PROJECT WORK: Market size and attitude

Market size 

TAM  – Total Addressable Market

• • How many people would want or need the product?
    • 330 million people in the United States
    • Sports fans
      • 26% of the United States avid sports fans

• 44% casual sports fans – casual sports fans would be a big target for sports fans (~145 million)

• • • • Assumption that most would be a one sport season fan ~4 months
  • Costume/holiday
    • Would only apply for large holidays – Halloween, Christmas, Easter, etc
    • These people are likely encapsulated in the sports market 
  • **I don’t think this generalizes as well to the TAM.  I think it would be better to change the revenue structure when generalized to all adults because a year-around subscription model would not serve as well for these one off holiday and sporting event situations.
    • Could expand into online retailing.
• How large would the market be in $$ if they all bought in?
  • 145 million * 10 * 4 = $5.8 billion net revenue

SAM – Served Available Market

• How many people need or can use the product? 
  • Probably a matter of want more than a matter of need – would be useful for four year college students, specifically those students that do not live at home 
  • 14 million college students in the US that attend a 4-year university
    • ¼ of these students live with their parents, but the service could still extend to these students
    • ~30% of college students participate in parties, 4.2 million students

• How large would the market be in $$ if they all bought in?
  • Clothing donations **
  • 4.2 million projected customers
  • $10/month subscription + possibly option to buy used clothes ($5 every other person per year)
    • $10/month I got by talking to students to see what they would be willing to pay for a monthly subscription service for rally

• 8 months of school year (excluding december, june, july, august)
• 8*10*4.2 million + 5*2.1 million = $346.2 million

SOM – Serviceable Obtainable Market

• • Stanford students 
    • Clothing donations**
    • 25% of Stanford students participate in Greek life, but you don’t join Greek life until Spring freshman year (2000 students for 3 months, 1500 students for 5 months) = 6000+7500 = 13,500 subscriptions if everyone subscribed
      • Based on campus culture from talking to students, seems like somewhere from 25-50% would be subscribe (3375-6750 subscriptions per school year)
    • 97% of students live on campus (~7500 students)
      • 10% of on campus students not in Greek life would be interested in participating in social activities creating a need for costume wear and ¼ to ½ would subscribe (750 additional students, 1500-3000 subscriptions per school year)
    • Assuming for every other person participating, we would profit $5 from purchase of costume wear = 612.5-1225 students 
      • Average of ~920 students
  • Total $$
    • 4875-9750 subscriptions per year
      • Average of 7300 subscriptions per year

• $73,000 from subscriptions

• • • 920 student purchases of clothing

• $1,840 from purchases

• ~$75k/year

 

Interview Notes

Mira

How would you describe your relationship with your clothes? How about the clothes you wear out/rally clothes?

• Has a hard time making use of different pieces very frequently because once i’ve worn something i get tired of it, especially if it’s a statement piece
• I never feel like i have enough clothes even though i have enough clothes to cloth myself, have trouble with limiting the quantity of clothes I have but also being able to feel good in those clothes everyday
• My clothes make me very happy, I just always want to get more stuff
• I struggle with themes because i think themes require you to like that as a style to begin with, I really like basics so I don’t really subscribe to rally clothes
• I hate rally clothes though 

 

Imagine you are going to a themed event and you don’t have the appropriately themed clothes. What would you do (if anything at all)? Would your decisions differ based on if the event was in a week vs. in a few hours?

• Depends on the theme and how serious i perceive people to be about the theme 
• First look in my closet and see if there’s anything i can work with
• If there is someone physically close to me then i would immediately look at their clothes, or would text a friend or two and then just let it go if it doesn’t work
• If a month in advance and a significant event (formals/proms), then I would look into buying stuff 
• “Friction in returning clothes to people and I don’t love that”, they will never get clothes back from me, if people ask for it back they will definitely get it back from me quickly 

 

Have you ever tried a clothing rental service before? If so, can you walk me through your experience and what you thought of it. If not, why not?

• No, because I looked on RTR and shit was ugly but i love the concept and totally would consider it 

 

Have you ever lent clothes to a friend/acquaintance? If so, can you walk me through your experience with this and what you thought of it? If not, why not? 

• Love lending shit to people because it validates my style, I like when people compliment my clothes and appreciate it and want to wear it themselves, its so fun to share clothes i think the trouble with it is that i feel like i have to keep track of it mentally, if i lent a lot of clothes I would keep a list of all the stuff i lent to make sure that i would get things back 

 

Tara

How would you describe your relationship with your clothes? How about the clothes you wear out/rally clothes?

• Love my clothes and keep them for a really long time, i just dont like to throw things away and i have a very emotional attachment to some of my clothes 
• Really like fashion in general and love to thrift and statement clothes, am more attracted to an article of clothing as i look at it rather than full outfits
• Dont currently have any rally clothes but i used to have a sorority rally box but would borrow friends stuff
• Remember buying a wig and random stuff but that just takes up space so i cleaned it all up even though it was helpful it just took up space and i just gave up 

 

Imagine you are going to a themed event and you don’t have the appropriately themed clothes. What would you do (if anything at all)? Would your decisions differ based on if the event was in a week vs. in a few hours?

• Would go to partycity if it was something I was really excited for, potentially shop on amazon if i had a lot of time and was really excited and my friends were doing that too
• Would look at stuff in my closet
• Or borrow clothes from a friend if I have a friend who is really willing to lend 
  • Would text in a gc about if anyone has anything and if anyone responds, I would go over and try on a few items from that person, meant to give it back to her but then it just sat in my closet forever and kept forgetting to return it and i asked her if i could wear it again
  • Eventually she was in my room and i gave it back to her

 

Have you ever tried a clothing rental service before? If so, can you walk me through your experience and what you thought of it. If not, why not?

• No, i think i find it stressful that you can’t get your clothes dirty and im a really messy person so it stresses me out renting really expensive clothes bc ill probably mess it up
• Sometimes i buy things thinking ill return it but then i never do because its too much effort

 

Have you ever lent clothes to a friend/acquaintance? If so, can you walk me through your experience with this and what you thought of it? If not, why not? 

• Maya stories
• Once lent a dress to kiki for a party and she got a cig burn in it and it made me sad because it was a dress that i had a really good night in and it was old so i couldn’t find another once, i was really upset, she felt so bad and found one on poshmark and got me the exact same one but have no realized that lending things to people just stresses me out so much especially if im at the same event
• Now when people ask me to borrow things i just say no, i just tell them ill get stressed out and i dont lend people things anymore and i try to not borrow things from people because it also stresses me out, once borrowed something from someone and washed it and stained it and it stressed me out so much