LUST

LUST
YOUR CLOSET MEETS
YOUR CLOSET MEETS
TECHNOLOGY.
TECHNOLOGY.

AFONSO MARQUES

ISHA CHAWLA

FRANCISCO SANTOS

GONALO CARDOSO

JOANA LISBOA

Dear Dr. Antnio Lucena Faria,

It is with enormous satisfaction that we present our final report in the scope of creating an innovative
business project. The present report is part of the result of the course of Lean Entrepreneurship
teached by Antnio Lucena Faria at Catlica Lisbon School of Business and Economics.
We would like to address our sincere thanks to all the elements that had helped us through the period
of accomplishment of the project and that at all levels many teachings have transmitted us.
Additionally, we appreciate the permanent availability and narrow contribution, nominated to the
Professor Antnio Lucena Faria.

AGENDA
1 LUST Your closet meets technology
About Lust

Value Proposition

13

2 External Environment
Industry Analysis

15

Competitor Analysis

3 LUST StrategyBusiness Model Canvas

23

26

Revenue Model

33

Cost Structure

36

Marketing and Sales

37

4 Team & Calendar

5 Financial Plan

38
42

LUST: YOUR CLOSET MEETS

TECHNOLOGY
ABOUT LUST
VALUE PROPOSITION

11

LUST: YOUR CLOSET MEETS TECHNOLOGY

| PROBLEM IDENTIFICATION

Lack
Lack of
of Time
Time

Lack
Lack of
of Fashion
Fashion
Knowledge
Knowledge

Few
Few Clothes
Clothes

People
People experience
experience aa
stressful
stressful life,
life, being
being
always
always in
in aa rush.
rush.

People
People lack
lack fashion
fashion
knowledge
knowledge &
& are
are not
not
aware
aware of
of latest
latest
fashion
fashion trends.
trends.

People
People feel
feel that
that they
they
do
do not
not dress
dress
fashionably
fashionably due
due to
to
lack
lack of
of beautiful
beautiful
clothes.
clothes.

LUST: YOUR CLOSET MEETS TECHNOLOGY

| SOLUTION

LUST
LUST is
is the
the ultimate
ultimate fashion
fashion stylist
stylist of
of the
the
moment!
moment!
Do
Do you
you have
have aa date
date with
with your
your dream
dream
women
women or
or man?
man? A
A wedding?
wedding? An
An interview?
interview?

LUST
LUST will
will DRESS
DRESS you!
you!

LUST: YOUR CLOSET MEETS TECHNOLOGY

| SOLUTION

IOS
IOS
ANDROID
ANDROID

VIRTUAL
VIRTUAL CLOSET
CLOSET
&
&
OUTFIT
OUTFIT MAKER
MAKER

FASHION
FASHION MOBILE
MOBILE
APPLICATION
APPLICATION

FREE
FREE
or
or
PAID
PAID SUBSCRIPTION
SUBSCRIPTION

LUST
LUST connects
connects to
to your
your clothes
clothes and
and makes
makes
you
you customized
customized outfits.
outfits.

LUST: YOUR CLOSET MEETS TECHNOLOGY

| SOLUTION

WHAT?
WHAT?

LUST
LUST is
is an
an App
App that
that
helps
helps everyone
everyone who
who has
has
aa hard
hard time
time dressing
dressing up
up
on
on aa daily
daily basis
basis or
or to
to aa
specific
specific event.
event.

HOW?
HOW?

WHY?
WHY?

By
By downloading
downloading the
the
pieces
pieces of
of clothing
clothing that
that
you
you have
have in
in your
your closet,
closet,
LUST
LUST will
will then
then suggest
suggest
an
an outfit
outfit that
that matches
matches
your
your style
style and
and the
the
occasion.
occasion. Additionally,
Additionally,
you
you will
will also
also be
be able
able to
to
create
create your
your own
own outfits.
outfits.

Nothing
Nothing else
else is
is able
able to
to
provide
provide such
such aa simple,
simple,
accessible,
accessible, and
and
complete
complete solution
solution for
for
such
such aa global
global problem:
problem:
looking
looking good.
good. The
The
personalized
personalized help,
help,
discounts
discounts on
on partner
partner
brands
brands and
and every
every other
other
feature
feature incorporated
incorporated in
in
the
the App
App will
will sure
sure turn
turn
LUST
LUST into
into aa MUST.
MUST.

