Dressier- Your luxury experience-

Ederson ChangYufei ChenRaymond Li

Landon WangJikai Yang

Total interview so far: 136Total interview since last class: 17

Daily Progress SummaryDressier

Interviews:Users: 23Stylists:3

Build a matching platform for fashion female finding stylists in China

Interviews:Users: 28Stylists: 5

Refined both user and stylist group. Discovered new pain point of the user

Interviews:Users: 28Stylists: 1

Male group investigated. Further segmented customer groups and created their VPs accordingly

Interviews:User: 31

Acquired new inspiration and redesigned the entire business as well as the related components

Interviews:User: 10Key Partners:7

Contacted many key partners for validation

Day 1 Day 2 Day 3 Day 4 Day 5

Total interview so far: 136Total interview since last class: 17

DressierDay 1: Offering a matching platform for fashion female to find personal stylists in China (fashion blogger)

DressierDay 2 Key Findings:1. User: Female aging from 15 to 18 are also interested2. Stylist: Very famous internet figures are not interested; instead, moderately

famous internet figure and second-tier stylists are interested in styling service

User•Female age 15 -25•Fashion trend followers•Occasionally having problem matching existing clothes andchanging styles

Stylist1.Popular female internet figures• High Moderate No. of followers (<100k followers)2.Second-tier stylist• female or male

/Celebrity Promo

_____________________

• Marketing campaign (hiring popular stylist to provide free styling for selected users)

/WeChat Pay/AliPay

• Acquiring stylist

Stylist• Reduce risk of

unstable revenue stream for internet figures

• Create additional income for stylist

• Help increase branding (exposure) for professional stylist

DressierDay 3 Key Findings: 1. Male segment tend to have stronger need for styling service2. Users could be further segmented into 3 categories3. Fashion-aware unfashionables have stronger needs for styling at life-changing event

Stylist1.Popular female internet figures• Moderate No. of followers (<100k followers)2.Second-tier stylist• female or male

_____________________

• Marketing campaign (hiring popular stylist to provide free styling for selected users)

/WeChat Pay/AliPay

• Acquiring stylist

Stylist• Reduce risk of

unstable revenue stream for internet figures

• Create additional income for stylist

• Help increase branding (exposure) for professional stylist

User• Fulfill the need of

fashionables to be 'in fashion'

• Provided 'deserted dress' a new life with new matching

• Provide clothing solution for new stage of life

The Fashionables• Female and male, age 15-

25, mid to high personal incomer or family support

• Fashion trend followers• Motivation to create an

customized “unique-style” or to explore different styles

Fashion-aware Unfashionable• Occasionally having

problems matching existing “deserted” clothes

• Need for styling at life changing moment (such as entering career) or big events

/Celebrity Promo

DressierDay 3 Key Findings: 1. Male segment tend to have stronger need for styling service2. Users could be further segmented into 3 categories3. Fashion-aware unfashionables have stronger needs for styling at life-changing event

Stylist1.Popular female internet figures• Moderate No. of followers (<100k followers)2.Second-tier stylist• female or male

_____________________

• Marketing campaign (hiring popular stylist to provide free styling for selected users)

/WeChat Pay/AliPay

• Acquiring stylist

Stylist• Reduce risk of

unstable revenue stream for internet figures

• Create additional income for stylist

• Help increase branding (exposure) for professional stylist

User• Fulfill the need of

fashionables to be 'in fashion'

• Provided 'deserted dress' a new life with new matching

• Provide clothing solution for new stage of life

The Fashionables• Female and male, age 15-

25, mid to high personal incomer or family support

• Fashion trend followers• Motivation to create an

customized “unique-style” or to explore different styles

Fashion-aware Unfashionable• Occasionally having

problems matching existing “deserted” clothes

• Need for styling at life changing moment (such as entering career) or big events

DressierDay 4: Altered the previous business model, rebuilt the business canvas for new model and hypothesis test to catch up the progress

• Luxury Supplier• Bag Cleaner• Delivery• Anti-counterfeit identification institution• Second-hand resellers

• Renting bag tracking• Shipping• Bag cleaning• Marketing• Customer Service

• Bag• Warehouse• Logistics• Luxury Brand

Event-driven Renter• Female, age 19-30, • mid to high personal

incomer or family support.

