A few years ago, I joined the Jacobs Startup Competition and submitted my idea for a fashion tech startup built on hybrid blockchain technology. I submitted my business plan, and little did I know that I’d proceed to the next stage of the competition but I didn’t proceed soon after. Regardless, it was a very good experience - it was my first time being acquainted with blockchain tech which kickstarted a sense of confidence in the use cases of the technology.
So, for this article, I will insert each section of the business plan that I had written for SizeIt - I know - I wanted the name to describe the functionality without much explanation. Oh yes, there’s a bit of Metaverse in there too!
What is your business idea?
Pain point : Most shoes and apparels tend to fit differently despite being the same size. So, people often buy the same size shoes from different brands that don’t really fit them. As a result, some of the items bought are either thrown away, returned to stores or donated.
Solution: SizeIt focuses on allowing customers to use Augmented Reality (AR) to determine the accurate size and style of shoes and apparels wherever they are. Customers will be able to get a 360 degree live view of the item on themselves before making a purchase decision. SizeIt will also incorporate hybrid blockchain technology to store and track data. In essence, SizeIt will be divided into two categories – an app with a blend of AR and social media features to be used by the public and a standalone AR integration to be used in stores by large fashion and sports retailers.
What is your value proposition?
As SizeIt will be used in stores by fashion and sports retailers, customers who need apparels or shoes may use the AR integration to obtain a 360 degree live view of the item. SizeIt will then provide real time feedback on the size difference between a customer’s foot or body size with that of the product. So, a customer who tries on a shoe without socks may estimate the space left when he wears the shoes with socks. Retailers will benefit as the need for changing rooms, staffs or retail stores will be reduced thus simplifying their supply chain whilst saving rental and labour costs. This would allow them to implement Just In Time to manufacture products based on demand. App users may use the AR feature anywhere, buy apparels, shoes or accessories from premium app users, build a virtual closet and connect with other users through SizeIt’s fashion Metaverse.
Briefly describe your Unique Selling Point(s)
USP – “Size it accurately, anytime, anywhere”
SizeIt will be a marketplace for premium app users to buy and sell shoes or apparels. Since SizeIt will incorporate hybrid blockchain technology in storing and tracking data, app users may allow anyone from their private network to view their size measurements and users from their private network may send them presents based on these measurements. Since data is decentralized through blockchain, users’ data will be protected as it reduces the potentiality of data tampering while increasing users’ trust because SizeIt would rely heavily on data for targeted advertising. Anyone from the public network may connect and interact with one another while having the ability to modify their avatar with various fashion items. Business clients will have the freedom to choose specific SizeIt features that suits them from 24-hour tech and customer support, AR integration assistance, etc and be charged based on these.
Introduce your team and their roles/skills/experience. What are your weaknesses and how do you overcome them?
This team works in a flexible manner wherein the founder is in charge of the innovation and operations of the start-up. The founder (Chief Innovation Officer) is a business school student on a gap year with two internship experiences at start-ups. The venture also includes part timers who significantly contribute towards product development so that Sizeit is agile and on par with current technological advancements. The weakness would include the lack of having experienced members with a solid technological background and experience who may provide valuable insights. In order to overcome this, SizeIt continues to encourage the team to improve their technological competence through comprehensive tech base projects and courses.
What are your customer segments? Quantify your target markets using TAM, SAM and SOM.
The total addressable market (TAM) for the AR integration includes businesses focusing on apparels and shoes. Another customer segment under TAM includes the general public who need help in finding apparels and shoes that fits them well. The TAM can be filtered to acquire serviceable available markets (SAM) for AR integration and this will include fashion and fitness retailers like Adidas, ASOS, Gymshark and more. The SAM for the app will include users, fashion enthusiasts, costume and fashion designers and fashion “influencers”. The serviceable obtainable market (SOM) for the AR integration will be Farfetch or ASOS as these brands offer a variety of products from different brands making it sustainable and feasible to target these brands. For the app, the SOM will mostly likely be users who constantly purchase shoes and apparels and those in the film or fashion industry.
