This presentation summarizes Colabination's mission to connect independent fashion designers with millennial shoppers. It outlines the problems designers face in finding customers and the opportunities presented by connecting them. Colabination's solution is an online marketplace that empowers shoppers to curate designer selections. Designers pay a 15% commission and $12 monthly fee for access to customers and insights. The presentation argues Colabination's approach of promoting designer stories will increase engagement over competitors and presents plans to acquire both designers and shoppers and raise $2 million in funding.
3. Problem
26,000,000 fashion-conscious millennial online shoppers 1
are drifting away from mainstream brands
and are increasingly seeking to buy off-label apparel from independent designers
(1) Based on Census data, internal projections, and http://www.cmo.com/articles/2013/11/17/where_fashion_focuse.html
4. Problem
At the same time, 1,000,000 independent designers are struggling to find new customers and grow
their brand 1
(1) Based on the number of brands on competing platforms (Wanelo, Fancy, Karmaloop, Jackthreads, Big Cartel, Shopify, Etsy, ASOS, and Fab), accounting for overlap.
5. Opportunity
Connecting these millennial shoppers with the independent designers could solve both problems.
However, retailers fail to meet this rising demand.
● First Mover
● Creative Visionary
● Passion Driven Hustler
● Not Tech Savvy
● Trend Setter
● Fashion Forward
● Hipster
● Millenial
● Challenge Status Quo
● Trend Hunter
DesignersShoppers
Limited Access To Designers
Customers seek to buy from independent
designers through established online
marketplaces and big box retailers, but these
stores only accept 1% of designers to their
platforms
Limited Access To Shoppers
The other 99% of designers are left
fragmented across the web using various
shopping cart solutions that provide them a
website but no customer traffic
6. Solution
Colabination is an online marketplace for designer discovery that empowers shoppers to curate their
own selection of independent brands
Discover Learn Collect
7. Revenue Model
Colabination will collect a 15% commission on sales and $12/month subscription fee from
designers for access to data & insights. Future potential revenue streams include connecting
designers to retail outlets and selling market trend data.
Commission Subscription
Designer to Retail Market Trend Data
8. Designer Use-Case : Before
An independent designer’s presence is often scattered across many channels, slowing growth and
making ROI uncertain
(1) http://blog.biakelsey.com/index.php/2013/11/19/nearly-34-of-smbs-in-the-us-use-social-media-to-promote-their-business/
(2) http://pages.richrelevance.com/rs/richrelevance/images/Social%20Media%20v10-ac.pdf
9. Designer Use-Case : Before
An independent designer’s presence is often scattered across many channels, slowing growth and
making ROI uncertain
Roadblocks:
1. Excessive monthly advertising costs
2. Little visible return on investment
3. No one can find them online
4. No marketing know-how
(1) http://blog.biakelsey.com/index.php/2013/11/19/nearly-34-of-smbs-in-the-us-use-social-media-to-promote-their-business/
(2) http://pages.richrelevance.com/rs/richrelevance/images/Social%20Media%20v10-ac.pdf
10. Designer Use-Case : Before
An independent designer’s presence is often scattered across many channels, slowing growth and
making ROI uncertain
Roadblocks:
1. Excessive monthly advertising costs
2. Little visible return on investment
3. No one can find them online
4. No marketing know-how
72% of brands use social media
to promote sales but the sales
conversion is less than 1% 1,2
(1) http://blog.biakelsey.com/index.php/2013/11/19/nearly-34-of-smbs-in-the-us-use-social-media-to-promote-their-business/
(2) http://pages.richrelevance.com/rs/richrelevance/images/Social%20Media%20v10-ac.pdf
11. Designer Use-Case : After
Colabination is step one for independent designers to drive new business growth online
Benefits:
1. Exposure to new markets of customers
2. Higher engagement at Point of Sale
3. Intrinsic loyalty & retention
