STYLE

FRIEND

A PROPOSAL
Zoe Knox // s3476862
Do you find shopping boring and frustrating?

Would you consider yourself to be style challenged?

Do you go shopping often but come home empty handed?

Are you too busy to shop for clothes?

Do you find shopping to be an overwhelming experience?

Do you have trouble deciding what clothes to buy?

Are you in a style rut?

Do you own a whole bunch of clothes but no outfits?

If you answered yes to any of these questions, then you need

Style Friend.

STYLE
FRIEND

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FASHION & THE MODERN CONSUMER
The tide of fashion today is swaying. According to famous fashion blogger Leandra Medine,

better known as Man Repeller, we are living in the age of personal style. In that designers have

become reactive and are designing pieces in response to consumers desires.

Today fashion is all about customisation and personalisation. Personalisation in particular

is key in gaining customer loyalty. Research conducted by BloomReach found that 31% of

consumers aid they would be more likely to make purchases if they were offered personalised

experiences such as product recommendations or tailored content (Stores and Stories 2016).

Only 2% of the retailers involved in the study said that they thought a personalised shopping

experience was an important factor. By not personalising content retailers are missing out on

sales and key opportunities to build customer loyalty. In fact, personalised interactions can
increase sales by up to 19% (k3retail 2016).

There is a very distinct difference between fashion and style. Fashion is dictated to the masses

by taste-makers; designers, magazine editors, bloggers, marketers and the like. Anyone can

visit a store, purchase a trendy item and therefore be fashionable. Style is a totally different

ballgame. It is possible for everyone to have style, but very few people do. As Ralph Lauren

famously said, Style is very personal. It has nothing to do with fashion. Style is your fashion

point of view; it is something more than just being fashionable. On the subject of style, former

Vogue editor-in-chief Diana Vreeland said, You gotta have style. It helps you get down the

stairs. It helps you get up in the morning. Its a way of life. Without it, youre nobody.

A lot of people are fashionable, but not everyone has style. In the fashion industry of today,

most people think a career lies along the supply chain; the designer, the buying office, the

manufacturer, the distributor and the retailer. However, style has become a job thinking

stylists, style editors etc. Being a stylist is one of the most coveted jobs in fashion, but what do

stylists actually do? Essentially a stylist decides what a person wears and how they wear it,

thus creating a style. Stylists are sought after not just by celebrities, but by regular consumers

who need help in crafting their own personal style. However personal stylists are expensive, at

$150+ per hour and many consumers are priced out of this service.

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 THE OPPORTUNITY
Online shopping is popular in Australia and only continues to grow in popularity, growing faster

than traditional retail (Power Retail 2015). More than 50% of Australians have made a purchase

online and people aged 35-44 account for 25% of online spending, while spending by people

25-34 years of age is growing at the fastest pace (NAB 2016). Interestingly more than 75% of

purchases made online are from domestic retailers.

Personal styling is a popular concept in the fashion industry, although it is mostly inaccessible

to regular consumers due to a number of reasons. The service is financially beyond the reach
of many consumers; for example Melbourne stylist Joanne Blankfield charges $250 for the first

two hours (minimum price) and $120 per hour thereafter. It also often requires consumers to

clear out a large chunk of time to go shopping with their stylist, which is inconvenient for the

modern consumer who is time poor.

Knowing all of this, there is a clear opportunity in the marketplace to create an accessible

personal styling services that focuses on a high level of personalisation.

In fact, entrepreneurs in the US have cottoned onto this fact and a small number of online

styling services have come to fruition since 2009.

However, no such service exists in Australia. We have the benefit of learning from the US

based services, whilst being the first service provider in Australia. This puts in a unique position

where we will have no direct competitors. This will allow us to penetrate the market, increase

customer awareness and gain customer loyalty; this will put us in an extremely favourable

position when the inevitable copycat firms emerge.

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WHAT IS STYLE FRIEND?

We solve the problem that many busy women on the go face; needing to looking effortlessly

stylish 24/7 but not having the time or patience to shop for clothes. We combine expert stylists,

exceptional products and unparalleled convenience to bring you Australias first online personal

styling service. Not to mention that is available at a fraction of the cost of traditional personal
styling services.

Simply create a profile to tell us all about yourself. Well match you up with one of our expert

stylists. Youll connect via Skype or FaceTime to discuss your requirements further and then

your stylist will send you a virtual package. You choose what items are sent to you and your

stylist will throw in a few things that go with your picks. You only purchase what you like and

you can easily return the rest.

