Element 2 Planning Report

Jimmy Choo Overview:

Jimmy Choo is a glamorous brand beloved by powerful women worldwide (Stankeviciute &
Hoffmann, 2010). Luxury shoes Jimmy Choo and her granddaughter Sandra Choi founded the
firm in 1996, specializing in women's premium footwear before expanding into men's
accessories and footwear. By 2010, the firm had 150 retail locations in 30 countries and was
carried by high-end retailers worldwide (Keinan & Crener, 2015 ). 2017 saw Capri Enterprises
acquire the brand maker. . It has 446 wholesale locations, 237 retail locations, a web shop, and
product and geographical license agreements (Annual Report, 2022). The firm expects sales to
rise to $613 million in 2022 after a decline in 2020 and 2021, demonstrating its resilience and
commitment to quality. 2022). Jimmy Choo wants to extend his brand into more fashion capitals.
Brands need innovative new tools to grow and thrive (Annual Report, 2022).

Jimmy Choo targets rich, stylish women. At award shows, red carpet events, and other high-
profile events, celebrities promote Jimmy Choo. It has won numerous design awards, proving its
fame (Jimmy Choo, date unknown). "Off-White" and "Cinderella" showed the brand. His global
fame comes from his famous friends and film appearances. Its ambitious growth plans and
experimental design strategy make it likely to remain a market leader in high-end shoes
(Stankeviciute & Hoffmann, 2010). Luxury companies face several threats to their revenue and
reputation. COVID-19 has cut travel and social events, lowering income. Digital use enables
counterfeiting, which hurts luxury brands (D'Arpizio et al., 2020; Wang et al., 2020). Luxury
brand security codes are copyable but not counterfeitable (Wilson and Grammich, 2020). Jimmy
Choo should explore a blockchain-based business plan to overcome these challenges. Blockchain
technology keeps data securely and openly in a distributed digital ledger, making it nearly
impossible to alter (Nakamoto, 2008). Openness, transparency, and counterfeiting improve.

Jimmy Choo New Business Model:

Several issues are threatening luxury business income and reputation. Tourism and social events have
dropped due to the COVID-19 epidemic, lowering income. Digital usage has also boosted counterfeiting,
which can hurt luxury brands (D'Arpizio et al., 2020; Wang et al., 2020). Product security codes from
luxury labels can be copied, so they don't prevent imitation (Wilson and Grammich, 2020). Jimmy Choo
should explore a blockchain-based company plan to overcome these challenges. Blockchain technology
is a decentralized digital ledger that safely and openly stores data, making it nearly impossible to alter or
counterfeit (Nakamoto, 2008). . This improves openness, responsibility, and counterfeiting. Jimmy Choo
can profit from a blockchain-based company model. First, it protects the brand's image by
authenticating goods reliably. This reduces copying and retains customers. Second, it reduces
middlemen and speeds up transactions, boosting supply chain efficiency. This can lower brand costs and
improve consumer satisfaction. Finally, it can improve supply chain transparency and responsibility,
which customers increasingly want to know (Niu et al., 2021).

so new proposed model for jimmy choo would focus on 4 areas to adopt blockchanin based model,
authenticity, sustainability, virtual try rooms, and virtual products all based on blockchain.

Authenticity:

Customers of luxury brands frequently question whether they are paying for genuine, authentic branded
products. Using blockchain technology to confirm the authenticity of its products, Jimmy Choo can assist
its consumers. Customers can verify the authenticity of their purchases by verifying and preserving on
the blockchain the unique digital identifiers affixed to each product.
Accountability in the Supply Chain:

Additionally, the company can use blockchain technology to monitor its supply chain and ensure that its
products are manufactured according to the supplier's specifications and in an ethical manner.
Customers can view this business as more trustworthy and open.

Try Room in Virtual Reality:

In locations where there is a market but no physical store, Jimmy Choo can establish a virtual
store. Consumers can virtually test on a variety of footwear. Before making a purchase,
consumers can gain a better understanding of the design and fit of the shoes with this function.
Products:

1. Handbags Produced in Limited Quantities: Jimmy Choo can produce a limited number
of bags, which are then sold as NFTs. These handbags may be one-of-a-kind and offer
benefits, such as the ability to attend fashion displays.

