Apparel Retail Market Facts
Upcoming SlideShare
Loading in...5
×
 

Apparel Retail Market Facts

on

  • 6,918 views

 

Statistics

Views

Total Views
6,918
Views on SlideShare
6,914
Embed Views
4

Actions

Likes
3
Downloads
141
Comments
1

2 Embeds 4

http://www.slideshare.net 2
http://www.retailnetworks.org 2

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Apparel Retail Market Facts Apparel Retail Market Facts Presentation Transcript

  • Stanislav Rost Justin Ashton Sherife Abdel Messih
  • Apparel Retail Market Facts
    • Average US consumer spends ~$250/year online on apparel (30% annual growth)
    • Apparel retailers / designers spend >$1.2B annually on market research
    • US Retailers spend tens of millions more on excess inventory / management costs
    Stylus narrows the gap between apparel retailers and consumers
  • Vision
    • Bridge the gap between fashion retailers, designers, manufacturers and consumers
    • Convert fashion-aware to fashionable customers
    • Provide fashion democracy, direct feedback to the industry
    • Channel the power of a fashion social network towards online purchases, quality market research
  • Stylus For End-Users
    • Fashion-oriented social network
    • Upload your own photos, label your apparel
    • Get peer and expert review of your style, suggestions for new clothes
    • Any suggestion is annotated with photos, links to buy
    • Photomagazine of attractive new fashions
    • Earn authority, capabilities, and priority in giveaways with participation and friend invites
  • Stylus For the Industry
    • Integrate your clothing database into discussions, one click away from impulse purchase
    • Targeted advertisements based on user profiles
    • Worldwide exposure and word-of-mouth advertisement
    • High-quality market research and pricing estimation
      • Demographics, geographic coverage, confidence
  • Competition Online Fashion Retailers Fashion Magazines Discussion Forums Style Advice Websites Social Networks Marketing Research Firms Stylus Focused on Fashion        Fashion Ads        Purchase Merchandise        Fashion Articles, Art and Photos        Offers Style Advice  General General / Personal (no tech. support) General   Personal (with technology support) Intelligent Clothing Search  (classes)       (classes + similarity-based) Collecting Market Research  (history of purch.)      (expensive labor + small sample sets)  (large sample size + demogr. diversity) IP Potential       
  • Projected Revenue Streams
    • Ads Affiliate Apparel Sales
    • - Banner - Large, brand-name retailers
    • - Featured content - 3.5% avg. commission
    • - Fashion Integrator Tool
    • Market Research Direct Apparel Sales
    • Automated report delivery - Featured small designers
    • $1K/per item minimum - 10% fee commission
    Stylus’ model includes no inventory costs * Commission is the cut taken from partner apparel distributors/retailers
  • Market Social Network (SN) Users Fashion Conscious Consumers
    • Pew Research (US)
    • 75% teens are SN users
    • 30% 20-35 yr old SN users*
    • 50% SN users check once/day
    • Woods and Poole (US)
    • 26% of all in the target demographic are fashion-conscious
    US Fashion Conscious/SN users = 26% * 30M SN users = 8M users * Very conservative estimate, no exact data available for entire age range Target Demographic: 15-35 year olds, fashion conscious, social network users
  • Market cont.
    • 2008 Online Apparel sales to hit $12B (Jupiter)
      • As of Jan 2006, people spent $243/year on clothing purchases online.
      • Fastest growing online segment (25-30% CAGR)
    • Our total apparel market
      • 8M consumers (5% commission) spending $243/year
      • $97M annual market for apparel sales on Stylus
    • In 2004, $1.2B was spent on apparel market research
      • Goal is to capture >2.5% by year 5, earning >$30M/year
  • Assumptions on growth
    • Took middle of the road growth projection
      • Bounded at 5M users
      • $1K/item under market research
      • Average apparel sale of $80/year/user
  • Revenue Projections
  • Operating Expenses
  • Cash Flow Cash flow positive in Year 3 rd Qtr, FY3
    • Average quarterly cash burn rate:
      • Year 1: $145K
      • Year 2: $390K
      • Year 3: $277K
  • Pro Forma Income Statement (FY2008)           (financial numbers in thousands)             FY1 FY2 FY3 FY4 FY5 Staffing Headcount 23 39 51 63 65             Revenues           Ad Sales - $34 $1,203 $10,646 $21,370 Market Research Analysis - $25 $742 $8,767 $18,640 Affiliate Partner Apparel Sales - $21 $1,167 $10,110 $13,888 Direct Partner Apparel Sales - - - $5,777 $7,936 Subtotal   $80 $3,111 $35,300 $61,834             Operating Expenses           Salaries & Benefits (inclusive) $1,362 $3,081 $4,374 $5,935 $6,717 Creative Content $60 $96 $192 $192 $192 Travel/Trade Shows/Marketing $178 $294 $424 $538 $588 Software / Hardware / Server Hosting $39 $51 $62 $76 $78 G & A (including rent / utilities / legal) $131 $205 $236 $318 $316 Subtotal $1,770 $3,727 $5,289 $7,059 $7,892             Gains (Losses) from Operations ($1,770) ($3,647) ($2,178) $28,241 $53,942 Operating Margin - - - 80% 87% Cumulative Gains (Losses) from Op ($1,770) ($5,417) ($7,595) $20,646 $74,588 Tax Rate (35%)   Taxes - - - $9,884 $18,880 EBIAT $18,356 $35,063 Quarterly Cash Burn Rate (Approximated) $145 $390 $277 - -
  • Marketing
    • Primary goal in first 3 years is to grow the SN user base
      • Target demographic is 15-35 fashion conscious, SN users
      • Create online buzz through ads in SNs, fashion forums, groups
      • Beta launch parties in key cities
      • Target college campuses heavily in first 2 years
    • Industry trade shows
      • Demonstrate power of showcasing new designs on Stylus
      • Create excitment among up and coming designers
    • Market Research
      • Start by letting select partner retailers (Guess, Gap) use our functionality for free
      • First target retailers / designers with huge research budgets
    Goal: Highest quality website / easy interface that will attract users
  • Competitive Advantages
    • Lower cost market research
    • Unique domain-specific search, review tools
    • Inherent switching costs of SN users
    • Involved and committed user base
    • Deep integration with the fashion industry
  • Team
    • Justin Ashton, Acting CEO MBA Candidate, MIT Sloan School of Management Air Force Intelligence, 6 years Electrical Engineering Background
    • Stan Rost, CTO PhD Candidate, MIT CSAIL Computer Networks & Systems
    • Sherife Abdel Messih, VP Business Dev Bachelor Degree Candidate, MIT Mechanical Engineering/International Development
  • The Offering
    • $600 thousand seed round
    • Series A: $9 million
      • $7 million: operating expenses
      • $1 million: marketing / Biz Dev expenses
      • $600 thousand: legal and patent expenses
      • $1 million: unforeseen expenses
  • Summary
    • Goal:
      • Provide quantum leap into Web 2.0 for designers
      • Become technological cornerstone of the industry
      • Offer one-stop-shop for fashion / apparel consumers