INDIA’S PREMIER

FASHION RE-COMMERCE

MARKETPLACE

WITH LUXURY RENTAL OPTION

SWAPZAAR

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THE SHARING ECONOMY

The idea of ―NOwnership,‖ or ―no ownership‖ is

based on the concept of sharing or renting clothing,

not owning a house, a car, electronics, or small

appliances — and has been building an impact for

the past five years.

“…this generation not only highly values experiences,

but they are increasingly spending time and money

on them: from concerts and social events to athletic

pursuits, to cultural experiences and events of all

kinds. For this group, happiness isn’t as focused on

possessions or career status.”

- Study conducted by Harris and sponsored by

Eventbrite

References:

https://www.fastcompany.com/1842581/why-millennials-dont-want-buy-stuff

http://www.intelligenthq.com/social-business-2/is-the-sharing-economy-here-to-

stay/

http://www.fastcoexist.com/1681009/whats-the-future-of-the-sharing-economy

IF NOT NOW, WHEN? THE CONDITIONS ARE JUST RIGHT DUE TO A UNIQUE MIX OF FACTORS

Incomes are not growing at the same pace as aspirations. Also, the recent recession, and rumors of another one in the making haunt consumers’ minds.

Upper premium and high-street brands have already whetted the appetite for higher spending on fashion; but luxury brands a still out of reach, especially for young people.

Awareness of Luxury brands is growing as is the aspiration to experience them; not necessarily own them.

Global pre-owned and rental fashion markets have established that there is no stigma in renting, thrifting or purchasing pre-owned goods: young stars are endorsing vintage & thrifted style.

Luxury buyers are growing value-conscious and are mixing high-street and luxury brands; they are also willing to resell their gently used items for reasonable prices.

For the young Indian who aspires to experience luxury brands early on in life, and for those who cannot (or will not) purchase them outright, the options are

Buy pre-owned and Vintage stuff

Rent what you need/love

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THE NEED: BALANCING YEN & ZEN

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We are not solving a desperate need/pain point, we are

addressing a deep-rooted human desire that was buried

for a long while, but now is more prevalent than ever.

At the heart of Swapzaar’s offering is this universal desire :

How can I experience all the good things in life and

fulfill my dreams; and yet remain free, and Zen-like,

unconstrained by money-related insecurities

and over-indulgence?

PS: Humans didn’t “need” an iPod but obviously they wanted it!

Buyers Sellers

SWAPZAAR OVERVIEW:

How does Swapzaar address that Desire?

Swapzaar is primarily a peer-to-peer online market-place: On swapzaar you can sell, buy and rent branded fashion.

(High-street, Premium and Luxury).

People can sell their gently-used fashion items which are in great shape;

make money and buy/rent something else that they desire on swapzaar,

or they can encash their earning by paying a small fee.

They can Buy & Sell – High street, Premium & Luxury Brands (existing option 1)

They can trade authentic vintage fashion and make money (existing option 2)

Borrow & Lend- Luxury Brands ( Future Plan)

The burning Aspiration: to own experience Premium and Luxury Fashion

here and now; balanced with the need to not over-indulge, and to simplify life…

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De-link style from ownership & money-

To be the Brand that re-defines how young Indians build their

wardrobe (and express their personal style) by bringing the

power of pre-owned fashion and rentals to them;

via the web and mobile platforms.

VISION

INDIA MARKET OPPORTUNITY: TAM

EVERYONE WHO SHOPS FASHION ONLINE

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India will have 100 million internet shoppers by 2016.

75% of internet users are under 35 years in India so making

our addressable TG approximately 70-75 million young

urban shoppers.

Females comprise ~ 39-40% of the Indian Internet

population amounting to approximately 40 Million women

shopping online– and this will grow 3X in the next 3-5

years. Women also outspend men online.

We also hope to engage the male audience with our

Luxury pre-owned and rental offering- Luxury Watches &

Formal wear; targeted at the young male business traveller.

About 71% shoppers will be from Tier 1 & 2 cities which will

be our primary target.

Tier3 cities are growing fast through mCommerce.