3. Fashion Accessories for Virtual world: Since the future belongs to Metaverse, Jimmy Choo
can also design virtual fashion items that can be utilized in Metaverse, such as jewelry and belts.
This item is eligible for NFT sales.
4. Personalization of Virtual Shoes: Using Blockchain technology, enable consumers to design
their own virtual shoes based on the metaverse. These shoes can be purchased as a non-fungible
token (NFT) and come with unique benefits, such as the free customization of a genuine pair of
footwear.
1. Customer Segment, Customer Relationship and Value Proposition.

When it comes to nurturing a strong bond with its clients, Jimmy Choo doesn't mess around. The
company maintains a customer record for every person who enters its doors, and even keeps a
separate inventory of its top 250 clients for additional special treatment (Fashion United, 2022).
This enables them to provide exceptional service and exceed customer expectations by going
above and beyond. According to Boyce (2020), Jimmy Choo is a fashion brand that attracts
women over the age of 25 who are leaders in their fields as administrators, prominent figures, or
even first ladies. Michelle Obama, Princess Catherine, and Princess Diana are among the
celebrities who have worn Jimmy Choo's signature shoes, which Cate Blanchett made renowned
on the red carpet. Nowadays, it's not uncommon to see a long list of celebrities wearing Jimmy
Choo's newest creations (Apatoff, 2019). Men's shoes, cosmetics, handbags, fragrances, eyewear,
belts, and more have been added to the company's assortment of high-end goods, which also
include women's shoes.
Customer Segment:

Jimmy Choo's blockchain-based business model is likely to appeal to younger, affluent, technologically
proficient, and environmentally conscious consumers from the millennial and Gen Z generations. These
consumers value authenticity, sustainability, and virtual experiences, and are willing to invest in high-
quality luxury goods. They are social media users who are influenced by fashion and luxury industry
trends and influencers.

Segmentation strategy:

Market segmentation based on factors such as age, gender, income, and education level.
Targeting consumers who are technologically proficient, environmentally conscious, and have a
high disposable income.
Demographic segmentation: Jimmy Choo's blockchain-based plan targets affluent
millennials and Gen Z who value authenticity, sustainability, and technology. The luxury
business targets this socially and environmentally conscious, tech-savvy, high-income
population.
 Psychographic segmentation: Utilizing psychographic segmentation to target luxury
consumers who prioritize authenticity, sustainability, and virtual experiences. This strategy is
effective due to the fact that luxury consumers value exclusive, authentic, and sustainably
produced products and are frequently influenced by fashion trends and social media
influencers.
Geographic segmentation: Targeting consumers in urban areas with a high concentration
of prestige consumers and a demand for virtual purchasing experiences.
Geographic segmentation is applicable to the target market because luxury consumers are
typically concentrated in urban areas with a high concentration of affluence and access to
luxury products. In addition, the demand for virtual purchasing experiences has increased
substantially in urban areas, making this a highly effective marketing strategy for this
demographic.
Targeting Strategy:

Social Media Influencer Marketing: Collaboration with influencers on social media platforms such as
Instagram and TikTok to target millennials and Gen Z consumers influenced by trends and influencers in
the fashion and luxury industries.

Personalized Marketing: Personalized marketing is the use of data and technology to tailor marketing
messages and offers to specific consumers based on their preferences and past purchases.

Virtual Reality Shopping: Providing virtual reality purchasing experiences to consumers who value
convenience and virtual experiences, particularly in areas without physical stores.

Positioning statement:

Jimmy Choo's blockchain-based business model offers consumers who value authenticity, sustainability,
and virtual experiences a trustworthy and transparent purchasing experience that verifies the authenticity
of products and ensures ethical supply chain practices. With virtual try-on chambers and limited edition
handbags sold as NFTs, Jimmy Choo offers tech-savvy millennials and Gen Z consumers a unique and
personalized shopping experience.

