Style Lagom. Executive Summary

STYLELAGOM.COM

EXECUTIVE

SUMMARY

Executive Summary

Business Plan Project Stage 2 Word Count: 993

Anastasiia Sorokina Tutor: Naomi Braithwaite

Nottingham Trent University School of Art & Design BA (H) Fashion Marketing & Branding Year 3 Semester 2 May 2018

CONTENTS

4

5

7

Introduction

Business Overview

Brand DNA

9

14

19

The Market

Marketing & Comm Strategy

Brand Management

20

Conclusion

Introduction

This is the executive summary for "Style Lagom" business plan. It covers the main aspects of the plan like what the business is about and what problems it can solve, the brand values and management, the target audience, the market and the competitors, the communication plan and the marketing strategy.

4

The Business Overview Style Lagom is a new platform that aims to make online shopping for fashion easier and more fun. It is a place where the user can get a highly personalised recommendations from different online fashion partner retailers based on the preferences that will be detected by AI-powered software.

A new visitor will need to create an account and complete the test about the gender, size, colour and style preferences and favourite brands. Based on that, he will get the primary list of tailored recommendations. The intuitive user interface will induce Style Lagom member to enhance his experience by evaluating each recommendation with “like” or “dislike”. With that the list will become more and more personalised.

5

The Business Opportunity

Considering the primary research on the target audience, one of the biggest inconveniences for the online shoppers is a need to look for a product they might be interested through different and often the same websites they usually visit.

Therefore, the "online shopping assistant" can be a solution. Personalisation is a huge trend that, no doubts, will be one of dominating these years. Particularly it has popularity among millennial consumers, with 73% saying they would seriously consider engaging with an ad aligned to their buying preferences (Hebblethwaite, 2018).

Consumers have no time and limited patience for irrelevant advertising these days. If retailers can personalise and optimise ads effectively in shoppers’ preferred formats using predictive, AI-powered tech, then they should reap the rewards...

ANDREW MORSEY, MANAGING DIRECTOR UK SIZMEK (Hebblethwaite, 2018)

Business Model

Style Lagom is a completely free service for shoppers. The company's revenue will come from 13% commission that retailers will pay for each sale generated by the website and advertising.

With the growth of the company's user base (roughly in 3 years after the launch) , Style Lagom will be able to sell consumers analytics to the partners which will become another important revenue stream.

6

Brand DNA

Style Lagom is the destination for people who favour balance not only in their life but in their wardrobe too. "Lagom" is a Swedish word which means "just the right amount".

The brand wants to give a customer a feeling of making the right choice and make him fall in love with particular products, so he won't be disappointed in the end. Today, we got a complete abundance of fashion retailers and products encouraging customers' impulsive buying behaviour.

Style Lagom wants its users to make more conscious and thoughtful style choices so they will not end up having "never worn pieces" in their wardrobe. Saving customers' time, the platform makes their shopping experience personal and easy.

Brand Vision Style Lagom vision is to be the biggest online shopping assistant providing its users a highly personalised service.

Brand Mission Style Lagom mission is to make online fashion shopping less time-consuming and provide its users with highly personalised recommendations from various retailers.

Brand Personality & Values Style Lagom is a personal guide in the world of online fashion retail.

The brand represents sophistication and intelligence yet a young spirit. The main focus is on balance.

The company wants to make online shopping for fashion more balanced and well-thought.

We believe that the power of analytics can make online shopping experience stress-free and bring benefits to both parties: customers and retailers.

7

The Logo

8

The Market

In 2017 British spent an impressive

ÂŁ16.2 billion on online sales of clothing, fashion accessories and footwear. That

year the online fashion market increased 17.2%, with fashion as the most popular category bought online.

Over the next five years, the online fashion market will continue to see strong double-digit growth, with the market forecast to increase a further 79% by 2022, reaching just under

ÂŁ29 billion (Mintel, 2017).

66% internet users in the UK have bought fashion items online in the last 12 months, rising to 81% of millennials.

And while over 84% of online shoppers have used a laptop/desktop to buy fashion online, the use of mobile devices is growing, with almost half of millennials having bought fashion from their smartphone.

TAMARA SENDER, SENIOR FASHION ANALYST MINTEL The strength of the online fashion market stands out as the overall clothing market is struggling, with a continuing shift away from consumers spending their extra money on fashion items to spending more on leisure. The way consumers are shopping for clothes and shoes is changing; there is a buy-now, wear-now mentality and a desire to shop for clothes however and whenever they want, with consumers demanding convenient shopping that fits around their busy lifestyles. Usage and trust in online retailers is still growing. Many of the pure play fashion retailers are still immature businesses and have a degree of novelty value, which is helping to drive sales.

