Transcript styleME - Potential

styleME
styleME… is a company partnership between Lana Mokhtar and Neha Gandhi who aim to serve the
women in the Middle East and are supported by a useful list of stylists who are both dedicated and
talented.
Lana Mokhtar
Lana is an Egyptian and holds a Bachelor’s degree in Mass Communication. She
has experience in brand management with leading multi national companies and
has a keen sense of fashion.
Neha Gandhi
Neha is of Indian origin and holds a Master’s in Business Administration from
a reputed business school.
Her forte is customer insight and brand
management in FMCG and consumer durables industries.
Our Elevator Pitch
By merging the fashion sense of experienced stylists
and the technology of algorithms, our aim is to allow
every woman to look her best by providing her with her
own personal stylist at an affordable price.
Project Name - styleME
Partners
Key activities
Value proposition
Customer relation
Sourcing of the
products at best price
Matching the clothes
and accessories to best
fit customers style and
preference
Top retail fashion
brands offer us
wholesale prices to sell
their goods through
our channel
Customer segment
Social media Marketing
Offering an affordable,
stylish personalized
and convenient
shopping experience
that saves time.
Using feedback to get
better by time
Resources
Surprise element
PR coverage
Customers promoting
styleME on their own
social media with an
incentive of a future
discount
Women of all
nationalities between
the age 25 to 55 who
live in UAE
Channels
Busy mothers and
working women
Sourcing of the clothes
and accessories
Logistics staff, stylists,
delivery men,
marketing manager
Warehouse, delivery
van
Cost
Goods
Logistics
Packaging
3 to 4 day door to door
delivery
Free returns
Revenue
Office space
Payment methods: Cash on delivery or online
checkout during delivery
Marketing
Non refundable 70 AED styling fee
Human resources
30% mark up on each item
Delivery
Warehouse
styleME website
Website
Quarterly sale
Executive Summary
Market intelligence data & recent trends have established the fact that ecommerce is booming in the Middle East and people are spending more
time on the internet searching for better offers and products. We also
see that more and more women are spending time looking for clothes
and accessories online. On a separate note, we spoke to women and
realised that given a choice and the right price, every woman would
want to have her own personal stylist – one who ensures she looks
fabulous always. We combined the demand / market trend with the basic
necessity of every woman and gave birth to styleME which is an online
service that blends expert styling and a unique product to deliver a
shopping experience that is truly personalised for you. UAE, we believe
is the perfect market to start with since fashion is not a luxury but a
necessity in this part of the world and in need of an experience that is so
unique. We have the expertise and the will to transform a great idea into
a successful business which will exhibit great returns year on year
(financials as attached).
Market summary
• Geographical market selected to launch styleME is UAE. This market is lucrative because fashion is not a luxury but
a necessity in this part of the world. People in the UAE take fashion very seriously and spend their money to up
their style quotient
• A bit on the statistics – Population of UAE is 9.3 million and our target audience is approximately 2.1 million women
• UAE has 78% internet penetration which is growing and this makes it a lucrative market for such an initiative. Online
spending in the Middle East is expected to grow from $9 billion in 2012 to $15 billion by 2015
E-commerce in UAE is growing – some facts:

UAE has the highest percentage of internet users who shop online,
compared to other countries in the Middle East. B2C 2010 ecommerce sales growth in the UAE was US $2 billion, 55% to 60%
of the total GCC e-commerce sales, according to Visa

The GCC e-commerce industry is estimated to grow to US $15bn
by 2015, up from $3.5bn in 2010

32% of online shoppers in the Arab world are women. 17% buy
clothes and 14% buy accessories online

Users are motivated to shop but the main barrier preventing online
purchase is a lack of trust in payment, an issue cited by 43% of
internet users in the Arab world. Not being able to return the goods
is another hiccup
Opportunity
Most women pick safer options in clothes; they don’t take risks with new colors or styles
Busy mothers and working women have no time to shop
Busy women have to give up on time with their families and friends in order to shop
Others start not to give much attention to the way they dress. This consequently lowers their self esteem
Then there are those who shop a lot but are not well turned out because they find it frustrating to mix and match things
Target Segment
Women (Local Emiratis, Expat Arabs, Asians, Westerners etc.) from the age of 21 to 55 years who live in the UAE. Our target
is working women & stay at home mothers who would like to stay stylish while they enjoy the convenience of clothes /
accessories being hand-picked for them by expert stylists and delivered at their door step
Business Concept
An online fashion retailor for women that offers an affordable, stylish,
personalized and convenient shopping experience that saves time.
Avoid the hassle of parking at the mall, browsing through several
options, trying them on and the long queues during check out. Visit
www.styleMe.com and signup to always stay stylish.
Step 1- Create your fashion profile
Clients signup and enter all their information:
 Budget
 Size, measurements, color preference
 Lifestyle information
 Particular dress code
Social Networks:

Clients have the option of allowing us to access their Facebook, Instagram and Pinterest profiles.

