1. Number of
contacts
today: 19
Total: 66
Fiddit
Customized essentials package for professional men
August 31, 2012
Yvonne Sissi Qiu Chris Carril Bryan Kim & Shirts & plus..
Ameyaw
1
2. Learning and Pivoting
Day 1 Day 2 Day 3 Day 4 Day 5
Customer Busy early- Busy early- Cost-conscious Cost-conscious Busy early-mid
mid career mid career early-mid early-mid career men in
Segment men men career men in career men in select
select select industries
Students Students
industries industries
Students Students
Women?
Value Prop Convenience Convenience Price Price Convenience
Channel Mobile truck Mobile truck Pop-up stores Mobile app Mobile app
Pop-up Pop-up In-office service Web Web
stores stores
Key Hypothesis: Men are Cost Men actually Bundling of key
Busy men actually more structure don’t mind essentials for
findings would want price research – some trouble busy
from measurement sensitive than not as easy Women professionals
getting out service come they think to compete may be
segment may
to them on price valuable
of building be viable
2
3. Day 1: Reassessment of value proposition and
customer segment
• What does our customer truly care about? convenience or price?
The answer is likely both with implicit range around
“appropriate price point”. Continued customer discovery.
• Are students, in addition to early-mid career men, also a segment
we should target?
Targeting students seem to be an attractive starting
point with some initially positive feedback. Continued
customer discovery.
Now what?
• Research the competitive space
• Find out the cost structure and players/steps involved in the shirt
making process
3
4. Day 2: Studying up on the market, process, and
cost structure
• Is our customer segment defined?
Students included to be part of our target segment
• How much does it exactly cost and is there a way for us to cut
cost further?
We found out the cost structure and the players
involved. Seems like there is a room to cut middleman,
but need further research.
• What do our competitors do and what can we do better?
We gathered data on main competitors, including a
detailed pricing survey and measurement techniques.
Now what?
• Define Fiddit’s differentiating factor
• Research whether we can make the cost structure more favorable
• Hypothesize, brainstorm and validate our potential channel strategy 4
5. Day 3: Thoughts on additional customer segment
and channel
• Is customized women shirt a viable market for us?
Could be at late 20s to early 30s age bracket; potentially higher margin segment
Convenience not a priority, while bespoke measurement and quality were.
• What are students’ needs/concerns in terms of shirts purchasing?
$$: Student discount/ rewards (StudentUniverse)
• What is the most appropriate channel to get customers?
Given our current target customer’s shopping behavior,
mobile may have an advantage over web
• Is there a more effective way to reach the customers?
We could structure a bundling of different products
with a pre-determined ordering schedule (ala Proactiv)
Now what?
• Continue to refine customer segment by interviewing more professional women
• Discover what is the price tolerence for students
• Test whether customers are more receptive to mobile vs. web
• Tease out whether customers would prefer/need a bundling of products that ships
periodically
5
6. Day 3: Deeper dive on cost structure
Traditional outsource model for a shirt
Wholesale
Mills Agent Tailor shop
Distributors
• Cost: [TBD] • Fabric • Commission on • Responsible for
the entire sale customer service,
Cost: $25
(15%) initial contact with
• Roles: Quality customer,
Manufacturer control and measurement,
shipping final alteration
• Tailoring • Shipping
Cost: $10 Cost: $5
Hong Kong NYC 6
7. Day 3: Competitive Landscape
High
Retail Presence
Mid
Travelling tailor NY Tailor High End Tailor
Low FIDDIT
…and multiple
smaller players
$5 $8 $110 $140
0 0 +
Price Point
7
8. Day 4: Customer archetype
Meet Bill
Profile of Bill
• Male
• 28 years old
• Works at a law firm from 9 am to 9 pm
• Annual income of $125K
• Has a taste for customized shirts
• Buys 12 shirts, 10 undershirts and 10
socks a year
• Has an iphone & a blackberry
• No time!
8
9. Day 4: A recurring revenue model
1 2
Customer gets We give the
measured and customer a heads-
chooses their up – they may
packages for the delay/cancel their
year and next order
customer pays
7
2 Days
Repeat Step 2…
21 Months Profit!
Days Customer is
charged
Customer 14
receives their Days
package
Customer
receives their
package
9
10. Day 1 # of customers: 13
• Suppliers • Garment • Convenience • Highly
personalized
production and (in lead • Early to mid-
• Manufacturers new client
distribution time, location, onboarding career men
• Capital processes
• Innovative/targ etc) • More automated • Students going
providers
eted marketing (online) client into internships
• Potential • Accessibility retention
campaign
strategic • Highly processes
affiliates customization
• Physical • Pop-up
assets stores!
