4,200,000 Pregnancies in the US every year! • Average spend for first pregnancy is over $600 • If buying upscale or professional clothing, costs can quickly top $3000! 10 pregnancy tops $ 800 4 pairs pants $ 375 2 pairs shorts $ 140 4 dresses, 1 formal $ 550 1 suit coat $ 140 3 sweaters $ 300 1 pair designer jeans $ 190 2 skirts $ 160 1 coat $ 280 $2935*Average Annual Spend for Professional Man or Woman in 2010: $880
4X maternity market growth within next 5 years $4.8B by 2015.Global Industry Analysts, Maternity Apparel: A US Market Report, 2010) Maternity purchases up 3-6% while purchases of total women’s apparel declined 5-6%. NPD Fashionworld’s AccuPanel Destination Maternity (50% of market) Revenues were up 4.2%; Internet purchases were up 32% ‘10 Internet purchases were up 34.4% ‘11 AP newswire, October 2011
80% of women areunhappy and are looking for adifferent solution!
Fashion Forward Maternity Online monthly maternity clothing rental Items/ Month Price/ Item/ month <10 items $ 23.50 10 items $ 21.15 Affiliate $ 19.97 MembersWardrobes that change with growing shape with the seasons 3-4x the Variety!
Competitive Landscape Poor Quality Huge Selection Varied Selection Terrible Quality 30% Premium Smaller Selection Formalwear & More Expensive Dresses Only Mixed Model Not Full-time
1200 Search Top Keywords Driving Organic Search Traffic Traffic 1000 Dec. 2011 Jan. 2012 Feb. 2012 Mar. 2012 Apr. 2012 May 2012• Organic Search Traffic and 800 June 2012 customer base growing steadily 600• Consistent Customer Conversion at 0.4% - 0.5% of 400 visitors• SEO: Ranking for 165+ 200 keywords• 1650+ FB and Blog 0 Sytlish Fashion Maternity Cute Trendy Followers Maternity Clothes Forward Maternity Clothes Maternity Clothes Maternity Clothes
Business Development$10 referral bonus for youPlus a $10 discount for your friendConverting curious visitorsLive chat converting >50%Employer Discount Programs“100 Best Places to Work for Women”OBGYN & FertilityClinics, Insurance, Direct Email, YogaStudios, BoutiquesSelect Advertisement & Promotions
The TeamErin Lewis- 15 years Shop & Product Management, SupplyCEO, Founder Chain. MBA, MS Industrial EngineeringSannie Sieper- 15 years Marketing, Public Relations. MBACMO, FounderJudy Skiles Lavers- 20 years Finance, Experience growing an $800MCFO, Founder company. MBA, CPA
Challenge #1: Small TeamTalent AcquisitionMarketing Strategy Expert including data collection, sale and use of dataSales Director: Affiliates including OBGYNAdvisersEcommerce Jon Nordmark- CEO UsingMiles, former CEO eBagsSocial Media Luke Wyckoff- CEO, Social Media EnergyGeneral Sramana Mitra, 1M/ 1M campaignMaternity Retail Nataline Ngo- Founder, Lead Designer for Maternal America Judy Masucci- Store owner, Designer for Annee MathewWebsite Design Payam Zarabi- President, Founder at Nox SolutionsSEO Ben Metzker- SEO expert, Native RankMarketing, Team Angela Tallman- Transform Coaching
Challenge #2: Inventory Investment Dollars used for Inventory only when growth > 8% /Month (200%/ Year) *After year 1 • Net 30 or Net 45 terms • Delay orders – “Immediates” • Adding Drop-ship • Liquidation price = purchase price •Available Asset Backed Loan CONFIRMED •Payback on Inventory= 2 months rental MITIGATION CHALLENGE FUTURE• Commit to purchase • New designers agree to 3-6 months ahead of delivery consign and/or drop-ship• Wholesale (or better) pricing • Stronger designers can carry more inventory risk •Larger Business Model in Effect
Challenge #3: Customer Turnover LONG TERM & BIG REWARDSExisting Moms of Mom Blog Reviews New Mom Advice Websites Pre-schoolers Morning TV Fashion Shows Social Media Engagement Best Source of Referrals- Impassioned Ambassadors Mommy Magazines Affiliates Pregnant CONVERSION & CASH Women TheBump.com 4 Major Pregnancy Magazines Affiliates
Challenge #4: Will Women Rent?Comparable businesses: – Rent the Runway (30M in VC, in business since 2009, – BagBorroworSteal.com (On Sex and the City) – RentMaternityWear.com – TieTry.comOver 80% of women said in survey that theywould wear borrowed maternity clothes – Common Practice today
What our customers are saying!• OK, I’m obsessed! I think this is a brilliant idea for maternity clothing, BRILLIANT!• I just received my order… will be recommending you to all my pregnant friends and moms• This has been a miracle. I‘m telling the entire NYC Junior League• My daughter is so excited… we will send you a photo and will recommend Fashion Forward Maternity at every opportunity!• I have a big chest and had an impossible time finding nursing tops that would look good on me- until now!• With my first pregnancy …I felt embarrassed …I wanted to burn the clothes. This time I love to show off …what a difference!• …can’t believe you have my size!• The only problem… there are too many choices…• I have to commend you on some of the best customer service I have ever experienced.• I’m going to tell all my friends!• I love that my wife feels beautiful in her new clothes• A company that really has its priorities straight• Do you have non-maternity (clothes) too?
Challenge #5: “Small” Market Size Consider $2.2TRILLION Spend, Ongoing Revenue Streams Affiliate Marketing Nursing Apparel Rapid Weight Loss Drop Ship Accessories and Personal Items High-end Toy RentalNon-designer Maternity
Challenge #6: Barriers to Entry Higher Caliber Website: Look and Feel Back-end Inventory Management and Reporting Photography SEO: Takes time to build, we own URLs Tech: Queue Management ala Blockbuster.com Founding team of mothers Founding skill-set in operational efficiency Superior Advisory Board Relationships with the Designers and Affiliates Speed and Scale
$2.2M Funding over 18 months: Fuels Growth and Marketing $330K Sources Bootstrapped Capital Series A $800K Series B Revenue $1400K $5000K Uses Variable Costs Other Fixed Costs IT development and Hosting Marketing Salaries Clothing Purchases for Growth Buffer
Donations and Green CommitmentMothers from many backgroundsneed a little help to feelPowerful, Beautiful, Confident andStylish Dress for Success, Goodwill, and Operation ShowerThe right clothes• help women nurse longer• can break down prejudicesagainst pregnant & nursing women Carbon Neutral Shipping and Green Cleaning!