Virtual Outfits ONLINE SOCIAL APPAREL SHOPPING

Transcription

1 Virtual Outfits ONLINE SOCIAL APPAREL SHOPPING

2 Problems online Visual Matching issues Instant Peer Feedback Overwhelming irrelevant selection

3 Shopping Solutions Multi-Retail Matching Integrated Social Platform Personalized & categorized shopping

4 Business Model Step 1 Step 2 Step 3 Customer Tracking Merchandise Commissions Personalized Marketing

5 Go to Market Strategy Fashion Bloggers $2.5K Per average post $2.22 User acquisition $24 Customer value Virtual Currency 4 new users per activity $0.20 User Acquisition User Generated Traffic 15% Lift of overall traffic

6 Competition: emerging technologies Polyvore ShopStyle Clothia Stylitics Year Founded Website Annual Sales Not available, though 2012 was up 230% Not Available Over $5 million $520K (est.) from 2011 Entity Type Incorporated Subsidiary (owned by Sugar, Inc.) Incorporated Incorporated Products Offered Mobile retail with Various clothing Luxury clothing and Clothes, fragrances, social media items and virtual accessories and hair care applications closet Primary Target Market Pricing Strengths Weaknesses Affluent shoppers (avg. income $77K and 33% of user over $100K) Avg. order size is $220 Popular among consumers with high disposable income Efforts are spread thin Mostly women of all ages and income levels Ranging from ~$20- $7,000 Leverage of Sugar, Inc. (POPSUGAR) Does not focus on one market or industry Women ages Women ages Most items under $100 Functionality of the business and mobile applications Limited Scope of Services Varies from economy to luxury Branding, customer following Weak international model

7 Competitive Advantages Engaging & rewarding GUI Imaging and attributing Integrated social technologies Positioned for future fitting modules

8 Projections Current $30K Beta Nov 2013 $40K Desktop Launch Feb 2014 $70K Mobile Launch Funds $120K set aside for 1 year Margins Target 15% Average Commissions $2M Series A funding by M Users in 5 years

9 Questions?

10 Financials 5 Year Projections Sales $679,945 $12,589,393 $53,444,715 $203,273,126 $582,077,848 Cost of Goods Sold $ 611, $ 11,078,665 $ 46,496,902 $ 174,814,888 $ 500,586,949 Gross Revenue $67,995 $1,510,727 $6,947,813 $28,458,238 $81,490,899 Operating costs G & A $ 32,400 $750,000 $1,500,000 $2,700,000 $4,725,000 S & M $75,000 $1,000,000 $2,200,000 $6,000,000 $10,000,000 IT and Infrastructure $9,600 $ 120,000 $275,000 $475,000 $1,500,000 Total Expenses $ 117,000 $1,870,000 $3,975,000 $9,175,000 $16,225,000 Operating Income ($49,005) ($359,273) $2,972,813 $19,283,238 $65,265,899 Income Taxes $0 $0 $1,010,756 $6,556,301 $22,190,406 Net Profit ($49,005) ($359,273) $1,962,057 $12,726,937 $43,075,493 Assumptions Total Users 45, ,202 2,314,877 6,961,504 17,577,264 Active Shoppers 4,533 76, ,360 1,002,457 2,704,194 Spend per year $ $ $ $ $ Customer Acquisition cost $ 1.82 $ 1.62 $ 1.41 $ 1.36 $ 1.01 IT expense per user $ 0.23 $ 0.19 $ 0.15 $ 0.13 $ 0.11

11 Team CEO: Marketing Director for a top internet retailer for over 6 years Future team members: Farah Faramand, CTO: Pioneered innovation in mobile banking and applications to facilitate e- commerce Harish Chauhan, CIO: Mobile and desktop programmer with over 20 years of experience Melody Ibrahim, Design and Marketing: Fashion Photographer, Graphic Artist & social marketing 10+ years

12 US Market Overview $ Top Gross category % Fastest growth category online Fragmented Sector Industry Assumptions 16M female luxury shoppers Online apparel category growing 18% annually $220 AOV for online Luxury shoppers $7BB Mid to luxury online market $29BB Online $282BB apparel sales

13 Customers/Market Segments Primary target: Women ages Consumers aged 25 to 54 (60% of Revenue): Steady income streams, high proportion of discretionary income spent on clothing, influenced by fashion trends and brands Consumers aged 65 and older (5.5% of Revenue): Reduced disposable income, prefer comfort, price, and quality over brands and status Consumers aged 55 to 64 (19.5% of Revenue): Increasingly looking for deals on brand-name goods, becoming more accustomed to shopping online Consumers younger than 25 (15% of Revenue): Prefer to purchase items online, follow fashion trends, frequently purchase clothing despite limited disposable income

14 Direct Competitors Polyvore Social shopping platform Total funding: $22.1MM (Series A $2.5MM, Series B $5.6MM, Series C $14MM) Mostly caters to affluent consumers ShopStyle (owned by POPSUGAR): Social shopping platform Total funding: $46MM (Series A $5MM, Series B $10MM, Series C $16MM, Venture Round $15MM) Also focuses on beauty, fitness, parenting, and food Virtual Outfits cater to middle to upper income groups and specialize specifically in clothing and accessories, creating a larger target market while concentrating on one main area

15 Financing $30K invested into the beta $90K set aside to launch desktop, mobile and sustain year 1 losses Seeking $20k to help grow year 1 financials Seeking $2MM in Series A Fundraising for 40% ownership of the Company Funding will be used for marketing campaigns, bring management on full-time, and hire in-house personnel for executing company strategies