We are currently working on creating a customer base and researching the pricing , we are also looking for angel investment to help us with our capital expenditure which is mainly the inventory cost of luxury labels.
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beLuxed the Luxury lending service idea
1. Luxury Democracy –
BLXD , like the women it is aimed at , believes that Luxury is not about
ownership and flaunting expensive labels but about refinement and
appreciating perfection in design and quality. From this point of view
everyone who understands and loves the great legacy, design and
quality of iconic Luxury Brands , deserves to experience it.
2. BeLuxed is an online Luxury Service -It is a subscription based Luxury Fashion
Lending Service that offers it’s members an extended Luxury wardrobe through
leased access to some of the most iconic fashion Brands in the world.
It is for people who are passionate about fashion and style and have an intense desire to
experience the Legacy, Design Quality and Perfection of iconic Luxury Brands.
• It could be the answer , for people with luxury aspirations but not quite the wallet
to match and/or
• It could be a great supplementary resource for people who do own luxury items
but would like to try out /experience even more International brands and
Designer Merchandise than they currently access
3. The 2010 released CII-AT Kearney report says the India's
luxury market, which is small compared to global
standards, is likely to grow three times and touch $ 14.7
billion by 2015 . There is a huge latent demand especially in
tier-2 cities which has many new millionaires
Most luxury brands still unwilling to move beyond the
exclusive malls and hotels of Delhi and Mumbai, the game-
changer in India for them may lie in another factoid in the
Bain report: that luxury sales online are over-performing
overall web sales, and will grow at 20% in 2010, to e4.2
billion. In that segment, off-price sales account for 30% of
online, versus 70% online purchases at full price.
Men do most of the luxury in India, mostly cars and
watches, very few women like to shop for international
Luxury labels in India they prefer to shop while traveling
abroad.
For Luxury to really take hold, India needs more world-class
retail spaces, more hi-profile events where women feel the
need to wear great luxury brands and various formats
need to be explored that allow women to get exposed to
and get used to wearing Luxury brands with the least
amount of risk
Smaller items like wallets, perfumes and cosmetics are
important and like it or not , ladder brands like Zara and
Guess are important too.
4. Trend 1: Luxury CRM Culture Dramatically Supersedes Operational CRM
Trend 2: Focus on Brand Values and Service Values – Luxury Brand don’t need positioning as much as a
clear and strong identity
Trend 3: Luxury Purges its Out-of-Touch, Arrogant Staffs
Trend 4:Man the Websites!
Trend 5:Clienteling Goes from a Hobby to a Discipline
Trend 6: Luxury Mobile Applications Come of Age
Trend 7: Luxury Equips Sales Professionals with In-Store Mobile Devices
COMMON DENOMINATOR- Democratization of Luxury - out with the snobbish attitude,
Customer is in the driving seat, People want individual attention and good service,
Technology is a great enabler and differentiator that allows the brand to offer
Value-added services and build relationships
Wealth and Luxury Trends
2011 and Beyond – Luxury Institute
White paper
5. Primary Market Segment (Individuals)
IT professionals –women (and later men) who earn salaries above 15 Lacs PA
Top Business professionals in Retail , Travel and Hospitality
Top executives of Small and Medium sided businesses
Aspiring Models and Actresses
Secondary Market Segment (Non-individuals):
Modeling agencies
Ad/film production houses
Event/PR agencies
Geographies
Bangalore
Indian Metros
Rich tier 2 cities (Ahmedabad , Pune, Chandigarh etc)
6. Services:
One time Rentals through a one time contract Online catalog and transactions
online payment with pick up and drop , great for Luxury Lease
trying out the services › Bags and Shoes
› Fashion Jewelry
› High-end Watches
Membership option › Cocktail Dresses
Platinum - Refundable Deposit and rental › Evening gowns
charges , Multiple Items at a time, unlimited › Business suits
borrowings › Outerwear
Free (up to a limit) VAS like Drops and Courier Pick-up and Drop
Cleaning Auctions
Member privileges like Previews, book in Pre-bookings & Previews
advance and Cleaning services for members
Pre-Auction invitations to bid.
Store & Member-to-member Luxury Auctions
Gold- No Deposit, Monthly advance-paid Style community & social network
fixed fee.