(Mintel, 2017)

9

10

Target Audience

Trend Watchers

Style Determined

Fashion savvy. They will check out the

Professionals with the lack of time and

recommendations few times a week to find

higher purchasing power. They know what

a perfect deal in terms of style & price. For

they like and they want to get it fast. They

them it is more about exploration of

are expected to check their account once

everything in one place rather than

in a week or two but more likely to make a

personal style set up.

purchase every time they come.

16-25

Trends, instant gratification, online interactivity

Trends, instant gratification, online interactivity

Instagram, Facebook, Pinterest

Age Range What’s important to them?

How to market to them?

Preferred Channels

23-50

Highly accurate personalisation, convenience

Highly accurate personalisation, convenience

Facebook, Instagram, Public Transport, Email

Even though they will have a list of personalised recommendations from

How Style Lagom can appeal to them?

For people that are not willing to spend time in search for a perfect

the retailers, based on what they

style piece, the platform will be a

subconsciously like, Style Lagom will

great solution for an easy online

offer manual search and calls to

shopping. However, the app will

action to explore more by completing

remind them from time to time to

new quick visual quizzes or through

check out the suggestions so they

the editorial.

could evaluate them and make the list more accurate.

11

Competitive Landscape

The closest alternative to what Style Lagom offers is Stylight.

Stylight positioning is being a style guide with the best products out of multiple shops.

All of these competitors allow a visitor to scroll through the products from different e-commerce websites. Lyst offers more of premium options from big brands. Whereas Shopstyle and Stylight have a wide price range and show home & living products too.

What makes Style Lagom stand out on this competitor field is that none of these platforms is tailored for personalisation.

Detecting personal style preferences and give a unique feed of products is how the company will position itself.

Product Choice Scale

Personalisation

12

SWOT Analysis

Strengths

 Highly personalised approach to online fashion

Weaknesses

High costs to sustain the business

shopping experience Lack of experience and reputation in the field Consistent brand image

Appeal to the Target Audience

Opportunities Becoming a unique place for online fashion

Threats

Lack of interest from the retailers

market exploration Possible software defaults Influencing the trends and online fashion retailers operations

13

Marketing and Communication Strategy

Marketing Objectives

14

First Potential Partner Retailers

15

Marketing & Communication Plan

16

Brand Management

Financials

Profit & Loss  Forecast

Loan: ÂŁ300,000

17

Conclusion

Building a tech startup in such competitive landscape is highly risky.

However, even though the costs are enormous, Style Lagom will not have direct competitors if the company will emphasise the personalisation aspect.

The idea was supported by the Head of Operation Vendor Performance Manager, Jonathan Setiaji, at Lazada, the number-one online shopping destination in Southeast Asia.

The main success drivers will be excellent hard coding and Machine Learning implementation with strong digital marketing to reach impressive number of registered users, so the chance of becoming profitable in 3-5 years could rise.

18

Reference

1. Hebblethwaite, C. (2018). UK consumers prefer personalisation over promotions. [online] Marketing Tech News. Available at: https://www.marketingtechnews.net/news/2017/nov/24/uk-consumers-prefer-personalisation-over-promotions/ [Accessed 7 May 2018].

2. Mintel. (2018). UK Online sales of clothing, fashion accessories and footwear grow by 17% in 2017. [online] Available at: http://www.mintel.com/press-centre/fashion/uk-online-sales-of-clothing-fashion-accessories-and-footwear-grow-by-17-in2017 [Accessed 7 May 2018].

Images

1.The Cover. (2018). [image] Available at: https://www.pinterest.com/pin/313985405266110963/ [Accessed 7 May 2018].

2.Introduction. (2018). [image] Available at: https://www.pinterest.com/pin/313985405266171448/ [Accessed 7 May 2018].

3.The Market. (2018). [image] Available at: https://www.telegraph.co.uk/technology/connecting-britain/shop-online/ [Accessed 7 May 2018].

4. Trend Watchers. (2018). [image] Available at: https://www.pinterest.com/pin/552324341785167825/ [Accessed 7 May 2018].

5. Style Determined. (2018). [image] Available at: http://rosecitystyleguide.com/reitmans-office-look/ [Accessed 7 May 2018].