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STYLUS The Fashion social network PowerPoint Presentation
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STYLUS The Fashion social network

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STYLUS The Fashion social network

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  1. Stanislav Rost Justin Ashton Sherife Abdel Messih STYLUSThe Fashion social network

  2. Apparel Retail Market Facts Stylus narrows the gap between apparel retailers and consumers Average US consumer spends ~$250/year online on apparel (30% annual growth) Apparel retailers / designers spend >$1.2B annually on market research US Retailers spend tens of millions more on excess inventory / management costs

  3. Vision • Bridge the gap between fashion retailers, designers, manufacturers and consumers • Convert fashion-aware to fashionable customers • Provide fashion democracy, direct feedback to the industry • Channel the power of a fashion social network towards online purchases, quality market research

  4. Stylus For End-Users • Fashion-oriented social network • Upload your own photos, label your apparel • Get peer and expert review of your style, suggestions for new clothes • Any suggestion is annotated with photos, links to buy • Photomagazine of attractive new fashions • Earn authority, capabilities, and priority in giveaways with participation and friend invites

  5. Stylus For the Industry • Integrate your clothing database into discussions, one click away from impulse purchase • Targeted advertisements based on user profiles • Worldwide exposure and word-of-mouth advertisement • High-quality market research and pricing estimation • Demographics, geographic coverage, confidence

  6. Competition

  7. Projected Revenue Streams • Ads Affiliate Apparel Sales • - Banner - Large, brand-name retailers • - Featured content - 3.5% avg. commission • - Fashion Integrator Tool • Market Research Direct Apparel Sales • Automated report delivery - Featured small designers • $1K/per item minimum - 10% fee commission Stylus’ model includes no inventory costs * Commission is the cut taken from partner apparel distributors/retailers

  8. Market Social Network (SN) Users Fashion Conscious Consumers • Woods and Poole (US) • 26% of all in the target demographic are fashion-conscious • Pew Research (US) • 75% teens are SN users • 30% 20-35 yr old SN users* • 50% SN users check once/day US Fashion Conscious/SN users = 26% * 30M SN users = 8M users Target Demographic: 15-35 year olds, fashion conscious, social network users * Very conservative estimate, no exact data available for entire age range

  9. Market cont. • 2008 Online Apparel sales to hit $12B (Jupiter) • As of Jan 2006, people spent $243/year on clothing purchases online. • Fastest growing online segment (25-30% CAGR) • Our total apparel market • 8M consumers (5% commission) spending $243/year • $97M annual market for apparel sales on Stylus • In 2004, $1.2B was spent on apparel market research • Goal is to capture >2.5% by year 5, earning >$30M/year

  10. Assumptions on growth • Took middle of the road growth projection • Bounded at 5M users • $1K/item under market research • Average apparel sale of $80/year/user

  11. Revenue Projections

  12. Operating Expenses

  13. Cash Flow • Average quarterly cash burn rate: • Year 1: $145K • Year 2: $390K • Year 3: $277K Cash flow positive in Year 3rd Qtr, FY3

  14. Marketing • Primary goal in first 3 years is to grow the SN user base • Target demographic is 15-35 fashion conscious, SN users • Create online buzz through ads in SNs, fashion forums, groups • Beta launch parties in key cities • Target college campuses heavily in first 2 years • Industry trade shows • Demonstrate power of showcasing new designs on Stylus • Create excitment among up and coming designers • Market Research • Start by letting select partner retailers (Guess, Gap) use our functionality for free • First target retailers / designers with huge research budgets Goal: Highest quality website / easy interface that will attract users

  15. Competitive Advantages • Lower cost market research • Unique domain-specific search, review tools • Inherent switching costs of SN users • Involved and committed user base • Deep integration with the fashion industry

  16. Team • Justin Ashton, Acting CEOMBA Candidate, MIT Sloan School of ManagementAir Force Intelligence, 6 yearsElectrical Engineering Background • Stan Rost, CTOPhD Candidate, MIT CSAILComputer Networks & Systems • Sherife Abdel Messih, VP Business DevBachelor Degree Candidate, MIT Mechanical Engineering/International Development

  17. The Offering • $600 thousand seed round • Series A: $9 million • $7 million: operating expenses • $1 million: marketing / Biz Dev expenses • $600 thousand: legal and patent expenses • $1 million: unforeseen expenses

  18. Summary • Goal: • Provide quantum leap into Web 2.0 for designers • Become technological cornerstone of the industry • Offer one-stop-shop for fashion / apparel consumers