2. Who is Velvet?
Velvet is a clothing rental and subscription-based online platform that
offers trendy workwear for your modern-day, young professional woman.
Our mission is to encourage women to feel empowered and confident in
the workplace through fashion.
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3. Goals & Objectives
Provide an
enjoyable and
stress-free online
shopping experience
Make it easier for
customers to curate
their professional
wardrobe
Offer a more
affordable clothing
rental service
Provide
customers with
on-trend and
stylish workwear
1. 4.3.2.
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4. Customers’ Jobs to Be Done
Functional
• Find trendy workwear
• Save money by renting rather than
buying
• Have a convenient shopping
experiences by going to one site
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Social/Emotional
• Feel and look good in stylish clothes
• Find enjoyment in wearing clothes that
are in season
• Like to share outfits and style
inspiration on social media channels
5. The Platform & How it Works
Online Store
• Customers browse the site to look for clothing they
want to rent
• Customers can filter through clothes based on
preferred item, style, size, and brand
• If customers decide they want to buy an item rather
than rent, they have the option to visit the clothing
brand’s site to buy the item
• Clothing items available to rent are added/switched
each month to allow more options to choose from
• Responsive web design suitable for desktop, mobile,
and tablets
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6. The Platform & How it Works
Monthly Membership and Subscription
• $60/month to rent 4 items of clothing each month
• $2 standard shipping and returns
• Customers choose their 4 items per month and can
mix and match items at any time during each month,
as long as they keep a maximum of 4 items at a time
• Customers can also opt-out of a membership and can
rent individual items at varying pricing depending on
the item, retail price, and brand
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7. Untested Hypotheses
For Customers
• Will they pay a monthly subscription fee to
rent clothes?
• Will customers be comfortable renting
clothes rather than strictly buying?
• How much are customers willing to pay for
this platform/service?
For Suppliers/Partners
• Will they be willing to partner with a third-
party service to rent out clothing?
• Do they think that their exposure on
Velvet’s platform will benefit them? How?
• How much will they need to charge for
Velvet to buy on wholesale price?
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8. Market & Industry Overview
The online clothing rental market is rising globally due to the popularity of
e-commerce, demand for convenient shopping at a lower price, and positive
environmental impact for sharing rather than owning clothing.
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9. Statistics
• Online clothing rental global market is estimated to reach $1.9 million by 2023 (Allied
Market Research)
• North America leads the market share at 40%, followed by the Asia-Pacific region (Allied
Market Research)
• Global market for clothing rental is projected to account for a revenue of $1.9 billion by
the end of 2023 (Reuters)
• Women account for the highest market share at 58% (Allied Market Research)
• Millennials are 4.6 times more likely to rent products online (Agency Ascend)
• Worldwide revenue for Ecommerce fashion industry is expected to reach $712 billion by
2022 (Shopify)
• 75% of customers prefer brands to personalize the customer experience (Shopify)
Market & Industry Overview
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10. Target Customer
Demographics
• Women between the ages of 20 – 32
• Younger professionals who are entering the job market and/or
have been in the job market
• Income levels between $40,000 - $120,000+
• Working in professional office settings (finance, consulting,
marketing, etc.)
Lifestyle
• Busy customers who do not have the time to browse through
websites and visit stores to shop for work clothes
• Customers who like fashion and enjoy mixing outfits
• Customers who want to explore their creative fashion sense –
even in the workplace
• Women who enjoy putting effort into their appearance
• Like to use social media
What do they care about?
• Saving money
• Convenience
• Enjoyable shopping experience
• Staying on top of fashion trends
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11. What Makes Velvet Unique?
