration for the products themselves, so a crafted jellyfish has been added to the logo to draw into that theme. Throughout many of MeDusa’s campaigns, low poly paper objects can be found as props alongside the products. Playing on the idea of surreal, imaginative concepts, accents of paper décor will be featured on walls and as props along the displays. A combination of white and clear acrylic shelving and tiered tables will be the central layout to best showcase these accessories (Fig. 7). Each shop will also incorporate technology to further instill the mission of MeDusa Bags for the customers. See Appendix B for more details on the customer experience.

Figure 7. MeDusa In-Store Display (2016)

One of the most disappointing parts of the recent launch of Macy’s and Etsy has been its lack of marketing and promotion. Very few people are even aware of the collaboration, and, upon research, there has been little to no press or publicity surrounding this important collaboration. In today’s society, the general public typically finds out most of its information through social media. An effective way to spread the word about the launch of this brand is through the use of Snapchat (Fig. 8). Through the weeks prior to the launch of MeDusa Bags x Macy’s, Macy’s will begin to post stop motion, low poly, and graphically pleasing snaps, ending in the MeDusa logo, to their story. This cost effective mode of exposure is a great way to relate to the millennial age crowd, as well as get them excited to come in and see the new products.

Figure 8: Snapchat Mockup (2016)

In addition to Snapchat, Macy’s, Etsy, and MeDusa Bags can take advantage of the power of Instagram, their personal blogs, and text messaging. All three Instagram pages can feature stop motion animation videos of the bags, as well as still images of the logo, jellyfish, and product leading up to and after the launch. At the launch, they can post live videos to their story from the Herald Square shop to excite and delight customers around the globe. On each of their personal blogs, these brands can write a small feature on the collaboration, their specific part, and what exciting things are to come from it. Especially for Etsy, the blogs can really be a driving force for loyal customers to support their brand and see the work that has come from this collaboration. Lastly, Macy’s has the power to incorporate the launch and any promotions into their text message subscription service, where thousands of consumers have signed up to receive alerts on special events and deals happening at Macy’s.

Guerilla Marketing: Big Steps for a Bold Company

Upon the release of MeDusa Bags, there needs to be a bold statement to match the bold brand that is entering into the scene. One way to effectively grab the attention of busy consumers and media is through guerilla marketing. Imagine a giant, low poly jellyfish structure in front of the Herald Square Macy’s (Fig. 9). Low poly shell decals are scattered on the floor from the jellyfish and direct you towards the MeDusa display, full of vibrant colors and more low poly scenery. In addition to the onsite event at Herald Square, the jellyfish theme will be carried across the marketplace with strategic advertising positioned on city buses, subway stations and billboards. See Appendix C for more details on how this marketing will be used in major cities.

Figure 9: MeDusa's Guerilla Marketing (201

A List celebrities have been a key element to spreading awareness on up and coming events, as well as products and brands that they support. One of the most well-known, and rather bold celebrities in the spotlight is Miley Cyrus, a devoted vegan and lover of all things fun and bright (Fig. 10). Over the past year, she has been extremely vocal about her support for animal rights, and as fully embraced the vegan lifestyle (PETA, n.d.). Her wild imagination and quirky lifestyle would be the perfect fit for MeDusa Bags, not to mention her substantial social media following, a total of 55.1 million on Instagram alone (Cyrus, n.d.). Gaining her support and advocacy for this brand would be tremendous, and is sure to drive the right customers into the doors of Macy’s.

Figure 10: Miley Cyrus (2016)

The following chart (Fig. 11) showcases the Six Month Financial Plan for the MeDusa Bags x Macy’s collaboration. The information in the table is presented in thousands, and represents the financial period for Spring 2017, with estimated net sales of over $2 million in the sixty retail stores that this product line will be featured in. The bottom table divides these figures per month, indicating the net sales per month, reductions, and total receipts for retail and cost.

