Can I Borrow This Team5
 

Can I Borrow This Team5

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Can I Borrow This Team5 Presentation Transcript

  • 1. Can I borrow this? No. of customer interviews Day 1 21 Day 2 13 Day 3 11 Day 4 20 Total 65 “Peer-to-peer fashion rental platform for women” Claire Allison, Masha Breitmann, Wayne Chu, Chelsea Crowder, Seema Gohil
  • 2. CANVAS EVOLUTION
  • 3. Day 1: Idea • Create a peer-to-peer platform allowing women to rent clothes, shoes, bags and accessories from each other • Solve: “I have nothing to wear” “Refuse to get rid of anything I own”
  • 4. Key Partners Key Activities Value Proposition Customer Relationships Customer Segments Website developer Payment processing service (ex. Braintree) Shipping partner Drycleaner Garment bag supplier Fashion bloggers High-end thrift stores Travel / hotel resources Sizing Technology Building, hosting and maintaining an easy to use website Inventory photography, editing & descriptions Curating items Payments (accepting & distributing) Shipping & logistics Monetize closets without having to sell items Better economic value than current options (thrift / consignment) Access to inventory outside of what is available for purchase Access to clothing without having to pay retail prices Providing an official channel for lending to friends (deals with the drama) Revolving closet - answers the "I hate everything I own” issue College campus (word of mouth - grass roots) Social media SEO Customer referrals (incentive programs – reduced fee for x amount of users) Borrower: - 16-45 female - Tourists / travelers both female & male - Male 16-40 gay community Lender: - 25-45 female with <$250k annual salary - 25-45 gay male with <$250k annual salary Key Channels Key Resources Website College Campuses Fashion Industry Hotels or travel related sites Garment Bags Shipping Boxes Photography equipment Costs Revenue Website development SEO Garment bags Marketing / customer acquisition Payment processing Shipping Transaction fees: - 20% charged to lender - 5% charged to borrower Insurance Shipping / Drycleaning fees Sell rental information to retailers DAY 1 CANVAS
  • 5. What We Tested: Are there interested borrowers? • Spoke to college campus female students • How do women currently dress for events? • How much do they spend for different events? • Would they consider renting vs. buying or borrowing? • How much would they pay to rent vs. buy?
  • 6. Hypothesis Result Takeaway Women borrow clothes from each other True, typically from roommates, close friends, siblings, mother Not creating a new activity Women are willing to rent items as well as borrow (pay for the same action) True Idea of online rental platform was very appealing Women don’t know their measurements True Women are unwilling to measure themselves & shop by measurements vs. size False, would be willing to take that extra step and measure themselves to solve fit concern • Send a measuring tape to women that don’t have one; potential marketing tool • Can remove size as a feature on site Using “real” women in pics vs. models would help borrowers estimate fit True All pictures must display the item by the person whose measurements are being listed Using real women vs. models and non-professional photos may impact the appeal and marketability of items and site False, women are dissatisfied by the deception that professional models and photographers have Don’t need to spend the money on models and professional photographers
  • 7. Hypothesis Result Takeaway College students are extremely price sensitive False; price sensitivity dependent on income level, not age. Looking for value and quality Segment market based on income levels College students would be willing to pay less for a rental than a purchase False; looking for a combination of value and quality The % saved was not a driving force to rent vs. buy. More based on dollars available for that event College students would be unwilling to pay for shipping / courier False; Will pay for courier service for the ease Build courier service fee into the model That women borrow/shop clothes for an event based functions vs. everyday wear True Channeling users on the website by event vs. item is OK
  • 8. Day 2: What we tested: • Women who worked in fashion (retail / modeling) would be good lenders • Hotels could be good channels & partners