NOTES- Calculations based on these numbers: http://www.digit.in/internet/6-important-takeaways-from-googles-study-on-e-commerce-in-india-

24525.htmlhttp://www.medianama.com/2013/10/223-comscore-2013-india-future-in-focus-internet-population-in-india-at-

74m/

http://www.livemint.com/r/LiveMint/Period1/2013/11/14/Photos/g_charticle_web.jpg

Target- Women & Men

Sellers from Tier 1 &2 Cities

Buyers from Tier 1,2 & 3 cities

SWAPZAAR: TARGET USER GROUPS PREOWNED FASHION MARKETPLACE: BUY, SELL, RENT

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Group 3 Interested in Vintage and genuine pre-owned luxury

finds- has great knowledge and appreciation for Luxury brands

Group 2 Only interested in thrift shopping for great bargains online :

thrill hunter

Group 1 Only interested in

selling & making cash: from

premium & luxury brands: Trade

minded

Group 4 Wants to experience big

brands but won’t spend – will be happy to rent luxury brands.

Group 5 youngsters out to explore the world

- wanting to try big brands to make an impression

Group 6 Frequent / Seasoned

travellers looking for specific travel

related luxury rentals: practical

& suave Group 7 New age consumer , who loves the Zen

concept of Nownership and

Collaborative consumption

These various groups are not watertight ,

mind-sets will keep flowing from one group

to another; often overlapping.

Target-

International Indian students

Global Travellers

Fashion lovers

Indie traders

BUSINESS MODEL CANVAS

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Key partners Key activities Value propositionCustomer

relationshipsCustomer segments

Logistics Acquisition Selection Transparency Buyers

Authentication Listing & merchandising AccessTrust- buy back, rent

and buy, EscrowSellers

International vintage goods

suppliersMarketing & Branding Price Confidentiality Traders

Network of sellers Sales convenience

Business travellers

(men/women), Leisure

travellers (Men/women) ,

International Students &

Young working people

Delivery Discretion

Key resources Channels

Platform/Product Web

Luxury Authenticators

& Genuine Vintage

hunters (future)

Mobile: App, mobile

web

Inventory

Founding Team

Logistics- for the re-commerce boutique & rentals

Operational cost

3rd party comissions

Cost structure Revenue streams

Inventory

Marketing

Product development

Sale of goods on re-commerce boutique

Comission from sale of items on marketplace

Revenue from Value added services

Membership fee

Rentals income

Placement ads

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Revenue through sale of buttons for:

Purchase of listed items is GMV we get 10% of that

Paid Listing fees (beyond first five free listings)

Verification, Featuring (premium listing)

Future- Paid White glove service- Special access to auctions,

preview sales and privileges like Door pick up service,

Pre-labeled shipping box etc.

ReCommerce-Pre-owned luxury fashion boutique

Sales revenue

Rental revenue; clearance auctions

Retailer/power seller membership package:

Paid ―store owner‖ memberships for power-sellers; with various

benefits

Advertising revenue, App revenue (??)

Contextual Placement ads on site

Mobile app with Fashion Game (use points to access

higher levels & enter the jackpot round)

REVENUE MODEL: TRANSACTION BASED

Boutique Sales revenue

Rental revenue

VAS Revenue

Transaction Fee

Membership Fee

Advertising & App

revenue

Share Wardrobe, confidential couture, Zapple, Elanic,

Envoged, Etashee and Stylish Play, www.coutloot.com,

revampmycloset.com are marketplaces for pre -owned

premium women’s apparel brands

While LibeRent, FlyRobe, SwishList, and Klozee rent premium

brands and designer wear.

Plus there are brick-and-mortar stores like Branded Bargains

in Mumbai which sell gently used branded luxury items.

DIRECT COMPETITION: HEATING UP BUT

NOT SCALING UP JUST YET

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INDIRECT COMPETITION:

NOT EXCITING FOR FASHION CATEGORY

OLX, eBay, Quickr

Mostly cars, furniture & household

goods

Established market: Listings

Huge user base is an advantage

Heavy investment in marketing

Trying hard to push specific categories

including Fashion

People dislike the experience when it

comes to buying & selling fashion on

these platforms: especially the lack of

discretion and haggling.

NOTE: It is worth remembering however

that Ebay reportedly sees $2 billion to $4

billion in luxury good sales annually. 12

SWAPZAAR COMPETITIVE ADVANTAGE:

MARKETPLACE WITH RENTAL HYBRID;

BRINGING TOGETHER THE BEST FEATURES

Better user Experience:

Niche: when compared to OLX, Quickr & eBay we are

only about fashion & lifestyle; easier to navigate.

Confidentiality & Buyer protection: Authentication,

refund/ buy-back guarantee & Escrow mechanism, no

exchange of phone numbers till sale is over.

