1. Merchandising & Marketing
Summary: An opportunity for Macy’s involving the
sustainability & healing properties of crystal jewelry sold
in the Etsy Shop: Vermeer Jewellery.

2. 1
PART 1-
SWOT Analysis: The following information is a SWOT analysis of Macy’s and Etsy in regards
to their partnership. This SWOT analysis will identify each of the company’s individual
strengths, weaknesses, opportunities and threats and how they relate to the success of the overall
partnership.
Ø Macy’s (Hoovers 2016)
Strengths
v Flagship store one of most visited
tourist locations (20 million annually)
v Etsy shop refreshed with new product
every 6-8 weeks
v Pop-up shop focused on an experience
rather than a place to simply purchase
Weaknesses
v Closing 100 brick and mortar
locations hindering partner expansion
v Negative perception of traditional
department store retail experience
Opportunities
v Ability to support independent
designers and help them grow
v Appeal to a new customer base that
appreciates sustainable practices
Threats
v Limiting buyer assortment to
stationery, jewelry and homeware
v Disinterest of shoppers due to
traditional brick and mortar retail
experience
Ø Etsy (Etsy 2016)
Strengths
v Operate through the Etsy Wholesale
Retailer Commitments agreement
v 36 million items for sale from 1.7
million active sellers and 26.1 active
buyers
v Low commission and listing fees
(3.5% and 20 cents respectively)
Weaknesses
v Most sellers have no official staff to
oversee logistics and compliance with
vendor restrictions
v More than 30 million items listed
making searches more challenging
Opportunities
v Offering a global retail stage for Etsy
sellers with simultaneously interesting
and new product experience for
customers
v Exposure to global customers
shopping at Macy’s stores
Threats
v Entrance of new competitor Amazon
“Handmade”
v Caused Etsy stock to drop 43%
v Goods made on demand, meaning
sellers can’t meet strict shipping
deadlines
Analysis: Etsy, a social ecommerce website that focuses on handmade items including but not
limited to art, jewelry, homeware and clothing was launched in 2005. Today they offer over 40
million items for sale, amassing $2.39 billion in annual gross merchandise sales (Etsy 2016).
Most recently they have partnered with America’s largest department store chain, Macy’s, to

3. 2
bring their online merchant platform to the brick and mortar sector of retail. This partnership,
announced in November of 2015, launched Etsy into an environment that accommodates more
than 20 million visitors annually. The Macy’s Herald Square location is one of the most popular
tourist destinations in New York and the largest Macy’s store in the company, automatically
increasing Etsy’s exposure to prospective customers.
One of Etsy’s biggest strengths is the way it caters to its diversity of buyers. It does this
through mass individualism by managing to maintain a one-on-one relationship with its
customers, addressing their individual needs. In comparison, a larger company like Macy’s may
struggle with achieving mass individualism because it lacks a direct connection with individual
customers on a personal level. It instead caters to the mass market through segmentation and
self-selection.
However, Macy’s recognizes the growing spending power of Millennials and the need to
creatively target such a prominent and evolving generation. With this thought in mind, they
introduced the transformed basement of their flagship store as the new “One Below” floor,
specifically catered to Millennials and the shopping experience they crave recognizing that
experience is key. As stated by Macy’s, “One Below” is a 53,000 square foot area designed to
fulfill every Millennial’s desire, featuring brands popular with the age group such as wearable
technology brand Fitbit and a 3D printing shop to personalize phone cases and jewelry. They
have also incorporated an Instagram wall for social media selfies, bright eye catching ornaments
littered throughout the space and loud popular music (Lindsey 2015).
Despite this earnest attempt by Macy’s to rebrand themselves primarily in the presence of
Millennials, and secondly in Generation Z, many critics of the “One Below” floor have emerged.
Even though the “One Below” concept will slowly be incorporated into Macy’s stores across the