The best part? The more you use Style Friend, the better your stylist gets to know you and the

better your style packages will be. You can order one-off packages or you can subscribe to

regular packages, whatever suits your budget and needs. You can also request specific items,

like if you need an outfit for a summer wedding or you need to replace your go-to winter boots.

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 HOW DOES IT WORK?
Our theory is to keep it simple stupid. Our customers are time poor and do not want to use

services that are complex and time consuming.

1. Introduce yourself

We want to know everything about you. Create profile and answer questions about your style

needs, likes and dislikes, where you shop, your sizes and your budget. You can even link us to

your social accounts Twitter, Instagram and Pinterest, so we can get to know you better. We

use all of this information to match you with your stylist.

2. Hang out with your stylist

Via Skype or FaceTime, your stylist will get to know you and your style needs better. Following

the 1-on-1 consultation, your stylist will put together a virtual style package and you choose

which items will be sent to you. At this time the $25 styling fee will be charged and this can be

credited towards anything your purchase in your style package.

3. Receive your style package

Try on all the pieces in the comfort of your own home. Following delivery your stylist will contact

you to help style each piece. Keep the pieces you love and return the items you dont. You will

only be charged for the items you keep and if you buy five or more items, you receive a 20%

discount. If you choose not to keep any items, the $25 styling fee is non-refundable.

Customers can choose to receive regular style packages (available every month, every other

month, every quarter) or they can manually order a style package when needed. Customers

also have the option to request specific pieces (eg. dress appropriate for a wedding) at the time

of order their style package.

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ESTIMATED COSTS

The estimated first year costs for Style Friend are laid out below. These costs were calculated

using the NABs start up costs calculator and by obtaining quotes for different services and

purchases.

Style Friend generates revenue through sales made through style packages. Style Friend

is able to purchase clothing in small bulk orders at wholesale price, while customers pay full

recommended retail price (RRP) for any products they purchase.

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 REVENUE POTENTIAL
Given its unique selling proposition and lack of competitors, Style Friend is well placed to

successfully enter the market. It is important that we understand at what point Style Friend will

be become successful.

We have been conservative in our predictions, in order to ensure that we are not counting

our chickens before they hatch. Therefore, we have assumed 40% conversion rate in terms

of customers who will visit our website and make a purchase. Based on an average sale of

$150, Style Friend needs 17 visitors to the website per day in order to achieve $15,460 in

profit. Lowering the average sale to $100 shows that Style Friend will need 25 visitors per day

in order to achieve $8,160 in profit.

Below are two possible scenarios that have been modelled. As demonstrated below it will be

extremely profitable to generate more visitors to the page with a lower per average spend.

Scenario 1 - higher average spend and lower daily visitors

Scenario 2 - lower average spend and higher daily visitors

Please note: these figures were calculated using the NABs start-up costs calculator.

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 Our biggest issue going forward will be our lack of brand recognition. Its imperative we run a
MARKETING CAMPAIGN
clever guerrilla marketing campaign; it needs to be cheap, yet effective. We need to generate

buzz and get people talking about our service.

Our first strategy is a sticker campaign. In the words of Reddit founder Alexis Ohanian, Yes,

stickers were the soundest investment I ever made. Stickers require a small investment ($250

per 1000 stickers) and are an easy eye-catching way to get peoples attention. We will print and

distribute 2000 stickers around Melbourne sticking them up and around, and on signposts,

tram stops, benches, train stations, near shopping hubs. We want people to constantly run into

this sticker, to get wondering about us and try to find out what we do.

Our second strategy is to partner with Melbourne Spring Fashion Week. During the festival we
will have a small marquee tent outside Melbourne Town Hall, which will bring the Style Friend

experience live. People can wander in from the street, speak with the stylist who will then

present them with a possible outfit to purchase on the spot using Square payment technology,

which plugs straight into a smartphone. This is an event where we can target individuals who

are interested in fashion and get our name out there, and it will only cost us the hire of the

marquee ($300-$500 depending on size).

Both of these campaigns are designed to organically catch the consumers eye. We expect

the sticker campaign will create initial buzz and people will start to visit our website to find our

exactly what Style Friend is. The partnership with MSFW is a super, simple way to get our

name out there to the right people, to people who are engaged with fashion, who are busy go-

getter and who will tell others about our service.

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 WHY INVEST?
Its a fact that new businesses face a number of hurdles. Below are the top three issues
facing Style Friend and our plan to leap over these hurdles in our dash to the finish line.