Value added services: White Glove service, premium

listings; verifications etc

Easy EMI/ Hire purchase options

Membership Benefits: for privileges like Listing

previews, access to Flash auctions & special discounts

.Scalable:

Focus is on Upper premium as well as Luxury brands

Bigger catalogue: Go beyond just bags into shoes,

clothes watches, Jewelry and beauty

Hybrid- Marketplace model and pre-owned luxury store

with rental option

Strong focus on Tier 2/3 cities 13

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Re-commerce boutique store-

Pre-owned Luxury brand items of >500$s

available for sale and via EMI (pay as you go) option

Rental option

Available for Cash & Buttons

White glove service for high end brands :

Paid VAS for door pickup, inspection &

listing service

Insurance for shipped items- paid & free

3rd party Authentication & pricing service

Special invitation to previews, auctions and sales.

App for easy uploads & purchases

Functional app Integrated with a fashion

game idea where people can play to win

buttons (and do everything else).

Store owner membership package: Paid ―store owner‖

memberships for power-sellers.

SWAPZAAR: NEXT PRODUCT/SERVICE ENHANCEMENTS

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Our leading proposition will be Pre-owned Luxury Rental and Purchase

It will primarily targeted at travellers (Business & Leisure) and Students

planning to study abroad

The high-street/Premium pre-owned marketplace is the base platform,

which will help attract the right TG which already buys premium brands and

can be persuaded to upgrade to authentic pre-owned luxury at excellent

prices.

We will target the buyers, sellers, students and travellers separately

through the following:

SEM & SEO

Database marketing & email campaigns

Affiliate Marketing

Blogger outreach & digital PR

Events (or piggy back on existing events) at colleges, flea markets and

malls

Strategic partnerships:

With Premium & Luxury Retailers and International consignors: See

example http://www.prnewswire.com/news-releases/neiman-marcus-and-the-

realreal-make-luxury-consignment-easy-with-a-new-partnership-300116969.html

GO TO MARKET STRATEGY

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FUNDING REQUIREMENT

Ideal funding round: 60 Lacs for 12% equity We would prefer to raise the entire amount from a single investor or a maximum

of 3-4 investors.

Minimum investment expected from each investor- 6-8 Lacs

78%

12%

10%

%equity

Co founders

Various (collective)Investors

Options pool

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FUND UTILIZATION

Product enhancement- 20%

Responsive website

Mobile app

Integration of transactional SMS notifications

Inventory for Sale & Rental Boutique - 20% (Trials for a small sub-segment of TG)

Trial targeting of the young male business traveller- Luxury watches, Baggage and

Formal Business wear.

Launch of new VAS & Partnerships- 15%

Paid promotions of listings

Paid door pickup & listing service for premium and luxury items

Paid memberships to access the VAS and special privilege auctions

Customer acquisition and driving transactions- 30%

Marketing program- Affiliate, Mobile ads, SEM

Content marketing- SMM, SEO

Acquiring key members for the Team- 15%

Please see extra slides for the key roles.

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MILESTONES & STORY SO FAR…

100% bootstrapped with 3 co-founders and no external invetment

Current investment- ~ 10 lacs for MVP development, maintenance and basic Marketing.

Beta soft-launch in July 2014.

With early User feedback we did a complete design overhaul

in Nov-Dec 2014 and re-launched new design in Jan 2015

First adwords & facebook Marketing campaign of INR 1Lac rolled out :

June-August 2015

Since then only organic traffic and registrations.

Current traction: 2200+ registered members

> 150 transactions (Listings ,Purchase, Button purchases etc.)

100 items Listed and 50+ items sold.

Early revenue stage- GMV of INR 0.5 Lacs till date.

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CORE TEAM PROFILE: CO-FOUNDERS

https://in.linkedin.com/in/aartideoskar

Aarti Saxena Deoskar, SIMS 1999

Sales & Marketing with

Luxury Hotels & Marketing for Startups

http://in.linkedin.com/pub/pragati-seth/13/7a5/49

Pragati Seth Sharad, SIMS 1999

Sales & BD for IT Services for Europe,

and SEA

Veena Srinath, SIMS 1999 Short Diploma in Fashion Design from Marangoni, Paris

Advertising & Marketing Professional

http://www.linkedin.com/in/veenasrinath

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We are

batch-mates &

roomies

from SIMS class of

’99, Pune.

We are close and our

skill-sets are

complimentary

We share a common

defence services

background and

a love for travel and

style.

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Contact Details:

veena.srinath@swapzaar.com

mailforveena@gmail.com

aarti.deoskar@swapzaar.com

aarti.deoskar@gmail.com

+91.9901989807/+91.8800355998

THANKS FOR YOUR TIME!

