GIVING BACK IS THE NEW BLACKTM  

questions to be answered

•  Is  the  Model  simple  to  understand  and  implement?  

•  Is  the  Market  growing?  

•  Who  is  the  Audience  and  how  are  they  accessed?  

•  What  are  the  Compe;;ve  Advantages?  

•  Is  the  Posi;oning  defensible?  

•  Does  the  Founder  have  what  it  takes?  

•  How  much  Money  is  being  raised  and  how  will  it  be  used?  

modavive is simple to understand

Modavive is simple to implement

Giving Back Is The New Black

Charity  fundraising  

leveraging  online  consignment  

 ModaVive  is  to  Goodwill  

as  Amazon  was  to  Borders  

™

growth market: ecommerce2nd hand clothing

CHARITY/THRIFT  ONLINE  CONSIGNMENT  

Megatrend:  $178M  invested  in  online  consignment  clothing  &  accessories  industry  since  2009  

$43M  

$5.5M  

$23M  

$46M  

$43M  

OPPORTUNITY:  Combine  online  consignment  with  charity/thri6  

donors AND BUYERS overlap

DONORS  1.53M  Registered  Nonprofits  

1.2M    have  volunteers  

BUYERS  Phase  I:  Women  16  -­‐  40  

50  

45  

40  

35  

30  

25  

20  

15  

Age  

Aspira;onal  professionals-­‐  Preference:  brand  names  

Thri`  shoppers-­‐  Preference:    price  &  own  style  

Millenials-­‐  Preference:  eco-­‐friendly,  shared  economy  

•  Local  groups:  Performing  Arts,  schools,  Young  Professionals.  

•  Na;onal:  Junior  Leagues,  United  Way  Women’s  Leadership  Council,  AHA  Go  Red,  Dress  For  Success.  

 

•  Aspira;onal  Professionals:  women  who  want  to  look  affluent  &  chic  w/out  the  price  tag.  Compe;;on:  retailers  i.e.  Macy’s,  Saks,  The  RealReal.    

           Affilia;on:  Junior  Leagues,  performing  arts  auxiliaries.    

•  Thri`  Shoppers:  Young  professionals  who  define  their  own  style  and  love  bargains.  Compe;;on:  Goodwill,  Threadflip,  LikeTwice.    Affilia;on:  Young  professional  organiza;ons.  

•  Millenials:  students  and  new  professionals  who  view  recycled  items,  including  clothing,  as  beier  than  new  especially  if  in  pris;ne  condi;on.  Compe;;on:  ThredUp.    

           Affilia;on:  alumni,  green  organiza;ons.  

ADVANTAGE:  Leveraging  popular  secondhand  market  for  good  

SUPPLY CHAIN: A DISTINCT ADVANTAGE

CONSIGNMENT/DONATION   MODAVIVE  MODEL  

•  Consignors  and  donors  must  be  cul;vated  individually  

•  Average  consignment  is  one  to  five  items  

•  Marke;ng  tools  for  host  to  implement  drive  and  promote  their  sale  

•  100  items  donated,  on  average,  per  drive  

•  Hosts  act  as  grassroots  ModaVive  Ambassadors  in  their  communi;es  

Online  Second

hand

 Sou

rces  by  

Market  R

ange  

Charitable  Fundraising  

COMPETITION VALIDATES POSITIONING

POSITIONING:  Defensible  stronghold  for  broad  range  of  buyers  

VALUABLE RELATIONSHIPs ARE KEY

Corporations Non-profits

KEY  ADVANTAGE:  Corpora?ons  are  willing  to  work  with  ModaVive  because  of  the  charitable  aspect  despite  being  For-­‐Profit  

Dress drives to-date

18  GirlUp  Chapter  Dress  Drives  17  BuildOn  Chapter  Dress  Drives  16  Sorority  Chapter  Dress  Drives      

5  Junior  League  Chapter  Dress  Drives  1  Girl  Scout  Chapter  Dress  Drive  1  Opera;on  Smile  Dress  Drive    

EXPERIENCE matters

     

 

!

Founder,  Layne  Gray  TECHNOLOGY  

CHARITY  FUNDRAISING  

TRACTION

WEBSITE  

IMPACT  

PARTNERSHIPS  

SOCIAL  MEDIA  

•  Visitors  expected  to  grow  by  74%  Q4  over  Q3  to  13,741.  •  Pageviews  expected  to  grow  by  26%  Q4  over  Q3  to  46,607.  •  Average  ;me  on  site  5:51  minutes  compared  to  3:20  industry  average.  

•  Revenue  exceeded  $15,000  in  Q4.  •  61%  of  visitors  between  age  of  18  and  34.  

•  Twiier  followers:  8,235  •  Newsleier  subscribers:  3,073  •  Instagram  followers:  2,828  •  Facebook  followers:  2,196  

•  Corporate:  Rodan  +  Fields,  Procter  &  Gamble,  Sephora.  •  Nonprofit:  buildOn,  Dress  For  Success,  Junior  League,  Mocha  Moms,  United  Na;ons  Founda;on,  plus  many  local  chari;es  across  the  U.S.  such  as  the  United  Way  Bay  Area.  •  Clothing  Designers:  Camilla  Olson,  Chaiken  Clothing,  PIOL  Dress.    

•  Supply  Trac;on:  Over  50  drives  conducted  to  date.  •  Inventory  Value:  Over  6,000  items  donated  at  ASP  of  $29  =  asset  valua;on  of  $174,000.  •  Giving  Back:  $110,000  charitable  dona;on  value  based  on  current  inventory.    

Amount to be raised: $1,000,000

     •  STAFF:  Hire  top  merchandiser  •  SALES:    

•  Implement  inbound  marke;ng  program  •  Launch  college  Brand  Ambassador  program  •  Expand  channels  of  distribu;on  via  affiliates,  etc.  •  Expand  categories  beyond  women’s  clothing  &  accessories  

•  BRAND  AWARENESS:  •  Build  awareness  of  the  brand  and  company  both  online  and  off  •  Cul;vate  celebrity  endorsement  

•  SUPPLY:  Expand  designer  outreach  for  overstock  

 •  TOOLS:  Leverage  available  technology  to  acquire  and  engage  members  •  WEB  TUNING:  Tune  website  for  increased  SEO/SEM    •  MOBILE  APP:  Develop  Tinder-­‐like  mobile  app  

SALES  &  MARKETING  

TECHNOLOGY  

Investment strategy

•  Reaching  out  to  social  impact  investors  •  Exit  strategy  is  as  an  acquisi;on  

§  Strategic  partnership:  Company  leveraging  the  model  for  their  current  plarorm  or  company  is  targe;ng  this  audience  

§  Private  equity  firm  

FINANCING  OUTREACH  

INVESTOR  BENEFITS  

•  Model  can  be  replicated  in  any  secondhand  category  •  Break-­‐even  within  18  months  •  Planned  exit  within  36  months  •  Social  good  with  a  for-­‐profit  model  

December  2014,  Company  Confiden;al  

GIVING BACK IS THE NEW BLACKTM