4. 3
nation, the fact of the matter remains that in order for the target customer to see the display, they
still have to walk into a Macy’s. For most of the younger generations, walking into Macy’s
comes with a negative connotation: Macy’s is where their parents shop. The department store has
been described by Ryan Mathews, CEO of Black Monk Consulting, as “Nothing screams un-hip
more than faux authenticity and nothing doesn’t sell more than generational patronization.”
(Lindsey 2016)
Although Etsy has established strengths in gaining customers through its niche
merchandise, it has begun to struggle with maintaining trust with customers. Many Etsy shop
owners have chosen to outsource the production of their products, cheapening the overall quality
and angering the end consumer. Today’s movement toward minimalism and returning to a more
natural, transparent state has given rise to Millennials moving away from materialism and more
toward expressing their true identity and personal brand (Elite Daily 2015). Growing up during
the Great Recession and a time when a brand’s transparency is more important than the luxury of
it, Millennials are constantly bombarded with information and are seeking simplicity. To view
this trend on the market today, popular brands such as Apple and Levi’s appeal to user efficiency
and a back to the basics attitude, characteristics attractive to younger generations (Futurecast
2016). Recycling and the concept of vintage are hot on the market as is “upcycling,” the
repurposing of discarded material to create a product of high quality or value (McCray 2013).
Therefore, the end-use customer for the Macy’s X Etsy partnership is a consumer
interested in the concept surrounding sustainability. These are the people interested in consuming
products part of a system which can be supported indefinitely in terms of human impact and the
environment. This also ties into Etsy’s culture as a self-sustaining ecosystem of independent
artists. Millennials are on track to have the most buying power of any generation with over $200

5. 4
billion and 75% of the total 80 million Millennials expect a company/brand to give back to
society rather than solely being focused on making a profit (Schwabul 2015). As said by Grace
Farraj, the SVP of Public Development & Sustainability at Nielsen, “Brands that establish a
reputation for environmental stewardship among today’s youngest consumers have an
opportunity to not only grow market share but built loyalty among the power-spending
Millennials of tomorrow.” (Nielsen 2015) Macy’s has already begun targeting Millennials after a
poor fourth quarter sales report following the 2015 holiday season as it attempts to target a
younger demographic and adapt to the rapidly changing retail industry.
One of Etsy’s most lucrative market categories to date is jewelry. In fact, its ten top
sellers on the website in 2015 were stores selling some form of jewelry such as beads, charms, or
custom made pieces. The top ten Etsy shops have a combined revenue stream of nearly $3
million (Roy 2015). Taking a look at the European runways from fall fashion week and
predicting accessory trends in Fall/Winter 2016/17, we see designers such as Proenza Schouler,
Calvin Klein Collection, Roberto Cavalli and Alexander McQueen. These and many more are
showing raw stones, asymmetrical earrings, Talisman jewelry, oversized chokers, statement
necklaces and a Baroque revival (Mallard 2016). This creates an opportunity for Macy’s when
choosing the next round of Etsy buyers to feature in the “One Below” floor.
Combining the trends seen on the European runways, those known to eventually disperse
into the mass market, and the growing popularity of sustainability among Millennials and
younger generations, Macy’s X Etsy will benefit from looking into the untapped category of
healing crystals and raw stones. In other words, taking advantage of the successful Etsy category
of jewelry and the Millennial personality to create a new concept where customers of the Macy’s
X Etsy collaboration not only “look good” but “feel good” while wearing the product.

6. 5
PART 2-
New Line Success: An untapped segment in the Macy’s X Etsy partnership is jewelry
incorporating crystals, stones and metalwork that is ethically sourced and produced in a
sustainable manner. Crystal jewelry has been around since the Ancient Egyptian Era and was
worn for its healing power and ability to ward off evil spirits. Crystals reemerged in the 1980s
during the New Age movement where they were emphasized for their healing properties and
benefits (Laderer 2014). In the present, crystal healing is a form of alternative medicine but also
a jewelry trend as people are becoming aware of their names and usages. Raw and polished
stones are being wrapped in wire, placed on rings, strung on necklaces, attached to bracelets and
dipped in metals for a completely personalized look.
For styling purposes, they can be a source of solitary shine for the minimalist Millennial,
but also layered for a Bohemian look. With this in mind, I recommend Etsy seller Vermeer
Jewellery, a handmade crystal jewelry shop that began its merchandise in 2012. This product will
fill the void in Macy’s assortment because of its uniqueness in regards to the sellers and products
that have already been featured, including Sol del Sur’s metal textiles, Meera Lee Patel’s original
illustrations/prints, and Modern Mud’s ceramics (Mauriello 2016). Not only is Vermeer
Jewellery’s category of crystal jewelry an untapped one for Macy’s, it also aligns with two
emerging jewelry trends of 2017, easy-trans-form---the versatility of jewelry to reflect moods
and styles and self-art---self-expression through jewelry (Global Sources 2016). These are also
strengths that match the target audience of Etsy buyers as they seek wearable, customizable art.
Most importantly though, because Vermeer’s product selection incorporates crystals such as
amethyst and rose quartz, wearers of the crystals can experience feelings such as calmness and
romance in addition to looking fashionable (See appendix for pictures of product).