Unique Selling Proposition
• An affordable subscription-based clothing rental platform
• Clothing for the workplace that are trendy, creative, and
stylish, catering to a range of personal styles
• A niche target audience and market
• Focus on a simple UX/UI for better overall customer
experience and service
• Not only does the site cater to consumers, but also
businesses - who use Velvet as a service for additional
exposure to their brand
Personalization
• Customers are able to create their own profile, indicating
their style, brand, and clothing preferences. With Velvet’s
AI, the site will be able to recommend items based on
customer profiles and previous rented clothing
• Personalized targeting serves and benefits brands who
partner with Velvet, creating more accurate advertising for
partners
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12. Revenue Streams
1. Subscriptions
• $60/month from each membership subscription
• $40 - $80 for individual clothing rentals without a
membership
• $5 - $10 additional fees for late returns or
damaged items
2. Advertising Service/Partners
• Brands partner with Velvet to showcase clothing
and recommend their clothes on the site
($15,000+ depending on service contract)
• For example: if a customer bought an item from
brand X, Velvet can recommend more items from
that brand, directing them to the brand clothing
site
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14. Geographic Distribution
Begin with New York City, Chicago, and Los
Angeles
• New York City is ranked the #1 city for the
most online shopping, with Chicago at #3
and Los Angeles at #4 (MicroD)
• Online shoppers from metropolitan areas on
average spend about $853 annually, while
those from suburban and rural areas spend
$768 and $684 respectively (MicroD)
• Targeting these three major cities start a
presence in each region of the U.S.
• Some of the largest cities in the U.S. with a
prominent workforce
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15. Marketing Plan
Social Media
• Start by creating an
online social presence
for Velvet on Instagram
• Tagging and being
tagged by brands that
are featured on the
platform
• Later, having sponsored
Instagram posts in the
three main geographic
locations
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Digital Publications/Media
• Earned media on relevant
digital publications such
as, Forbes, Business
Insider, Vogue, and more
• Coverage on social media
profiles such as, Women’s
Wear Daily (WWD),
Business of Fashion
(BoF), WhoWhatWear
(WWW), and more
College Ambassadors
• Later, creating a presence
on college campuses in the
three geographic locations
(undergraduate and
graduate students of NYU,
Columbia, University of
Chicago, USC, UCLA, etc.)
16. Key Competitors
Rent The Runway*
• Event-based clothing
(wedding, cocktail, prom,
etc.) Primarily designer
bands and high fashion.
• $90 - $160/month
• $800 million valuation
(Business Insider)
• Founded 2009, started
subscription service in 2016
(Business Insider)
• 6+ million customers, $100+
million revenue (CNBC)
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M.M LeFleur
• Not rental subscription-
based, but primarily focuses
on women’s workwear.
Personalized stylists send
customers a ‘bento box’ of 4
items to choose from
• M.M. LaFleur is its own
clothing brand (each item
ranges from $125 - $350)
• Founded 2011
Le Tote
• Casual clothing for everyday,
work, night, or day time
with affordable and designer
brands.
• $69 - $79/month
subscription
• Founded 2012
17. Management
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Founder: Alyssa Espiritu CMO: Jessica ZagorskiCFO: Nicholas FofanaCTO: Jennifer Anthony
Public Relations major,
Computer Science
concentration, experience
in PR, Branding, and Data
& Analytics
Public Relations major,
experience in fashion
public relations, digital
marketing, and branding
Entrepreneurship and
Finance major, experience
in investment banking and
finance
Computer Science major
at USC, experience in web
design, application
programming, and
software development
18. Upfront Costs & Challenges
Costs
Website Development:
• DreamHost Web Hosting VPS Enterprise =
$110/month
Clothing Inventory/Partnerships with brands:
• $150,000 to partner with brands with
wholesale pricing discounts on bulk clothing
and a range of sizes
Initial Marketing:
• Instagram sponsoring: $5/1,000 visitors =
$150 for 30,000 views (10,000 for each
location – NYC, Chicago, LA)
File as an LLC: $130
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Challenges
• Financing/upfront costs to start and
accelerate business
• Creating a strong presence in the first
three regions
• Competing with mainly Rent The Runway
and Le Tote who have a prominent market
cap
• Guaranteeing a good ROI for partners
who are using Velvet to advertise their
brand
