On 13th November 2018 ( Tuesday), students were required to present their proposal for their business idea that they are going to be researching on for the final assignment. As seen below is the presentation slides for the proposal.
Slide courtesy of (Wong, 2018)
PROBLEMS INDICATED:
1) Baby clothing being kept, unused and disposed after a short period of time.
According to resource.co, babies undergo growth sprout that goes up to seven sizes in the first three years causing babies to outgrown their clothes before it’s worn (Cole, 2017).
2) Increase in expenses for baby necessities.
The expenses on preparing for baby has increase throughout the years based on Aviva’s family finance report (Aviva.com, 2014). The average cost of baby clothing during the first year is approximately $60 per month depending on income level which makes it roughly $720 for a year on based on Investopedia (Adams, 2017). According to a survey published by Aviva, a total of 6 out of 10 parents have experience unnecessary items that once thought will be handy (Aviva.com, 2014).
3) Plenty of clothing ended up in landfill.
According to Remake, 80% (approximately 92 million tons) of global clothing textile ended in landfill annually and takes up to 200 years to decompose (McCarthyhy, 2018). With the high turnover rate of baby clothing, many baby clothing are disposed when they’re still a good condition or soiled. The lifespan of the clothing is short and wasn’t fully utilized.
Slide courtesy of (Wong, 2018)
OPPORTUNITIES:
1) Interest towards circular & sharing economy.
According to WGSN, the fashion industry has evolved and focus towards circular and sharing economy (Rechner, 2018). Consumers nowadays are more educated towards the environmental impacts of the fashion industry, hence resulting an increase gain in sustainability (Vehmas, 2018). Brands such as Rent the Runway, Le Tote, Y Closet (China) and MS Paris (China) are offering peer to peer services.
2) Growing market for clothing rental.
The market for baby clothing is expected to grow by 1.0% annually with a current sales revenue of US$9,203m in 2018 (Statista, n.d.). The global market for clothing rental is predicted to reach $ 1,856 million in 2023 with a CAGR rate of 10.6% based a report published by Allied Market Research, titled, "Online Clothing Rental Market: Global Opportunity Analysis and Industry Forecast, 2017-2023," (Research, 2017). The rise of working women and the increase in women’s wages results in greater purchasing power have a positive influence towards the sales of children’s apparel which directly impacts towards the market for this business as well (Global Children's Wear Market 2016-2020, 2015).In other point of view, economic uncertainty also influence the buying behaviour of consumers to be more price conscious that possibly affect families to cut down on household expenses (Ibisworld.com.au, 2018).
3) Upcoming clothing rental trend.
Multiple online platforms such as ‘The Conversation’ and ‘WGSN’ have predicted clothing rental would be a upcoming trend in the fashion industry with a industry value worth £923m (Braithwaite, 2018). According to Los Angeles Times, the concept of renting has become more and more favourable by the Millennials as well as a report from WGSN stating that the survey result conducted by Mintel has concluded an amount of 90% of UK consumers within the age of 25 to 34 practice borrowing items instead of owning clothes (Reyes-velarde, 2017), (Saunter, 2017).
PROCEDURES
STEP 1:
By paying a monthly subscription fee or other packages, the company would rent out boxes of clothes (available in a few different package options, 15 pieces or 30 pieces for example) to the customers.
STEP 2:
The customers are required to fill up a form regarding the gender, size, style preferred, age or any health issue of their child to receive the box of clothes suitable for them. Clothing styles can be selected if available.
STEP 3:
A package/subscription box with preferred or ordered clothing items will be sent to the family who subscribed.
STEP 4:
Once the baby has outgrown them or after worn them for a month (depending on package subscribed), customers are able to return the clothing to the company and opt for their second box after paying their second subscription fee with the latest sizing of their child.
STEP 5:
Customers are able to keep a clothing item if the clothing appeals to them. However, external charges or deduction from deposit will be implemented.
STEP 6:
The clothing will undergo strict quality control when they’re returned to the company. They will be inspected, cleaned thoroughly and fix (if needed) to ensure the clothing is still at its best condition before sending it out to the second family. The company would also ensure that the detergent used are gentle, safe for babies.
STEP 7:
Once the clothing is worn out / cannot be reused, the company will ensure that the clothing will be donated to a company that would reuse them.
OBJECTIVES
The goal of this research is to discover new business opportunities in the fashion industry without forgoing sustainability and ethical aspects. Through this research, a few objectives are aimed to be achieved:
1. To identify the acceptance and demand of targeted consumer towards baby clothing rental services.
2. To study the consumer’s concerns for not having ownership of the clothing for their own child.
PROPOSAL OF WORK TO BE SUBMITTED:
For this research, students are required to complete:
1. Research Proposal
2. Portfolio
3. Journal
4. Sketchbook
5. Blog post
METHODOLOGY:
This business proposal will be a qualitative and quantitative research.
Primary date:
Interview, Questionnaire.
Secondary Data:
Article, Journal, Report, Literature.
ACTION PLAN:
Business idea approval (proposal): Week 5
Formulate research area and questions: Week 6
Proposal outline: Week 7
Document process in journal: Week 7
Document process in sketchbook: Week 7
Research process (Primary & Secondary research): Week 7 onwards.