7. 6
Launch Plan: Jewelry incorporating crystals with the added benefit of healing properties may be
a trend already popular with consumers and even celebrities, but it is a new market for Macy’s
and their end consumer. Because of this, it is imperative that Macy’s launch plan successfully
promote the story behind the Vermeer Jewellery shop and its message of elegant simplicity.
The tagline for the launch, will be “Promoting jewelry that fulfills the Proph-Etsy
between Fashion and Sustainability.” The assortment will vary depending on the volume of the
Macy’s store, with higher revenue locations such as medium size stores focusing on bestsellers
within the collection and smaller, more niche stores having an assortment tailored to each
geographic consumer. Beginning with the medium size locations, jewelry including raw crystal
necklaces, raw quartz earrings, prehnite wire wrapped bracelets, solitaire crystal bracelets and
the adjustable agate rings will be featured in the merchandising selection. Since all these pieces
are customizable with stone and color variety, every purchase will be unique to that customer
and one-of-a-kind in the sense that there will never be a crystal quite like the one they have
chosen. For smaller stores, such as those in California with a target consumer that is attracted to
a more relaxing and lighthearted lifestyle, jewelry incorporating crystals such as amethyst which
promotes calmness and citrine which promotes happiness will be weaved into necklaces,
bracelets, rings and earrings. The purpose of this is to tailor the assortment of each smaller store
to the personality and lifestyle traits of their respective end consumer to best serve their needs.
The flagship store will have the largest and most diverse selection of jewelry as this is the
discovery hub and “retailtainment” platform for the brand. In order to maximize the number of
interested consumers, strategies that utilize ambience, emotion, sound and activity will be
enacted to get prospective customers in the mood to buy. Currently Etsy products are displayed
inside large wooden drawers on the “One Below” floor, however with the introduction of

8. 7
Vermeer Jewellery, individual hollow cubes (inspired by the Instagram cubes at the Magnum
flagship store in SoHo) will hold the product in varying creative setups that display the jewelry
in an environment that is already structured to take pictures [See appendix]. Because of these
aesthetically pleasing mini set displays, Millennials will be tempted to photograph the
merchandise, upload the content to social media and then proceed to purchase the product.
Rather than having flashy light ornaments, elegant chandeliers will hang from the ceiling
projecting clear white light; ideal for taking pictures. Some of the jewelry featured in the Etsy
section of the “One Below” floor, will include the newest releases such as the raw quartz
necklace, gold-coated galaxy blue agate bracelet and rainbow fluorite necklace. Staying true to
the theme of “retailtainment” and maximizing the small space allotted to the Etsy section of the
store, Oculus Rift goggles will be introduced for customers to wear so they can virtually
experience the effects of crystals and the positive feelings that result from wearing them.
Finally, Macy’s has developed and implemented a new technological advantage for its
stores that involves the use of Bluetooth Low Energy (BLE) beacons (Roberts 2015). These
invisible mechanisms can sense when a customer has entered the physical store and then uses a
signal to access the consumer’s Macys.com search history. The beacon can then create a
personalized promotion and send it directly to the shopper’s smartphone to be used in the store.
This personalized offer motivates customers to purchase and directly leads them to the
specialized promotion of the desired product by following in-store navigation.
Marketing Plan: From the inception of her Etsy Shop in 2012, Cherry of Vermeer Jewellery has
always emphasized why she uses crystals. She says “Each stone has its own pattern, shape, and
color. I think they are so unique; therefore, I focus on crystals rather than other types of jewelry.”
Hence, it is vital that excitement be created around the launch of this shop to inform prospective