LUST: YOUR CLOSET MEETS TECHNOLOGY

| HOW DOES IT WORK?
11

77

22

66

33

44

55

Take
Take aa
picture
picture
Outfit
Outfit Maker
Maker

Virtual
Virtual Closet
Closet

LUST: YOUR CLOSET MEETS TECHNOLOGY

| HOW DOES IT WORK?

Free
Free Version
Version

Paid
Paid Subscription
Subscription
Version
Version

Virtual
Virtual Closet
Closet

Virtual
Virtual Closet
Closet

Create
Create Your
Your Outfits
Outfits

Create
Create Your
Your Outfits
Outfits

Social
Social Media
Media Sharing
Sharing

Social
Social Media
Media Sharing
Sharing

Calendar
Calendar

Calendar
Calendar

00

Outfit
Outfit Maker
Maker
Top
Top 55 Brands
Brands Catalogue
Catalogue
Clothing
Clothing Suggestions
Suggestions

9.99
9.99 Year
Year

LUST: YOUR CLOSET MEETS TECHNOLOGY

| HOW DOES IT WORK?
Virtual
Virtual Closet
Closet
Add
Add your
your own
own clothes
clothes
from
from the
the built-in
built-in
camera
camera or
or your
your photo
photo
library.
library.Remove
Remove the
the
background
background from
from
clothing
clothing images
images for
for
perfect
perfect layering
layering in
in the
the
outfit
outfit editor
editor with
with the
the
background
background removal
removal
slider,
slider, the
the eraser
eraser tool
tool
and
and tap-to-clear.
tap-to-clear.

Create
Create Your
Your
Outfits
Outfits

Social
Social Media
Media
Sharing
Sharing

Calendar
Calendar

Once
Once your
your closet
closet is
is
uploaded
uploaded in
in the
the App,
App,
you
you can
can start
start mixing
mixing
and
and trying
trying different
different
ideas
ideas in
in order
order to
to
create
create your
your own
own
outfits!
outfits!

Share
Share your
your outfits
outfits
with
with your
your friends
friends or
or
even
even share
share the
the 33
possible
possible outfits
outfits that
that
the
the App
App makes
makes for
for
you,
you, in
in order
order to
to your
your
friends
friends rank
rank which
which
one
one is
is the
the best
best one
one
for
for you
you to
to wear.
wear.

Once
Once your
your outfit
outfit of
of
the
the day
day is
is selected
selected
by
by you,
you, itit is
is
automatically
automatically saved
saved
on
on LUST
LUST calendar.
calendar.

LUST: YOUR CLOSET MEETS TECHNOLOGY

| HOW DOES IT WORK?
Outfit
Outfit Maker
Maker

Once
Once your
your closet
closet is
is uploaded
uploaded
in
in the
the App,
App, the
the formidable
formidable
Lust
Lust App
App creates
creates you
you 33
possible
possible outfits
outfits accordance
accordance
to
to your
your style
style and
and type
type of
of
event,
event, for
for you
you to
to choose!
choose!
How
How amazing
amazing is
is that?
that?

Brands
Brands Catalogue
Catalogue
The
The App
App will
will have
have available
available
your
your top
top 55 brand's
brand's catalogue
catalogue
for
for you
you to
to be
be always
always aware
aware of
of
the
the novelties
novelties of
of those
those brands.
brands.
And
And then,
then, ifif you
you are
are in
in love
love
with
with aa clothing,
clothing, you
you will
will be
be
able
able to
to buy
buy itit online
online on
on LUST.
LUST.
Once
Once you
you purchase
purchase it,
it, itit will
will
be
be added
added automatically
automatically to
to
your
your virtual
virtual closet.
closet.

Clothing
Clothing
Suggestions
Suggestions
According
According to
to your
your virtual
virtual
closet,
closet, the
the App
App will
will then
then
suggest
suggest new
new pieces
pieces of
of
clothing
clothing from
from the
the latest
latest
trends
trends and
and from
from your
your favorite
favorite
stores
stores for
for you
you to
to buy
buy on
on the
the
online
online store
store and
and add
add in
in to
to
your
your closet!
closet! In
In this
this way,
way,you
you
will
will always
always be
be fashionable,
fashionable,
and
and be
be the
the prettiest
prettiest woman
woman
or
or man
man everywhere
everywhere you
you go.
go.

