“Dress like an icon”

Updated with all of the latest fashion trends YOUR celebrity icons are wearing, Stlyr gives you a completely personalised and taylored experience when shopping for clothes online whislt at home and on the move.

Stylr provides a hassle free shopping experience by bringing items of clothing, from all fashion retails suited to your celebrity icons styles, so that you don’t have to shop around for the ideal piece or right price.

Claire Nash

Module 2 - Google squared November 2013

The

Business

IdeaPush

notifications

when in close

proximity of a

shop that has

stock of your

‘favourite’

item A completely

tailored

website

experience

based on the

individuals style

preferences

Relevant items of

clothing pulled in

from all fashion

retailers so there is

no need to shop

around

A portal updated

with all of the latest

fashion trends of

your favourite style

icons

Providing the ability

to find an item of

clothing when out

and about

The ability to find

the ideal item of

clothing with

search functionality

Coupons that help you

save when buying all of the

latest fashion trends

Overview of the fashion industry

Women's and menswear make up the largest

proportion of GVA within the fashion industry

Sources: British Fashion Council, MarketLine

Spending on fashion items 1999-2009

The UK fashion industry is estimated to have

directly contributed £20.9 billion to the UK

economy in 2009 making it the 4th largest sector

behind Travel and Tourism, Telecommunications,

and Real Estate.

Breakdown of UK fashion industry

GVA by type of product

0%

1%

2%

3%

4%

5%

6%

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2014 2015 2016 2017

$ Billion % Growth

Global apparel retail industry

value forecast (2014-2017)

In 2017 the global apparel retail

industry is forecast to have a value of

$1,562.6 billion. The compound

growth rate from 2012-17 is predicted

at 4.6%

Consumer

electronics

and

appliances

Apparel Media,

toys and

games

Food and

drink

Furniture

and

homeware

Beauty

and

personal

care

Home

improvement

and home

care

Other*

World 25% 19% 12% 5% 4% 3% 2% 30%

United

Kingdom10% 18% 20% 14% 4% 2% 2% 30%

Overview of the fashion industry online

*’Other’ includes consumer healthcare, tobacco, pet food and pet care, tissue and hygiene products, prescription drugs, sports equipment, watches, sunglasses, handbags, jewellery, antiques,

souvenirs, collectibles, bicycles, candles, vases, pictures frames, and pictures. Sales of services, subscriptions, travel and tourism, and tickets are excluded

Apparel is the second largest

online retail sales category in

the world behind consumer

electronics.

Second largest category in

the UK behind media, toys

and games.

Sources: Euromonitor, Google Trends, Opera Capital Partners

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

20

09

20

10

20

11

20

12

20

13

Search interest

for ‘Beauty and

Fitness’ rose

from a yearly

average of

2.62% in 2009

to 31.96% in

2013.

35%

26%

25%

15%

Clothing andaccessories

Books (includingebooks)

Consumerelectronics

Other

35% YoY growth

of clothes

purchases via

Smartphone in

Europe from

May 2011 to

May 2012

Online retail sales category breakdown

Purchased goods or services on the Internet

via smartphones (2012)Worldwide search terms for ‘Beauty and Fitness’ (2009-2014)

The appropriate time for Stlyr...

Mobiles are becoming

important shopping tools

95% of consumers have

researched a product or

service on their phone

(Google 2012)

We’re obsessed with

showing off how we look

35 million selfies taken

in Britain each month

(HTC)

Online retail industry will

be worth £50 billion by

2018

Online shopping

accounts for £1 in every

£7 spent

(Verdict 2013)

Apparel shoppers need

direction

More than 1 in 3

consumers are unsure

of what brand and

where to buy

(Google, Moving Apparel

Shoppers from Undecided

to Decided in the Path to

Purchase, 2012)

High street love affair: celebrities are working with high street brands

Sales

increased

to £802m

(Telegraph)

New Look

become no 1 in

volume for

women’s

footwear

(New Look

Annual Report)

Sales lift by

10%

(Mail Online)

Consumers what a

persoanlised shopping

experience delievered by

mobile

39% want to receive

peronsalied promotions

(Marketing Week)

Customer Segmentation (Female)