  • 9. Key Partners Key Activities Value Proposition Customer Relationships Customer Segments -Website developer - Payment processor - Braintree - Shipping partner - Courier Partner - Drycleaner - Garment bag supplier - Fashion bloggers - High-end thrift stores - Travel / hotel resources - Sizing Technology - Website production & maintenance - Inventory photography, editing & descriptions - Curating items - Payment processing - Managing Shipping & logistics - Inventory access (vs. direct network and/or purchase) - Style & curation - Cheaper than retail purchase; save $ - Solves fit dilemma by using measurements - Real people in the photos - Hassle-free delivery - Revolving closet answers the "I hate everything I own” issue -Monetize closets without selling items - Better value than thrift / consignment/ donation - Channel to lend to friends (damage, cleaning) - repeating revenue stream - Revenue on shelf inventory - Additional service - Access to new customers - College campus (word of mouth - grass roots) - College Ambassadors (various income ranges) - Social media - SEO - Customer referrals (incentive programs – reduced fee for x amount of users) Borrower: • 16-45 Females - social - borrow clothes /shop online A: Income $10k-$50k B: Income $50k-$300k C: Income $300k+ • Travelers (female & male) • Male 16-40 gay community Lender: - 25-45 female with <$250k annual salary - 25-45 gay male with <$250k annual salary Fashion bloggers High-end thrift stores Travel / hotel resources Key Channels Key Resources Website College Campuses Fashion Industry Hotels or travel related sites - Garment Bags - Shipping Boxes - Photography equipment Costs Revenue - Website development - SEO - Garment bags - Marketing / customer acquisition - Payment processing Shipping • Transaction fees: - 20% charged to lender - 20% charge - 5% charged to borrower - Free • Insurance • Shipping / Drycleaning fees • Sell rental information to retailers
  • 10. Hypothesis Result Takeaway Women that work in retail would be good lenders True • Access to fashion through fashion allowance & samples • Less restrictions than women that work for designer brands Additional: • Need to determine restrictions and workarounds for girls that work for brands Models would be good lenders True • Receive lots of free items – most of which is never worn • No restrictions from agencies • Enjoy the prospect of having followers and being featured as trendsetters Additional: • While merchandise type is ideal, model sizing will restrict utilty Hotels would be good channels / partners False • Too late in the process flow • Customers do not request any clothing / apparel services Additional: • Partnering other travel services such as AirBnB (“travel like a human” – “dress like a local”)
  • 11. Day 3: What we tested: • JUST DO IT!!!!!!!! • Built a site and tested it with customers to get feedback • 50 inventory items on a Wix site • Tested the platform in Bryant Park • Variables tested: −Borrower profile −Pricing −Image quality and presentation −Measurements
  • 12. Key Partners Key Activities Value Proposition Customer Relationships Customer Segments -Website developer - Payment processor - Braintree - Shipping partner - Courier Partner (Urban Express) - Drycleaner - Garment bag supplier - Fashion bloggers - High-end thrift stores - Travel / hotel resources - Sizing Technology - Website production & maintenance - Inventory photography, editing & descriptions - Curating items - Payment processing - Managing Shipping & logistics - Social acceptance - Unique Inventory access (vs. direct network and/or purchase) - Style & curation - Cheaper than retail purchase; save $ - Solves fit dilemma by using measurements - Real people in the photos - Hassle-free delivery -Clothing for destination - Revolving closet answers the "I hate everything I own” issue -Social validation -Monetize closets without selling items - Better value than thrift / consignment/ donation - Channel to lend to friends (damage, cleaning) - repeating revenue stream - Revenue on shelf inventory - Additional service - Access to new customers - College campus (word of mouth - grass roots) - College Ambassadors (various income ranges) - Social media - SEO - Customer referrals (incentive programs – reduced fee for x amount of users) Borrower: • 16-45 Female / Gay / Men over 15 - social acceptance - borrow clothes /shop online A: Income $10k-$50k B: Income $50k-$300k C: Income $300k+ • Travelers (female & male) • 16-40 gay community Lender: Female / Gay / Men over 15 Social validation, tastemakers, access to fashion - 25-45 female with <$250k annual salary - 25-45 gay male with <$250k annual salary Fashion bloggers,Industry High-end thrift stores Travel / hotel resources Travel Websites / AirBnb Key Channels Key Resources Website College Campuses Fashion Industry Hotels or travel related sites - Garment Bags - Shipping Boxes - Photography equipment Costs Revenue - Website development - SEO - Garment bags - Marketing / customer acquisition - Payment processing Shipping • Transaction fees: 20% lender , 20% thrift, 5%borrower - Free • Insurance , Shipping / Drycleaning fees • Sell rental information to retailers
  • 13. First Order!! Rented for $300!!
