Choice Maternity Investor Deck
-
Upload
taylor-bayouth -
Category
Lifestyle
-
view
956 -
download
0
Transcript of Choice Maternity Investor Deck
Designer denim for the fashionable, pregnant woman.
WHAT IS CHOICE MATERNITY?
Choice Maternity is a subscription rental service of designer maternity clothes that caters to modern fashion-conscious women.
THINK NETFLIX FOR MATERNITY CLOTHES
Designer maternity apparel is just as expensive as non-maternity, yet is only needed for 5-7 months. For women working in business-formal/casual environments, this can be frustrating and expensive.
Choice Maternity applies a Netflix-like model to maternity clothes. We offer access to our designer collection through a monthly subscription, allowing women to borrow 3, 5, or 7 items for $49, $79 and $99, respectively.
THE PROBLEM AND HOW WE SOLVE IT
THE PROBLEM
OUR SOLUTION
• 4 million pregnancies annually in the U.S.
• Over 70% of employed women work in professional environments that require business attire
• 60% of pregnant women remain at work through their 8th month of pregnancy
• Over $4.8 billion is spent annually on new maternity clothing
THE MARKET OPPORTUNITY IS HUGE
Millennials are leading a migration away from ownership to subscribing and sharing: Spotify invades our speakers, Netflix our TVs, Uber our curbs, Airbnb our entire homes.“
—Steven Bertoni / Forbes”
of women are ‘somewhat’ to ‘very’ comfortable wearing borrowed clothing88%
THE ‘NO OWNERSHIP’ ERA
HOW OUR SERVICE WORKS, IT ’S S IMPLE
“Choice Maternity has filled my closet with the designer staples that have formed the foundation for my maternity wardrobe. Being a first-time mom, I had to get used to the rapid changes my body was making and having amazing fitting clothes that looked great was invaluable.”
CUSTOMER TESTIMONIAL
-Alicyn Packard
SHOP WEAR RETURN
THE COLLECTION
Start with maternity jeans, add full maternity wardrobe, add full women’s wardrobe.
3-YEAR GROWTH STRATEGY
MATERNITY JEANS FULL MATERNITY WARDROBE FULL WOMEN’S WARDROBE
PHASE II PHASE III6-MONTH PILOT
Bootstrapped pilot with an affordable collection / minimal inventory
New maternity collection that includes jeans, tops, and dresses
New collection focused on ‘designer apparel for the working mom’
$22 LTV $210 LTV $620 LTVHow?
$40/mo $80/mo AOV
How? Customer lifespan 6/mo 12/mo
*Acquisition, shipping, packaging, and laundering costs considered for LTV
$40/mo AOV
2016 Q3 Q4New Customers 30 176Total Customers 49 373Total Revenue $1,968 $14,901COGS $1,122 $8,494Gross Margin $846 $6,408Annual Gross Margin $7,254
2017 Q1 Q2 Q3 Q4New Customers 450 879 1,718 3,355Total Customers 1,389 3,206 6,322 12,361Total Revenue $111,108 $256,498 $505,725 $988,889COGS $53,239 $122,905 $242,327 $473,843Gross Margin $57,869 $133,593 $263,399 $515,046Annual Gross Margin $969,906
2018 Q1 Q2 Q3 Q4New Customers 5,006 6,663 8,868 11,803Total Customers 24,061 40,142 60,210 84,313Total Revenue $1,924,918 $3,211,349 $4,816,798 $6,745,071COGS $461,178 $769,386 $1,154,024 $1,616,006Gross Margin $1,463,739 $2,441,963 $3,662,773 $5,129,064Annual Gross Margin $12,697,540
3-PHASE GROWTH FORECAST
• New cust. growth rate: 80% • Average order value: $40 • Customer lifespan: 5 months • Cost per customer: $114
• New cust. growth rate: 25% • Average order value: $80 • Customer lifespan: 6 months • Cost per customer: $230
• New cust. growth rate: 10% • Average order value: $80 • Customer lifespan: 12 months • Cost per customer: $230
6/MO PILOT — Matern i ty Jeans
PHASE I I — Matern i ty Jeans & Matern i ty Wardrobe
PHASE I I I — Matern i ty Jeans, Matern i ty Wardrobe & Women’s
*Marketing and overhead not included
PILOT COSTS BREAKDOWN
Laundering 13%
Shipping 24%
Acquisition 28%
Inventory 35%
• Inventory, $63
• Shipping, $45
• Acquisition, $40
• Laundering, $22
COSTS BREAKDOWN (per customer)
• 5-month customer lifespan
• Mid-tier plan ($40/month)
• 5 exchanges
PLAN/USAGE ASSUMPTIONS
