E-marketing plan outline for 'Flyrobe'

UNDERSTANDING & DEVELOPING E-MARKETING
PLAN OUTLINE FOR
DR. HARISINGH GOUR UNIVERSITY, SAGAR
(A CENTRAL UNIVERSITY)
PRESENTED BY
SHUBHAM AHIRWAR
(Y151805335)
1
DEPARTMENT OF BUSINESS MANAGEMENT

S. No. CONTENT SLIDE NO.
1. Executive Summary 03-06
2. E-Marketing Environment & Industrial Analysis 07-20
3. E-Marketing Plan 21-25
4. E-Marketing Mix Analysis 26-35
5. Technological Issues 36
6. Financial Performance 37
7. Reference 38-41
TABLE OF CONTENT
2

I. EXECUTIVE SUMMARY
A. Summary of the Market
● The online fashion rental market in India, pegged at $3-4 bn, has
been exploding with mushrooming startups (the act of growing
suddenly and rapidly) and existing player’s even attracting seed
funding.
● Obviously the fashionist as no longer believe in buying expensive
designer wear when they can rent it at a fraction of the cost.
● High end fashion is now one of the biggest rental industries on the
rise. It makes perfect sense for people who can't afford luxury
brands but do appreciate the quality. The new generation raves
multiple experiences and desires to be fashionable and trendy,
without the pressure of permanent ownership.
3

Cont….
● While the international market is huge for wardrobe rental services,
with successful ventures like rent the Runway, Lending Luxury, Girl
Meets Dress, etc, in India this trend is still in its early days.
● A recent article by Tech in Asia states that as per calculations by
wardrobe rental service Flyrobe, the estimated fashion rental
market, including western and ethnic wear in large Indian cities, is
worth US$4-5 billion.
● Asia-Pacific which is still in its latest phase of adopting the rental
clothing trend is expected to grow at highest CAGR of 11.4%
mainly led by India and China.
● Women end user segment accounts for the highest market share
accounting for nearly 58%, however, the men end user segment is
projected to witness highest demand during the forecast period.
4

B. About the Company
Cont….
● Flyrobe is India's largest fashion rental platform offering occasion
wear on rent for men and women.
● Flyrobe is an on-demand apparel rental platform that provides
premium designer wear and branded outfits and accessories on rent
at 10-15% of the retail price from for upto eight days.
● The company allows users to rent premium apparel and accessories,
and curates apparel and accessories from designers such as Ritu
Kumar and Masaba Gupta, among others.
● It offers brands such as Sabyasachi, Ritu Kumar, Masaba Gupta,
Armani, Hugo Boss and Calvin Klein.
● Flyrobe currently operates in 10 major Indian cities and also has
offline stores in Mumbai and Delhi and plans to branch out to
Hyderabad and Bengaluru in the coming months.
5

Cont….
C. History
● Flyrobe, a Mumbai based online fashion rental service, is taking the
fashion world by storm.
● Flyrobe, launched in September 2015 by a bunch of IIT graduates.
● Flyrobe, founded by Shreya Mishra, Pranay Surana and Tushar
Saxena in 2015, had earlier raised $1.7 million from Sequoia
Capital.
● The startup claims to have transacted with 1,000 customers already,
and closed 2015 with 100 customers on a single day – when it was
just 15 weeks old.
6

II. E-MARKETING ENVIRONMENT AND
INDUSTRIAL ANALYSIS
A. Analysis of Current and Potential Competitors
7

● SWISHLIST:
You can rent outfits at SwishList by going through their
online clothing catalogue and reserving an outfit you like as
per your date of event. The outfit will reach your doorstep about
two days prior to the occasion. You can then return the garment
on the next day. SwishList does charge a security deposit equivalent
to 50 per cent (or more) of the rental fee.
● LIBERENT:
With a rental period spread over three days, you can rent a garment
from LibeRent with no additional security deposit whatsoever. The
fashion rental service makes alterations according to the
measurements you give them. What’s best is, they also allow a trial
before the date of rental for an additional amount of Rs 350.
Cont….
8