• Intellectual • Mobile trucks!
(i.e., brand
• Internet
down the
road) • Dry cleaners
• Fixed costs: salaries and rent • Retail
(for buildings and potential • Potential fees from partners(?)
equipment)
• Variable costs: input costs as
per made-to-order, costs of pop-
up stores
10
11. Day 2 # of customers: 17
• Suppliers • Garment • Convenience • Highly • Early to mid-
personalized career
• Manufacturers production and (in lead new client
distribution onboarding men, whom
• Capital time, location, processes work in
• Innovative/targ etc) • More automated industries
providers
eted marketing (online) client
• Potential • Accessibility retention
(Law, Finance,
campaign Consulting, IT)
strategic • High processes
where
affiliates customization time/convenienc
e is the top
factor
• Physical • Pop-up stores! • Students going
assets • Mobile trucks! ?? into
• Intellectual internships?? (A
• Internet segment with a
(i.e., brand • Dry cleaners very different
down the value
road) • In-office Service proposition)
?
• Fixed costs: salaries and rent
(for buildings and potential • Retail
equipment) • Potential fees from partners(?)
• Variable costs: input costs as
per made-to-order, costs of pop-
up stores
11
12. Day 3 # of customers: 17
• Suppliers (direct • Low cost garment • Convenience • Highly • Cost-conscious
production and personalized
mills or distribution • Price new client early to mid-
aggregators) • Cut out middle onboarding career men, in
man • Accessibility processes
• Manufacturers select industries
• Innovative/target • High • More automated
• Potential agents ed marketing (online) client
(Law, Finance, C
campaign customization onsulting, IT)
retention
• Capital processes where time /
providers convenience is
• Potential the top factor
strategic • Students going
affiliates • Pop-up stores! into internships
• Physical assets • Mobile trucks??
• Network of
partners • Internet
• Intellectual • Mobile app
(i.e., brand down • Dry cleaners??
the road) • In-office Service
• Fixed costs: salaries and rent (for • Retail
buildings and potential equipment)
• Variable costs: input (fabric) costs as • Potential fees from partners(?)
per made-to-order, costs of pop-up
stores, shipping, agent fee, tailoring
costs
• Needs to keep COGS in check
13. Day 4 # of customers: 19
• Suppliers (direct • Low cost garment • Price • Highly • Cost-conscious
production and personalized new
mills or distribution • Convenience client onboarding early to mid-
distributors) • Cut out middle man processes career men, in
• Innovative/targeted • Accessibility • Automated
• Manufacturers marketing campaign (online) client select industries
(mobile trucks) • High acquisition and (Law, Finance, C
• Potential agents customization retention
processes onsulting, IT)
• Capital where time /
providers convenience is
• Potential the top factor
strategic • Students going
affiliates • Mobile app into internships
• Physical assets • Internet
• Network of • Women??
partners • Pop-up stores!
• Intellectual • Mobile trucks
(i.e., brand down • Dry cleaners??
the road) • In-office Service
• Fixed costs: salaries and rent (for • Retail
buildings and potential equipment)
• Variable costs: input (fabric) costs as • Recurring revenue through
per made-to-order, costs of pop-up bundling / pre-order
stores, shipping, agent fee, tailoring mechanism?
costs
• Needs to keep COGS in check • Potential fees from partners(?)
14. Day 5 Total # of customers: 66
• Bundling of select products • Personalized customer
• Suppliers (direct • Outsourcing of shirt • Price acquisition. Offering one • Cost-conscious
manufacturing complimentary
mills or • Bulk purchase of • Convenience registration
Early to mid-
distributors) undergarments direct from
wholesalers • High
appointment for
measurement, fabric
career men, in
• Manufacturers • Low cost garment
production and distribution Customization
sampling and basic select industries
consultation
• Potential agents • Cut out middle man • Repeat appointment(s) (Law, Finance, C
• Innovative/targeted • Customer available on request and onsulting, IT)
marketing campaign
• Capital Service •
billable
Automated (online) where time /
providers client acquisition and
convenience is
retention processes
the top factor
• Students going
into internships
• Physical assets • Pop-up store
• Women??