Customer Relationship:

Customer relationship management is crucial to the profitability of any business, particularly in the luxury
sector. It is essential to employ a customer-centric strategy and build a strong relationship with them in
light of the rising competition and shifting consumer expectations. In the case of Jimmy Choo's new
blockchain-based business model, which seeks to provide consumers with authenticity, sustainability, and
virtual experiences, customer relationship management becomes even more crucial. Following is a
description of Jimmy Choo's customer relationship strategy based on its new business model, which
targets tech-savvy and environmentally conscious luxury consumers.

Build Trust and Transparency: Establish Trust and Transparency: Jimmy Choo can establish trust and
transparency by providing customers with access to blockchain records that verify the authenticity of their
products and by assuring the use of ethical manufacturing processes throughout its supply chain. This will
increase customer loyalty and create a positive brand image.

Personalization: Providing consumers with personalized experiences can strengthen the relationship
between the brand and the customer. Customers can personalize their virtual shoes or purses and receive
tailored benefits using blockchain technology. This will make the consumer feel special and increase
brand engagement.

Exclusive Offers: Offering exclusive perks, such as access to fashion exhibits or limited-edition purses,
can foster a sense of exclusivity and strengthen customer loyalty. Handbags produced in limited quantities
and sold as NFTs, for instance, can generate a sense of exclusivity and enable customers to own one-of-a-
kind luxury items.

Value Proposition:

A brand's value proposition is a succinct summary of the benefits consumers can anticipate (Starr and
Brodie, 2016). It is a crucial instrument for developing brand strategies based on the Service-Dominant
logic (Nenonen et al., 2020). Brands use it to communicate how they intend to create consumer value
(Payne et al, 2017). The S-D logic suggests that a company can only offer a value proposition, whereas
the actual value is created through the customer's interaction with the brand (Frow, & Payne, 2011). In
recent years, creating a value proposition has become more than just a communication tool; it is now a
vital instrument in formulating corporate strategy (Eklund, 2022). The value proposition is fundamental to
the formation of the S-D logic (Nenonen et al., 2020).
Jimmy Choo value proposition:

Famous luxury brand Jimmy Choo is exploring a new business paradigm based on blockchain
technology. By utilizing blockchain, the brand can offer customers a purchasing experience that is both
unique and immersive, as well as transparent and genuine. Jimmy Choo can differentiate itself from other
luxury brands and provide consumers with exclusive and ethical clothing and accessories through a
combination of sustainability, virtual try rooms, limited edition NFTs, and personalized virtual shoes.
Blockchain-Verified Luxury: Authenticity, Sustainability, and Virtual Try-On Spaces

Ethical Exclusivity: Blockchain Couture & Accessories by Jimmy Choo

NFTs for Style: Limited Handbags and Customized Footwear

Metaverse Fashion: Virtual Merchandise and Customized Footwear

Premium Blockchain Luxury: Authenticity, Durability, and Immersion Consider Sustainable Fashion:
Ethical Sourcing and Personalized NFT Footwear.
Channels, Revenue Streams and Cost Structures:

Jimmy Choo targets valuable clients via phone calls and email campaigns through direct
marketing. In addition, they utilize social media platforms and collaborate with fashion
influencers for marketing. Their products are available in department stores, specialty boutiques,
and their own retail locations. The use of premium pricing to convey exclusivity and quality is
prevalent in the footwear industry, which generates 74% of total revenue. Jimmy Choo has
integrated traditional and digital marketing techniques while remaining faithful to its luxury
brand roots (ATHURWACHTER, 2012; Mortimer, 2016; Fuchs, 2021; Halliday, 2017).

Channels:

Distribution Methods:

E-commerce Website: Jimmy Choo can establish an e-commerce website to sell its products
and non-footwear items directly to consumers worldwide. This will allow the company to
provide a seamless purchasing experience to consumers in areas where it does not have a
physical location.

Physical Stores: Jimmy Choo can continue to maintain its existing physical stores to
accommodate consumers who prefer purchasing luxury goods in-store. The establishments can
be designed to provide an immersive experience that integrates the real and virtual realms.