By studying our client’s profile, we get an idea of how to best dress her.
Step 2- We do our magic
styleME’s unique algorithm analyzes the customer data to help our team of stylists study each
customer profile. The stylists select 5 items from our existing inventory that would fit our client’s style,
body shape and at the same time give her a fabulous makeover.
We add a “how to wear” polaroid images which shows our client the different ways she can wear each outfit.
Step 3- You receive the package
Our delivery man will arrive at the client’s door within 3 to 4 working days.
Our client has to pay a flat rate of 70 AED styling fee.
She has the option to purchase any items she likes and to return any item she doesn't like.
She pays for the items she decides to keep.
For those who are apprehensive, can choose to pay cash on delivery. Others can pay online through our website.
Step 4- Your feedback
After purchasing the items the clients go back to styleME website and provide their feedback regarding each item.
Any comments with regards to the style, size, fit and type of attire will help our stylist to arrange for a better pick for the our client’s next order.
We incentivize our clients with future discounts / free styling / free outfits to ensure they leave a feedback for us and at the same time promote us on social media –
Facebook, Twitter & Instagram.
Claire registers on styleME by
filling out a simple form with her
basic information and style
preferences
The stylists get to work ; they get
to know Claire better through
the details she has provided and
through her social media page
Claire gives her
feedback and
makes the
payment (online /
COD) for the
items she keeps.
The feedback is
fed into the
algorithm making
Claire’s next
purchase more
personalised
5 items are handpicked by styleME stylists and
beautifully packed for Claire. Polaroid images are
placed inside the box showing her how to wear and
style each one of the items in the box
Claire receives the box
within 3- 4 days from
the order and it’s a
complete surprise for
her..
Out of the 5 items, Claire can choose to keep what she likes
and return the things she doesn’t like
One of our Customers
• This is Claire– 31 years old. She is
married and she lives in Dubai.
• She works as an Assistant Marketing
Manager with a MNC and has a
monthly income of 16,000 AED.
• She hardly gets any time to shop but
the nature of her job requires her to
be well dressed at all times.
BEFORE
AFTER
Confidential
The transaction with Claire
1’st Pick - Top
2’nd Pick Jeans
3’rd Pick - Top
4’th Pick –
Jump Suit
5’th Pick - Top
Base Price 200 + 30% markup
260
Base Price 160 + 30% markup
210
Base Price 100 + 30% markup
130
Base Price 270 + 30% markup
350
Base Price 100 + 30% markup
Fixed styling fee
130
70
1300
In case 3 items are kept, total price is AED 890
Profit AED 260
Our value proposition
Our value proposition is the 'surprise' element of our business and the
'personalised' experience we offer our customers. The USP is that every woman
can now afford to have her own personal stylist through styleME. She saves time
and the effort to shop and yet gets to wear the latest trends and be well turned
out at all times.
 Affordable yet personalised
 Try the clothes in the comfort of your home
 Save time
 Option of paying cash on delivery (research says that people aren’t comfortable
using their credit cards for online purchase)
 The surprise element
 Return the things you don’t like – Free and Easy Returns
 We give styling tips and tell you how to wear
 Gets better with time – you give us your feedback, we get to know you more and we
serve you better each time
STRENGHTS
WEAKNESSES
1. Clothes and accessories handpicked by stylists for women keeping in
mind their likes, dislikes and budget.
2. Every woman can now have a personal stylist at an affordable price
3. Avoid the hassle of driving to the mall, finding parking, going
through endless options (and still not finding something you like), long
queues to bill …
4. Your style will be delivered at your doorstep
5. Still not enough? StyleME gives you the option of ‘Cash on Delivery’.
6. Too good to be true? Here’s more - We also give you the option of
returning goods that you don’t want to keep
7. It’s a pleasant SURPRISE!
8. Integrating data analytics and algorithms would help fine tune what
we know about our customers and also help us serve them better
1.
2.
3.
4.
OPPORTUNITIES
1.
2.
3.
4.
Highly scalable to include more product offerings for not only
women but men and kids as well
Expandable to more geographies like Saudi Arabia
A mobile app and strategic tie-ups with the likes of Glam box
holds more opportunities for growth
More developed algorithms would help fine tune what we
know about our customers and also help us serve them
better
Critical to the plan is the information gathered from each
of the customers – the picture based form might be too
tedious to fill
It’s a marketing extensive initiative and word of mouth
would be critical.
Inventory management would be a challenge as we have
a return policy in place.
The malls in UAE offer a great shopping experience
THREATS
1.
2.
Possibility of the business proposition being replicated
Other online stores become more popular
Go to market strategy
Objectives
1. Increasing traffic to the styleME website and thus the number customers
2. Have a high conversion rate and increased customer base
3. Strengthen positioning, increasing awareness and visibility in the market
4. Customer Retention and Growth through repeat purchases
Marketing channels
1. Social media marketing: Promoted posts and sponsored stories on Facebook.
Also use Twitter and Instagram as marketing channels. The customers will be
encouraged to share positive reviews on our owned media channels by
incentivising them through future discount options. Word of mouth will help us
create the initial buzz.
2. SEO/SEM: In order to drive traffic SEO will be implemented. SEM shall cover
aspects such as pay Per Click Adverts, Paid Inclusion and Ads on Search Engine
Results pages (SERPS).
3. SMS marketing: This will be a good platform to reach target audience
4. Email marketing.
5. PR, media coverage and content marketing
5 year financial projection
We are expecting to increase our
customer base to 376,000
people by the end of year 5
We are estimating a Net Profit of
AED 71 Million by the end of Year 5
5 Years Estimated Number of Customers Vs. Net Profit
500,000
80.0
450,000
71.3
70.0
400,000
60.0
350,000
267,076
376,043
50.0
300,000
48.4
210,761
250,000
40.0
Net Profit (in M AED)
Number of Customers
36.7
200,000
30.0
101,123
150,000
20.0
100,000
16.5
11,865
10.0
50,000
0.8
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Year 1
Year 2
Year 3
Year 4
Year 5