swapzaar updated short pitch deck - 28 june
TRANSCRIPT
INDIA’S FIRST
FASHION
RE-COMMERCE
MARKETPLACE
SWAPZAAR
India’s first dedicated & curated Online marketplace for pre-owned
fashion.
High-street & Upper-premium now, Luxury brands soon
Full spectrum of goods: Garments, bags
shoes , jewelry & accessories
Peer-to-peer buying and selling
International Peers & Brand muses-
Thredup
Threadflip
The RealReal
Shop hers
We use a Store Credits/points System - so once the customers
buys our credits (called buttons) they are available in her account
and her buying and selling experience becomes hassle free.
The button system builds stickiness:
Buy buttons on sale & use as required
Save and spend on the website
En-cash when ready
SWAPZAAR OVERVIEW: VERTICAL MARKETPLACE
SWAPZAAR OVERVIEW: VERTICAL
MARKETPLACE
We control quality through the curation process
Now through virtual inspection
Later through 3rd party physical inspection & validation
of Luxury Brands.
People can expect genuine, branded, premium & luxury
fashion resale items at fair prices
No wholesale ad listings
No bargaining & No phone contact required
Buyer protection- Escrow system
Old listings are shown as sold-out
Cash-out allowed but rules apply
Platform fee of 10% only when cashing out.
Self- regulatory community
Paid Value added services for members
White glove service
Previews & member discounts
Closed-door auctions
SWAPZAAR: TARGET GROUP
BUYER
20-44 yrs, Female
Urban student or working woman, home maker
married to IT professional
Spends > INR 60k per annum on fashion items
Mostly shops Zara, Mango, Aldo and upper premium
brands on sale
Shops impulsively
Aspires to own real luxury brands
Digitally savvy, shops on sales and always feels she
doesn’t have anything to wear
Heavy reader of Fashion magazines & celeb style
blogs- dreams
Has to balance budget and plan carefully to be able to
own the brands she desires
Highly competitive on social media
SELLER
30- 50 yrs, Female
Urban Working/business owner, home maker married to
entrepreneur
Spends > INR 2 Lacs per annum on fashion items-
discerning & strategic shopper
Owns at least 5-10 true luxury brand items , and plenty of
premium branded items
Still looks for VFM within luxury and would be reassured of
her new items have good resale value
Aspires to live Le Dolce Vita and have more brands in her
closet and be the social Diva
Digitally savvy, shops at international shopping sites or
when she travels or through friends living abroad
Insecure about looks & style, tracks celebs and emulates
them
Highly competitive on social media
Both are very similar in overall mind-set.
One has more money but could use even more disposable cash to spend.
The other needs options to access real luxury brands for great prices.
Both would recognize & desire a ―sweetly priced‖ vintage Chanel necklace.
Key partners Key activities Value proposition Customer relationships Customer segments
Logistics Acquisition Selection Transparency Buyers
Authentication Listing & merchandising Access Trust- buy back, rent and buy,
Escrow Sellers
International vintage
goods suppliers Marketing & Branding Price Confidentiality Traders
Network of sellers Sales Convenience Mostly women, heavy
eCommerce users
Delivery Discretion
Key resources Channels
Platform
Web
Human: Authenticators & vintage hunters
Mobile: App, mobile web
Inventory
Cost structure Revenue streams
Inventory Sale of goods on re-commerce boutique
Marketing Commission from sale of items on marketplace
Product development Revenue from Value added services
Logistics- for re-commerce boutique Membership fee
Operational cost Rentals income
3rd party commissions Placement ads
BUSINESS MODEL : SWAPZAAR
DIRECT COMPETITION:
HEATING UP BUT NOT SCALING UP JUST YET
Precared.com
Online, Mumbai, Est: ~2011
Mostly baby goods
Now getting into fashion
Revenue- 8 Lacs PM
Investor: MyFirstCheque
Branded Bargains
Brick & Mortar, Mumbai
Est: ~2012
Luxury fashion goods
Mostly bags & some garments
Revenue- Unknown
Investor- Unknown
Confidential couture
Online, Delhi, Est: ~2012
Luxury fashion goods
Mostly Bags & accessories
Revenue- Unknown
Investor- Unknown Zapple
Bangalore, Est: ~2015
Model not sure
Pre-owned celeb clothing
Shop closets of Fashionistas
Revenue- Unknown
Investor- Unknown
7
INDIRECT COMPETITION:
NOT EXCITING FOR FASHION CATEGORY
OLX, eBay, Quickr
Mostly cars, furniture & household
goods
Established market: Listings
Huge user base is an advantage
Heavy investment in marketing
Trying hard to push Fashion
category
People dislike the experience
when it comes to buying & selling
fashion on these platforms
SWAPZAAR COMPETITIVE ADVANTAGE:
BRINGING TOGETHER THE BEST FEATURES
Niche: when compared to OLX, Quickr & eBay we are only about fashion & lifestyle.
Scalable: Focus is on Upper premium as well as Luxury brands
Go beyond just bags into shoes, clothes watches, Jewelry
and beauty
Marketplace model
Easy shopping experience
Confidentiality
Buyer protection: Authentication, refund/ buy-back guarantee & Escrow
Value added services:
Rent: Try n buy for a month
Flash auctions
Membership fee for special access & discounts
Strong marketing in Tier 2 luxury cities
13
CHALLENGE- BREAKING THE CATCH-22
It is crucial to attract good sellers so that the catalogue starts looking healthy- this is new to them.
