Bow & Drape
Bow & Drape is the brand that lets women with personality customize their fashion. The brand has been worn by celebs like Jessica Alba, Jaime King, Debra Messing and Serena Williams, and has been covered by InStyle, Glamour and Lucky magazines.
Using technology, Bow & Drape allows women to create endless custom designs using a selection of blank products with color, lettering, and embellishments. Once a design is created, Bow & Drape manufactures the design in under 60 minutes in-store or ships the item in under two weeks.
Bow & Drape has been operating for three years and was cash flow positive in July. Retail investors include Mindy Grossman (CEO, HSNi), Tony Hsieh (CEO, Zappos), and Rachel Shechtman (Founder, STORY).
Bow & Drape has grown 8x year over year and is slated to do $1.25M in sales in 2015.
They are slated to launch in 50 stores for one of the largest national retailers by Holiday 2015.
The company is on track to break even by Holiday 2015 and become profitable in 2016.
Margins are at 55% gross with under 5% returns.
The addressable market of women, typically ages 20-35, buying custom apparel online and offline is over $100B. There is an increased demand for women to stand out and feel unique through the purchase of customized apparel. The “me generation” is also able to adapt to fast moving trends and changes in lexicon by having control over the “message” their apparel is sending. Our customers stay on-trend, one of a kind, and in control of what their clothing expresses to the world. By 2015, MIT predicts that customized apparel will be more than 15% of new brand purchases each year. Comparable businesses at $100-200M in revenues annually are NikeiD, TeeSpring, and Zazzle.
Our average online order is $79
Our gross margin is 55%
Our return rate is only 5%
Year over year growth for 2015 is 8x
They have several competitors online, but no one trying to scale mass customization offline like Bow and Drape with the partners they have lined up.
Online competitors, who make lesser quality products that are frankly less fashionable and less appealing to Bow and Drape’s demographic of millennial women: Zazzle, CustomInk, TeeSpring, SpreadShirt, Café Press, Threadless, Print All Over Me.
Outdated Inventory risk + capital outlay
Insufficient working capital to grow and market the business
Over-exposure to one retailer (50 locations with one retailer)