9. 8
customers about the versatility of the entire collection. The goal is to present a reason as to why
the sustainable nature of this newly launched line is superior to what is already on the market.
A month before the launch of Vermeer’s crystal jewelry at Macy’s “One Below” floor,
primary advertisements will be placed on social media sites including Facebook, Instagram,
Snapchat and YouTube. However rather than using traditional advertising media such as
magazine editorials, the campaign will be led by social media influencers, specifically those that
promote the use of healing crystals and enjoy wearing crystal jewelry. Millennials are more
heavily influenced by word-of-mouth recommendations and respond better to subliminal product
placements produced by bloggers and celebrities through various channels of social media. In
fact, independent fashion blogger Chiara Ferragni has garnered as much influence as Vogue, a
one-hundred-year old fashion powerhouse with her 3.2 million followers (Bilkova 2015).
With the focus being on social media due to the amount of Millennial traffic, no print
advertisements will be used. Rather than displaying an ad in the pages of a traditional fashion
magazine such as Vogue or Glamour, this media will instead be placed online in a concise blog
article format that can easily be accessed while surfing social media sites. Using clickbait
oriented headlines inspired by Buzzfeed news, titles such as the following will appear on the
user’s feed based on their search history and whether they are a follower of the media vehicle:
“What crystal is missing from your life?”, “Is it love or rose quartz in the air?”, “How to
transform your look into a feeling,” and “What celebrity can’t sing without holding her
crystals?!” By clicking on these short articles and quizzes, users can share their results through
their feed so that their friends gain exposure to the content and brand message at the same time.
In today’s day and age where YouTube vloggers hold the most authority for word-of-
mouth recommendations, it is imperative that this platform be used to gain hype for Vermeer

10. 9
Jewellery and the Macy’s X Etsy partnership. Content creators such as Carli Bybel, Fleur
DeForce, and Bethany Mota are highly regarded for their opinions on fashion, beauty, and
lifestyle topics with over 16 million subscribers. Their channels will be used to facilitate the
process of explaining of how to accessorize with crystal jewelry through video look books and
how to utilize specific crystals to improve positivity and state of mind. In fact, Cherry, creator of
Vermeer Jewellery, responded in an interview regarding why she enjoys creating with crystals
saying “I’m really interested in merging the stone with the aesthetic quality associated with
fashion.” This message could be shared to subscribers, motivating them to adopt the trend. What
makes this channel so effective is its ability to not come across as a directly sponsored ad, but
rather as a trusted friend genuinely talking about a product and how it plays into their lifestyle.
To cater to those with a short attention span, campaigns will run on Instagram and
Snapchat utilizing user generated content. The focus of this campaign will be on celebrating the
connection between the uniqueness of each crystal in the jewelry to the individual personality of
each customer/wearer. Millennials will be able to take selfies and upload them to their Instagram
accounts using the hashtag #FeelVermeer as a play on the premiere feeling one obtains through
wearing Vermeer Jewellery. On Snapchat, users can post snaps of themselves wearing their
favorite stones enhanced with daily filters offered by the app. Celebrities like the Kardashian
sisters have already amassed a large following of impressionable Millennials on Snapchat and
because of their usage of healing crystals could become influencers (Boscamp 2016).
Financial Plan: With Macy’s operating heavily with the use of promotions, it is important that
the prices per unit and expected sales be adjusted to fit this discount-oriented model. This plan
takes into consideration that the LPOS is generally in November and December when Macy’s is
expected to gain the most revenue from a FOB like costume jewelry [See appendix].

