Squared Online 2013 - Module 2 – Claire Nash - Stylr

1. 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.
“Dress
like an
icon”
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

2. The
Business
Idea
A portal updated
with all of the latest
fashion trends of
your favourite style
icons
Push
notifications
when in close
proximity of a
shop that has
stock of your
‘favourite’
item
Coupons that help you
save when buying all of the
latest fashion trends
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
The ability to find
the ideal item of
clothing with
search functionality
Providing the ability
to find an item of
clothing when out
and about

3. Overview of the fashion industry
Global apparel retail industry
value forecast (2014-2017)
$1,800
Spending on fashion items 1999-2009
Breakdown of UK fashion industry
GVA by type of product
6%
$1,600
5%
$1,400
$1,200
4%
$1,000
3%
$800
$600
2%
$400
1%
$200
$0
0%
2014
2015
$ Billion
2016
2017
% Growth
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%
Sources: British Fashion Council, MarketLine
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.
Women's and menswear make up the largest
proportion of GVA within the fashion industry

4. Overview of the fashion industry online
Online retail sales category breakdown
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
Kingdom
10%
18%
20%
14%
4%
2%
2%
Apparel is the second largest
online retail sales category in
the world behind consumer
electronics.
30%
Second largest category in
the UK behind media, toys
and games.
*’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
Worldwide search terms for ‘Beauty and Fitness’ (2009-2014)
40%
35%
30%
25%
20%
15%
10%
5%
0%
2013
2012
2011
2010
2009
-5%
Sources: Euromonitor, Google Trends, Opera Capital Partners
Search interest
for ‘Beauty and
Fitness’ rose
from a yearly
average of
2.62% in 2009
to 31.96% in
2013.
Purchased goods or services on the Internet
via smartphones (2012)
Clothing and
accessories
15%
35%
25%
Books (including
ebooks)
Consumer
electronics
26%
Other
35% YoY growth
of clothes
purchases via
Smartphone in
Europe from
May 2011 to
May 2012

5. The appropriate time for Stlyr...
High street love affair: celebrities are working with high street brands
New Look
become no 1 in
volume for
women’s
footwear
(New Look
Annual Report)
We’re obsessed with
showing off how we look
35 million selfies taken
in Britain each month
(HTC)
Sales
increased
to £802m
(Telegraph)
Sales lift by
10%
(Mail Online)
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)
Consumers what a
persoanlised shopping
experience delievered by
mobile
39% want to receive
peronsalied promotions
(Marketing Week)
Mobiles are becoming
important shopping tools
95% of consumers have
researched a product or
service on their phone
(Google 2012)
Online retail industry will
be worth £50 billion by
2018
Online shopping
accounts for £1 in every
£7 spent
(Verdict 2013)

6. Customer Segmentation (Female)
Group
Overview
Key
demographics
Shopping
behaviour
Internet usage
Source: Experian
Individual Urban Trend
High Fashion for Less
Image as Identity
Best Dresses Fashionista
(1.25% of total adults)
(4.18% of total adults)
(3.31% of total adults)
(2.45% of total adults)
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
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
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

7. Customer Segmentation (Female)
Group
Functional Fashion Seekers
Budget Image
Distinguished Classics
Brand Boy
(3.13% of total adults)
(3.14% of total adults)
(1.86% of total adults)
(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
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
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
Key
demographics
Shopping
behaviour
Internet usage
Source: Experian

8. Value proposition
Single 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.

9. Technology platforms… responsive website and app

10. DESKTOP AND TABLET PLATFORM – KEY FEATURES
Features
Reasoning
Select celebrities fashion style to
dictate what clothes are shown
Less than 1% of retailers offer a truly personalised
experience
(Retail Week)
Filter item searches by size,
colour and price
Hover box to show detail on
clothes
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)
Multiple purchase and delivery
options (including collecting
from store)
31% of consumers want a fixed delivery date
24% want to collect from store
24% want next day delivery
(Econsultancy)
‘My Purse’ gives customer
coupons/deals tailored to their
fashion references and
shopping habits
39% of consumers have redeemed a mobile
coupon in-store
(Nielsen)
‘Favourite’ items can be added
to a wish list or used with the
app push notifications
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)

11. 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
Activities on Smartphone
(Used last 7 days)
80
Used an app
70
Browsed the Internet
60
24%
of
consumers
have
Used a search engine for
product search
50
17%
of consumers
have
16%
of consumers
have
31%
56%
of which
of consumers
have
Purchased a product or
service
40
Used a search engine for a
general search
30
Accessed a social network
20
Reviewed websites, blogs or
message boards
10
Looked up directions or used
a map
Used online/mobile coupons
for shopping
0
18-24
25-34
Sources: Google 2012, Wikipedia
intentionally
used their
smartphone
to compare
prices and
inform
themselves
about
products
changed their
mind about
purchasing a
product/service
in store as a
result of
information
gathered from
their
smartphone
changed their
mind about
purchasing a
product/service
online as a
result of
information
gathered from
their
smartphone
purchased a
product/service
on their
smartphone
have made a
purchase in the
past month