● KLOZEE:
Currently only available at Bangalore, this service gives
out premium apparel rentals with no security deposit. With a feature
called Klozee Express, the garment will reach you within
three hours of booking it. It also allows you to buy an outfit if you
like it, by paying its retail price.
● WRAPD:
Delhi based Wrapd initially started off as Rent A Party Dress in
2009. It is also one of the many services that actually has a physical
store. All you need to do is go and check out the outfits from either
their store or by browsing online. You can then give them your
measurements (in case of any alteration) for the attire you have
chosen. Book the outfit by paying a rental fee and a security deposit
that’s up to three times that rent, and return it the day after the
occasion.
Cont….
9

Cont….
● THE CLOTHING RENTAL:
A Mumbai based service that started in 2005, The Clothing Rental
is known to be a secret destination for professionals from the
glamour industry. Apart from sourcing garments from the most
basic brands, this service also allows you to rent out original brands
from their New York buying office. Along with an online portal, the
service also has two stores (in Bandra and Versova).
● OH LOOK:
Founded by Arshad Azad, Oh Look is a subscription-based fashion
rental portal designed especially for men. With a massive wardrobe
collection, the startup has partnered with top clothing brands in
including Louis Philippe, Zara, Jack & Jones, Allen Solly, Wrangler
and more.
10

B. Porter’s Value Chain Analysis
11

Cont….
 Primary Activities
• Incoming Material
• OutsourcingInbound Logistics
• Quality ControlOperations
• Strong distribution Channel
• Just in time delivery
Outbound Logistics
• Advertising on social sites.
• Adverties on local news paper, magazine.Marketing & Sales
• Pre sales & After sales service.
• Customization & PersonalizationService
12

Cont….
 Support Activities
• Currently operate in 10 Cities.
• They have only 3 physical outlets.
• They have only 1 warehouse .
Firm
Infrastructure
• The total no. of employee working in
Flyrobe is 40-50.
Human Resource
Management
• Customization.
• 3D Rendering and 360 View.
Technology
Development
• Delivering the product within 3 hours of
ordering.
• Strong supply chain management.
Procurement of
Resources
13

C. ESP Model and Online Marketing Environment
14

Cont….
 Environment
Supplier
• Fashion
Designers
• Tie-up with
the branded
apparels
companies
like Zara,
Raymond,
Armani etc.
Distributors
• They have
own
distribution
channel
Stakeholders
• IDG
Ventures
• Sequoia
Capital
India
• Tokyo based
GREE
Ventures
Competitors
• Swishlist
• Liberent
• Klozee
• Wrapd
• Oh Look
• Stage 3
• Clothing
Rental
(i) Micro Environment
15

Cont….
(ii) Macro Environment
Economic
• $ 4-5 billion
annual
revenue
• $ 80 billion
industry in
India.
Social
• Fashion
affecting
the mass
production
and trends.
• Attitude of
peoples
towards
product.
Legal
• Licensing
• Ethical
compliance
• Commercial
Sales
Technological
• Organized
i.e. each
worker is
specialized
in the one
or few
operation.
16

• Large assortment of products.
• Partnership with 80+ designers.
• Affordable, Convenient, Easy
• Renting product in limited cities.
• Limited number of physical store.
• Charges high price on luxury products.
• Diversifying product offering.
• Expanding Physical Stores.
• Collaboration with more designers.
• Customer lying about unworn merchandise.
• Customer issue with cancelling services.
• Local Competitors.
THREATS (–)
STRENGTHS (+)
WEAKNESSES (–)
OPPORTUNITIES (+)
Cont….
 SWOT Analysis
17

Cont….
 Strategy
● Target those customers those can’t afford branded apparels.
● Provide branded and quality apparels at reasonable price.
● Provide branded and luxury material so that customer feels
confident.
● Provide educational material and programs that enables customers
greater decision making confidence.
● Develop a strong relationship with customer by utilizing style
assessment.
● Build awareness of brand and service to exemplify strong store
reputation.
18

