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The document presents an overview of the 'Dressier' project, which aims to create a luxury matching platform in China for users to find personal stylists. It details extensive user and stylist interviews that led to the identification of key customer segments, their pain points, and the development of a new business model focused on rental services for luxury bags. Additionally, it addresses the issue of counterfeiting and strategies to enhance both customer trust and brand cooperation.
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dressier columbia
- 1. Dressier - Your luxuryexperience- Ederson Chang Yufei Chen Raymond Li Landon Wang Jikai Yang Total interview so far: 136 Total interview since last class: 17
- 2. Daily Progress Summary Dressier Interviews: Users:23 Stylists:3 Build a matching platform for fashion female finding stylists in China Interviews: Users: 28 Stylists: 5 Refined both user and stylist group. Discovered new pain point of the user Interviews: Users: 28 Stylists: 1 Male group investigated. Further segmented customer groups and created their VPs accordingly Interviews: User: 31 Acquired new inspiration and redesigned the entire business as well as the related components Interviews: User: 10 Key Partners:7 Contacted many key partners for validation Day 1 Day 2 Day 3 Day 4 Day 5 Total interview so far: 136 Total interview since last class: 17
- 3. Dressier Day 1: Offering amatching platform for fashion female to find personal stylists in China (fashion blogger)
- 4. Dressier Day 2 KeyFindings: 1. User: Female aging from 15 to 18 are also interested 2. Stylist: Very famous internet figures are not interested; instead, moderately famous internet figure and second-tier stylists are interested in styling service User •Female age 15 -25 •Fashion trend followers •Occasionally having problem matching existing clothes and changing styles Stylist 1.Popular female internet figures • High Moderate No. of followers (<100k followers) 2.Second-tier stylist • female or male /Celebrity Promo _____________ ________ • Marketing campaign (hiring popular stylist to provide free styling for selected users) /WeChat Pay/AliPay • Acquiring stylist Stylist • Reduce risk of unstable revenue stream for internet figures • Create additional income for stylist • Help increase branding (exposure) for professional stylist
- 5. Dressier Day 3 KeyFindings: 1. Male segment tend to have stronger need for styling service 2. Users could be further segmented into 3 categories 3. Fashion-aware unfashionables have stronger needs for styling at life-changing event Stylist 1.Popular female internet figures • Moderate No. of followers (<100k followers) 2.Second-tier stylist • female or male _____________ ________ • Marketing campaign (hiring popular stylist to provide free styling for selected users) /WeChat Pay/AliPay • Acquiring stylist Stylist • Reduce risk of unstable revenue stream for internet figures • Create additional income for stylist • Help increase branding (exposure) for professional stylist User • Fulfill the need of fashionables to be 'in fashion' • Provided 'deserted dress' a new life with new matching • Provide clothing solution for new stage of life The Fashionables • Female and male, age 15- 25, mid to high personal incomer or family support • Fashion trend followers • Motivation to create an customized “unique-style” or to explore different styles Fashion-aware Unfashionable • Occasionally having problems matching existing “deserted” clothes • Need for styling at life changing moment (such as entering career) or big events /Celebrity Promo
- 6. Dressier Day 3 KeyFindings: 1. Male segment tend to have stronger need for styling service 2. Users could be further segmented into 3 categories 3. Fashion-aware unfashionables have stronger needs for styling at life-changing event Stylist 1.Popular female internet figures • Moderate No. of followers (<100k followers) 2.Second-tier stylist • female or male _____________ ________ • Marketing campaign (hiring popular stylist to provide free styling for selected users) /WeChat Pay/AliPay • Acquiring stylist Stylist • Reduce risk of unstable revenue stream for internet figures • Create additional income for stylist • Help increase branding (exposure) for professional stylist User • Fulfill the need of fashionables to be 'in fashion' • Provided 'deserted dress' a new life with new matching • Provide clothing solution for new stage of life The Fashionables • Female and male, age 15- 25, mid to high personal incomer or family support • Fashion trend followers • Motivation to create an customized “unique-style” or to explore different styles Fashion-aware Unfashionable • Occasionally having problems matching existing “deserted” clothes • Need for styling at life changing moment (such as entering career) or big events