Group Individual Urban Trend(1.25% of total adults)

High Fashion for Less(4.18% of total adults)

Image as Identity(3.31% of total adults)

Best Dresses Fashionista(2.45% of total adults)

Overview

Young, urban women with

confident style and mid-range

spending habits

Young women who are keen

fashion followers and who

skilfully craft their wardrobes

from within their budgets

Young women who achieve

peer approval through clothing

on a very limited budget

Young women with a high

spending capacity who dress in

the best labels

Key

demographics

Age: 18 – 35

Sharers and cohabitees

Urban flats

Upmarket areas

Age: 18 – 25

Living at home with parents

Low income

High disposable income

Age: 18 – 25

Living with parents

Low income

Low-value housing

Age: 18 – 25

Often living with partners

Wealthy homes

High disposable income

Shopping

behaviour

Buy for self only

Pay full price

Buy using debit card

Buy to express personality

Buy latest trends

Below average overall spend

Spends on carefully selected

higher price items

Buys full price

Lowest spend

Spend a lot of time shopping

Fashion very important

Brand and style are key issues

Very high spend per purchase

Designer labels

Focus on quality and style

Use sales to buy even more

expensive items

Internet usage

Source: Experian

Customer Segmentation (Female)

Group Functional Fashion Seekers(3.13% of total adults)

Budget Image(3.14% of total adults)

Distinguished Classics(1.86% of total adults)

Brand Boy(3.44% of total adults)

Overview

Fashion-conscious young men

who search out style at a

reasonable price

Young men with a low budget

but a high sense of image

Men who buy high-quality items

in a classic but considered style

Young men for whom brand

and image is everything

Key

demographics

Age: 18– 25

Living with parents or sharing

Low-value flats or houses

Age: 26– 45

Singles and sharers

Urban flats

High movement

Age: 46– 55

Families with older children

High income

Age: 18– 25

Living with parents

Moderate housing

Shopping

behaviour

Fashion-conscious

Time spent on clothing

Below average spend

Limited budget

Low spend

Seeks new trends

Like to make a statement with

clothes

Doesn’t buy in sales

High spend

Likes sales

Buys good quality

Prefers classic look

Brand and styling important

Above average spend

Buys just for themselves

Enjoy shopping

Internet usage

Source: Experian

Value propositionSingle point for finding the latest fashion items you’ll want to wear, at a price you’ll want to pay, whilst shopping at home and on the move.

Technology platforms… responsive website and app

DESKTOP AND TABLET PLATFORM – KEY FEATURES

Features Reasoning

Filter item searches by size,

colour and price

Hover box to show detail on

clothes

Multiple purchase and delivery

options (including collecting

from store)

‘My Purse’ gives customer

coupons/deals tailored to their

fashion references and

shopping habits

31% of consumers want a fixed delivery date

24% want to collect from store

24% want next day delivery

(Econsultancy)

60% of consumers what to filter search

results for items by size colour and price

when shopping for clothes online

55% want a hover box

(Econsultancy)

‘Favourite’ items can be added

to a wish list or used with the

app push notifications

39% of consumers have redeemed a mobile

coupon in-store

(Nielsen)

71% of 18-24 year olds use their smartphone on-the-go

63% of 25-34 year old use theirs on-the-go

(Google Our Mobile Planet 2013)

Select celebrities fashion style to

dictate what clothes are shown

Less than 1% of retailers offer a truly personalised

experience

(Retail Week)

Sources: Google 2012, Wikipedia

62% of UK population own a smartphone, of which,• 91% (approx. 5.7 million) are 18-24 years old

• 85% (approx. 7.3 million) are 25-34 years old

intentionally

used their

smartphone

to compare

prices and

inform

themselves

about

products

24%of

consumers

have

17%of consumers

have

changed their

mind about

purchasing a

product/service

in store as a

result of

information

gathered from

their

smartphone

16%of consumers

have

changed their

mind about

purchasing a

product/service

online as a

result of

information

gathered from

their

smartphone

31%of consumers

have

purchased a

product/service

on their

smartphone

56%of which

have made a

purchase in the

past month

0

10

20

30

40

50

60

70

80

18-24 25-34

Activities on Smartphone(Used last 7 days)