12. Location of Usage (Used last 7 days)
Actions taken after Local Search
100
50
90
45
80
40
70
35
60
Home
50
On-the-go
40
In a store
Called the business or service
Made a purchase from a
business in-store
30
25
Made a purchase from a
business online
20
Visited a business
30
15
20
10
10
5
0
Visited the website of a
business or service
Looked up business or service
on a map or got directions
0
18-24
25-34
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
Source: Google Our Mobile Planet 2013
18-24
25-34
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

13. MOBILE PLATFORM AND APP – KEY FEATURES
Features
Reasoning
Select celebrities fashion style to
dictate what clothes are shown
Filter item searches by size, colour
and price
Hover box to show detail on
clothes
As detailed on previous slide
Multiple purchase and delivery options
(including collecting from store)
‘Favourite’ items can be added to a
wish list or used with the app push
notifications
‘Get me there’ map
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)
Push notification (when is close
proximity of a ‘favourite’ item)
38% of consumers are unsure of what brand to buy and
where
(Google, 2012)
‘My Purse’ used to collect loyalty
points
Probability of selling to an existing customer is 60-70%
(Econsultancy)

14. 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

15. SWOT analysis
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

16. Key factors
driving the
marketing
strategy
Consumers take a
multi-device path to
purchase
Apparel shoppers are
unsure what brand to
buy and where
Consumers want a
personal shopping
experience (especially
on mobile)
Smartphones are
becoming important
shopping tools
(product research
location and purchase)

17. Marketing Objectives (overview of 3 years)
Stlyr
Desktop
website
Tablet
website
Mobile
website
App
Transactions
Transactions
Transactions
Downloads
3.15m transactions
689k transactions
462k transactions
Conversion Rate
Conversion Rate
Conversion Rate
5.6% conversion rate
2.6% conversion rate (including
redemption of coupon in store)
1.2% conversion rate (including
redemption of coupon in store)
App 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)
Site Visits
Site Visits
26m total website visits
38m total website visits
4 star rating on both Google Play and
iTunes
Repeat Purchasing
Repeat Purchasing
Transactions
Repeat purchase every 60 days = 113k
individual customers
Repeat purchase every 90 days = 115k
individual customers
Reviews
Site Visits
56.3m total website visits
Repeat Purchasing
Repeat purchase every 45 days = 388k
individual customers
Account for 30% of m-commerce sales
Repurchasing
1.7% of app users repurchasing
(including redemption of coupon in
store) through app every 90 days =
66.7k purchases annually
Page ranking
Appear within the top 3 page results for 50 keywords
Coupon Redemptions
10% of all coupons
Transactions (including redemptions of in store)
Account for 49% of all sales = 662k purchases
Customer base and Transactions
4.5 millions transactions = £12m revenue
634,114 individual customers

18. Marketing Plan (year 1)
Awareness
Knowledge
Consideration
Selection
Pre-purchase
Display banners on 3rd
party websites (across
desktop and mobile device)
Purchase
Coupon
Google Maps
Satisfaction
Loyalty
Advocacy
Post-purchase
Email: review request and
personalised deals
Retargeting display banners on 3rd
party websites (across desktop and
mobile device)
Company blog
Press /newspaper
ads
Company blog
Company website
and app
Retargeting: banner, social
media and PPC advertising
App push notification
Retargeting: banner, social
media and PPC advertising
Email sign up
Social media profiles
and advertising
Google Maps
SMS confirmation
PPC and SEO (desktop, tablet, mobile)
PPC (desktop, tablet and
mobile)
Email confirmation
Social media profiles
and advertising
Exclusive event

19. CUSTOMER JOURNEY
Aspiration
I love Rita Ora’s style
and I’d love to find an
outfit she would wear”
“I need a new outfit for
Beth’s birthday party”
Customer
mind-set
Consideration
Brand Advocate
“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”
Using
•
•
•
•
•
•
•
•
•
•
•
• Blog (company and
affiliates)
• Content marketing
• Reviews
• Social Media
• Website
• Email (sign up)
• PPC
• SEO
• Location/maps
• Incentives
•
•
•
•
•
•
•
•
•
•
•
•
Digital display
Social media (profiles)
Social media (advertising)
Email (sign up)
Press ad
PPC
SEO
Press releases/newspaper
Partners
Celebrity endorsement
Mobile ad
App
Website
Social (sharing)
PPC (local)
Email (confirmation)
SMS (confirmation)
Location/maps
Coupons/deals
Loyalty
Purchasing
Moment of Sale
Researching
Explore & Consider
Awareness
Witnessing
Content marketing
Blog
Exclusive events
Celebrity endorsement
Retargeting
•
•
•
•
•
•
Digital display
Email
App (push notifications)
PPC
SEO
Social media (advertising)
Becoming inspired
• Blog
• Friends
• WOM
Sharing
• Social media (profile)
• WOM

20. Revenue Stream
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
Potential Partners

21. Costing, Profit &
Growth Plan
Profit (3 year projection):
£10,601,531
Growth Plan
Year 1
Targets
•
•
Development of Google
Play app released in the UK
Partner with 30 of the UK’s
biggest (300+ stores)
fashion retailers
Year 2
•
•
•
•
•
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
Year 3
•
•
•
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