4. Data and actionable insights to
customize experience for shoppers
(1) http://www.marketingcharts.com/wp/traditional/shoppers-favor-customized-in-store-experiences-29669/
12. Designer Use-Case : After
Colabination is step one for independent designers to drive new business growth online
Benefits:
1. Exposure to new markets of customers
2. Higher engagement at Point of Sale
3. Intrinsic loyalty & retention
4. Data and actionable insights to
customize experience for shoppers
81% of shoppers say they are more
likely to shop in a store that
provides an overall customized
shopping experience 1
(1) http://www.marketingcharts.com/wp/traditional/shoppers-favor-customized-in-store-experiences-29669/
13. Differentiation
Rather than focusing on individual products, Colabination enables designers to tell their story
through a virtual showroom for superior engagement and retention
“People don’t buy what you do, they buy why you do it” - Simon Sinek
14. Differentiation
Rather than focusing on individual products, Colabination enables designers to tell their story
through a virtual showroom for superior engagement and retention
“People don’t buy what you do, they buy why you do it” - Simon Sinek
Selling Products (Karmaloop)Selling Stories (Colabination)
>
15. Competitive Landscape
Colabination is uniquely positioned amongst multiple market players who fail to address the needs
of both independent designers and shoppers
Social MediaVerge ApparelDiscovery Platforms E-Commerce
16. Competitive Advantage
Discovery Platforms
focus on individual products over the
needs independent designers
Colabination
focuses on promoting the designers behind
the products. Telling their stories increases
engagement and sales
17. Competitive Advantage
Verge Apparel
restricts services from the majority
of independent designers
Colabination
lowers barriers to entry by providing
designers with a gamified experience and
data insights to improve their marketing
18. Competitive Advantage
E-Commerce
lacks high customer traffic or other
marketplace benefits
Colabination
gives shoppers a centralized location to
discover brands, resulting in higher
shopper traffic for designer showrooms
19. Competitive Advantage
Social Media
lacks engagement at the point of
sale
Colabination
places a social experience at the point of
sale, leading to higher sales conversion
20. Customer Acquisition
Designers
1. Direct Outreach
Successful in signing up
100+ designers to date
with a 65% conversion rate
on initial direct reach-out
PRIMARY METHOD:
2. White Papers
to gain trust and legitimacy,
we are curating and distributing
materials to aid designers with
growing their businesses
3. Inbound
we have optimized our
landing page for high
sign-up conversion
4. Partnerships
We will reach out to design
schools, fashion incubators,
and trade schools.
21. Customer Acquisition
Shoppers
1. Designer Referrals
designers have already
expressed interest in regularly
referring new shoppers in exchange
for a lowered commission
2. Word-of-mouth
achieved through grassroots
efforts, incentivized referral
programs, and the inherently
social aspect of the platform
3. Social Media
high levels of engagement
among millennials
4. Affiliate Blogs
several fashion bloggers will
refer users to Colabination
5. Public Relations
specifically targeting local
publications influential among
verge culture
6. Blog & Newsletter
highlights emerging brands
and conveys product value
PRIMARY METHOD:
22. Fundraising
3M for next 24 Months
● Bridge round: $250K for next 6 months
● Seed round: $2M
Use of Proceeds
● Product development
● Key hires
● Marketing
● Business development
Milestones
● 1,000,000 shoppers by July 2015
● $50K monthly revenue
● Key partnerships
● Expansion of revenue streams
23. Team
Advisors
Morgan Lewis
Steve Goodman & Jeff Bodle
(General Counsel)
Scott Latham
CEO & Founder
Founder at Flight Crew
Clothing and Mainline
Lifestyle Magazine
Ryan Efer
CFO & Founder
SeventySix Capital,
UBS Investment Bank,
Survivor of 3 Startups
David Blyer
Founder at DonorCommunity;
Microgiving; SPSS; Vento Software
Chuck Sacco
Director at Drexel School of
Entrepreneurship; Founder at Movitas