WEAR THIS
Curated Looks for the Young Businessman
WEAR THIS
Curated Looks for the Young Businessman
OPPORTUNITYFast Growing Menswear Market:Growth in menswear demand is twice women’s at 14%/year
Move to Online Shopping:Online retail sales will reach $370 billion by 2017 (10% CAGR) in the U.S.
THE PROBLEM
% Men who hate shopping,
% Men who shop online,
% Single men aged 20-24 (from surveys)
80%
65%
85%
THE PROBLEM
Single millennial professionals don’t have the time or the significant other to shop for them. They want to look good but don’t know how.
CURRENT MARKET
OFFERINGS
High end e-commerce websites - Mr. Porter, Bonobos
Made to measure - J Hilburn, Alton Lane
Brick & mortar personal shoppers - Bergdorf Goodman, Saks 5th Avenue
Curated personal stylist subscription - Trunk Club, Five Four Club
Fast fashion - Zara, H&M
INDUSTRY OVERVIEW
❏ Millennial men do not know how to effectively shop in stores
❏ They do not have time for it
❏ They get overwhelmed with choices shopping online
❏ They get confused about sizing
OUR TARGET DEMOGRAPHIC❏ Gender: Male❏ Age: 20-24❏ Relationship Status: Single❏ Industry: Finance❏ Location: New York City❏ Salary: $70k +
OUR TARGETPSYCHOGRAPHICCurrent Shopping Habits:❏ Buys items when needed❏ Avoids shopping❏ Doesn’t understand fashion❏ Most clothes gifted by mother or ex-girlfriend❏ Budget: $2,000 (from surveys)
THE SOLUTION:WEAR THIS
Curated Looks For the Young Businessman
“Wear this to an interview.”
“Wear this to the Hamptons.”
“Wear this to brunch.”
“Wear this to a board meeting.”
Our mission is to transform the way the young businessman shops and dresses by providing him with curated looks for every need and occasion.
OPERATING & SALES CYCLE
Suppliers WEAR THIS
CustomersMarket & Sell
Wholesale
PRODUCTSPrimary OfferingCurated Looks
$200+ outfit
$50+ accessories
$25+ basics
BRAND PARTNERSHIPS
SERVICE Secondary Offering
Standard: $0
Premium: $30
Infinite: $75
LOOKS SEGMENTATION
❏ Professional❏ Casual❏ Occasional
REVENUE MODEL
Looks
Outfit● Whole purchase● Accessories optional
Add-ons● Top only looks● After first five
purchases
Membership
Recurring - Premium● Service subscription● Personal stylist● In-person
appointments● Express shipping
Add-ons
Basics● Packets of three● Shirts, socks, etc
Accessories● Shoes● Watches● Scarves
MARKETING PLAN
Starting with the cheapest option
Word of mouth - Stylists, friends, customers
Online - Social media, google adwords, blogs
Public relations - Partnerships, events
Advertising - Target media (i.e. WSJ, ESPN)
MARKETING EXPENSES
Year 1
Events (location, alcohol, food, staff): $2,500 per event x 3 = $7,500
Photography (photographer, models, hair/makeup): $5,000 per season x 2 = $10,000
Digital (videos, adwords, paid ads): $12,500
Print (magazines, newspapers, magazines, fliers): $10,000
= $40,000
Source: Startupnation
OPERATIONS
Partnerships with brands
Wholesale model
Physical facility in ~ 2 years ($200,000 per year)
Free shipping + returns
INVENTORY & DISTRIBUTION: YEAR 1
Wholesale Model
Dropship
Sample Inventory
10 of Each Style
HUMAN RESOURCES
Ankit Agarwal
Co-Founder
Zoey Reager
Co-Founder
Mr. X
Developer
Mr. Y
Accountant
5 YEARS FINANCIAL PROJECTIONS (OPTIMISTIC)
REVENUES = SALES X PRICE
MARKET SIZING
❏ Average Number of employees in the financial services industry in US (Age 20-24): 1,394,000
❏ Assume 40% in Manhattan - 557,600❏ Assume 80% of these don't know fashion (want to dress better)
- 446080❏ Assume 80% don't have female to shop or want to shop for
themselves) -356864❏ Assume 70% of these shop online - 249804❏ Assume only 20% are loyal to other styling business- 49961❏ Market size available - (249804-49961) = 199834❏ Target (0.25% - 1st yr) - 500 approx. (these will be loyal long-
term customers)
Source: Bureau of Labor Statistics (http://www.bls.gov/cps/industry_age.htm)
SALES
❏ Year 1 - 500 members
❏ Next 4 years (Exponential growth) - 1000 (Year 2), 2000 (year 3), 4000 (year 4), 6000 (year 5)
PRICE
❏ $300 per look (Average) ❏ Margin - 60% of COGS (Wholesale suppliers) ❏ COGS - $180 (Derived by taking an average of different
looks combinations and type of products from various partner brands)
SIMPLIFIED PROJECTED 2 YEAR MILESTONES
June 2016Have finished website
December 2016Acquire 100 customers
August 2017Develop office space
December 2017Gross margin of 35-40%
RISKS❏ Supplier power❏ Easily imitable❏ Highly lucrative opportunity❏ Product offering not accepted❏ Aversion to online shopping
THANK YOU.QUESTIONS?
Appendix: Expansion Plan
Year 6 - Year 10
● Expand brand partnerships for wider product offerings● Reach 15000 membership ● Have locations in San Francisco and Chicago ● Flagship store in NYC (have consultation service like Bonobos at the minimum)● 100-200 employees● Forward integrated partnerships with Financial Services firms and figures
(Tentative on market research and negotiations) ● Expand influence to universities to pipeline sales
APPENDIX: POTENTIAL EXIT STRATEGIES
Brick & Mortar Buyout
❏ Reproduce high-end service online❏ Exposure to older demographic❏ Sell existing inventory at full price
E-Commerce Buyout
❏ Increase customer exposure❏ Sell existing inventory at full price
Appendix: Membership
Appendix: Shipping