VALUE PROPOSITION
| BUSINESS 2 CUSTOMER
GENERATING
GENERATING
CUSTOMER
CUSTOMER
LOYALTY
LOYALTY
INCREASING
INCREASING USER
USER
ENGAGEMENT
ENGAGEMENT

GAIN
GAIN FASHION
FASHION
KNOWLEDGE
KNOWLEDGE

ONLINE
ONLINE SHOPPING
SHOPPING

EXTERNAL ENVIRONMENT
INDUSTRY ANALYSIS
COMPETITOR ANALYSIS

22

INDUSTRY ANALYSIS
| WHATS HAPPENING IN THE APPS INDUSTRY?
Mobile App Store Downloads

2011

2012

2013

2014

2015

2016

25 000 M

46 000 M

82 000 M

132 000 M

205 000 M

310 000 M

12x
55 years
years

INDUSTRY ANALYSIS
| APPS USAGE
Number of mobile apps, average number per user and average usage by platform.

700.000 iOS Apps

600.000 Android Apps
100.000 Windows Phone Apps

48
48
Apps
Apps per
per user
user

35
35
Apps
Apps per
per user
user

17
17
Apps
Apps per
per user
user

68%
68%
Use
Use Apps
Apps Multiple
Multiple
times
times aa day
day

60%
60%
Use
Use Apps
Apps Multiple
Multiple
times
times aa day
day

43%
43%
Use
Use Apps
Apps Multiple
Multiple
times
times aa day
day

INDUSTRY ANALYSIS
| PORTERS 5 FORCES
New
New
Entrants
Entrants

Suppliers
Suppliers

Rivalry
Rivalry

Substitutes
Substitutes

Buyers
Buyers

INDUSTRY ANALYSIS
| THREAT OF NEW ENTRANTS

++

Developing costs moderate

--

High knowledge skills requirements

++

No legal entrance restrictions

++

Negligible entrance costs - 99$/year1

--

Considerable platform tax on sales

30% of sales1

Cost of selling an app on iTunes store

INDUSTRY ANALYSIS
| BARGAINING POWER OF SUPPLIERS

Suppliers
Suppliers mainly
mainly comprise
comprise developers
developers
and
and servers
servers providers
providers as
as well
well as
as
technology
technology providers.
providers.
Considerable amount of
suppliers decrease their
bargaining power which
partially offset by the
apps growth.
Developers are now
focusing on getting
volumes by lowering
prices.

INDUSTRY ANALYSIS
| BARGAINING POWER OF BUYERS

Wide range of apps available with

significant quality
Low switching costs
Free apps available

INDUSTRY ANALYSIS
| THREAT OF SUBSTITUTE PRODUCTS

Similar
Similar apps
apps to
to Lust
Lust

INDUSTRY ANALYSIS
| RIVALRY AMONG EXISTING FIRMS

New
New entrants
entrants
Rivalry
Rivalry
Suppliers
Suppliers

Lack
Lack of
of significant
significant entrance
entrance barriers
barriers
promote
promote the
the huge
huge number
number of
of apps
apps

Buyers
Buyers

Huge
Huge number
number of
of apps
apps leads
leads both
both users
users

Substitutes
Substitutes

UNDER
UNDER PRESSURE
PRESSURE MARKET
MARKET

and
and suppliers
suppliers to
to an
an increased
increased bargaining
bargaining
power
power

COMPETITOR ANALYSIS

Virtual Closet
Create Your Outfits
Social Media
Sharing
Calendar
Outfit Maker
Online Shopping
Clothing
Suggestions
Expert Advice

COMPETITOR ANALYSIS

LUST
LUST is
is an
an Active
Active Personal
Personal Fashion
Fashion Adviser
Adviser

Creates
Creates You
You Customized
Customized
Outfits
Outfits with
with Your
Your Own
Own
Clothes.
Clothes.

Suggests
Suggests the
the Purchase
Purchase of
of
New
New Pieces
Pieces of
of Clothing
Clothing
according
according to
to Latest
Latest
Fashion
Fashion Trends.
Trends.

No other App does that...

LUST STRATEGY
BUSINESS MODEL CANVAS
REVENUE MODEL
COST STRUCTURE
STRENGTHS AND WEAKNESSES

33

BUSINESS MODEL CANVAS

Key
Key Partners
Partners

Fashion
Fashion Brands
Brands
Online
Online
Purchasing
Purchasing
Online
Online
Payment
Payment
(PayPal,
(PayPal, Visa)
Visa)
Investors/
Investors/
Crowd-Funding
Crowd-Funding