  • 14. Day 4: What we tested: • Who are our lenders? • Tested via in-person customer engagement: o Setup table outside Equinox to recruit lenders • Created Kookopa “Lender” website (www.kookopalenders.com) o Scalable method via web based search o Supported by Facebook Ads and Google Adwords • Tested customer acquisition methods
  • 15. Key Partners Key Activities Value Proposition Customer Relationships Customer Segments -Website developer - Payment processor - Braintree - Shipping partner - Courier Partner (Urban Express) - Drycleaner - Garment bag supplier - Fashion bloggers - High-end thrift stores - Travel / hotel resources - Sizing Technology - Website production & maintenance - Inventory photography, editing & descriptions - Curating items - Payment processing - Managing Shipping & logistics - Social acceptance - Unique Inventory access (vs. direct network and/or purchase) - Style & curation - Cheaper than retail purchase; save $ - Solves fit dilemma by using measurements - Real people in the photos - Hassle-free delivery -Clothing for destination - Revolving closet answers the "I hate everything I own” issue -Social validation -Monetize closets without selling items - Concierge service - Better value than thrift / consignment/ donation - Channel to lend to friends (damage, cleaning) - repeating revenue stream - Revenue on shelf inventory - Additional service - Access to new customers - College campus (word of mouth - grass roots) - College Ambassadors (various income ranges) - Social media - SEO - Customer referrals (incentive programs – reduced fee for x amount of users) Borrower: • 16-45 Female / Gay / Men over 15 - social acceptance - borrow clothes /shop online A: Income $10k-$50k B: Income $50k-$300k C: Income $300k+ • Travelers (female & male) • 16-40 gay community Lender: Female / Gay / Men over 15 Social validation, tastemakers, access to fashion - 25-45 female with <$250k annual salary - 25-45 gay male with <$250k annual salary Fashion bloggers,Industry High-end thrift stores Travel / hotel resources Travel Websites / AirBnb Key Channels Key Resources Website College Campuses Fashion Industry Hotels or travel related sites - Garment Bags - Shipping Boxes - Photography equipment Costs Revenue - Website development - SEO - Garment bags - Marketing / customer acquisition - Payment processing Shipping • Transaction fees: 20% lender , 20% thrift, 5%borrower - Free • Insurance , Shipping / Drycleaning fees • Sell rental information to retailers
  • 16. EXPERIMENTS (LENDERS) What we found out: In-person Customer Engagement • Setup table outside Equinox to recruit lenders • Limited engagement due to time of day (morning) and low traffic location • Interest from 8 potential lenders −Baby Boomer segment showed surprising interest to be lenders Continuing thought… How to match lenders and borrowers if lenders are from another demographic which impacts style
  • 17. EXPERIMENTS (LENDERS) Kookopa “Lender” Website (www.kookopalenders.com)
  • 18. EXPERIMENTS (LENDERS) Campaign #1: Broad reach of 2.8MM people
  • 19. EXPERIMENTS (LENDERS) Campaign #2: Targeted reach of 700k people (#consignment, #fashion)
  • 20. RESULTS (LENDERS) Kookopa “Lender” Website (www.kookopalenders.com) • Google AdWords - $4.27 / click • Facebook: 12 unique lender signups in <12 hours • Click through rates / cost: Broad – 0.22% / $0.65, Targeted – 0.18% / $0.61 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 Impressions Reach Clicks Broad Reach Targeted Reach 0.22% 0.18%
  • 21. Day 5: So where did we end up?
  • 22. Key Partners Key Activities Value Proposition Customer Relationships Customer Segments -Website developer - Payment processor - Braintree - Shipping partner - Courier Partner (Urban Express) - Drycleaner - Garment bag supplier - Fashion bloggers - High-end thrift stores - Travel / hotel resources - Sizing Technology - Website production & maintenance - Inventory photography, editing & descriptions - Curating items - Payment processing - Managing Shipping & logistics - Social acceptance - Unique Inventory access (vs. direct network and/or purchase) - Style & curation - Cheaper than retail purchase; save $ - Solves fit dilemma by using measurements - Real people in the photos - Hassle-free delivery -Clothing for destination - Revolving closet answers the "I hate everything I own” issue -Social validation -Monetize closets without selling items - Concierge service - Better value than thrift / consignment/ donation - Channel to lend to friends (damage, cleaning) - repeating revenue stream - Revenue on shelf inventory - Additional service - Access to new customers - College campus (word of mouth - grass roots) - College Ambassadors (various income ranges) - Social media - SEO - Customer referrals (incentive programs – reduced fee for x amount of users) Borrower: • 16-45 Female / Gay / Men over 15 - social acceptance - borrow clothes /shop online A: Income $10k-$50k B: Income $50k-$300k C: Income $300k+ • Travelers (female & male) • 16-40 gay community Lender: Female / Gay / Men over 15 Social validation, tastemakers, access to fashion - 25-45 female with <$250k annual salary - 25-45 gay male with <$250k annual salary Fashion bloggers,Industry High-end thrift stores Travel / hotel resources Travel Websites / AirBnb Key Channels Key Resources Website College Campuses Fashion Industry Hotels or travel related sites - Garment Bags - Shipping Boxes - Photography equipment Costs Revenue - Website development - SEO - Garment bags - Marketing / customer acquisition - Payment processing Shipping • Transaction fees: 20% lender , 20% thrift, 5%borrower - Free • Insurance , Shipping / Drycleaning fees • Sell rental information to retailers