Collaborations: Jimmy Choo can collaborate with other luxury brands or fashion houses to offer
its limited edition NFT handbags via their e-commerce websites or brick-and-mortar stores. This
can assist the brand in reaching new consumers and expanding its global influence.
Marketing Channels in accordance with customer journey map:

Awareness: Social media and influencer marketing can be effective channels for brand
awareness and consumer acquisition. Jimmy Choo could collaborate with fashion influencers or
bloggers to promote their products and expand their reach.

Consideration: Email marketing and virtual trial rooms can be used to engage customers and aid
in product evaluation. Based on a client's perusing or purchase history, Jimmy Choo could send
individualized emails with product recommendations. Customers can virtually try on shoes in
virtual try-on chambers before making a purchase, which can reduce the likelihood of shoe
returns.

Purchase: E-commerce websites and partnerships with other prestige brands can be utilized to
facilitate the buying process. Jimmy Choo can sell its products via its own e-commerce website
in addition to partnering with other luxury brands or fashion houses to reach new consumers and
expand its global reach.

Post-purchase: Emails and events sent after a purchase can be used to retain customers and
encourage repeat purchases. Jimmy Choo can send personalized follow-up emails to consumers
thanking them for their purchase and recommending additional products. Additionally, they can
host exclusive events and promotions for loyal customers to encourage repeat purchases.

Customer touchpoints are the interactions between a brand and its consumers throughout the
three phases of the customer lifecycle: awareness, evaluation, and post-purchase. These
touchpoints may include social media, in-store experiences, and customer service, among other
digital and non-digital channels. Using tools such as customer journey maps, businesses can
optimize these touchpoints, resulting in an improved customer experience and a 15–20%
reduction in service costs. (Patel, 2022; Fanderl & Perrey, 2014).
Revenue streams:

Jimmy Choo's new proposed business model is based on four key areas: authenticity, sustainability,
virtual try rooms, and virtual products, all utilizing blockchain technology. This model has the potential to
create new revenue streams for the company.
Sale of Authentic Products: Premium pricing due to blockchain-based authenticity verification

Limited Edition Handbag NFTs: Sale of one-of-a-kind handbags as NFTs to collectors and
devotees at a premium price.

Sale of virtual fashion accessories, such as jewelry and harnesses, as non-fungible tokens for
use in the Metaverse.

Personalized Virtual Shoes: The sale of personalized virtual shoes as non-fungible tokens,
which may include distinct perks such as the free customization of a real pair of footwear.

Virtual Try Room Subscription: Subscription-based revenue model for access to the virtual try
room, which enables consumers to better comprehend the design and fit of Jimmy Choo
footwear prior to purchase.
Cost structure:

The new business paradigm proposed by Jimmy Choo utilizes blockchain technology to enhance
authenticity, sustainability, and virtual experiences. By implementing this new model, the
company will incur certain expenses. These expenses include

Blockchain Infrastructure: Jimmy Choo will need to invest in blockchain infrastructure to

assure the security and dependability of their systems.

Virtual Reality Development: Creating a virtual try-on experience for consumers necessitates
an investment in software development and virtual reality technology.

Limited Edition Handbag Production: The production of limited edition purses as non-
fungible tokens will incur additional production costs.

Marketing and Promotion: The introduction of a new business model and virtual products will
necessitate substantial investments in marketing and promotion to develop brand recognition and
attract customers.
Monitoring of the Supply Chain: Implementing blockchain technology to assure supply chain
accountability will require additional resources and personnel to monitor and verify compliance.

Personnel Training: Jimmy Choo will need to invest in personnel training to ensure that its
employees are conversant with the new technology and capable of providing exceptional
customer service in the virtual world.
Key Resources
According to Patel, the proposed business model for Jimmy Choo necessitates a
paradigm shift in the technology employed and key activities performed, necessitating a
new type of key resources to ensure success (2022). Without these essential resources,
the company's efforts to contend in the luxury market may encounter significant
obstacles.