This post concludes the business idea proposal for Future Fashion Innovators.
Thank You,
Renee Wong
Bibliography
Aviva.com. (2014). UK: First-time parents spend £492 million preparing for baby. [online] Available at: https://www.aviva.com/newsroom/news-releases/2014/04/uk-first-time-parents-spend-492-million-preparing-for-baby-17298/ [Accessed 4 Nov. 2018].
Braithwaite, N. (2018). Clothing rental could be the key to a stylishly sustainable fashion industry. [online] The Conversation. Available at: http://theconversation.com/clothing-rental-could-be-the-key-to-a-stylishly-sustainable-fashion-industry-100106 [Accessed 4 Nov. 2018].
Cole, R. (2017). One size fits all: The clothing that grows with children. [online] Resource Magazine. Available at: https://resource.co/article/one-size-fits-all-clothing-grows-children-12245 [Accessed 4 Nov. 2018].
Futuremarketinsights.com. (2016). Online Clothing Rental Market - Global Industry Analysis, Size and Forecast, 2016 to 2026. [online] Available at: https://www.futuremarketinsights.com/reports/online-clothing-rental-market [Accessed 12 Nov. 2018].
Global Children's Wear Market 2016-2020. (2015). [online] Technavio. Available at: https://www.technavio.com/report/global-apparel-and-textile-childrens-wear-market [Accessed 12 Nov. 2018].
Ibisworld.com.au. (2018). Infants' and Children's Clothing Retailing – Australia Industry Report | IBISWorld. [online] Available at: https://www.ibisworld.com.au/industry-trends/specialised-market-research-reports/consumer-goods-services/infants-childrens-clothing-retailing.html [Accessed 12 Nov. 2018].
Kidpik.com. (n.d.). Kidpik | Fashion Boxes for Girls. [online] Available at: https://www.kidpik.com/how-it-works/ [Accessed 12 Nov. 2018].
Mayo Clinic. (2018). Infant growth: What's normal?. [online] Available at: https://www.mayoclinic.org/healthy-lifestyle/infant-and-toddler-health/expert-answers/infant-growth/faq-20058037 [Accessed 4 Nov. 2018].
Perchard, E. (2015). H&M closes the loop on denim. [online] Resource Magazine. Available at: https://resource.co/article/hm-closes-loop-denim-10421 [Accessed 12 Nov. 2018].
Rechner, E. (2018). Why kidswear clothing rentals are the future of babywear. [online] WGSN Insider. Available at: https://www.wgsn.com/blogs/why-kidswear-clothing-rentals-are-the-future-of-babywear/ [Accessed 4 Nov. 2018].
Research, A. (2017). Online Clothing Rental Market is Expected to Reach $ 1,856 Million, Globally, by 2023 - Allied Market Research. [online] Prnewswire.com. Available at: https://www.prnewswire.com/news-releases/online-clothing-rental-market-is-expected-to-reach--1856-million-globally-by-2023---allied-market-research-618522543.html [Accessed 4 Nov. 2018].
Reyes-velarde, A. (2017). Los Angeles Times - We are currently unavailable in your region. [online] Latimes.com. Available at: http://www.latimes.com/business/la-fi-retail-rentals-20171220-story.html [Accessed 4 Nov. 2018].
Scribd. (n.d.). ANALYSING MARKET & DEMAND OF KIDS WEAR | Retail | Brand. [online] Available at: https://www.scribd.com/doc/5556825/ANALYSING-MARKET-DEMAND-OF-KIDS-WEAR [Accessed 12 Nov. 2018].
Scribd. (n.d.). ANALYSING MARKET & DEMAND OF KIDS WEAR | Retail | Brand. [online] Available at: https://www.scribd.com/doc/5556825/ANALYSING-MARKET-DEMAND-OF-KIDS-WEAR [Accessed 12 Nov. 2018].
Statista. (n.d.). Baby Clothes - North America | Statista Market Forecast. [online] Available at: https://www.statista.com/outlook/90060200/104/baby-clothes/north-america#market-revenue [Accessed 4 Nov. 2018].
Trusted Clothes. (2016). Fast Fashion in Landfills - Trusted Clothes. [online] Available at: https://www.trustedclothes.com/blog/2016/09/05/fast-fashion-landfills/ [Accessed 12 Nov. 2018].
Vehmas, K. (2018). Consumer attitudes and communication in circular fashion. Journal of Fashion Marketing and Management: An International Journal, [online] 22(3), pp.286-300. Available at: https://www.emeraldinsight.com/doi/full/10.1108/JFMM-08-2017-0079 [Accessed 4 Nov. 2018].
Vigga.us. (n.d.). Vigga - Hvordan virker VIGGA. [online] Available at: https://vigga.us/hvordan-virker-det [Accessed 12 Nov. 2018].
Wrap.org.uk. (2018). [online] Available at: http://www.wrap.org.uk/sites/files/wrap/Design%20for%20longevity%20-%20childrenswear_0.pdf [Accessed 4 Nov. 2018].
Wong, R. (2018). Business idea proposal.
Comentários