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Swapzaar Brochure V1


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Swapzaar Brochure V1

  1. 1. Our Mission To be the Brand that re-defines how young Indians build their wardrobe (and therefore their personal style) by bringing the power of pre-owned fashion to them; via the web and mobile platforms.
  2. 2. People are cleaning out their closets online because: They are shopping secondhand online because: 32% 29% 25%16% 14% 13% They can earn some extra cash To save money 20% To afford brands otherwise too expensive 14% 11% 7% It’s fun It’s convenient It allows them to update their wardrobe more oŌen It’s eco-friendly It’s eco-friendly It’s convenient It helps decluƩer and stay organized “There’s been a change in mind-set, Consignment shopping used to have a stigma to it, but as the younger generation - who have learned from the recession - move into the workforce, they’re more open-minded about recycling and reusing, and fitting that into their lifestyles.” – the SnobSwap founder $100 million in 2014 By April 2015, $70 million $40 million in 2013 Nearly $300 million is invested in online fashion resale *ANNUAL RESALE REPORT by thredUP • Asian growth driven by expanding middle income white-collare workers, looking for top luxury names at affordable price • Internet is gaining share thanks to larger reach and product availability • Unprecedented focus on aligning shopping experience to best in class level • High attention paid to products authenticity certification ~€16B Second hand branded luxury goods market in 2014E ~80% distrubuted by phisycal channels but online is growing fast ~80% is hard luxury- specially watches >50% share of europe over total sales Pre-owned market is increasingly meeting a growing demand for value-for-money without giving up top names. *Altagamma 2014 Worldwide Markets Monitor - Report by BAIN & Company
  3. 3. Few items that were sold within 5 minutes of listing 86% 76% 63% 43% 72% 69% 57% 81% 83% 78% 89% US adults familiar with the sharing economy perceive many benefits to it They are re-thinking the value of ownership But they have some concerns agree it makes life more affordable agree it’s beƩer for the environment agree it is more fun than engaging with tradiƟonal companies agree owning today feels like a burden they feel that the sharing economy experience is not consistent agree it makes life more convenient and efficient agree it builds a stronger community agree it is based on trust between provideres and users agree it is less expensive to share goods than to own them individually will not trust sharing economy companies unƟl they are recommonded by someone they trust agree access is the new ownership Michael Kors tote UGG Australia boots Coach wristletTory Burch flats Ralph Lauren Collection boots Banana Republic cross-body bag Luxury consumer segmen tation HENRYs - High earning, not rich yet. This segment include elite upper middle class population that has been growing significantly over the last few years. Young professionals and working women constitute key segments in this category and they are more conscious about their social status. Windfall consumers, who witness sudden changes in their consumption habits as a result of any windfall gains Traditionally wealthy individuals who are born in rich industrial families Individuals with high net worth, who have worked diligently to make a name for themselves in their business circles. These include C-level professionals, doctors, accountants and lawyers Thus owing to India’s consumer diversity, luxury players eyeing this market need to apply a segmented approach and sharpen their brand strategies. Growing fast, shops more prominent brands and products. Consumes luxury items as an indulgence, but regards it as necessity Key drivers for luxury consumption are beauty, style and individuality High business acumen, thus spend wisely. May also buy counterfeit products to gain social status at reasonable costs Sudden monetary gains leads to aspirational shopping, depending on accessibility and awareness Higher propensity to experiment with brands to become the first in their circle to adopt new brand. That is why they are always aware about latest globel trends and fulfill their requirement through luxury shopping More impulse shopping, with focus on exclusivity and brand popularity to maintain flamboyant lifestyles. *The Sharing Economy: Consumer Intelligence Series - Report by PwC*ANNUAL RESALE REPORT by thredUP *India luxury summit 2014 - Report by KPMG ASSOCHAM Luxury Consumer Segmentation Already existing Upcoming and Potential Behavior Characteristics Behavior Characteristics
  4. 4. The Sharing Economy & “NOwnership” Nothing is stronger than an idea whose time has come. Owning stuff is now in the past. These days, you can loan out parking spots, cars, sports equipment, and even bulldozers. So why stick to “closet staples” when it comes to clothing? A new generation of shoppers is changing that- globally, and in India. Reuters reports that young people are being dubbed “NOwners,” relying on trading, sharing, and renting to fill out their wardrobes. This is a facet of the phenomenon called the “sharing economy” that gave rise to huge business successes like AirB&B, Rent the Runway and Uber to mention just a few. According to a new report from PricewaterhouseCoopers (PwC), many Americans have joined the sharing economy. The company found that 44 percent of US adults are familiar with the concept of collaborative consumption, 57 percent agree that “access is the new ownership,” and 80 percent believe that “renting is sometimes better than buying”. Travel, car service, finance, staffing, and music and video streaming are the five biggest categories for sharing. These industries currently account for $15 billion annual revenue but that number could grow to $335 billion by 2025, according to PwC. As millennials—the generation most comfortable with sharing as a means to save money—grow older, the collaborative economy is bound to grow bigger. Rent the Runway, founded in 2009, allows users to rent couture for special occasions. The company, which says it’s raised $116 million and is worth $600 million, now has almost 5 million members, including celebrities and billionaires, and $1 billion in inventory. It describes its typical client as a well-educated 29-year-old female professional. The RealReal: an online fashion consignment store has till date received total funding to $83 million (Series D $40mn in April 2015) had revenues in 2014-15: $100 million / and has a target revenue for 2015-16 of > $200 million . It has Sold >1 million items since opening four years ago. The second-hand market for upper premium brands represented 16 billion euros last year, according to Bain & Company’s 