Cont….
 Performance Matrices
● Flyrobe is a India’s largest fashion rental service, it operates in 10
cities of India and is headquartered in Mumbai.
● They have raised over $ 5.3 million in Series-A funding from
leading investors such as Sequoia capital ventures, IDG ventures
and a Tokyo based GREE venture.
● In September last year, It had earlier raised $1.7 million in seed
funding from Sequoia India. They also have had angel
investments from Rohit Bansal and Kunal Bahl, Founders of
Snapdeal; Kunal Shah and Sandeep Tandon, Founders of
Freecharge; Leon Seynave, Chairman of Stanhope Capital;
Zishaan Hayath, CEO of Toppr; and Vijay Shekhar Sharma, CEO
of Paytm With this round of funding, the total funding raised by
Flyrobe will be $ 7 million.
19

● The platform supplies western wear on-demand with a three-hour
delivery timeline and the ethnic wear on advance booking.
● They say that the number of app downloads on android is
approximately 75,000. While the app draws mixed reactions from
customers, it has a 4.3 rating on the Google Play Store. The team
is launching their iOs app soon.
● Flyrobe claiming to rent to out apparel of retail value $ 1 million
per month, Flyrobe currently has over 5,000 products, procured
from over 80 designers.
● While the retail price of a piece of apparel can range between Rs.
8,000 and Rs. 200,000, Flyrobe rents it out for between Rs. 799
and Rs. 30,000 for four days, sharing 50% of the rent earned with
the designer.
Cont….
20

III. E-MARKETING PLAN
A. Description of the Market Opportunity
● According to a new report published by Allied Market Research,
titled, "Online Clothing Rental Market: Global Opportunity
Analysis and Industry Forecast, 2017-2023," the global market
was valued at $1,013 million in 2017, and is estimated to reach $
1,856 million by 2023, registering a CAGR of 10.6% from 2017 to
2023.
● In 2017, number of women online clothing rental and ethnic wear
segments dominated the global market share. While, men end user
segment and western clothing style segments are anticipated to
grow at a robust rate in terms of market share.
● North America leads the online clothing rental market, followed
by the Asia Pacific Region.
21

● Asia Pacific which is still in its latent phase of adopting the rental
clothing trend, is expected to grow at highest CAGR of 11.4%
mainly led by India and China.
● Women end user segment accounts for the highest market share
accounting for nearly 58%, however, the men end user segment is
projected to witness highest demand during the forecast period
● The main consumers of clothing rental business are theater groups
and the people engaged in stage performances. Once the cost of
the product has paid for five to six rentals, next all the revenues
from that particular item are almost all profit. The only promotion
is, creating awareness among the people about your clothing rental
product availability with the price.
Cont….
22

B. Analysis of STP Strategy
Cont….
(i) Segmentation
Demography
 Women
 Men
 Kids
Price Range
 Premium
 Mid
 Low
Type
 Western Wear
 Ethnic Wear
 Others
Business Model
 B2B
 B2C
23

● Flyrobe primarily targets 20 to 40 year old professionals.
● The company main targets consumer is a young professional
women who aspires to wear trendy designer labels, but does not
have a enough budget to buy expensive clothing on a regular basis.
● Flyrobe secondary target market are 17 to 26 year old high school
and college students.
● These consumer have important formal and semi-formal events to
attends but they are lacking in a budget that will afford them a new
dress for every occasion.
Cont….
(ii) Targeting
24

● Flyrobe provides professional men and women with upscale
designer clothing and exclusive personal services.
● The main competitive advantage of a company is the unique style
assessment or customization and education emphasis in helping
men and women to develop their personal style.
● Flyrobe offers a branded western wear in a larger assortment of
styles and sizes that are not always readily available in the mass
western apparel retailers.
● For men, women and children seeking clothing with style,
selection, differentiation and substances, Flyrobe offers a branded
and quality apparels or clothing line that is affordable, trendy,
exclusive and fashionable while meeting both the physical and
emotional needs of a customer.
Cont….
(iii) Positioning
25

IV. E-MARKETING MIX ANALYSIS
● Company offering various classy ethnic and festive wear from
multiple designers including Ritu Kumar, Masaba Gupta,
Prathusha Garimella, Sanna Mehan and trend western wear outfits
from brands such as Armani, Raymond, Hugo Boss, Asos etc.
A. Product Decisions
(i) Description of Product:
(ii) Features and Benefits:
● Save money - Renting is a fraction of the cost of buying.
● Save time - No more running from store to store.
● Never be seen in the same dress twice.
● Personal fitting and styling.
● Wear designer dresses that might not typically be in your budget.
26