• fashion trends follower• Budget buyer with

annual income of 100K–300K RMB

Event-driven Renter• Occasional need for

special events• Be able to afford the

luxurious bag which was originally not affordable

• Fulfill the vanity

Luxury Company• Luxurious brand adored

by Chinese population• Experiencing a loss of

sales in Chinese Region

Regular Renter• Female, age 23-40• White collar• High status• Annual income of 300K

– 1M RMB

Regular Renter• To show they have more

bags than they actually can afford, thus, fulfilling their vanity

• Eliminating the risk of bag no longer like or out of fashion

• Office hierarchy Luxury Company• Regain sales after anti-

corruption movement in China

• Counter Counterfeit• Walking ads

• DedicatedE-commerce

GET• Wechat Moment• Weibo Bloggers• KEEP• Review/Rating/Feedback

System• Weekly Fashion MagazineGROW• Expand to different dress

type• Premium subscription

• Luxury bags, warehouse, shipping, cleaning, logistic, website development and maintenance, customer service staff

• Resell to second-hand market

• Subscription

• Pay-per-rental

• Luxury Supplier• Bag Cleaner• Delivery• Anti-counterfeit identification institution• Second-hand resellers• Logistics• Anti-counterfeitprofessionals

• Renting bag tracking• Shipping• Bag cleaning• Marketing• Customer Service• Quality Assurance• Anti-counterfeit tests

• Bag• Warehouse• Logistics• Luxury Brand• QA officer• Anti-counterfeit

tech (RFID)

Event-driven Renter• Occasional need for

special events• Be able to afford the

luxurious bag which was originally not affordable

• Fulfill the vanity

Regular Renter• To show they have more

bags than they actually can afford, thus, fulfilling their vanity

• Eliminating the risk of bag no longer like or out of fashion

• Office hierarchy Luxury Company• Regain sales after anti-

corruption movement in China

• Counter Counterfeit• Walking ads

GET• Wechat Moment• Weibo Bloggers• Established trust-worthy image

towards customerKEEP• Review/Rating/Feedback

System• Weekly Fashion MagazineGROW• Expand to different dress type• Premium subscription

• Luxury bags, warehouse, shipping, cleaning, logistic, website development and maintenance, customer service employee, Anti-counterfeit, Quality Assurance

• Subscription

• Pay-per-rental• Resell to second-

hand market

Day 5 Key Findings:1. Counterfeit as a key problem customer concerns2. Trust-worthiness as the key essence to GET customer

Event-driven Renter• Female, age 19-30, • mid to high personal

incomer or family support.

• fashion trends follower• Budget buyer with annual

income of 100K– 300K RMB

Luxury Company• Luxurious brand adored

by Chinese population• Experiencing a loss of

sales in Chinese Region

Regular Renter• Female, age 23-40• White collar• High status• Annual income of

300K – 1M RMB

Dressier

• DedicatedE-commerce

Minimum Viable Product

Dressier

Minimum Viable Product

Dressier

DressierPain Points and Competitor Analysis

Pain Points

1. People occasionally having the need of certain style of bag (color, brand, price range) to attend certain activities

2. Sometimes the purchase made before was outdated and no longer in fashion

3. People don’t have as much money as they would like to buy desired number of bags

4. Vanity: people would like to have bags that is higher than their affordable price range

5. Office hierarchy made owning certain level of bags necessary for white collar female

Competitor Analysis

Second-hand Luxury Products Trading Platform

Luxury Products e-CommerceHigh-value Goods Rental

Dressier

Dressier

Pay per rental –Flat price Subscription Resell

Rev

Mod

el 0.6% per day with a min of 3 days

Monthly subscription of1500 RMB (Unlimited

rental)75% of bag price

Assuming a RMB15000 bag…

PPR

Mod

elSu

bscr

ipt

ion

Variable Cost Gross Profit (excl COGS)

Projected profit(excl COGS)

Logistics: RMB10(*2)Dry Cleaning: RMB200(/10)

Anti-counterfeit: RMB30

Var Cost: $70/rental

100n-70, n>=3Max: 2930/2300RMBAverage: 2615 (bag)

Max: 1500RMBMin: 800RMB (person)

RMB1300(Utilization: 50%)

RMB1150(Utilization: 50%)

Profit per bag (6-months life cycle): 1300*3+1150*3-15000*25%=RMB3600 (600/month)

Fixed Cost (Monthly): 10000(QA)+3000(Warehouse)=RMB13000/month

Revenue Model

Dressier

Source ofLuxury Bags Get Strategy Quality

AssuranceAnti-

CounterfeitingInsurance

1.Direct purchasefrom luxury brands-Pros: Higher trust,official guarantee-Cons: Higher Cost

2.Buy second-handbags from sellers1)

-Pros: Lower Cost-Cons: Higher riskof counterfeiting

1.Advertisement atHigh-End Hotels andNight Clubs-Target customersusually appear inthese places

2.Advertisement atLuxury departmentstores-Target customermight visit theluxury departmentto shop

1.Hire professionalquality assuranceteam and equipment

2.Cut down life-cycleof product-Minimizing risks ofdepreciation ofbags such as carrental companies inChina

3.Build brand image and increase brand trustworthiness

1.RFID technology-Pros: Low testingcost-Cons: Easy to copy,higher risk ofcounterfeiting