- 7. Dressier Day 4: Altered theprevious business model, rebuilt the business canvas for new model and hypothesis test to catch up the progress • Luxury Supplier • Bag Cleaner • Delivery • Anti-counterfeit identification institution • Second-hand resellers • Renting bag tracking • Shipping • Bag cleaning • Marketing • Customer Service • Bag • Warehouse • Logistics • Luxury Brand Event-driven Renter • Female, age 19-30, • mid to high personal incomer or family support. • fashion trends follower • Budget buyer with annual income of 100K– 300K RMB Event-driven Renter • Occasional need for special events • Be able to afford the luxurious bag which was originally not affordable • Fulfill the vanity Luxury Company • Luxurious brand adored by Chinese population • Experiencing a loss of sales in Chinese Region Regular Renter • Female, age 23-40 • White collar • High status • Annual income of 300K – 1M RMB Regular Renter • To show they have more bags than they actually can afford, thus, fulfilling their vanity • Eliminating the risk of bag no longer like or out of fashion • Office hierarchy Luxury Company • Regain sales after anti- corruption movement in China • Counter Counterfeit • Walking ads • Dedicated E-commerce GET • Wechat Moment • Weibo Bloggers • KEEP • Review/Rating/Feedback System • Weekly Fashion Magazine GROW • Expand to different dress type • Premium subscription • Luxury bags, warehouse, shipping, cleaning, logistic, website development and maintenance, customer service staff • Resell to second- hand market • Subscription • Pay-per-rental
- 8. • Luxury Supplier •Bag Cleaner • Delivery • Anti-counterfeit identification institution • Second-hand resellers • Logistics • Anti-counterfeit professionals • Renting bag tracking • Shipping • Bag cleaning • Marketing • Customer Service • Quality Assurance • Anti-counterfeit tests • Bag • Warehouse • Logistics • Luxury Brand • QA officer • Anti-counterfeit tech (RFID) Event-driven Renter • Occasional need for special events • Be able to afford the luxurious bag which was originally not affordable • Fulfill the vanity Regular Renter • To show they have more bags than they actually can afford, thus, fulfilling their vanity • Eliminating the risk of bag no longer like or out of fashion • Office hierarchy Luxury Company • Regain sales after anti- corruption movement in China • Counter Counterfeit • Walking ads GET • Wechat Moment • Weibo Bloggers • Established trust-worthy image towards customer KEEP • Review/Rating/Feedback System • Weekly Fashion Magazine GROW • Expand to different dress type • Premium subscription • Luxury bags, warehouse, shipping, cleaning, logistic, website development and maintenance, customer service employee, Anti-counterfeit, Quality Assurance • Subscription • Pay-per-rental • Resell to second- hand market Day 5 Key Findings: 1. Counterfeit as a key problem customer concerns 2. Trust-worthiness as the key essence to GET customer Event-driven Renter • Female, age 19-30, • mid to high personal incomer or family support. • fashion trends follower • Budget buyer with annual income of 100K– 300K RMB Luxury Company • Luxurious brand adored by Chinese population • Experiencing a loss of sales in Chinese Region Regular Renter • Female, age 23-40 • White collar • High status • Annual income of 300K – 1M RMB Dressier • Dedicated E-commerce
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- 11. Dressier Pain Points andCompetitor Analysis Pain Points 1. People occasionally having the need of certain style of bag (color, brand, price range) to attend certain activities 2. Sometimes the purchase made before was outdated and no longer in fashion 3. People don’t have as much money as they would like to buy desired number of bags 4. Vanity: people would like to have bags that is higher than their affordable price range 5. Office hierarchy made owning certain level of bags necessary for white collar female Competitor Analysis Second-hand Luxury Products Trading Platform Luxury Products e-CommerceHigh-value Goods Rental Dressier
- 12. Dressier Pay per rental– Flat price Subscription Resell Rev Model 0.6% per day with a min of 3 days Monthly subscription of 1500 RMB (Unlimited rental) 75% of bag price Assuming a RMB15000 bag… PPR Model Subscri ption Variable Cost Gross Profit (excl COGS) Projected profit (excl COGS) Logistics: RMB10(*2) Dry Cleaning: RMB200(/10) Anti-counterfeit: RMB30 Var Cost: $70/rental 100n-70, n>=3 Max: 2930/2300RMB Average: 2615 (bag) Max: 1500RMB Min: 800RMB (person) RMB1300 (Utilization: 50%) RMB1150 (Utilization: 50%) Profit per bag (6-months life cycle): 1300*3+1150*3-15000*25%=RMB3600 (600/month) Fixed Cost (Monthly): 10000(QA)+3000(Warehouse)=RMB13000/month Revenue Model