Key
Key
Activities
Activities

Platform
Platform
Development
Development

Value
Value
Proposition
Proposition

Marketing
Marketing

Customer
Customer
Segments
Segments

Referral
Referral
Program
Program
Loyalty
Loyalty
Program
Program

Fashion
Fashion Lovers
Lovers

Virtual
Virtual Closet
Closet

Marketing
Marketing
Managing
Managing
Partnerships
Partnerships

Calendar
Calendar

Community
Community
Management
Management

Create
Create Your
Your
Outfits
Outfits

Lust
Lust Discounts
Discounts

Social
Social Media
Media
Sharing
Sharing

Channels
Channels

Key
Key
Resources
Resources
Community
Community

Outfit
Outfit Maker
Maker

Online
Online Platform
Platform

Brands
Brands
Catalogue
Catalogue

Fashion
Fashion Know-How
Know-How

Clothing
Clothing
Suggestions
Suggestions

Cost
Cost
Structure
Structure
IT
IT Maintenance
Maintenance

Customer
Customer
Relationship
Relationship

Fashion
Fashion Busy
Busy
Fashion
Fashion
Wannabes
Wannabes

Lust
Lust App
App &
&
Website
Website
Social
Social Media
Media
Fashion
Fashion Blogs
Blogs
Traditional
Traditional
Media
Media
Word
Word of
of Mouth
Mouth

Revenue
Revenue
Streams
Streams
Platform
Platform Development
Development &
&
Design
Design
Community
Community
Management
Management

Advertiseme
Advertiseme
nts
nts

Subscription
Subscription
Users
Users

Client
Client Intel
Intel

Commissions
Commissions

Cost
Cost Per
Per Install
Install

BUSINESS MODEL CANVAS

| CUSTOMER SEGMENTS
Fashion
Fashion Lovers
Lovers

Fashion
Fashion Busy
Busy

Fashion
Fashion Wannabes
Wannabes

The
The ones
ones who
who love
love fashion
fashion
and
and everything
everything related
related to
to it.
it.

The
The ones
ones who
who are
are too
too busy
busy
to
to enjoy
enjoy fashion
fashion as
as they
they
would
would like.
like.

The
The ones
ones who
who know
know nothing
nothing
about
about fashion
fashion and
and genuinely
genuinely
need
need aa hand.
hand.

Sara
Sara Mathew,
Mathew,35
35 years
years old
old
Senior
Senior Consultant
Consultant

John
JohnSmith,
Smith,32
32 years
years old
old
Engineer
Engineer

Marie
Marie Claire,
Claire, 21
21 years
years old
old
Msc
Msc Student
Student

BUSINESS MODEL CANVAS

| CUSTOMER RELATIONSHIPS
Loyalty
Loyalty
Program
Program

Lust
Lust Discounts
Discounts

Referral
Referral
Program
Program

User
User Feedback
Feedback

Users
Users will
will benefit
benefit
from
from promotions,
promotions,
discounts,
discounts, coupons,
coupons,
and
and special
special offers.
offers.

Lust
Lust will
will generate
generate QR
QR
codes
codes which
which can
can be
be
used
used at
at partner
partner
stores
stores to
to cash
cash in
in for
for aa
discount.
discount.

By
By inviting
inviting people
people to
to
download
download the
the Lust
Lust
App,
App, you
you will
will receive
receive
discounts
discounts when
when
online
online shopping
shopping
through
through Lust.
Lust.

Users
Users will
will be
be able
able to
to
give
give us
us feedback
feedback on
on
how
how to
to improve
improve their
their
experience
experience (crowd
(crowd
sourcing).
sourcing).

BUSINESS MODEL CANVAS

| CHANNELS
Lust
Lust App
App &
&
Website
Website

Social
Social Media
Media

Traditional
Traditional
Media
Media

Fashion
Fashion Blogs
Blogs

Word
Word of
of Mouth
Mouth

BUSINESS MODEL CANVAS

| KEY PARTNERS
Fashion
Fashion
Brands
Brands

Online
Online
Purchasing
Purchasing

Investors/
Investors/ Crowd
Crowd
funding
funding

Online
Online
Payment
Payment

To
To be
be defined...
defined...

BUSINESS MODEL CANVAS

| KEY ACTIVITIES
Software
Software

Platform
Platform
Development
Development and
and
Maintenance.
Maintenance.

Marketing
Marketing

Managing
Managing
Partnerships
Partnerships

Community
Community
Management
Management

Crucial
Crucial activity
activity to
to
reach
reach out
out customers.
customers.

By
By inviting
inviting people
people to
to
download
download the
the App
App
you
you will
will receive
receive
discounts
discounts when
when
online
online shopping
shopping
through
through Lust.
Lust.

