GIVING BACK IS THE NEW BLACK TM
Jul 19, 2015
questions to be answered
• Is the Model simple to understand and implement?
• Is the Market growing?
• Who is the Audience and how are they accessed?
• What are the Compe;;ve Advantages?
• Is the Posi;oning defensible?
• Does the Founder have what it takes?
• How much Money is being raised and how will it be used?
Modavive is simple to implement
Giving Back Is The New Black
Charity fundraising
leveraging online consignment
ModaVive is to Goodwill
as Amazon was to Borders
™
growth market: ecommerce2nd hand clothing
CHARITY/THRIFT ONLINE CONSIGNMENT
Megatrend: $178M invested in online consignment clothing & accessories industry since 2009
$43M
$5.5M
$23M
$46M
$43M
OPPORTUNITY: Combine online consignment with charity/thri6
donors AND BUYERS overlap
DONORS 1.53M Registered Nonprofits
1.2M have volunteers
BUYERS Phase I: Women 16 -‐ 40
50
45
40
35
30
25
20
15
Age
Aspira;onal professionals-‐ Preference: brand names
Thri` shoppers-‐ Preference: price & own style
Millenials-‐ Preference: eco-‐friendly, shared economy
• Local groups: Performing Arts, schools, Young Professionals.
• Na;onal: Junior Leagues, United Way Women’s Leadership Council, AHA Go Red, Dress For Success.
• Aspira;onal Professionals: women who want to look affluent & chic w/out the price tag. Compe;;on: retailers i.e. Macy’s, Saks, The RealReal.
Affilia;on: Junior Leagues, performing arts auxiliaries.
• Thri` Shoppers: Young professionals who define their own style and love bargains. Compe;;on: Goodwill, Threadflip, LikeTwice. Affilia;on: Young professional organiza;ons.
• Millenials: students and new professionals who view recycled items, including clothing, as beier than new especially if in pris;ne condi;on. Compe;;on: ThredUp.
Affilia;on: alumni, green organiza;ons.
ADVANTAGE: Leveraging popular secondhand market for good
SUPPLY CHAIN: A DISTINCT ADVANTAGE
CONSIGNMENT/DONATION MODAVIVE MODEL
• Consignors and donors must be cul;vated individually
• Average consignment is one to five items
• Marke;ng tools for host to implement drive and promote their sale
• 100 items donated, on average, per drive
• Hosts act as grassroots ModaVive Ambassadors in their communi;es
Online Second
hand
Sou
rces by
Market R
ange
Charitable Fundraising
COMPETITION VALIDATES POSITIONING
POSITIONING: Defensible stronghold for broad range of buyers
VALUABLE RELATIONSHIPs ARE KEY
Corporations Non-profits
KEY ADVANTAGE: Corpora?ons are willing to work with ModaVive because of the charitable aspect despite being For-‐Profit
Dress drives to-date
18 GirlUp Chapter Dress Drives 17 BuildOn Chapter Dress Drives 16 Sorority Chapter Dress Drives
5 Junior League Chapter Dress Drives 1 Girl Scout Chapter Dress Drive 1 Opera;on Smile Dress Drive
TRACTION
WEBSITE
IMPACT
PARTNERSHIPS
SOCIAL MEDIA
• Visitors expected to grow by 74% Q4 over Q3 to 13,741. • Pageviews expected to grow by 26% Q4 over Q3 to 46,607. • Average ;me on site 5:51 minutes compared to 3:20 industry average.
• Revenue exceeded $15,000 in Q4. • 61% of visitors between age of 18 and 34.
• Twiier followers: 8,235 • Newsleier subscribers: 3,073 • Instagram followers: 2,828 • Facebook followers: 2,196
• Corporate: Rodan + Fields, Procter & Gamble, Sephora. • Nonprofit: buildOn, Dress For Success, Junior League, Mocha Moms, United Na;ons Founda;on, plus many local chari;es across the U.S. such as the United Way Bay Area. • Clothing Designers: Camilla Olson, Chaiken Clothing, PIOL Dress.
• Supply Trac;on: Over 50 drives conducted to date. • Inventory Value: Over 6,000 items donated at ASP of $29 = asset valua;on of $174,000. • Giving Back: $110,000 charitable dona;on value based on current inventory.
Amount to be raised: $1,000,000
• STAFF: Hire top merchandiser • SALES:
• Implement inbound marke;ng program • Launch college Brand Ambassador program • Expand channels of distribu;on via affiliates, etc. • Expand categories beyond women’s clothing & accessories
• BRAND AWARENESS: • Build awareness of the brand and company both online and off • Cul;vate celebrity endorsement
• SUPPLY: Expand designer outreach for overstock
• TOOLS: Leverage available technology to acquire and engage members • WEB TUNING: Tune website for increased SEO/SEM • MOBILE APP: Develop Tinder-‐like mobile app
SALES & MARKETING
TECHNOLOGY
Investment strategy
• Reaching out to social impact investors • Exit strategy is as an acquisi;on
§ Strategic partnership: Company leveraging the model for their current plarorm or company is targe;ng this audience
§ Private equity firm
FINANCING OUTREACH
INVESTOR BENEFITS
• Model can be replicated in any secondhand category • Break-‐even within 18 months • Planned exit within 36 months • Social good with a for-‐profit model