Cont….
(iii) Product Quality Strategy:
● Flyrobe recently hired French laundry company 5 Asec, who are
expert in garment care globally.
(iv) Product Service Strategy:
● The platform supplies western wear on demand with a three hour
delivery timeline and the ethnic wear on advance booking.
(iv) Estimated Cost:
● Company charging the rental fee on western wear start at Rs. 179
and go upto Rs. 18,999.
● For a designer lehenga worth over 1 Lakh.
27

B. Pricing Decisions
Cont….
(i) Basic Strategy:
● Flyrobe does charge a security deposit equivalent to 50 per cent
(or more) of the rental fee.
● While you need not pay a security deposit for high street brands,
you will have to pay a 20 per cent deposit for designer ones.
● They charge about 10% of the MRP as a per day price.
● It seems that eastern wear is more expensive that western wear. So
while the rental charge per day for western wear could be between
Rs. 300 and Rs. 1200, for eastern wear they start at around Rs.
900.
28

Cont….
(ii) Competitors Issue:
● Swishlist: Charge 25% advance for booking and rest 75% as cash
on delivery and the late fee equivalent to an amount of 25% of the
rental fee, plus all applicable taxes.
● Liberent: For Cash On Delivery - Pay 30% Advance For Booking
& Rest 70% as Cash On Delivery.
● Klozee: On Klozee, users rent an outfit for only 10% of the retail
price, plus the same amount as a deposit.
● Wrapd: User rent an outfits for only 15%of the rental price, plus
the same amount as a deposit.
29

C. Place / Distribution Decisions
Cont….
(i) Channels used to distribute the product:
● They have own distribution channel.
● Company distribute the product directly to the customer with the
help of mobile app order, telephone order, website and offline
channels like physical outlets.
(ii) Dealers and Sellers:
● Rent by Designers.
● Rent by Brand like Armani, Raymond, Hugo Boss, Asos, Calvin
Klein, The Boston Luxe.
30

D. Promotion Decisions
Cont….
(i) Advertising:
(ii) Personal Selling: Sales Programs and Incentives
● Promoting website on social site like facebook, instagram and
twitter.
● Advertising through local television channel and news papers.
● Flyrobe provide different types of coupons and offers for the
customer like:
 Refer and Earn
 Wedding Bonanza Offer
 Flyrobe Mega Sale Offer
31

E. Payment Management Decisions
Cont….
(i) Bank Partners:
● Citi Bank
● Axis Bank
● HDFC Bank
● ICICI Bank
● IDBI Bank
● Bank of Maharastra
● Bank of india
● Kotak Mahindra Bank
32

Cont….
(ii) Payment Gateways:
● E-Pay
● PayPal
● Pay U India
● RuPay
● Citrus Pay
● CC Avenue
(iii) Mobile Wallets:
● Paytm
● Mobikwick
● Free Charge
● Oxigen Wallet 33

F. Process Management Decisions
Cont….
(i) Return Policies:
● If you not returned a rental item within 4 to 6 days after the
return date, your late return will be considered a non return and
flyrobe will charge maximum late fee (20% of rental value), less
any fee plus applicable sales tax that you have already paid.
● If the outfit doesn’t fit and you like to return it so, ethnic outfits
can be returned within 12 hours of delivery.
● No cancelation is allowed after shipping the product.
● Cash refund is not allowed.
34

Cont….
(ii) Online Customer Service & Support:
● Visit the track order section on the website.
● You will get to know the status of your order (It is confirmed,
Out of delivery, Packed etc).
● If you would like to talk to customer care representative about
your order, you would give us a call on 022-39971819 or drop us
a mail to orders @ flyrobe.com.
35

V. TECHNOLOGICAL ISSUES
● Online clothing rental services is a provision of renting clothes for
a definite period through online platforms, thereby connecting
distributors and retailers and customers to the potential customers.
● Festive clothes (outfits) related to various events such as wedding,
corporate parties, theme parties, films and photo shoots are
witnessing increasing demand in the online clothing rental market.
● Online clothing rental portals offer a wide range of clothes which
can be filtered by size, color, type of outfits, brands and prices.
● In addition to this, online rental service providers offer
consultation services to customers though their contracted experts
(designers, image consultants, and other fashion experts) via
phone, or email in order to enhance customer experience.
A. Trends
36