Who are your competitors? How do you differentiate yourself from those specific competitors?
Nike’s app Nike Fit is the only competitor and they use an AR based app in stores to measure the foot of customers and based on past data collected, it will recommend an estimated size suitable for the customer. Contrastingly, SizeIt’s AR is built to allow customers to get a 360° precise live view of the item on themselves. SizeIt also serves as a marketplace for premium app users to sell or rent shoes and apparels. Data is stored and tracked using hybrid blockchain thus increasing data security, trust and allows SizeIt to obtain real time changes to customer behaviour thus enhancing targeted advertising. SizeIt’s fashion Metaverse in the app will allow all users to build their own closet, view connections closets, create their own outfits from scratch, connect and interact with other users in their private and public network.
What is your marketing strategy? How do you intend to reach your target market? How does your startup’s name contribute to this?
To acquire the target market, SizeIt will showcase its service in fashion and sports expos to provide business owners a first-hand experience on Sizeit’s AR functionality. SizeIt will also display digital billboards outside theatres to acquire film producers, directors and costume designers as a way for them to see SizeIt’s AR feature being utilised, total users using SizeIt and user testimonials. SizeIt will also produce a short video advertisement to acquire app users through social media showcasing two customers, one struggling to get the correct shoe size and the other using SizeIt to get the accurate shoe size. The latter will then approach the struggling customer and convey “Why worry, just SizeIt” with a segment focusing on SizeIt’s fashion Metaverse with avatars. The name itself acts as a notion in informing and encouraging a customer to use SizeIt’s AR feature to find the precise shoe or apparel size and style.
Describe your revenue streams. How do you want to monetize your idea?
Fashion and sports retailers and film production companies may choose a plan from a variety of plans or choose a customizable plan and pay a monthly subscription based on their chosen plan. A certain percentage of management fee will be charged based on their monthly subscriptions. Additionally, fashion and sports brands who use SizeIt’s AR integration will be charged on a monthly basis based on the number of ads they would like to post to each user. Premium app users who rent or sell items will also be charged a certain percentage of commissions on sales and a service fee for setting up their store through SizeIt. SizeIt will also offer special packages to fashion brands that would like to have fashion shows in SizeIt’s fashion Metaverse.
What is your sales and pricing strategy
SizeIt’s sales strategy will revolve around the benefits that businesses will gain as SizeIt solves their pain points. By portraying the functionality of SizeIt, businesses will know that SizeIt will help reduce their operating costs especially rental and labour costs. A customer will be able to use SizeIt’s integration anywhere in the world without having to go to a physical store. A reduced need in having a physical store will eventually reduce a company’s need for more resources. To make it more customer centric, businesses will also be able to choose specific features that relate to their business as part of their subscription’s plan. As the pricing is based on subscriptions, a value based pricing approach will be used. Data will be collected for targeted advertising, public users will be able to earn side income and the superior service alongside other offerings justifies the value based pricing approach.
What are your financial needs and how do you intend to finance your start-up?
SizeIt will require a tech team consisting of back end and front end software engineers in order for the AR integration and app to work efficiently and effectively. SizeIt will also require a small team to assist in setting up the AR integration for retailers. A business development, operations, finance and support team will also be needed to ensure smooth operations of the business. In order to hire an experienced pool of talent to accommodate the aforementioned needs, SizeIt will need funding to kickstart the business. Funding will also be obtained through bootstrapping and this will act only as a contingency plan. SizeIt will only seek further funding if there is a need to do so. This is to ensure that most of the company’s share is under the control of the higher management.
This was written during the crypto boom when there was a lot of chatter on blockchain. It was also when NFTs and the Metaverse were cool. I hope you enjoyed reading this. Do let me know what you think of it.
Enjoy!