1. Continue to grow our userbase organically via grassroots. Iterate on fulfillment and incorporate customer feedback into our collection and service
2. Blogger outreach: Offer 30-day free trial to mommy influencers in exchange for published content
3. Apply pilot findings to develop strategic acquisition models, namely through Facebook and Pinterest
MARKET APPROACH & STRATEGY
WHY WE’RE LEADING WITH MATERNITY
• Targeting pregnant women is straightforward and cost-effective; there is a need and the value is clear
• Easier to segue from ‘Maternity’ to ‘Women’s’ once a relationship is established
• When baby arrives our subscription model speaks to an entirely new set of needs, saving working moms time otherwise spent in stores
Choice Maternity has little to no direct competition. Our subscription model for designer maternity clothes is simply not being done anywhere. Below are the companies we have our eyes on.
Buy or rent a-la-carte. Not a subscription service.
Rent for a week at a time. Option to purchase after rental.
Borrow 15 items for 3 months, $150. Target/Gap quality.
Borrow a-la-carte, similar to Rent The Runway.
EYE-LEVEL WITH COMPETITORS
Feb Apr Jun Aug Oct Dec
Mar May Jul Sep Nov
Incorporation
Website Production Website launch (v1) Fundraise
Starting in February of 2015 it took us just six months to build and launch our website, design and integrate our fulfillment process, and curate our designer collection.
Email acquisition test
MOMENTUM & TRACTION
2015
Foster relationships with clothing rental companies who are looking to augment their collection with maternity. Approach big name retailers open to adopting a rental model in the interest of staying relevant in the ‘no ownership’ era.
1)
2)
EXIT STRATEGY: ACQUISIT ION
Dianne JefferiesDianne’s current role is Vice President of Global Sourcing, Product Development, Tech Design, Quality Design, and Production for Speedo North America. Dianne has been in the apparel industry for over 25 years, with executive positions in all aspects of apparel for many leading brands including Juicy Couture, Ann Taylor, Hanna Andersson, Levi, and Eddie Bauer.
Jessica HuardJessica has over 15 years of experience working for leading retail brands, including Nordstrom, Gap, Old Navy, Banana Republic and Sephora. Currently she specializes in data-driven customer marketing and analytics. However, her experience also spans merchandising, inventory management, finance and strategy.
A FOCUSED AND EXPERIENCED TEAM (1/2)
Taylor BayouthOver 15 years of experience building startups from the ground up. Taylor founded tBlog, a blog network with over 250,000 active bloggers, and launched streaming music video service Sparktooth, as well as collaborative problem-solving tool, AnswerBloom.
Andy Steuer20 years of VP and C-level experience leading business development and product innovation in both a startup environment, and at Fortune 500 companies. Technical product development leader, and deal-focused strategic thinker with expertise in corporate strategy, business development, team building, managing $100m+ P&L, and Corp Dev financial forecasting.
Vinny JindalPreviously, Vinny was a Principal at the venture capital firm Boston Millennia Partners, the Head of Healthcare Equity Research and a Managing Director at ThinkEquity Partners, and a Senior Analyst at Wedbush Morgan Securities. Vinny has also held equity research roles at Origin Capital Management and Lehman Brothers.
A FOCUSED AND EXPERIENCED TEAM (2/2)
Choice Maternity is seeking $100k to acquire inventory for our denim collection. With this initial infusion we plan to launch the service to a limited audience with the goal of capturing pilot subscribers.
With the data collected from these users we plan to approach additional investors to raise a further $1mm in seed capital to:
1. Acquire a deeper and broader maternity collection (Phase II)
2. Hire operational staff to execute order processing and fulfillment.
SEEKING SEED INVESTMENT
For more information, please contact Taylor [email protected]
HOW TO GET INVOLVED