Figure 11. MeDusa Bags x Macy’s 6 Month Financial Plan (2016)

Scale Up Plan for MeDusa Bags x Macy’s

With a collaboration as creative and innovative as this one, it’s quite probable that it will grow out of the initial launch plan and need to expand on to bigger and better things. In terms of scaling up, the obvious answer would be to expand into more stores, 150 to be exact. This new round of stores would expand into new states and vary in store size. The next step would be to add to the current product assortment. MeDusa Bags is currently a handbag and accessory line only, however, the possibility for new product types is limitless. Tech accessories are the perfect next step to expanding this brand. Complete with phone cases (Fig. 12), laptop cases, charging bags, and other accessories, the tech line would complement the current selection, while adding style, protection, and imagination to the consumer’s most used devices.

Figure 12. Tech Mockup (2016)

With any major collaboration comes the risk for non-receptive customers. If consumers won’t go to MeDusa Bags x Macy’s, then MeDusa Bags x Macy’s should go to them. Installing a series of pop up shops in major commuter points, such as Grand Central Station, Union Station, and major airports would be the most effective way of gaining the spending power of busy consumers who simply don’t have the time to make it out to a Macy’s store. These pop up shops (Fig. 13) would allow for Macy’s to sell out the remaining products from the launch stores without having to mark down prices. This also ties well with the guerilla marketing campaigns, as consumers would already be familiar with the advertising that had been placed in these locations from the start.

Figure 13. Mock Popup (2016)

The following images are photo references for the products mentioned in the product assortment (Fig. 14). Each of these products comes in a multitude of color combinations, indicated on the product assortment plan with color codes.

Figure 14. Product Assortment Images (2016)

Appendix B: Customer Experience

As a consumer, one of the most recognizable features of any brand is their packaging. Whether it be the classic Tiffany blue boxes, a “Little Brown Bag” from Bloomingdales, or even the iconic Target bags, this packaging can be marketing within itself, and allows for huge opportunities to be creative. For a brand as imaginative and vivacious as MeDusa Bags, these shopping bags need to showcase the brand and its products in the best light possible. Since the products are so colorful on their own, it only makes sense to keep the shopping bags clear, as to allow other shoppers to see these statement pieces as the new owners stroll through the store (Fig. 15). Keeping true to the environmentally friendly message of MeDusa Bags, these shopping bags will be made using clear recycled plastic.

Figure 15. MeDusa Bag Mockup (2016)

One of the main draws to the Etsy marketplace concept is the fact that the items are handmade, and have a small business type atmosphere. The brands are personal, and owned by real people, with real dreams and aspirations. In each pop up shop for MeDusa Bags, there will be a touchscreen monitor (Fig. 16) featuring information on the artisans (Adi and Gili), a video showing the process of making the bags and their factory, and images of the products in lifestyle environments, as well as quotes by the artisans showing their vision and inspiration for the brand and their products. Adding in this technology for customers to view at their leisure allows for them to get to know the brand in a convenient, and innovative manner.

Figure 16. MeDusa Monitor Mockup (2016)

Appendix C: Guerilla Marketing for MeDusa Bags x Macy’s

An important part of gaining the attention of the target consumer is making sure to be accessible. Honing in on the classic jellyfish icon featured on the logo, this creature will be the focal point of the MeDusa Bags x Macy’s guerilla marketing campaign. In order to make this campaign as visible as possible, it’s crucial to place this visual in as many places as possible. With simple, clean, and colorfully dynamic advertisements placed in busy commuter locations, such as bus stops, subway stations, and billboards, the busy consumer will have easy access and visibility to the new launch.

Figure 17. Bus Stop (2016)

In smaller ads, such as bus stations and subway boards, the colorful jellyfish that is featured in the logo will be the primary focus of these advertisements (Fig. 17). Followed by a simple “Catch the Wave” as reference to the new launch, this signage will quickly grab consumers’ eyes as they hustle through a busy, crowded street. On larger ads, such as billboards (Fig. 18) and bus wrappings, there will be five jellyfish in a row, each in a different color, as an homage to the many colors featured in the collection. This will also be accompanied by the “Catch the Wave” motto, and end with the MeDusa x Macy’s symbol at the bottom of the advertisement.  These simple and clean advertisements will draw much needed attention to the partnership, as well as highlight the significance of the guerilla marketing shown in front of Herald Square.

Figure 18. Billboard (2016)

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MeDusa Bags. (2016). Kelly. Instagram. https://www.instagram.com/p/BKU9x2rDjio/?taken-by=medusabags.

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