2.DNA anti-counterfeitingtechnology-Pros: Hard to copy-Cons: Expensive totest-Potential solution:Sample testing

Next Steps

1) The acquisition channels include authorized second-hand bags resellers and consumers

11

Backup Deck

Dressier

Robust growth in discountluxury shopping, showing atrend of customer seekinglow-cost solution for luxuryproducts

Will you increase discountluxury shopping

Luxury Market in China has changed a lot

Key Words 2012 2017 CAGR

Chanel 65421 22074 27.5%Burberry 482 1390 23.6%LV 1349 3517 21.1%

Prada 1730 4383 20.4%Hermés 3515 7401 15.7%

Chinesepopulation payincreasingattention onluxurious brands

1: Average search times per week on Baidu

No ornot sure34%

Yes66%

Number of PremiumOutlets in China

12Source: McKinsey & Company, Euromonitor Passport

Total: 194mn

Younger Female GroupUSD 10mn

Age 19-24: 3.7% of urban population

Advanced cities: 15% of urban

Pay-per-rental: Average USD 30/rental * 5

Working Female Group:USD 184mn

Age 25-40: 16.5% of urban population

Advanced cities: 15% of urban

Subscription: USD 600 annually

TAM = Female leather goods sales * rental percentage * 12 months = 2.8 billion * 3% * 12

SAM = TAM * Sales contributed by female aging from 19-40 = 1bn * 38.4%

SAM = TAM * rental penetration1) = 384 mn * 60%

Served Available MarketUSD 384 mn

Target MarketUSD 284 mn

Total Addressable MarketUSD 1 bn

Top-down Approach

Botom-up Approach

Market SizeDressier

13

DressierCustomer Segments and Value Proposition

Customer Segment Value Proposition

Ren

ter

Luxu

ry

Bran

d

Female, Age 23 – 40Regular user of bags

White collar with mid-high status

Afford more bag to fulfill their vanity

Eliminating risk of carrying a bag out of fashion

Appropriate bag correspondent to office hierarchy

Luxurious brand adored by Chinese population

Experiencing a loss of sales in Chinese Region

Regain sales after anti-corruption movement in China

Anti-Counterfeit

14

• Renter– The renter has consistent need to carry an “appropriate” bag

• Luxury Brand– Luxury brand would be willing to cooperate with us to boost sales

• Renter– Pass/Fail

• Above 30% of total interviewees agree• Luxury Brand

– Pass/Fail• At least one of the luxury brand adored agreed to be on board

• 100% (31/31) of the interviewees showed strong interest in this service• 61.3% (19/31) of the interviewees mentioned that rather than regular

renting, their renting activity would be event-driven• 1 luxury brand had shown interest in cooperating with us

• Major pivot: – Validate that the Regular Renter segment exist– Found out that there are actually 2 main customer segments,

including Regular Renter and Event-driven Renter• Next step: Further interview more customer to understand their

characteristics

Hypothesis

Here is what we thought

Experiment

Here’s what we did

Result

Here’s what we found

Iterate

Here’s what we will do next

DressierHypothesis Testing – Customer Segments

15

• Renter– There is a need to find appropriate bag

• Luxury Brand– Luxury brand would be willing to cooperate with us to boost sales

• Renter– Pass/Fail

• Above 30% of total interviewees agree• Luxury Brand

– Pass/Fail• Confirm if “boost sales” is the main reason to join

• 48.4% (15/31) of interested interviewees have a need to find a set of appropriate bags for work

• 61.3% (19/31) shown interest in finding a special bag for special event• The luxury brand mentioned that it could be a blow to the counterfeit bag

segment, since the price is comparable and competitive

• Major pivot: – Validate that there is a need for appropriate bag– Also found out and validate that there is a need to rent a special bag for

special event• Next step: Further interview to test for if getting a certified real bag is an key

value proposition for them

Hypothesis

Here is what we thought

Experiment

Here’s what we did

Result

Here’s what we found

Iterate

Here’s what we will do next

DressierHypothesis Testing – Value Proposition

16

DressierCustomer Segments and Value Proposition

Customer Segment Value Proposition

Even

t-dr

iven

R

ente

r

Reg

ular

R

ente

rLu

xury

Br

and

Special bag for special eventAfford the luxurious bag which was originally not affordable

Fulfill the vanity

Female age 19-30Occasionally attending social

events

Female, Age 23 – 40Regular user of bags

White collar with mid-high status

Luxurious brand adored by Chinese population

Experiencing a loss of sales in Chinese Region

Afford bags that fulfills canityEliminating risk of carrying a

bag out of fashionAppropriate bag correspondent

to office hierarchy

Regain sales after anti-corruption movement in China

Anti-Counterfeit