• Network of • Mobile app
partners • Internet
• Intellectual
(i.e., brand down
the road)
• Fixed costs: salaries and rent (for • Retail
buildings and potential equipment) • Recurring revenue through
• Variable costs: input (fabric) costs as bundling / pre-order
per made-to-order, shipping, agent
fee, tailoring costs, measurement cost mechanism?
• Needs to keep COGS SG&A in check
15. NEXT STEP …
Industries Age
Annual
Etc..
Income
15
17. Potential market size
Total Available Market: $13,480.7M (1)
Served Available Market: $100M (2)
Target Market: $25M
Total Market Size
US Menswear:
Men’s shirts was the fastest
growing category in 2011, with
growth of 8% in current value Served Available Market
terms to US$13.5 billion (1)
Our Take:
While we estimate custom
Target Market
shirting e-commerce is a very
small portion of US men’s shirt
sales, we expect it to grow at a
much higher rate than the total
market
(1) 2011 Men’s Shirts Sales (MEN'S OUTERWEAR IN THE
US, Euromonitor International, May 2012)
(2) Based on J. Hilburn forecasted 2012 sales (>$34M) x
number of serious competitors in the space (3)
17
18. Testing of hypothesis
• Type of Business: Startup
• Proposed Experiments: i) Questionnaire; ii) In-person interviews
• Hypothesis testing
• For each customer segment, more than 70% of potential customers
• i) Can’t recognize our value proposition
• Ii) Dislike one of the possible proposed channels
• Confirmation by potential partners
• i) Not a feasible way to gain revenue
• Ii) Not a accessible channel
18
19. Competitive Landscape Detail
Blank Label Indochino J. Hilburn
Customizable – 29
# of Style Options Customizable – 61 Customizable – 231
Collection (pre-styled) - 77
If You Know Your Size: -You are expected to have One of over 2,000 "Style
- Can enter in details (listed yourself measured Consultants" meet with
above) -Indochino offers video customers to measure them
If You Don't: measurement tutorials
- Enter ten data points that -Indochino will also provide a
are typically known by free tape measure
customer (e.g. height, - Indochino prefers their
weight, collar size, waist) measurement guideline
- Measure your own favorite - If a customer prefers to be
Fitting Options
shirt and provide measured by a tailor, the
measurements company provides a form for
- Send a shirt and Blank the tailor
Label measures it (they
provide a postage-paid
envelope)
- Normally 4 weeks with - Not on website, but 2.5
- Within 21 days for delivery,
standard shipping (free) weeks, per the following
from time of order
-Expedited shipping costs $8 article:
- Shipping is free
and reduces turnaround to 2 http://articles.latimes.com/20
Turnaround Time - Expediting orders is not
weeks 12/jan/29/image/la-ig-shirt-
possible
- If you mail a shirt to Blank side-20120129
Label, it lengthens the
process
19
20. Competitive Landscape Detail (cont’d)
Blank Label Indochino J. Hilburn
Min Price $68 $79 $89
Max Price $145 $99 $169
- If the shirt doesn't fit, Blank - Indochino will reimburse - J. Hilburn guarantees all
Label will make a new one customers up to $75 for items sold and customers
from scratch and will donate alterations by a local tailor who wish to return products
the unused shirt to charity; - If alterations are to cost due to fit issues or
the customer doesn’t pay more than $75 or if the item dissatisfaction otherwise
shipping is unalterable, then may return products via their
- Customers are allowed a Indochino will remake the Style Consultants
single free remake on their customer's suit - Return shipping is free of
Return Policy* - Customers must go charge
first order
- If the Pattern Maker or through a claims process to
tailor made a mistake, Blank initiate the above requests
Label will send a remake - Items can be returned for a
and doesn't require the 100% refund if the customer
original to be sent back is unhappy with the product;
- Remakes are expedited customers are responsible
for shipping
Reported in June 2012: Per May 2012 article:
Indochino has raised about $5 J. Hilburn has raised
VC Funding ??? million in venture capital to date, $12.75M to-date
and additional funding is “on the
horizon” this year.”
* Indochino return information on website refers to suits 20