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OPTIONAL SLIDES

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CORE TEAM : TO BE ADDED

CTO:

Product

Apps

Tech Infrastructure

Marketing Lead:

SEO/SEM

Social Media

Branding

COO:

Supply Chain

Partnerships

Logistics

Legal &

Financial Advisor

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SAMPLE CATALOGUE PLAN: For RE-COMMERCE BOUTIQUE

Bags & Shoes

Travel

Watches

Luxury formal wear

Luxury fashion Jewelry

Garments

Items are authenticated at source

Price of items: US$ 500- 4000

6 months EMI option for paid members

2 Months Rental- pay and use and return option

Buy insurance for additional fee option

TARGET GROUP- SOME USER PERSONAS

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Milan Saxena; 42 yrs;

Mumbaikar, Mom with two

teenage daughters, was a CA

till she had her children, now

a home maker, travels with

husband and kids frequently

on Holidays to Australia and

Singapore. Considered a

cool mom in her circle.

Husband is an SVP at a

large Financial Company;

They have a large social

circle. Milan is active on

social media and shops

heavily at designer boutiques

and in stores like Zara and

Mango both for herself and

her daughters.

Likes to keep up the status of

her family and home.

Would love to experience

true luxury brands- but has to

think about her daughters’

futures and their own

retirement days

Mommy

Aspirer-

I don’t want to

be crazy but I

don’t want to

grow old feeling

resentful of the

―sacrifices‖ I

had to make

Nikita Vohra; 31 yrs; MBA;

Gurgaon, AVP sales- EMEA;

for an Fin-Tech product

startup.

Single but in a relationship

with a second generation

entrepreneur. She travels

frequently to International

markets for sales, and also for

holidays with her partner.

Is very ambitious in her

current job, plans to marry in a

year or so, but not sure if she

wants kids.

Might eventually startup on

her own with her future

husband. She believes in hard

work but also in projecting the

right image. Socially active,

confident and shops a lot for

fashion- mostly at Zara or

when she's abroad. Owns a

prized Omega watch, and

aspires to have access to

more luxury brands.

Ambitious

young

professional

I’m smart and

image matters,

I want to project a

savvy

international

persona and get

ahead in my job.

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Tina Misra; 22 years, Delhi;

recent graduate from NIFT;

wants to pursue a masters

course in fashion styling and

fashion journalism in Milan.

She plans to work in London

or New York for a few years,

she dreams of being a Vogue

editor some day.

She’s been accepted at a

college of her choice, her

student loan application has

come through and she is

going to join college in

October. Now she’s busy

learning some Italian and

planning for her future

college life. She is also

putting together an informal

portfolio with her NIFT work,

and some styling ideas she

has shot. She is also

sprucing up her personal

style blog.

Global Student

I’m planning on

going abroad for

my masters, it’s

already an

expensive

proposition so I

want a great

wardrobe with

some special

pieces, at a

decent price!

Venkat Subramanium; 35 yrs;

Software Development

Delivery Manager; Bangalore,

for a large IT services

company. Married with 2

young children.

He travels a lot to the US for

work, his hobbies include

photography and he also plays

the guitar when he gets

together with friends.

Wife was a techie too, but

since they had kids she has

moved into a less demanding

tech writer’s role which allows

her to work from home most of

the time.

Got a recent promotion to a

Client partner role that might

involve a move to client

location (US) for a couple of

years. The family is excited at

the prospect of moving to a

new country and experiencing

new things.

Male Business

Leader

I’m moving from a

Tech role to a

more public

Management

role , I might

move to another

country, I need to

look the part and

fit in with Industry

leaders.

TARGET GROUP- SOME USER PERSONAS

IS RE-COMMERCE A REAL TREND ?

Consumption trends show that

ReCommerce will be an

increasingly popular way for

aspirers to trade up to luxury

brands; younger consumers

aspire for bigger brands earlier

in life…while mature luxury

buyers look to generate cash

from their idle assets.

References:

http://fashionista.com/2015/04/the-realreal-fund-raising-2015

http://blog.threadflip.com/post/56162208301/the-economics-of-a-womans-closet

http://dailysavings.allyou.com/2014/04/11/what-to-do-with-old-clothes/

http://www.dailyillini.com/features/health_and_living/article_55c84b38-701e-11e2-b390-0019bb30f31a.html

http://pop-break.com/2011/07/01/trends-on-trial-thrifty-like-a-rockstar/

Venture capitalists are behind the

thriving re-commerce industry.

Nearly $300 million is invested in

online fashion resale — $100 million in

2014, up from $40 million in 2013.

By April 2015, $70 million was already

invested.

