beluxed the luxury lending service idea
DESCRIPTION
We are currently working on creating a customer base and researching the pricing , we are also looking for angel investment to help us with our capital expenditure which is mainly the inventory cost of luxury labels.TRANSCRIPT
Luxury Democracy –
BLXD , like the women it is aimed at , believes that Luxury is not about
ownership and flaunting expensive labels but about refinement and
appreciating perfection in design and quality. From this point of view
everyone who understands and loves the great legacy, design and
quality of iconic Luxury Brands , deserves to experience it.
BeLuxed is an online Luxury Service -It is a subscription based Luxury Fashion
Lending Service that offers it’s members an extended Luxury wardrobe through
leased access to some of the most iconic fashion Brands in the world.
It is for people who are passionate about fashion and style and have an intense desire to experience the Legacy, Design Quality and Perfection of iconic Luxury Brands.
• It could be the answer , for people with luxury aspirations but not quite the wallet to match and/or
• It could be a great supplementary resource for people who do own luxury items but would like to try out /experience even more International brands and Designer Merchandise than they currently access
The 2010 released CII-AT Kearney report says the India's luxury market, which is small compared to global standards, is likely to grow three times and touch $ 14.7 billion by 2015 . There is a huge latent demand especially in tier-2 cities which has many new millionaires
Most luxury brands still unwilling to move beyond the exclusive malls and hotels of Delhi and Mumbai, the game-changer in India for them may lie in another factoid in the Bain report: that luxury sales online are over-performing overall web sales, and will grow at 20% in 2010, to e4.2 billion. In that segment, off-price sales account for 30% of online, versus 70% online purchases at full price.
Men do most of the luxury in India, mostly cars and watches, very few women like to shop for international Luxury labels in India they prefer to shop while traveling abroad.
For Luxury to really take hold, India needs more world-class retail spaces, more hi-profile events where women feel the need to wear great luxury brands and various formats need to be explored that allow women to get exposed to
and get used to wearing Luxury brands with the least amount of risk
Smaller items like wallets, perfumes and cosmetics are important and like it or not , ladder brands like Zara and Guess are important too.
Trend 1: Luxury CRM Culture Dramatically Supersedes Operational CRM
Trend 2: Focus on Brand Values and Service Values – Luxury Brand don’t need positioning as much as a
clear and strong identity
Trend 3: Luxury Purges its Out-of-Touch, Arrogant Staffs
Trend 4:Man the Websites!
Trend 5:Clienteling Goes from a Hobby to a Discipline
Trend 6: Luxury Mobile Applications Come of Age
Trend 7: Luxury Equips Sales Professionals with In-Store Mobile Devices
COMMON DENOMINATOR- Democratization of Luxury - out with the snobbish attitude, Customer is in the driving seat, People want individual attention and good service, Technology is a great enabler and differentiator that allows the brand to offer Value-added services and build relationships
Wealth and Luxury Trends
2011 and Beyond – Luxury Institute
White paper
Primary Market Segment (Individuals)
IT professionals –women (and later men) who earn salaries above 15 Lacs PA
Top Business professionals in Retail , Travel and Hospitality
Top executives of Small and Medium sided businesses
Aspiring Models and Actresses
Secondary Market Segment (Non-individuals):
Modeling agencies
Ad/film production houses
Event/PR agencies
Geographies
Bangalore Indian Metros
Rich tier 2 cities (Ahmedabad , Pune, Chandigarh etc)
One time Rentals through a one time contract
online payment with pick up and drop , great for
trying out the services
Membership option
Platinum - Refundable Deposit and rental
charges , Multiple Items at a time, unlimited
borrowings
Free (up to a limit) VAS like Drops and
Cleaning
Member privileges like Previews, book in
advance and
Pre-Auction invitations to bid.
Gold- No Deposit, Monthly advance-paid
fixed fee.