Stylist on call
Selective access to Merchandise , One item
Member Luxury Listings & Classifieds
at a time, Limited borrowings per month
Paid VAS like Drops and Cleaning Virtual shoot planning & run-throughs for
photographers and publications
7. The primary sources of revenue are
• Rentals from Long term members- Platinum
• Membership Fees from Monthly members – Gold
• Rentals from Non-member (Virtual walk-ins) individuals or
Institutional bulk rentals
• Final auctions (recovery)
Future sources of revenue
Ads , business listings and classifieds
Member to member auction commissions
Paid value-added services to existing
customers.
Stylists
Wardrobe planners & shopping advisors
Weekly outfit planning sessions
Personal shoppers
Shopping tourism / events
8. Plan ROI for
Quarterly Budgeting &
Source each item to
merchandise Operations
Internationally recover 150% Forecasting
mix planning
of investment
• Trend forecasting • From multi-brand • Cost of purchase + • Logistics • Revenue
• Planning websites lifetime • Online management
• Ensure a healthy • Directly from Brand maintenance merchandising & • Cash flow
mix of “classics” • Liquidation • Rental target per cataloguing • Accounting
and “trend” items websites purchase • Customer
• Final Auction outreach –
recovery per Marketing ,
purchase Promotions & CRM
• Order processing &
Delivery
• Payments &
collections
• Inventory
management &
maintenance
The basic logic-
Every item on an average has a target of 150% ROI within a set timeframe
(bags have more time, apparel has less time to recover costs and so on)
This return on investment has to happen primarily through revenues from rentals + final auction/sale
Additional revenue streams like Ads, commissions etc. will also contribute to cover overheads.
The largest cost ( and asset) for BeLuxed is inventory which constitutes roughly 60% of our total cost.
That is the nature of the business.
9. Social Media Marketing – Blogger
outreach, FB, LinkedIn, Twitter
Website marketing – SEO/SEM, Listing,
Banners and Ad words
Press coverage/advertorials in Local dailies
and Lifestyle magazines
Radio interviews (non-paid)
Introductory offers and Member get
member promotions through targeted
email campaigns and tie-ups with other
brands
Partnerships with Clubs/Spas/Travel and
vacation websites/companies and Salons
to have an mini events or events within
event .
Participation in Luxury/Fashion fairs/events.
Institutional buyers (Modeling agencies, Ad
film production houses) are targeted
through sales appointments and Direct
Mailers.
10.
11. Various options would compete for the share of wallet that belongs
to “pleasure/self-indulgence spending”
Indirect competition could be any of the following:
› Purchase of “ladder brands” especially tempting sale season
› Save up and buy smaller /last season's luxury brand items of luxury brands on sale
on international website like “net-a-porter”, “The outnet” , “Ventee privee” , “Guild
group, and many more
› Vacations
› Spa/beauty services
› Purchase good quality Fakes?
The above would be more important in the case of walk-ins and
one-time borrowers
Presumably members see value in the brand offering and would
see the BeLuxed offering as unique and not to be compared with
the above types of indirect competition.
12. True International Luxury Labels
Incredibly stylish and on trend merchandise – Classics with a modern edge
Wide Range for specific occasions like Business events, Cocktails, Club party ,
Day party , Vacations etc.
Jewelry and watches also available
Impeccable attention to hygiene and maintenance of goods
Personalized enrolment and requirement gathering sessions
You can vote for future additions to wardrobe
Classy Service
Amazing auctions to get great brands at dream prices
13. I can ideate,
inspire, strategize,
Design, create,
fire-up , problem
solve, hang on
Veena Srinath, SIMS 1999 and get people to
Advertising & Marketing Professional believe
http://www.linkedin.com/in/veenasrinath
Aarti Saxena Deoskar, SIMS 1999 I can analyze , fine
Sales & Marketing with Multinational tune , calm-down,
negotiate, network
Luxury Hotels and manage
http://www.linkedin.com/pub/aarti-deoskar/b/b3b/a18 operations
I can sell , realize
Pragati Seth Sharad, SIMS 1999 plans, push people,
Sales & BD for IT Services for Europe, India network, make
contacts, leverage
http://in.linkedin.com/pub/pragati-seth/13/7a5/49
connections and
manage operations
14. BeLuxed wants to be the most admired and trusted Fashion
Borrowing Service Brand in India.
A service that stylish and intelligent women turn to, when they
want to access genuine Luxury fashion Brands and create
beautiful personal experiences with them, without blowing
up their hard earned cash on outright purchases.