Read thredUP’s 3rd Annual

Resale report here

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The realreal raised $40 Mil l ion Series D in Apri l , 2015 Details:

https://www.crunchbase.com/organization/the-realreal

Threadfl ip raised $13 Mil l ion Series B in July , 2014 Details:

https://www.crunchbase.com/organization/threadflip

Vestiaire Collective Nets $20 Mn in Series C Funds in Sep 2013 Details:

https://www.crunchbase.com/organization/vestiairedecopines

MARKET: SUCCESSFUL VC INVESTMENTS

2013-15

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SNAPSHOT: GLOBAL RESELLER THE REALREAL

The RealReal: Total funding to $83 million (Series D $40mn in April 2015)

Revenue in 2014-15: $100 million / Target revenue for 2015-16: > $200 million

Sold >1 million items since opening four years ago

Biggest differentiator- Consignment model; users send their products to centralized

warehouse, the items are authenticated, uniformly photographed, and sold, No

information released about the seller.

The anonymity is appealing to both high-profile individual sellers — like celebrities — as well

as upscale boutiques and designer brands that need to offload unsold inventory. And it makes

for a more seamless experience for the consumer at both ends. There's no dealing with

disgruntled buyers or irresponsible sellers.

Fund utilization- Buy more product, price it reasonably and possibly M&A.

Fastest-growing categories are fine jewelry and watches & menswear.

Hard luxury was up 225 percent in 2014, expected to jump another 250 percent in 2015.

Men’s fashion was up 225 percent in 2014, and should more than double in this year.

Strongest competitor in Luxury Consignment space: The London-based Vestiaire

Collective, which has raised $31.7 million.

Vestiaire has made a serious push in the U.S.

The biggest difference is that Vestiaire is a true marketplace model- it allows sellers to post

directly to the site, and to set their own prices.

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MARKET: WHY AIRBNB IS A CHAMPION OF

COLLABORATIVE CONSUMPTION

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A i r b n b h a s f i n a l i ze d i t ’ s l a t e s t ( N o v 2 0 1 5 ) f u n d in g

r o u n d f o r $ 1 0 0 m i l l i o n , w i t h a va l u a t i o n o f $ 2 5 . 5

b i l l i o n .

T h e s t a r t u p m a n a g e d $ 3 4 0 m i l l i o n i n r e ve n u e a n d

$ 2 . 2 b i l l i o n i n b o o k in g s i n t h e f o u r t h q u a r t e r ,

d o u b le t h e f i g u r e s s e e n l a s t ye a r . P r o j e c t e d

r e ve n u e f o r t h e ye a r s t a n d a t $ 9 0 0 m i l l i o n

A i r b n b g e n e r a t e s r e ve n u e b y t a k i n g a 3 % c u t o f

e a c h b o o k in g a l o n g w i t h a 6 % t o 1 2 % s e r v i c e f e e

f r o m g u e s t s .

T h e b i g g e s t t h r e a t t o t h e i r m o d e l : G r o w in g

r e g u la t i o n c o n c e r n s a c r o s s t h e wo r l d , a s m o r e

c i t i e s a r e s t a r t i n g t o s e e t h e e f f e c t s o f t h e

c o m p a n y’ s ― s h a r e d e c o n o m y‖ a p p r o a c h t o r e n t a l s

a n d t h e n u m b e r o f u n l i c e n s e d r e n t a l s .

T h i s r e a c t i o n i s m o s t l i k e l y d u e t o p u r e e n vy, a s

t h e g r o w t h o f t h i s c o l l a b o r a t i v e b u s i n e s s m o d e l

o u t s t r i p s t h e t r a d i t i o n a l h o t e l s b u s i n e s s .

T h e o t h e r r e a s o n f o r t h e wo r r y c o u ld b e t h a t t h e

G o v ’ t f e e l s i t w i l l b e m i s s i n g o u t o n t a x e s o n u n -

r e p o r t e d i n c o m e .

T o f i x r e l a t i o n s w i t h c i t y l e a d e r s a n d r e g u la t o r s ,

A i r b n b r e c e n t l y a n n o u n c e d C o m m u n i t y C o m p a c t ,

w i t h t h e g o a l o f p a y i n g a f a i r s h a r e o f h o t e l a n d

t o u r i s t t a x e s . I t a l s o p l a n s t o o f f e r m o r e

t r a n s p a r e n c y i n t h e f u t u r e .

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Passion Vision Art Pvt. Ltd

The Passion and courage to follow our

convictions

The Vision and endurance to stay true to our

goals

The Art and the skill to make it happen

Founded: 19.06.2012

Directors: Veena, Aarti & Pragati

ABOUT THE PARENT COMPANY