The buyer’s experience should be like any good eCommerce site- but not necessarily very new.
We break the cycle by introducing 1000 items into the catalogue as a Re-commerce store
We make buying easy and risk-free by offering Hire- use- return/buy style rental options which could boost sales and rental revenues.
20
INDIA MARKET OPPORTUNITY:
TOTAL ADDRESSABLE MARKET
India now has a 73.9 million Internet users (conservative number - some say its much
more)
Females comprise only 39% of the Indian Internet population
amounting to approximately 30 Million
75% of internet users are under 35 years in India so making our addressable TG
approximately 23 million
Since about 70% internet users are urban, this would mean the user base is
approximately 16 million.
TAM= 16 million URBAN female internet users, below age 35 years.
(we can include a growing population of women between 35-44 (young mothers) who also
use the net heavily in India and internationally they are the TG for fashion resale.
NOTES- Calculations based on these numbers:
http://www.medianama.com/2013/10/223-comscore-2013-india-future-in-focus-internet-population-in-india-at-74m/ http://www.livemint.com/r/LiveMint/Period1/2013/11/14/Photos/g_charticle_web.jpg
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MARKET: FACTORS FOR EXPLOSIVE GROWTH
Awareness of Luxury brands is growing as is the aspiration to own them
Incomes are not growing at the same pace as aspirations
The fear of the recent recession is still etched in people’s minds
Global pre-owned fashion markets have established that there is no stigma in purchasing pre-owned goods
Upper premium brands have already vetted the appetite for higher spending on fashion
Pre-owned luxury can be the next logical step towards owning true luxury brands
Before: circa 90s- 2005
Later: circa 2005-2011
Abroad
Abroad
Abroad & Metros
Now: circa 2011-2020
So easy to jump
12
SNAPSHOT: GLOBAL RESELLER THE REALREAL
The RealReal: Total funding to $83 million (Series D $40mn in April 2015)
Revenue in 2014-15: $100 million / Target revenue for 2015-16: > $200 million
Sold >1 million items since opening four years ago
Biggest differentiator- Consignment model; users send their products to centralized
warehouse, the items are authenticated, uniformly photographed, and sold, No information
released about the seller.
The anonymity is appealing to both high-profile individual sellers — like celebrities — as well as upscale
boutiques and designer brands that need to offload unsold inventory. And it makes for a more seamless
experience for the consumer at both ends. There's no dealing with disgruntled buyers or irresponsible
sellers.
Fund utilization- Buy more product, price it reasonably and possibly M&A.
Fastest-growing categories are fine jewelry and watches & menswear.
Hard luxury was up 225 percent in 2014, expected to jump another 250 percent in 2015.
Men’s fashion was up 225 percent in 2014, and should more than double in this year.
Strongest competitor in Luxury Consignment space: The London-based Vestiaire Collective,
which has raised $31.7 million.
Vestiaire has made a serious push in the U.S.
The biggest difference is that Vestiaire is a true marketplace model- it allows sellers to post directly to
the site, and to set their own prices.
38
IS RE-COMMERCE A REAL TREND ?
Consumption trends show that
ReCommerce will be an
increasingly popular way for
aspirers to trade up to luxury
brands; younger consumers
aspire for bigger brands earlier
in life…while mature luxury
buyers look to generate cash
from their idle assets.
References:
http://fashionista.com/2015/04/the-realreal-fund-raising-2015
http://blog.threadflip.com/post/56162208301/the-economics-of-a-womans-closet
http://dailysavings.allyou.com/2014/04/11/what-to-do-with-old-clothes/
http://www.dailyillini.com/features/health_and_living/article_55c84b38-701e-11e2-b390-0019bb30f31a.html
http://pop-break.com/2011/07/01/trends-on-trial-thrifty-like-a-rockstar/
Venture capitalists are behind the
thriving re-commerce industry.
Nearly $300 million is invested in
online fashion resale — $100 million in
2014, up from $40 million in 2013.
By April 2015, $70 million was already
invested.
Read thredUP’s 3rd Annual
Resale report here
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OUR MISSION
To be the Leading Brand in the
Indian Premium & Luxury
Fashion Consignment
Space.
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OUR VISION
To be the Brand that re-defines how young
Indians build their wardrobe (and therefore
their personal style) by bringing the power of
pre-owned fashion to them; via the web and
mobile platforms.
―There’s been a change in mind-set, Consignment shopping
used to have a stigma to it, but as the younger generation—
who have learned from the recession—move into the
workforce, they’re more open-minded about recycling and
reusing, and fitting that into their lifestyles.‖ –
the SnobSwap founder
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CORE TEAM PROFILE: DIRECTORS
https://in.linkedin.com/in/aartideoskar
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,
Kick-start, strategize,
design, create, problem
solve and persevere
I can analyze , fine
tune, stabilize,
motivate, negotiate,
network and set up
operations
I can sell, negotiate,
leverage connections,
drive people, drive
efficiency, multi-task, and
manage operations
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CORE TEAM : TO BE ADDED
CTO/ Product
manager
Online marketing
Manager:
SEO/SEM
Social Media
COO & Alliances
for
ReCommerce
& Marketplace
24
Contact Details:
+91.9901989807/+91.8800355998
THANKS FOR YOUR TIME!