Selective access to Merchandise , One item
at a time, Limited borrowings per month
Paid VAS like Drops and Cleaning
Services:
Online catalog and transactions
Luxury Lease
› Bags and Shoes
› Fashion Jewelry
› High-end Watches
› Cocktail Dresses
› Evening gowns
› Business suits
› Outerwear
Courier Pick-up and Drop
Auctions
Pre-bookings & Previews
Cleaning services for members
Store & Member-to-member Luxury Auctions
Style community & social network
Stylist on call
Member Luxury Listings & Classifieds
Virtual shoot planning & run-throughs for
photographers and publications
The primary sources of revenue are
• Rentals from Long term members- Platinum
• Membership Fees from Monthly members – Gold
• Rentals from Non-member (Virtual walk-ins) individuals or
Institutional bulk rentals
• Final auctions (recovery)
Future sources of revenue
Ads , business listings and classifieds Member to member auction commissions Paid value-added services to existing
customers. Stylists Wardrobe planners & shopping advisors
Weekly outfit planning sessions Personal shoppers Shopping tourism / events
Quarterly merchandise mix planning
• Trend forecasting
• Planning
• Ensure a healthy mix of “classics” and “trend” items
Source Internationally
• From multi-brand websites
• Directly from Brand
• Liquidation websites
Plan ROI for each item to recover 150% of investment
• Cost of purchase + lifetime maintenance
• Rental target per purchase
• Final Auction recovery per purchase
Operations
• Logistics
• Online merchandising & cataloguing
• Customer outreach – Marketing , Promotions & CRM
• Order processing & Delivery
• Payments & collections
• Inventory management & maintenance
Budgeting & Forecasting
• Revenue management
• Cash flow
• Accounting
The basic logic-
Every item on an average has a target of 150% ROI within a set timeframe
(bags have more time, apparel has less time to recover costs and so on)
This return on investment has to happen primarily through revenues from rentals + final auction/sale
Additional revenue streams like Ads, commissions etc. will also contribute to cover overheads.
The largest cost ( and asset) for BeLuxed is inventory which constitutes roughly 60% of our total cost.
That is the nature of the business.
Social Media Marketing – Blogger
outreach, FB, LinkedIn, Twitter
Website marketing – SEO/SEM, Listing,
Banners and Ad words
Press coverage/advertorials in Local dailies
and Lifestyle magazines
Radio interviews (non-paid)
Introductory offers and Member get
member promotions through targeted
email campaigns and tie-ups with other
brands
Partnerships with Clubs/Spas/Travel and
vacation websites/companies and Salons
to have an mini events or events within
event .
Participation in Luxury/Fashion fairs/events.
Institutional buyers (Modeling agencies, Ad
film production houses) are targeted
through sales appointments and Direct
Mailers.
Various options would compete for the share of wallet that belongs
to “pleasure/self-indulgence spending”
Indirect competition could be any of the following: › Purchase of “ladder brands” especially tempting sale season
› Save up and buy smaller /last season's luxury brand items of luxury brands on sale on international website like “net-a-porter”, “The outnet” , “Ventee privee” , “Guild
group, and many more
› Vacations
› Spa/beauty services
› Purchase good quality Fakes?
The above would be more important in the case of walk-ins and
one-time borrowers
Presumably members see value in the brand offering and would
see the BeLuxed offering as unique and not to be compared with
the above types of indirect competition.
True International Luxury Labels
Incredibly stylish and on trend merchandise – Classics with a modern edge
Wide Range for specific occasions like Business events, Cocktails, Club party ,
Day party , Vacations etc.
Jewelry and watches also available
Impeccable attention to hygiene and maintenance of goods
Personalized enrolment and requirement gathering sessions
You can vote for future additions to wardrobe
Classy Service
Amazing auctions to get great brands at dream prices
http://www.linkedin.com/pub/aarti-deoskar/b/b3b/a18
Aarti Saxena Deoskar, SIMS 1999
Sales & Marketing with Multinational
Luxury Hotels
http://in.linkedin.com/pub/pragati-seth/13/7a5/49
Pragati Seth Sharad, SIMS 1999
Sales & BD for IT Services for Europe, India
Veena Srinath, SIMS 1999
Advertising & Marketing Professional http://www.linkedin.com/in/veenasrinath
I can ideate, inspire, strategize,
Design, create, fire-up , problem
solve, hang on and get people to
believe
I can analyze , fine tune , calm-down, negotiate, network
and manage operations
I can sell , realize plans, push people,
network, make contacts, leverage connections and
manage operations
BeLuxed wants to be the most admired and trusted Fashion
Borrowing Service Brand in India.
A service that stylish and intelligent women turn to, when they
want to access genuine Luxury fashion Brands and create
beautiful personal experiences with them, without blowing
up their hard earned cash on outright purchases.