11. 10
Financial
Plan
Aug-17 Sept-17 Oct-17 Nov-17 Dec-17 Jan-18
Expected
Sales
$180,000 $120,000 $120,000 $360,000 $360,000 $60,000
Receipts $162,000 $108,000 $108,000 $324,000 $324,000 $54,000
Profit
Margin
38.85% 38.85% 38.85% 40.30% 40.30% 37.50%
Inventory
(OH units)
51,000 45,000 39,000 21,000 3,000 0
Scaling/Liquidation: Should Vermeer Jewellery become successful Macy’s could scale this
shop by expanding the collection to more Macy’s stores. They could then be marketed for their
layering abilities with some of the other accessory brands already offered such as I.N.C. Because
Millennials primarily shop online, the Etsy shops in stores would transform into more of a
“showroom” for shoppers to experience the tangible product before going to Macy’s online to
actually customize their jewelry and make the purchase. Links to the jewelry will also be added
to social media sites such as Pinterest and Instagram to increase customer viewership and ease of
purchase, while still bringing people into Macy’s stores to see the product firsthand.
Since the jewelry is sustainable, pieces that need to be liquidated can be returned to the
shop creator, Cherry. Here they can either be reassembled, reinvented or upcycled into next
season’s release. This will reduce material costs per piece, while limiting the amount of waste
produced by disposing the unsold inventory. The question arises that perhaps a certain color of
stone or type of crystal may not be in style at the end of a season, however since crystals can be
arranged multiple ways and have varying levels of cut and opacity, no one piece is really the
same as the last. Crystals remain eternal because although the overall look may change, the
feeling one gets from wearing them is everlasting. Even if the wearer doesn’t necessarily believe
in their healing properties, a placebo effect still occurs causing the wearer to experience an
increased feeling of overall well-being (Palermo 2015).

12. 11
Appendix:
Part 2-
Pictures of some of the crystal jewelry created and sold at Vermeer Jewellery: (Etsy 2016)
Picture references from Magnum Flagship Store in SoHo, New York: (Sanabria, 2016)

13. 12
Primary Source: Personal Interview with the creator of Vermeer Jewellery: Cherry N
1. What attracted you to crystal jewelry as opposed to other types of jewelry?
I love crystals because they are one of a kind. Each stone has its own pattern, shape, and
color. I think they are so unique; therefore, I focus on crystals rather than other types of
jewelry.
2. Because you use crystals and more specifically crystals that also have healing
properties such as amethyst and agate, is that something that interests you or is
important to you, or is this just a coincidence?
I am concerned with the healing purpose of crystals, but more important to me is the
beauty of the crystal. I’m really interested in merging the stone with the aesthetic quality
associated with fashion. That is what excites me!
3. Are you aware of the idea of sustainability and is it important to you? For example,
using recycled metals or ethically sourcing your materials such as the crystals?
I am aware of the idea of sustainability. For example, I reuse packing materials and use
recycled crystals as seen in the small raw crystal studs I sell at my Etsy shop.
4. Would you be interested in using a platform like Macy’s to sell your jewelry? I saw
on your Etsy page that you would be interested in wholesale.
I haven’t tried Macy’s before but I am definitely interested in exploring the opportunity
within wholesale.
5. Is there anything else that you would like to tell me about your product, such as the
inspiration behind it that might help me with constructing a marketing campaign?
Etsy is a great venue for me to in terms of turning my dream into a tangible reality. I am
so happy and fortunate that I have had successful progress in the past few years. My

14. 13
inspiration comes from my anthropological background. I love understanding different
cultures and I make sure to use these ideas in my jewelry creations.
Breakdown of Financials: Model based off of a wholesale buy of 60,000 units to be sold over a
6-month period.
Item Name Bulk Price Units Per Unit
Wholesale
Sale Price Potential Profit
Raw Crystal
Necklace
$15,000 5,000 $3.00 $15.00 $75,000
Gold Raw Agate
Necklace
$35,000 5,000 $7.00 $30.00 $150,000
Rainbow Titanium
Necklace
$25,000 5,000 $5.00 $25.00 $125,000
Raw Crystal
Earrings
$15,000 5,000 $3.00 $15.00 $75,000
Chrysocolla Earrings $15,000 5,000 $3.00 $15.00 $75,000
Raw Quartz
Earrings
$15,000 5,000 $3.00 $15.00 $75,000
Swarovski Crystal
Dainty Ring
$12,500 5,000 $2.50 $15.00 $75,000
Druzy Agate Ring $25,000 5,000 $5.00 $25.00 $125,000
Amazonite Wire-
Wrapped Bracelet
$20,000 5,000 $4.00 $20.00 $100,000
Raw Crystal Bracelet $15,000 5,000 $6.00 $15.00 $75,000
Amethyst Crystal
Bracelet
$30,000 5,000 $6.00 $25.00 $125,000
Citrine Hair Comb $40,000 5,000 $8.00 $25.00 $125,000
Total $262,500 60,000 ------------- -------------- $1,200,000
*August evaluated at 15% of total units and potential profit, September at 10%, October at 10%,
November and December at 30% each, and January at 5%

15. 14
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