Used an app

Browsed the Internet

Used a search engine forproduct search

Purchased a product orservice

Used a search engine for ageneral search

Accessed a social network

Reviewed websites, blogs ormessage boards

Looked up directions or useda map

Used online/mobile couponsfor shopping

Source: Google Our Mobile Planet 2013

0

10

20

30

40

50

60

70

80

90

100

18-24 25-34

Location of Usage (Used last 7 days)

Home

On-the-go

In a store

0

5

10

15

20

25

30

35

40

45

50

18-24 25-34

Actions taken after Local Search

Called the business or service

Made a purchase from abusiness in-store

Made a purchase from abusiness online

Visited a business

Visited the website of abusiness or service

Looked up business or serviceon a map or got directions

This information should:

• Dictate the day parts to run mobile advertising (morning,

lunch, evening)

• Help develop a sophisticated retargeting campaign

between desktop and mobile platforms

This information should:

• Dictate the importance of giving the mobile user the easy of calling a store, and

locating & directing them to a store on both the app and mobile desktop

MOBILE PLATFORM AND APP – KEY FEATURES

Features Reasoning

‘Get me there’ map

Push notification (when is close

proximity of a ‘favourite’ item)

28% of 18-24 yo & 32% of 25-34 yo looked up business

map/directions after a local search on their smartphone

(Google Our Mobile Planet 2013)

38% of consumers are unsure of what brand to buy and

where

(Google, 2012)

‘My Purse’ used to collect loyalty

pointsProbability of selling to an existing customer is 60-70%

(Econsultancy)

Filter item searches by size, colour

and price

Hover box to show detail on

clothes

Multiple purchase and delivery options

(including collecting from store)

As detailed on previous slide

Select celebrities fashion style to

dictate what clothes are shown

‘Favourite’ items can be added to a

wish list or used with the app push

notifications

Competition

• Directs visitors through to fashion retailers websites

• Not easy to search for celebrities

• No option to select your favourite celebrity styles and show trends on future visits

• Inconsistency between UK and US product pricing

• Home page ranking 3

• Website centralises fashion labels

• Does not focus on celebrity style, but about making those who are interested in fashion famous

• 67m website visits

• Mobile accounts for over 30% of traffic

• Home page ranking 7

• Advises items of clothing matching, or similar to, a celebrities look

• Directs visitors through to the fashion retailers website

• Limited number of celebrities listed

• Not easy to find an inspirational outfit and where to find the items of clothing

• Home page ranking 3

Strengths • Personal experience

• Number of fashion partners provides variety and

competitive pricing

• Ease of locating store that stocks ‘favourite’ fashion

items

• Updated with latest looks of your favourite fashion icons

• Multi-platform experience

• Accessibility – store coverage across the UK

• Affordable – regularity of deals

Opportunities• Rise of new mass markets abroad such as Brazil,

Russia and China provides intentional expansion

possibilities

• Online sales with the fashion industry are predicted to

continue to grow

• Brand expansion into make-up and hair products

Threats• Competitors adopting the business idea

• New entrants

• Ageing population may have impact on the size of the

18-24 market

• Popularity of independent fashion outlets increasing

• Competitors showcasing items of clothing more

rapidly

Weaknesses • Competing against brands with established brand

images

• Difficult to manage with numerous product lines

• Customer service difficult to maintain

SWOT analysis

Key factors

driving the

marketing

strategy

Apparel shoppers are

unsure what brand to

buy and where

Smartphones are

becoming important

shopping tools

(product research

location and purchase)

Consumers take a

multi-device path to

purchase

Consumers want a

personal shopping

experience (especially

on mobile)

Marketing Objectives (overview of 3 years)Stlyr

AppDesktop

website

Tablet

website

Mobile

website

DownloadsApp rank in the top 3 fashion brands on

Google Play and iTunes = downloaded

by 2.6% of the UK population who own

a smartphone (1m downloads)

Reviews4 star rating on both Google Play and

iTunes

TransactionsAccount for 30% of m-commerce sales

Repurchasing1.7% of app users repurchasing

(including redemption of coupon in

store) through app every 90 days =

66.7k purchases annually

Coupon Redemptions10% of all coupons

Transactions462k transactions

Conversion Rate1.2% conversion rate (including

redemption of coupon in store)