The following are essential resources for Jimmy Choo's new blockchain-based business model
canvas:

Blockchain technology experts: To successfully implement the new model, Jimmy Choo will
need a team of blockchain technology experts.

Sustainable materials: To promote sustainability in the supply chain, the company will need to
source sustainable materials for their products.

Team of Experts: A crew of specialists will be required to create and maintain the virtual try-on
chambers.

Limited production facilities: To create limited edition handbags, the business will require
limited production facilities.

Metaverse designers: The company will require designers with expertise in metaverse fashion
and accoutrements in order to create virtual fashion items.

Personalization software: The business will require software that enables customers to design
virtual shoes and customize their actual footwear.
Key Activities:
To successfully implement the proposed blockchain-based business model for Jimmy Choo, the
company's technology and core operations must undergo a paradigm shift. From a business perspective,
the new model would benefit from the following activities:

Manufacturing:

Adoption of blockchain technology in the manufacturing sector to assure authenticity and

accountability in the supply chain.

In accordance with the model's emphasis on sustainability, use of sustainable materials and
processes.

Distribution:

Establishment of virtual try-on rooms to improve the consumer experience and facilitate sales
in markets without physical storefronts.

Utilization of blockchain technology to facilitate the distribution and monitoring of products

in a secure and efficient manner.

Promotion:

Creation of a powerful brand image with a focus on authenticity, sustainability, and

innovation.

Utilization of blockchain technology to increase brand trust and consumer engagement through
transparency and accountability.

Innovation:

The creation of limited-edition purses sold as non-fungible tokens to provide consumers with
exclusive benefits.

Design of virtual fashion items for use in the Metaverse, such as jewelry and belts, eligible for
NFT sales.
The customization of virtual shoes using blockchain technology to provide consumers with
unique benefits, such as the free customization of authentic footwear.

These activities are essential for the success of Jimmy Choo's new blockchain-based business
model, from ensuring authenticity and sustainability to refining the customer experience and
establishing a strong brand image.

Key partnerships:

To effectively implement the proposed blockchain-based business model, Jimmy Choo would
need to form strategic alliances with various ecosystem participants. These partnerships may
consist of:

Blockchain Technology Partners: To develop and implement the blockchain-based solutions

needed to ensure product authenticity, supply chain accountability, and virtual products.

Ethical and Sustainable Suppliers: To ensure that the materials used in production are sourced
ethically and sustainably.

Virtual Reality Technology Partners: To design and maintain a virtual try-on room where
consumers can virtually try on shoes and experience the brand.

NFT Platforms: To sell non-fungible tokens as limited-edition purses and virtual fashion
accoutrements.

Social Media Influencers: To promote the brand and its products in the virtual world and
Metaverse platforms, thereby driving sales and increasing brand awareness.

Business Model Canvas:

Key Partners Key Activities Value Relationships Market Segment
Proposition  Build Trust and
 Adoption of Transparency
blockchain
technology in the  Blockchain-  Personalization
manufacturing
 Blockchain Verified Luxury  Exclusive Offers
sector
Technology
Partners  Ethical
 use of sustainable
Exclusivity
materials and
 Ethical and
processes  NFTs for Style
Sustainable  Active
Suppliers  Metaverse influencers from
 Establishment of
virtual try-on Fashion affluent
 Virtual Reality Millennials
rooms
Technology  Premium
Partners
 Utilization of Blockchain
blockchain Luxury
 NFT Platforms  Established
technology to
facilitate the Generation Z
 Social Media distribution
Influencers
 Creation of a
powerful brand
image

 transparency and
accountability

 creation of
limited-edition
purses sold as
non-fungible
tokens

 Design of virtual
fashion items

 customization of
virtual shoes
using blockchain
technology

Key Channels
Resources
Distribution

E-commerce
 Blockchain
technology Website
experts Physical Stores
Collaborations
 Sustainable
materials Promotion
Social media and
 Team of Experts influencer
marketing
 Team of Experts collaborations
Email marketing
 Limited Virtual try-on
production rooms
facilities E-commerce
website
 Metaverse Partnerships with
designers
other luxury
brands or fashion
 Personalization houses
software