Apparel Startup: GTM Strategy & Operational Development
An ex-data scientist sought our expertise in fulfilling their life-long desire of entering the health & wellness industry via an e-commerce apparel startup. Their end goal was to build a sustainable and reputable brand that captures the essence of wellness, while adhering to the environmental principles they have advocated for. This apparel brand is intended to target a niche population of at least 35M people in the US who would consider themselves to be of the following characteristics:
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Introverts
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Nature lovers
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Mental Health advocates
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Travel enthusiasts
Key areas we addressed
The $27B U.S. luxury apparel market. Strong focus on key competitors with e-commerce operations, product development, branding, supply chain, pricing strategy, and customer segmentation.
Key people, processes, technologies, and business functions needed for launch and post-100 days of operations.
Operational planning and project management governance needed to support 4-month launch plan
Organic and paid marketing strategies that can deliver above-market ROAS. Key market & product tactics that appeal to fashion x health & wellness community.
Customer acquisition strategies supplemental to an e-commerce operations that can streamline new customers into the funnel and revitalize retention & repeat purchase rate
Our Strategy & Execution
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Research & Due Diligence for GTM Strategy
Our team conducted a comprehensive market research and feasibility study on the e-commerce online industry with focus on the luxury apparel segment. The US luxury apparel market is roughly $27B; 10% is attributed to e-commerce. Our industry-wide analysis included:
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an analysis of the industry's 5-year financial performance
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an analysis of the current supply chain ecosystem leveraged by key players
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an analysis of key competitor and
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an analysis into consumer behavior, with focus on trends and purchasing patterns driving the overall sale of online luxury apparel
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an analysis to support pricing strategy and R&D strategies for apparel development
02
Competitor Deep Dive Analysis
A strategic analysis of the market operations and current business strategies of most well-known and similar brands in the luxury apparel e-commerce space. This approach include:
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an analysis of competitors' YoY market performance spanning the last 5 years with key KPIs
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any analysis to uncover potential challenges that have impact business operations eg. supply chain, environmental regulations, etc.
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an analysis of any M&A activity, both successful and unsuccessful, and rationale for said M&A pursuits
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an analysis of their overarching brand positioning, customer footprint, and product portfolio
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an assessment of their pricing strategies across apparel type and online channels
03
Project Management for Pre & Post Launch
Developed project management governance in 2 phases to streamline the pre-lauch, launch and post-launch activities. Phase 1 was entailed market research and competitor analysis, with supplemental data gathering to support scaling marketing, finance, product development, and e-commerce business functions. Phase 2 focused on task execution of across all major business operational areas for day 1 readiness. Work streams included R&D, Marketing, Finance, Legal, Supply Chain & Technology. This was structured and executed via the Monday.com.
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AppPricing Strategy & Business Valuations
A scenarios analysis was performed to test various pricing strategies based on factors such as competitor pricing, market demand, USP, and the quality of our client's apparel collection. Price designated to be within the range of $250-1000 per apparel, depending on design, embroidery, pattern, and/or patches. The operating expenses margin were estimated to be around 0.3x revenue, in line with industry standard for first year startup expenses. Leveraging this pricing model with estimated projections for COGS and expenses, we developed 2-year revenue projects of $1M with business valuation of $3.4M.