Users,
Users, Social
Social Media,
Media,
and
and Contributors
Contributors
Forum
Forum (Crowd
(Crowd
Sourcing)
Sourcing)

BUSINESS MODEL CANVAS

| KEY RESOURCES
Online
Online Platform
Platform

Community
Community and
and Lust
Lust
Users
Users

Fashion
Fashion Know-How
Know-How

With
With the
the online
online platform,
platform, Lust
Lust
can
can serve
serve aa large
large base
base of
of
customers
customers anywhere
anywhere and
and
anytime.
anytime.

Lust
Lust has
has to
to retain
retain its
its
customers.
customers. Along
Along with
with that,
that, itit
is
is also
also important
important to
to grow
grow by
by
acquiring
acquiring more
more customers.
customers.

Lust
Lust shall
shall have
have fashion
fashion
expertise
expertise (algorithm)
(algorithm) up
up to
to
date.
date.

REVENUE STREAMS
How
How does
does Lust
Lust generate
generate its
its revenue?
revenue?
Advertisements
Advertisements

CPI
CPI

Free
Free
Version
Version

Client
Client Intel
Intel

REVENUE STREAMS
| Advertisements, CPI and Client Intel
Advertisements
Advertisements

Through
Through ads,
ads, we
we can
can generate
generate revenue
revenue for
for aa
number
number of
of downloads.
downloads.

CPI
CPI

Cost
Cost per
per Install.
Install. Provide
Provide CPI
CPI services
services to
to third
third
parties
parties through
through pop
pop ups
ups and
and other
other techniques.
techniques.

Client
Client Intel
Intel

We
We would
would provide
provide our
our client
client database
database to
to other
other
companies
companies for
for aa particular
particular fee.
fee.

REVENUE STREAMS
| SUBSCRIPTION USERS & COMMISSIONS
Subscription
Subscription
Users
Users

The
The users
users who
who download
download our
our subscription
subscription version
version
will
will be
be paying
paying an
an annual
annual fee
fee (9.99
(9.99 /year).
/year).

Commissions
Commissions

By
By selling
selling clothes
clothes in
in Lust
Lust App,
App, we
we would
would be
be
earning
earning aa 10%
10% commission
commission for
for each
each piece
piece of
of
clothing
clothing we
we sell.
sell.

Subscription
Subscription
Version
Version

COST STRUCTURE

Platform
Platform
Development
Development &
&
Design
Design

IT
IT Maintenance
Maintenance

Marketing
Marketing

Community
Community
Management
Management

Targeted
Targeted
Marketing
Marketing

Traditional
Traditional
Marketing
Marketing
Digital
Digital
Marketing
Marketing

WEAKNESSES

STRENGTHS

MARKETING AND SALES

TEAM & CALENDAR

44

TEAM

Francisco
Francisco Santos
Santos

Joana
Joana Lisboa
Lisboa

Gonalo
Gonalo Cardoso
Cardoso

Visionaire
Visionaire

Designer
Designer

Hustler
Hustler

Isha
Isha Chawla
Chawla

Afonso
Afonso Marques
Marques

Designer
Designer

Hacker
Hacker

CALENDAR
| PRE-LAUNCH
Week
1
Project Definiton
Blog Launch and Maintenance
Business Model Canvas
Hypothesis
Interviews
Online Survey
Final Presentation Preparation

Week
2

Week
3

Week
4

Week
5

Week
6

CALENDAR
| POST-LAUNCH

16.350 Downloads

FY16A
FY16A

25.500 Downloads

FY17A
FY17A

36.000 Downloads

FY18A
FY18A

FINANCIAL PLAN

55

FINANCIAL PLAN

Sustainable Business Model over the 3 years with an Operational

Margin of 72 919 in FY18A (48% of sales)

FINANCIAL PLAN

Develop
Develop Free
Free App
App

Marketing
Marketing Activities
Activities

Implement
Implement Subscription
Subscription
Version
Version

Required Investment: 25 460

Joana Lisboa

Isha Chawla

Telephone: +351 919 275 558

E-mail: joanarita.lisboa@gmail.com

Telephone: +91 940 493 871 2

E-mail: i.chawla89@gmail.com

Francisco Santos

Gonalo Cardoso

Telephone: +351 918 858 054

E-mail: fcbcsantos@gmail.com

Telephone: +351 919 059 376

E-mail: oomgoncalo92@gmail.com

Afonso Marques
Telephone: +351 916 391 005
E-mail: afmi.marques@gmail.com