  • 23. Transaction fee: - 20% lender (rental price + insurance + dry-cleaning) - 5% borrower Order: $132 Courier Revenue: $77 Rental Price: $100 Insurance: $5 Dry-cleaning: $10 Shipping: $12 Transaction Fee: $5 $6 $10 Borrower Lender Dry-cleaner returns item Step 4 Step 1 Step 3 Step 2 Step 5
  • 24. CUSTOMERS & VALUE PROPOSITION
  • 25. CUSTOMER SEGMENTS: BORROWER Initial Targeted Borrower: • Women • Age 15 - 25 • “Social Image” • Crave Social Interaction o Post everything to Facebook, Instagram etc. o Social butterfly • Desires to look good – fashion forward • Reads People magazine, fashion blogs • Shops at discount retailers (Gilt, the Outnet) • Shops at sample sales • Income < $150,000 annually
  • 26. VALUE PROPOSITION (BORROWERS) Pain / Need Gain Fear of rejection Social acceptance Insecurity Self esteem Fear of loneliness Sense of belonging / fitting in; Social validation “Ugly Betty” syndrome Styling advice & guidance Budget limitation Saving money Clutter / Space Save closet space Time, inconvenience, frustration with buying Hassle-free process Uncertainty with buying something that doesn’t fit Confidence in look / feel with measurements and real models
  • 27. CUSTOMER SEGMENTS: LENDER ARCHETYPE Initial Targeted Lender: • Women • Age 25 - 45 • Tastemakers / trendsetters • Professionals, or work in fashion industry • Enjoy social validation / recognition • Not attached to their items – items aren’t splurges • Spend large proportion of income on fashion • Reads W magazine, InStyle, Vogue • Shop at Net-A-Porter, Moda Operandi • Income > $150,000
  • 28. VALUE PROPOSITION (LENDERS) Pain / Need Gain Style Validation Recognition as a trendsetter / stylist Way to monetize closets that are worth while Additional income Reduce feel of waste Using the item / don’t feel like it was wasted Feel good that you helped someone else look good
  • 29. MARKET
  • 30. Total Addressable Market: $104.5Bn Served Market: $7.8Bn Opportunity: $80MM MARKET SIZE Total Market: • Annual spending in the US for Apparel (includes male and female consumers over the age of 16) Served Market: • Online sales account for 10% of the total apparel market • 75% women Targeted Opportunity: • Women only • US • Converting 1% of the online apparel purchases to rentals
  • 31. MARKET COMPETITION
  • 32. Market Positioning
  • 33. CHANNELS
  • 34. CHANNELS (“GET”) BORROWER EVANGELISTS / FRIENDS LENDER CONSIGNMENT STORES EVANGELISTS / FRIENDS
  • 35. IMPERFECT TEST SITE
  • 36. REVENUE & COSTS
  • 37. KEY PERFORMANCE INDICATORS • Total website traffic vs. conversion rate • Average number of transactions per user • Average transaction value ($) • RTR average value of $125 • Average income margins • Inventory items per size • Customer acquisition costs for both customer types (lender & borrower) • LTV of customer
  • 38. COMPARATIVE FINANCIAL ANALYSIS Rent the Runway 2011 RTR revenue 20,000,000$ Average rental price 125$ # of Annual Transactions 160,000 Kookopa 2014 % share of customers 5% 8,000 Average rental price 75$ Transaction Value 600,000$ % Transaction Fee 25% 150,000$
  • 39. UNIT ECONOMICS Per Unit Cost Analysis Retail Value 250.00$ 750.00$ 1,250.00$ Rental Price (10%) 25.00 75.00 125.00 Insurance (minor) 5.00 5.00 5.00 Drycleaning 10.00 10.00 10.00 Total Item Cost 40.00 90.00 140.00 Shipping 12.00 12.00 12.00 Total Cost to Borrower 52.00 102.00 152.00 Revenue: Transaction Fees 25% 10.00$ 22.50$ 35.00$ Insurance 25% 1.25$ 1.25$ 1.25$ 11.25$ 23.75$ 36.25$ Costs: Garment Bag (0.50)$ (0.50)$ (0.50)$ Cust. Acquisition (5.00)$ (5.00)$ (5.00)$ Total Costs (5.50)$ (5.50)$ (5.50)$ Net profit/item 5.75$ 18.25$ 30.75$ Margin % 51.11% 76.84% 84.83% Breakeven Analysis Startup Costs 200,000$ # transactions needed 34,783 10,959 6,504 % of RTR 2011 market share 21.74% 6.85% 4.07%
  • 40. SUMMARY & NEXT STEPS
  • 41. So much more to do….. • Find the fit between lenders and borrowers • Run A/B tests for: o User uploaded pictures vs. professional photographs o Models vs. real people on marketing vs. product pages o Pricing models o Pricing draws (discount on value, $ value vs. retail etc.) o Advertising on pains vs. gains of value proposition • Test full process (delivery, insurance, payments) • Research costs of concierge service • Partner discovery: AirBnb, consignment stores