standalone 8.1 (final)
TRANSCRIPT
Investor PresentationAugust 11th, 2014
Scott Latham & Ryan Erfer
Colabination’s mission is simple:
Empower Fashion Designers to be Discovered
Problem26,000,000 fashion-conscious millennial online shoppers 1 are drifting away from mainstream brands and are increasingly seeking to buy off-label apparel from independent designers
(1) Based on Census data, internal projections, and http://www.cmo.com/articles/2013/11/17/where_fashion_focuse.html
ProblemAt the same time, 1,000,000 independent designers are struggling to find new customers and grow their brand 1
(1) Based on the number of brands on competing platforms (Wanelo, Fancy, Karmaloop, Jackthreads, Big Cartel, Shopify, Etsy, ASOS, and Fab), accounting for overlap.
OpportunityConnecting these millennial shoppers with the independent designers could solve both problems. However, retailers fail to meet this rising demand.
● First Mover
● Creative Visionary
● Passion Driven Hustler
● Not Tech Savvy
● Trend Setter
● Fashion Forward
● Hipster
● Millenial
● Challenge Status Quo
● Trend Hunter
DesignersShoppers
Limited Access To Designers
Customers seek to buy from independent designers through established online marketplaces and big box retailers, but these stores only accept 1% of designers to their platforms
Limited Access To Shoppers
The other 99% of designers are left fragmented across the web using various shopping cart solutions that provide them a website but no customer traffic
SolutionColabination is an online marketplace for designer discovery that empowers shoppers to curate their own selection of independent brands
Discover Learn Collect
Revenue ModelColabination will collect a 15% commission on sales and $12/month subscription fee from designers for access to data & insights. Future potential revenue streams include connecting designers to retail outlets and selling market trend data.
Commission Subscription
Designer to Retail Market Trend Data
Designer Use-Case : BeforeAn independent designer’s presence is often scattered across many channels, slowing growth and making ROI uncertain
(1) http://blog.biakelsey.com/index.php/2013/11/19/nearly-34-of-smbs-in-the-us-use-social-media-to-promote-their-business/(2) http://pages.richrelevance.com/rs/richrelevance/images/Social%20Media%20v10-ac.pdf
Designer Use-Case : BeforeAn independent designer’s presence is often scattered across many channels, slowing growth and making ROI uncertain
Roadblocks: 1. Excessive monthly advertising costs
2. Little visible return on investment
3. No one can find them online
4. No marketing know-how
(1) http://blog.biakelsey.com/index.php/2013/11/19/nearly-34-of-smbs-in-the-us-use-social-media-to-promote-their-business/(2) http://pages.richrelevance.com/rs/richrelevance/images/Social%20Media%20v10-ac.pdf
Designer Use-Case : BeforeAn independent designer’s presence is often scattered across many channels, slowing growth and making ROI uncertain
Roadblocks: 1. Excessive monthly advertising costs
2. Little visible return on investment
3. No one can find them online
4. No marketing know-how
72% of brands use social media to promote sales but the sales conversion is less than 1% 1,2
(1) http://blog.biakelsey.com/index.php/2013/11/19/nearly-34-of-smbs-in-the-us-use-social-media-to-promote-their-business/(2) http://pages.richrelevance.com/rs/richrelevance/images/Social%20Media%20v10-ac.pdf
Designer Use-Case : AfterColabination is step one for independent designers to drive new business growth online
Benefits: 1. Exposure to new markets of customers
2. Higher engagement at Point of Sale
3. Intrinsic loyalty & retention
4. Data and actionable insights to
customize experience for shoppers
(1) http://www.marketingcharts.com/wp/traditional/shoppers-favor-customized-in-store-experiences-29669/
Designer Use-Case : AfterColabination is step one for independent designers to drive new business growth online
Benefits: 1. Exposure to new markets of customers
2. Higher engagement at Point of Sale
3. Intrinsic loyalty & retention
4. Data and actionable insights to
customize experience for shoppers
81% of shoppers say they are more likely to shop in a store that provides an overall customized shopping experience 1
(1) http://www.marketingcharts.com/wp/traditional/shoppers-favor-customized-in-store-experiences-29669/
DifferentiationRather than focusing on individual products, Colabination enables designers to tell their story through a virtual showroom for superior engagement and retention
“People don’t buy what you do, they buy why you do it” - Simon Sinek
DifferentiationRather than focusing on individual products, Colabination enables designers to tell their story through a virtual showroom for superior engagement and retention
“People don’t buy what you do, they buy why you do it” - Simon Sinek
Selling Products (Karmaloop)Selling Stories (Colabination)
>
Competitive LandscapeColabination is uniquely positioned amongst multiple market players who fail to address the needs of both independent designers and shoppers
Social MediaVerge ApparelDiscovery Platforms E-Commerce
Competitive Advantage
Discovery Platformsfocus on individual products over the needs independent designers
Colabinationfocuses on promoting the designers behind the products. Telling their stories increases engagement and sales
Competitive Advantage
Verge Apparelrestricts services from the majority of independent designers
Colabinationlowers barriers to entry by providing designers with a gamified experience and data insights to improve their marketing
Competitive Advantage
E-Commercelacks high customer traffic or other marketplace benefits
Colabinationgives shoppers a centralized location to discover brands, resulting in higher shopper traffic for designer showrooms
Competitive Advantage
Social Medialacks engagement at the point of sale
Colabinationplaces a social experience at the point of sale, leading to higher sales conversion
Customer Acquisition
Designers
1. Direct Outreach Successful in signing up 100+ designers to date with a 65% conversion rate on initial direct reach-out
PRIMARY METHOD:
2. White Papers to gain trust and legitimacy, we are curating and distributing materials to aid designers with growing their businesses
3. Inbound we have optimized our landing page for high sign-up conversion
4. Partnerships We will reach out to design schools, fashion incubators, and trade schools.
Customer Acquisition
Shoppers
1. Designer Referrals designers have already expressed interest in regularly referring new shoppers in exchange for a lowered commission
2. Word-of-mouth achieved through grassroots efforts, incentivized referral programs, and the inherently social aspect of the platform
3. Social Media high levels of engagement among millennials
4. Affiliate Blogs several fashion bloggers will refer users to Colabination
5. Public Relations specifically targeting local publications influential among verge culture
6. Blog & Newsletter highlights emerging brands and conveys product value
PRIMARY METHOD:
Fundraising
3M for next 24 Months ● Bridge round: $250K for next 6 months● Seed round: $2M
Use of Proceeds● Product development● Key hires● Marketing● Business development
Milestones● 1,000,000 shoppers by July 2015● $50K monthly revenue● Key partnerships● Expansion of revenue streams
Team
AdvisorsMorgan LewisSteve Goodman & Jeff Bodle(General Counsel)
Scott LathamCEO & Founder
Founder at Flight CrewClothing and Mainline
Lifestyle Magazine
Ryan EferCFO & Founder
SeventySix Capital,UBS Investment Bank,Survivor of 3 Startups
David BlyerFounder at DonorCommunity; Microgiving; SPSS; Vento Software
Chuck SaccoDirector at Drexel School of Entrepreneurship; Founder at Movitas