- 13. Dressier Source of Luxury Bags GetStrategy Quality Assurance Anti- Counterfeiting Insurance 1.Direct purchase from luxury brands -Pros: Higher trust, official guarantee -Cons: Higher Cost 2.Buy second-hand bags from sellers1) -Pros: Lower Cost -Cons: Higher risk of counterfeiting 1.Advertisement at High-End Hotels and Night Clubs -Target customers usually appear in these places 2.Advertisement at Luxury department stores -Target customer might visit the luxury department to shop 1.Hire professional quality assurance team and equipment 2.Cut down life-cycle of product -Minimizing risks of depreciation of bags such as car rental companies in China 3.Build brand image and increase brand trustworthiness 1.RFID technology -Pros: Low testing cost -Cons: Easy to copy, higher risk of counterfeiting 2.DNA anti- counterfeiting technology -Pros: Hard to copy -Cons: Expensive to test -Potential solution: Sample testing Next Steps 1) The acquisition channels include authorized second-hand bags resellers and consumers
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- 15. Dressier Robust growth indiscount luxury shopping, showing a trend of customer seeking low-cost solution for luxury products Will you increase discount luxury shopping Luxury Market in China has changed a lot Key Words 2012 2017 CAGR Chanel 65421 22074 27.5% Burberry 482 1390 23.6% LV 1349 3517 21.1% Prada 1730 4383 20.4% Hermés 3515 7401 15.7% Chinese population pay increasing attention on luxurious brands 1: Average search times per week on Baidu No or not sure 34% Yes 66% Number of Premium Outlets in China
- 16. 12Source: McKinsey &Company, Euromonitor Passport Total: 194mn Younger Female Group USD 10mn Age 19-24: 3.7% of urban population Advanced cities: 15% of urban Pay-per-rental: Average USD 30/rental * 5 Working Female Group: USD 184mn Age 25-40: 16.5% of urban population Advanced cities: 15% of urban Subscription: USD 600 annually TAM = Female leather goods sales * rental percentage * 12 months = 2.8 billion * 3% * 12 SAM = TAM * Sales contributed by female aging from 19-40 = 1bn * 38.4% SAM = TAM * rental penetration1) = 384 mn * 60% Served Available Market USD 384 mn Target Market USD 284 mn Total Addressable Market USD 1 bn Top-down Approach Botom-up Approach Market Size Dressier
- 17. 13 Dressier Customer Segments andValue Proposition Customer Segment Value Proposition Renter Luxury Brand Female, Age 23 – 40 Regular user of bags White collar with mid-high status Afford more bag to fulfill their vanity Eliminating risk of carrying a bag out of fashion Appropriate bag correspondent to office hierarchy Luxurious brand adored by Chinese population Experiencing a loss of sales in Chinese Region Regain sales after anti- corruption movement in China Anti-Counterfeit
- 18. 14 • Renter – Therenter has consistent need to carry an “appropriate” bag • Luxury Brand – Luxury brand would be willing to cooperate with us to boost sales • Renter – Pass/Fail • Above 30% of total interviewees agree • Luxury Brand – Pass/Fail • At least one of the luxury brand adored agreed to be on board • 100% (31/31) of the interviewees showed strong interest in this service • 61.3% (19/31) of the interviewees mentioned that rather than regular renting, their renting activity would be event-driven • 1 luxury brand had shown interest in cooperating with us • Major pivot: – Validate that the Regular Renter segment exist – Found out that there are actually 2 main customer segments, including Regular Renter and Event-driven Renter • Next step: Further interview more customer to understand their characteristics Hypothesis Here is what we thought Experiment Here’s what we did Result Here’s what we found Iterate Here’s what we will do next Dressier Hypothesis Testing – Customer Segments
- 19. 15 • Renter – Thereis a need to find appropriate bag • Luxury Brand – Luxury brand would be willing to cooperate with us to boost sales • Renter – Pass/Fail • Above 30% of total interviewees agree • Luxury Brand – Pass/Fail • Confirm if “boost sales” is the main reason to join • 48.4% (15/31) of interested interviewees have a need to find a set of appropriate bags for work • 61.3% (19/31) shown interest in finding a special bag for special event • The luxury brand mentioned that it could be a blow to the counterfeit bag segment, since the price is comparable and competitive • Major pivot: – Validate that there is a need for appropriate bag – Also found out and validate that there is a need to rent a special bag for special event • Next step: Further interview to test for if getting a certified real bag is an key value proposition for them Hypothesis Here is what we thought Experiment Here’s what we did Result Here’s what we found Iterate Here’s what we will do next Dressier Hypothesis Testing – Value Proposition
- 20. 16 Dressier Customer Segments andValue Proposition Customer Segment Value Proposition Event- driven Renter Regular Renter Luxury Brand Special bag for special event Afford the luxurious bag which was originally not affordable Fulfill the vanity Female age 19-30 Occasionally attending social events Female, Age 23 – 40 Regular user of bags White collar with mid-high status Luxurious brand adored by Chinese population Experiencing a loss of sales in Chinese Region Afford bags that fulfills canity Eliminating risk of carrying a bag out of fashion Appropriate bag correspondent to office hierarchy Regain sales after anti- corruption movement in China Anti-Counterfeit