Site Visits 38m total website visits

Repeat PurchasingRepeat purchase every 90 days = 115k

individual customers

Transactions689k transactions

Conversion Rate2.6% conversion rate (including

redemption of coupon in store)

Site Visits 26m total website visits

Repeat PurchasingRepeat purchase every 60 days = 113k

individual customers

Transactions3.15m transactions

Conversion Rate5.6% conversion rate

Site Visits 56.3m total website visits

Repeat PurchasingRepeat purchase every 45 days = 388k

individual customers

Transactions (including redemptions of in store) Account for 49% of all sales = 662k purchases

Page rankingAppear within the top 3 page results for 50 keywords

Customer base and Transactions4.5 millions transactions = £12m revenue

634,114 individual customers

Marketing Plan (year 1)

Awareness Knowledge Consideration Selection Satisfaction Loyalty Advocacy

Purchase

Company website

and app

Display banners on 3rd

party websites (across

desktop and mobile device)

Social media profiles

and advertising

Retargeting: banner, social

media and PPC advertising

Email sign up

Press /newspaper

ads

PPC and SEO (desktop, tablet, mobile)

Company blog

Email confirmation

SMS confirmation

Retargeting display banners on 3rd

party websites (across desktop and

mobile device)

Pre-purchase

CouponGoogle Maps

Google Maps

Email: review request and

personalised deals

Post-purchase

Retargeting: banner, social

media and PPC advertising

Company blog

App push notification

Exclusive event

Social media profiles

and advertising

PPC (desktop, tablet and

mobile)

CUSTOMER JOURNEY

Aw

are

ness

Witnessing

• Digital display

• Social media (profiles)

• Social media (advertising)

• Email (sign up)

• Press ad

• PPC

• SEO

• Press releases/newspaper

• Partners

• Celebrity endorsement

• Mobile ad

Becoming inspired

• Blog

• Friends

• WOM

Exp

lore

& C

on

sid

er

Researching

• Blog (company and affiliates)

• Content marketing

• Reviews

• Social Media

• Website

• Email (sign up)

• PPC

• SEO

• Location/maps

• Incentives Mo

men

t o

f S

ale

Purchasing

• App

• Website

• Social (sharing)

• PPC (local)

• Email (confirmation)

• SMS (confirmation)

• Location/maps

• Coupons/deals Lo

yalt

y

Using

• Content marketing

• Blog

• Exclusive events

• Celebrity endorsement

Retargeting

• Digital display

• Email

• App (push notifications)

• PPC

• SEO

• Social media (advertising)

Sharing

• Social media (profile)

• WOM

Aspiration Consideration Brand Advocate

Customer

mind-set

“I need a new outfit for

Beth’s birthday party”

I love Rita Ora’s style

and I’d love to find an

outfit she would wear”

“I found the ideal outfit at

a price I am willing to

pay”

“Stlyr updates me with all of

the latest styles of my

favourite celebs. I’ll purchase

from them again/tell my

friends about them”

Re

ven

ue S

trea

m

Potential Partners

Revenue will be generated from:

Commission from Partners

5% of each transaction will be paid

on the app and mobile website

11% of each transaction will be paid

on the tablet and desktop website

Advertising

Advertising will be available with the

app and on the mobile, tablet and

desktop website on a CPM basis

Co

stin

g, P

rofit &

Gro

wth

Pla

n

Profit (3 year projection):

£10,601,531

Growth Plan

Year 1 Year 2 Year 3

Targets • Development of Google

Play app released in the UK

• Partner with 30 of the UK’s

biggest (300+ stores)

fashion retailers

• Development of iTunes app

released in the UK and US

• Google Play app released in

the US

• Expand relationship with 5 UK

fashion retailers to the US

• Extend product offering to

makeup and hair products

• Develop the sophistication of

the Google Play and iTunes

app as well as the functionality

of the website

• Develop markets in Brazil,

Russia and China

• Acquire new partners in the

US

• Continue to develop the

sophistication of the Google

Play and iTunes app as well

as the functionality of the

website