First a little Quiz…What is a Jibbitz ?
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Transcript of First a little Quiz…What is a Jibbitz ?
First a little Quiz…What is a Jibbitz?
a. a homemaker's craft projectb. shorthand for "flibbertijibbit"
d. a multimillion dollar industryc. a decoration for Crocs
Shoe SkinsCustomer-Driven Feasibility Study
Bristol, Cuozzo, Holz, Lyman, Patibandla, Sexton
• Research Performed and Customer Pain.• Shoe Skin System, Benefits, Target Market• Macro-Market analysis• Macro-Industry analysis• Key Lessons and Conclusion
Executive Summary:Shoe Skins
Shoe Skins is a unique system that makes footwear fun by allowing children to easily change the look of their shoes any
time they want.
“Being different makes me feel good.” Colin (age 8)
“At school, you don’t like to be the same. You want to stand out.” Vika (age 11)
“I like clothes and styles that nobody else has. “ Phoebe (Age 7)
Research Data
Child and parentinterviews Parent Survey
• 90% of parents said kids influence their shoe buying decision.
• 95% of parents said they buy kids shoes because kids outgrow the old ones.
• Sneakers are the most popular shoes.
Customer Pain
Parents: Having to buy multiple shoes for kids.
Kids: More choices and styles with their shoes.
Benefits of the Shoe Skin Solution
Variety of colors
and styles
Offers individuality and
self-expression
Ability
to share,
collect, and
trade skins
Cost effective – less need for other shoe purchases.
Benefits
The Shoe Skin System
High “cool” factor
with something new
and innovativeGreen: less shoes,
recyclable skinsOnline socialnetworkFun online
games and activities
Related Offerings and Expansion Possibilities
Licensing potential
Unique designs,match with outfit
Accessories (matchingLaces, pin)
Color, and pattern options truly endless.
Limited Editions from artists
Add-ons suchas noises, LEDs
Fitness tracking:GPS, Pedometer
Potential Pricing
SECONDARY SOURCESPricing of existing novelty shoe
offerings:• Customizable Converse
sneakers: $58 - $95• Heelys: $43 - $80• Crocs: $20 - $40; Jibbitz (clip-
on decorations) $3 - $6• Sneakart stickers: $12-$14
PRIMARY SOURCES• All parents interviewed would
pay $30 for the shoe skin system.
• 40 parents surveyed on typical price paid for a pair of children's shoes:
• < $25 35.9%• $25-$35 43.6%• $35-$50 17.9%• > $50 2.6%
This data supports a price of about $30 for the Shoe Skins system.
• Target Market: 5-12 YO• Est. 36M age 5-12 in 2008 *• 68% of the total $6.2B
children’s footwear market • $4.2B in 2009 for this age• Benchmarks:
– Heely’s: $186M US sales in 06’– Croc’s: $366M US sales in 08’
Target Market
• Benchmark shoe accessories• Jibbitz **
• Feb 06 sales: $212K• Aug 06 $2.2M
** Oct 06 sold to Crocs for $20M * US Census
Macro Market SizeChildren’s Footwear
Market Size in Value Sales: $6.2 Billion*
• Expected to grow at 1.9% during year 2006-11
• Children’s market represents 13% of overall US footwear market
• Both Children’s and Women’s footwear market is expected to grow at a faster rate compared to Men’s market
Children’s AccessoriesMarket Size in Value Sales:
$2.6 Billion*
• Difficult to estimate kids’ shoe accessory segment
• Competing with all types of accessories
• Growing at roughly 3% per year
*2009, Euromonitor International *2006, Euromonitor International
Trend Description Favorable Unfavorable
Political Regulatory Environment
√
Economic Economic Down Turn
√ √
Social Going Green √Technological Online Shopping √Technological Online Social
Networking√
Macro Trend Analysis Summary
Overall Assessment: Moderately Favorable • Footwear is a necessity• Must be replaced often• Large customer base• Slow but steady growth• Opportunity for focused online marketing • Favorable social trends towards re-usable
products
Macro Market Summary
SUPPLIERSLow
RIVALSHigh
BUYERSLarge Chains: HighSmall Retailers: ModerateOnline: Low
SUBSTITUTESHigh
NEW ENTRANTSModerate
BARRIERS TO ENTRYModerate
?
Industry Attractiveness
Industry Trends
Summary Assessment: Low Attractiveness• Consolidation among wholesalers and retailers• Discount stores surpassing specialty footwear outlets• Retailers beginning to bypass wholesalers
ImplicationsInnovative products can find success (e.g., Crocs, Heelys)
• Must be even more thoughtful about strategy• Design strategy (IP)• Channel strategy
In summary…• Kids want variety; parents want value• Appetite for customization• Market is moderately attractive• Industry is unattractive• Will continue to research micro market to
strengthen our value proposition• Business model development will be crucial to
overcome industry unattractiveness
Conclusion
Appendix
Who are the customers?• Boys and Girls
– Ages 5-12 yrs– Friends important– Very active (sports, dance,
etc.)
• Grandparents/Aunts/Uncle• Want their kids to have something to
remember them by and like them.• Want their kids to have best, latest
things.
• Parents– Want durable shoes that are
comfortable for the kids– Want their kids to be happy– Save money on multiple shoe
purchases
• Companies• Access to a large target market
to extend their brands.
Who is seeking the benefit?
Who else would buy?
CROCJibbets
CustomConverse SNEAKART
• Strong word-of-mouth.• Loyal customer base
• Break easy• Warm weather only,
limited activities
• Many activities• Any season, any
weather.
• Established brand.
• Difficult online setup• Limited to colors.
• Many styles, accessories• Share and swap.• Online social network
• Cool styles, make your own styles.
• Use with any shoe.
• Hard to Adhere• Fall off easy
• Easy to attach, remove• Durable
PROS
CONS
SS B
ENBenefits over other solutions
• Do we want to take on the full shoe manufacturing? Should we just stick with skins for any shoe?
• Will it stay on with excessive activity?
Current Challenges
Shoe SkinsShoe Skins is a unique system that makes footwear fun by allowing children to easily change the look of the their shoes any time they want.
The Shoe Skin System Web site mock-up
The System• The Shoe Skins system comprises a base model casual shoe
(or line of shoes) plus a removable “skin,” such as those available for laptops and cell phones.
• The skin will affix to a special surface on the shoe.• Shoe Skins will be sold separately in many different colors and
patterns and contain robust potential for licensing opportunities.