Style Friend is completely unknown to the public. This means there is no brand recall or
brand recognition. In order to crate buzz, and therefore recognition, we have a guerrilla
marketing campaign planned. Its no use for us to employ the same old techniques that
everyone uses. We are going to do something different the cuts through the noise and
forces people to pay attention.

Given that we are a new service, people may be hesitant to give us a go, especially
given the $25 styling fee. For at least the first month, and possibly up to the first three
months if needed, we will waive the styling fee in order to have customers get a feel for
the company and our service. Customers will be fully informed that this is temporary
because were new offer so that there is no backlash when the fee is introduced.

A big part of the Style Friend offer is a high level of personalisation and customer service,
without needing to leave your house. After customers create a profile and request a
style package, customers will be matched with a stylist and a 1-on-1 consultation will
take place via Skype or FaceTime. While this will appeal to most customers, some
customers may not have the time for this consultation or will feel uneasy about such
an activity. In the sign up process we will offer consumers the chance to opt-out. The
customer will still receive the virtual style package, so they are able to ensure they
receive products that they want.

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WHY INVEST?

So, why invest?

1. Style Friend is a completely NEW service in Australia. While similar services exist

overseas, there is no such company in Australia. This has the company uniquely positioned in
the marketplace with no direct competitors.

2. The company solves a clear customer need; for customers who do not have the time,

patience or interest in shopping around for products, we will do the work for them.

3. The company combines expert personal styling, technology and personalised service

to offer customers a unique service.

4. The focus on personalisation is very apt for todays customers and will engender

customer loyalty. Customers will be repeat customers which will lessen customer acquisitions

costs overtime.

5. The company offers an optional subscription model, which will encourage customers to

purchase more frequently thus increasing revenue.

6. Style Friend will break-even within its first year of operations.

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 REFERENCES
Codhina, A 2016, What the Hell Happened to Personal Style?, Vogue, 15 April, viewed 22

May 2016, <http://www.vogue.com/13426899/personal-style-celebrity-stylists/>.

Gopal, S 2015, Australian Online Retail Outpaces Traditional Retail, Power Retail, 4 June

2015, viewed 22 May 2016, <http://www.powerretail.com.au/news/australian-online-retail-

outpaces-traditional/>.

Isenberg, AS 2011, Fashion 101: What does a stylist do?, weblog post, 18 April, Searching

for Style, viewed 22 May 2016, <http://searchingforstyle.com/2011/04/fashion-101-what-does-

a-stylist-do/>.

Medine, L 2016, Were In It: The Era of Personal Style but What Does That Mean?, weblog

post, 22 March, Man Repeller, viewed 22 May 2016, <http://www.manrepeller.com/2016/03/

were-in-it-the-era-of-personal-style-but-what-does-that-mean.html>.
NAB n.d, How to use our start-up costs calculator, NAB, viewed 22 May 2016, <http://

businesstips.nab.com.au/starting-a-business/how-to-use-our-start-up-costs-calculator/>.

NAB 2016, NAB Online Retail Sales Index: in depth report March 2016, NAB, viewed

22 May 2016, <http://business.nab.com.au/nab-online-retail-sales-index-in-depth-report-

march-2016-16472/>.

Sherman, L 2014, A Customised Experience for Each Shopper?, Business of Fashion, 8

December 2014, viewed 22 May 2016, <http://www.businessoffashion.com/articles/fashion-

tech/customised-experience-shopper>.

Stores and Stories 2016, Personalised Shopping: the key to success, Stores and Stories,

viewed 22 May 2016, <http://www.stores-and-stories.com/articles/personalised-shopping-the-

key-to-success/>.

Tang, M 2016, Guerrilla Marketing Tactics Every Startup Should Know: 8 Case Studies and

Examples, Referral Candy, 26 April, viewed 2 May, <http://www.referralcandy.com/blog/

guerrilla-tactics-every-startup-should-know/>.

Trigg, M 2014, Go Guerrilla! 5 Unorthodox Ways to Market Your Brand, Entrepreneur, 3

October 2014, viewed 22 May 2016, <https://www.entrepreneur.com/article/238067>.

Way, M 2015, Fashion Retailers: Why the Personal Touch is Key to Multi-Channel Success,

weblog post, 26 March 2015, k3 Retail Blog, viewed 22 May 2016, <http://k3retail.com/blog/

fashion-retailers-why-the-personal-touch-is-key-to-multi-channel-success/>.

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STYLE
FRIEND

Its my little secret...

Zoe Knox // s3476862