This document summarizes the cost structure and estimations for a proposed fashion app. It outlines key corporate activities like B2C and B2B marketing, editorial content creation, and product development. Costs are estimated on an activity and resource basis. The editorial team is estimated to cost around 90,000 euros annually based on trend topic creation and style selection. Product development is estimated to cost over 200,000 euros including resources like a product manager, designer, and developers. Further costs for marketing, sales, and management will be estimated later.

1. Cost Structure Analysis
OEP-Venture Lab 2012

2. Contents
1. Product Description
2. Corporate Activities
3. Cost Structure
4. Cost Estimations

3. The Idea - Fashion App
Our Vision
is to combine the advantages of online shopping and retail stores
shopping experiences in one product.
Our Product "Your fashion app"
is a free service for young women to inform themselves about actual
fashion trends and to receive a valuable and personalized shopping
advice.

4. Benefits of our product
Fashion conscious Brands / Retail Stores
women: benefits:
● entertain with new fashion ● access to a target group
impressions for free ● high quality environment for
● valuable and personalised branding
shopping advice ● high customer attention to
● articles can be bought and presented message
tried on in a local shop ● highly personalised and
● save money by getting latest localized ad targeting
coupons and find local deals ● new customer acquisition and
● have an overview of local activation of existing
shops customers

5. Contents
1. Product Description
2. Corporate Activities
3. Cost Structure
4. Cost Estimations

6. Key Activities
Management
HR, Finance, IR etc.
B2B
Product
B2C Advertiser
Fashion development and
Consumer Marketing &
Editorial operations
Marketing Sales
Acquire, Acquire
Creation of fashion
retain and business
trend topics, style Improve and operate
activate customer,
selection, composing product applications
consumers generate
sales

7. Corporate Activities: Marketing
● B2C "Consumer" Marketing
B2C Marketing includes all activities to acquire, retain
and activate end-users of our fashion app. e.g. online
marketing, social media activities and email marketing
● B2B "Advertiser" Marketing & Sales
B2B Advertiser Marketing includes all activities to
announce our product for marketing professionals of
fashion brands, online and local retailers, acquire new
advertisers and engage them to advertise, link stores
and products with our product.

8. Corporate Activities: Editorial
● Editorial
Constantly creation of trend topcis and according trend
styles constitute the value of our product: The source of
inspiration in fashion. This will include
○ Surveillance of global and local fashion trends
○ Research of styles available in the market
○ Creation of trend topics and accumulation of styles
from online ressources
○ Composition, layout and publishing digital asset

9. Corporate Activities: Product Dev.
● Product development
The product development will establish new features
within the application for consumers, advertisers and
editors to make it more valuable, usable and feasible
○ Design user interface
○ Create visual design
○ Design processes, objects and algorithmen
○ Implement features and functions
○ Integration of external interfaces
● Product operations
Operations will include all activities and costs for
operating the service and maintaining it.

10. Contents
1. Product Description
2. Corporate Activities
3. Cost Structure
4. Cost Estimations

11. Cost structure
Process Activity Unit based on
B2C Online Marketing / Budget (performance oriented) performance +
Consumer App Marketing + internal resource (Marketing Manager) effort
Marketing
Social Media internal resource (Social Media Manager) effort
eMail Marketing internal resource (Marketing Manager) effort
B2B B2B Marketing internal resource effort
Advertiser + budget (fixed) fixed budget
Marketing + partner cooperation (commision) payoff
& Sales
B2B Sales internal resource (Sales manager) effort / payoff
Editorial Trend topic internal/external resource (Trend scout) effort
creation + content costs (license) license
Partner linkage internal/external resource (Partner manager) effort

12. Cost structure
Process Activity Unit based on
Product Product internal resource (Product Manager) effort
develop- Management
ment &
operations Visual Design internal resource (Visual Designer) effort
Implementation internal / external resource (Developer) effort
Operations internal / external resource (Operator) effort,
+ hosting expenses traffic
Manage- Management, HR, internal resource (Managing Director) effort
ment IR, Finance etc.

13. Contents
1. Product Description
2. Corporate Activities
3. Cost Structure
4. Cost Estimations

14. Cost estimations: Editorial
Editorial:
● Number of trend topics / year: 650
● Number of styles / trend topic: between 20 and 60
styles, average 40
● Effort for style selection: between 2 and 7 minutes,
average 5 minutes
● Effort for trend creation including composition and
editing: between 4 hours and 4 day, average 18 hours
● Total effort for editorial:
2.145 hours / year (268 working days, 1,2 FTE)
● Editors hourly rate: between 13€ and 70€, average 42€
● Total cost for editorial:
90.000 € / year

15. Cost estimations: Product Dev.
Product development:
● Product Manager including User Interface Design:
between 1 and 1,5 people, average 1,3 FTE
● Visual Designer:
between 0,5 and 1 people, average 0,75 FTE
● Developer:
between 1 and 3 people, average 2 FTE
Position Effort Calc. Resources Salary / person Full costs (incl.
(2-3 year charges)
experience)
Product Manager 1 - 1,5 FTE 1,3 FTE 41,5 T€ 67,5 T€
Visual Designer 0,5 - 1 FTE 0,75 FTE 39,5 T€ 38,5 T€
Developer 1 - 3 FTE 2 FTE 38,5 T€ 100 T€
Total 206 T€

16. Further costs
B2C Marketing, B2B Marketing & Sales,
Management costs would be estimated in two
weeks based on further OEP analysis.

17. Thank you and contact us for
more information!
contact@fashion-lab.de