2014 Annual Global Luxury study. This market on the one hand threatens new product sales, but on the other hand turns luxury goods into durable products with an increasingly set resell price, increasing their value. In fact people are beginning to shop for Luxury Goods and Brands that are seen to have a greater resale value, providing a boost to those brands. The India Angle With global trends being adopted in India, nearly real-time, and with a huge population of ambitious and savvy young adults waiting to join colleges and the work-force over the next 5 years, India is the perfect market for the sharing economy -including pre-owned fashion. As the online shoppers tire of the constant rush for sales and fast fashion; and as they aspire to own bigger, more exclusive International brands earlier on in life, fashion resellers will become their alternative destination of choice for shopping thrills. Fashion Resellers like Swapzaar have a huge advantage- they have a hybrid model that includes a peer-to-peer marketplace as well as a business to consumer eCommerce store. This means consumers can sell their gently loved branded fashion goods and up-trade to higher brands on the same platform –in the convenience and comfort of their own home. These marketplaces offer a Great user experience, convenience, member protection and discretion all thrown in for good measure. Closer home: Instantluxe, a French online reseller of second-hand luxury goods, has entered the Chinese market with the launch of a Chinese website. According to Instantluxe co-founder Yann Le Floc’h, the company is targeting aspirational middle class shoppers as well as wealthy con- sumers. The growth potential in China could be enormous considering the Chinese’s love for luxury goods and chang- ing consumer attitudes. The Chinese market seems ripe for companies like Instantluxe as there is a growing inventory of luxury goods sitting idle in closets after several years of rapid luxury consumption. In July, China-based reseller Secoo raised about $100 million to help with expansion. The Indian Market is showing definite signs of warming up to this trend, and the trend is here to stay- generic marketplaces like OLX and Quickr etc. have paved the way and now a whole generation of younger consumers is ripe for Indian versions of brands like The RealReal or the Vestiaire Collective to come and offer them excellent brands at affordable prices and with good service. Though the Indian market is pretty nascent- various “pre-owned fashion resale” business models are already appearing in the market- Luxury consignment, Pre-owned fashion Marketplace and App-only, being some of them. There is space for everyone to grow right now, but in the long run, the ones that will thrive and dominate the mar- ket are the ones that can offer the most compelling and unique range of goods at great prices, and demonstrate a clear Consumer Vision with constant innovation in their services. “The ‘fashion middle class’ is disappearing; We have a whole swath of middle-class consumers who are tired of buying disposable fashion, but don’t have the means to buy the luxu- ry brands. Through such sites, women can have their cake and eat it, too, by collaborating to consume the fashion they want they get access to brands which would be beyond their means.” Tracy DiNunzio, founder of Tradesy “A lot of people can’t afford the timeless brands new but they still appreciate the quality,” Erin Wallace, director of marketing for Crossroads Trading and its sister store Fillmore & 5th, which has opened six boutiques since 2012. “Buying and selling secondhand luxury goods was taboo a decade ago. Now it’s considered smart.” Yann Le Floc’h, a former Exane BNP Paribas banker “Chinese consumers no longer hold reservations about a lessening of prestige or status through owning a second-hand bag and younger Chinese shoppers enjoy the feeling of getting a good deal,” Avery Booker of China Luxury Advisors tells Bloomberg
  5. 5. All icons, infographics and illustrations used in this brochure are from About Swapzaar India’s first peer-to-peer, curated, online Marketplace for pre-owned fashion- both premium and luxury. We will soon have an exclusive online boutique, where we will sell globally procured authentic vintage and preowned luxury fashion apparel and accessories; and offer membership and payment plans that will allow the young middle class Indian “aspirers” to access these brands at affordable prices. We plan to offer a full spectrum of goods: Garments, Bags, Shoes, Jewelry & Accessories for both Men and Women. Our vision is to be the leading brand in the Indian Premium and Luxury Consignment Space. Who we are: The team We are three batch-mates from Symbiosis Institute of Management Studies; Pune; 1999 batch (Marketing & International Business ) Our bonds of friendship have been forged more than 15 years ago in college, and though our backgrounds are similar we couldn’t be more different in terms of per- sonalities. The good part is – after so many years of knowing each other, we are comfortable with our differences- indeed we celebrate our individual quirks; and realize they probably make us a better team. We enjoy throwing ideas around, debating and partying together as much as we did back in college; and we are sometimes- when called for- brutally honest with each other; without having to worry about the fragility of our bond. It’s what keeps us together and keeps the trust alive. We are all pragmatic dreamers (people with lofty dreams but with their feet stuck firmly on the ground); willing to learn and work hard for our ideas to come true and now building Swapzaar is our shared lifetime goal. We have no illusions of instant fame & money- we are willing to do what it takes for as long as it takes and we intend to enjoy the journey as much as arriving at the destination; which is to make Swapzaar a successful business and a brand. We intend to add a few people to our team- a visionary product & technology leader and a digital marketing growth-hacker and also one cool and frighteningly efficient operations person. Veena Srinath, SIMS 1999 Advertising & Marketing Professional Click to access Veena’s Linkedin Profile Aarti Saxena Deoskar, SIMS 1999 Sales & Marketing with Multinational Luxury Hotels Click to access Aarti’s Linkedin Profile Pragati Seth, SIMS 1999 Sales & BD for IT Services for Europe, India Click to access Pragati’s Linkedin Profile About the company: is the registered business property of Passion Vision Art Pvt. Ltd. Registered in Bangalore, Karnataka, in 2012 Registered office: N3, Rohini Classsic Aparments, 1st Cross Amarjyoti Layout, Sanjaynagar, Bangalore 560094 Karnataka, India Corporate Contacts: Aarti Deoskar; Gurgoan Director +91.88003555998 Veena Srinath; Bangalore Director +91.9901989807