● It’s a opportunity to rent branded quality apparels.
● An engaged community of uses.
● Provide the high quality of services.
● Digital assistants styling shoppers.
● A huge selection of items: Much more than could be found in
any one retail store.
● Visual search going mainstream: Find me something similar.
● Fit becoming critical: Enables virtual fitting rooms, 3D body
scanners.
B. Impact of Product Offering
Cont….
37

VI. FINANCIAL PERFORMANCE
A. Sales Volume Forecast
B. Estimated Income
● In lest year 2016, the company renting the more than 24,000
products through online.
● The company aims to renting and offering the more than 1 Lakhs
products in the next 2 year.
● Flyrobe.com receives about 4,940 unique visitors and 18,624 (3.77
per visitor) page views per day.
● Estimated site value is $ 42,000 and have a daily income of around
$ 70 from advertising revenue. According to Alexa Traffic Rank
flyrobe.com is ranked number 162,353 in the world.
● Estimated annual revenue of Flyrobe is $ 2 million in Nov 2015.
38

REFERENCES
● CHALLAPALLI, S. (2016, Mar 17). The mojo of renting. Retrieved
Oct 15, 2017, from http://www.thehindubusinessline.com:
http://www.thehindubusinessline.com/catalyst/the-mojo-of-
renting/article8361508.ece
● Ganguly, P. (2016, Jan 12). Meet the Uber of Indian women’s fashion:
100 orders a day for 15-week-old app. Retrieved Oct 12, 2017, from
www.techinasia.com:https://www.techinasia.com/flyrobe-uber-of-
women-fashion-in-india
● KASHYAP, S. (2016, Aug 31). Fashion rental platform Flyrobe raises
$5.3mn in Series A funding led by IDG Ventures. Retrieved Oct 11,
2017, from yourstory.com: https://yourstory.com/2016/08/fashion-
rental-platform-flyrobe-raises-5-3mn-series-funding-led-idg-ventures/
● Kuriakose, S. (2016, Feb 8). 6 Websites You Can Rent Clothes From
Right NOW. Retrieved Oct 14, 2017, from http://thehauterfly.com:
http://thehauterfly.com/fashion/wardrobe-rental-services-in-india/
39

Cont….
● BIDKAR, C. (2016, Aug 31). Fashion Rental Startup Flyrobe Raises
$5.3 million from IDG Ventures, Sequoia Capital, Others. Retrieved Oct
13, 2017, from http://techstory.in: http://techstory.in/31082016-fashion-
rental-startup-flyrobe-raises-5-3-million-idg-ventures-sequoia-capital-
others/
● Chopra, A. (2017, Mar 31). Online platform to rent designer apparel
Flyrobe to expand to offline stores. Retrieved Oct 11, 2017, from
http://www.livemint.com:
http://www.livemint.com/Companies/IeDsOs8OCzYMNaWGUboDCK/
Online-platform-to-rent-designer-apparel-Flyrobe-to-expand-t.html
● Flyrobe. (2017, June 11). Retrieved Oct 12, 2017, from
www.crunchbase.com:
https://www.crunchbase.com/organization/flyrobe
● Flyrobe Info. (2016, June 2). Retrieved Oct 15, 2017, from
www.hypestat.com: http://flyrobe.com.hypestat.com/
40

Cont….
● Make money of your closet. (2017, July 11). Retrieved Oct 15, 2017,
from www.flyrobe.com: https://flyrobe.com/list-your-products #List
Your Product
● Sayan Chakraborty, S. C. (2017, Mar 8). Three Indian firms among the
50 most promising start-ups in the world. Retrieved Oct 13, 2107, from
http://www.livemint.com:
http://www.livemint.com/Companies/ReexqXTBcKeZ9xucAF3LtN/Th
e-three-Indian-firms-among-the-50-most-promising-startups.html
41

E-marketing plan outline for 'Flyrobe'

More Related Content

What's hot

Similar to E-marketing plan outline for 'Flyrobe'

More from Shubham Ahirwar

Recently uploaded

E-marketing plan outline for 'Flyrobe'