Product for Study- Fashinza ( a B2B Fashion tech startup)

Fashinza is a tech-enabled B2B Marketplace platform for Fashion Brands to source new designs in minimum MOQ in less than 21 days.

Business Size - $1.5-$2mn GMV per Year

Number of Customers - 5000+

Number of Onboarded Verified Suppliers (India + Bangladesh) - 200+

Country of Operations - USA, UAE, India, Europe

Delivery time - 15-21 days

Product Offering-

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Understand the problem

1. To bring new customers in US market and to build Brand awareness among small-mid size brands.

2. Traditional marketing channels like- Performance /SEO was not sufficient to bring high intent leads. Since our sales cycle are long & need sample creation efforts in factories , we need to ensure that we are getting the high-intent leads for conversion to make sense of ROI of the sales efforts.

Key for the business was to onboard legit brands who have high intent to ensure low CAC & min sales conversion cycle.

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Litmus test

(To understand if we're ready for a partnership. If yes, then what are the reasons for the same)

Hence, as a marketing team we need to think out of the box to build brand awareness in US market & bring new leads for sales.

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Identify the right type of partnership-

Objective -

1. Create Brand Awareness In USA market for Fashinza as a reliable quick sourcing platform for budding new age D2C fashion brands with <100 MOQ within 21 days ( lowest in Industry).
2. Create legit high intent sales leads from Fashion Brands with sizeable business selling on Marketplaces like Amazon, Etsy or through their own website via Shopify, Wix etc.

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Why Product Partnership?

Product Integration partnership with marketplaces like Amazon/Shopify/Etsy could help the brands to manage inventory and sales together, they can place the order for specific design getting out of stock directly. Marketplaces can send reminder on low stock and push to Fashinza portal for placing order.

Both Brands & marketplaces want min friction and a continuity of their top selling inventory to avoid sale loss, hence product integration at seller dashboard could be a good discovery for new brands to try Fashinza.

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Why not Channel Partnership?

If Marketplaces don't integrate Fashinza order portal with Seller dashboard, and only focus on sharing leads with Fashinza . Then there will not be much USP for customers to try Fashinza over their existing suppliers. The integration will make the flow smooth differentiating why they should try Fashinza over competitors.

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Identify the right partner-

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Our ICP is not just a fashion brand, but to match with Fashinza's capability it should have lesser SKU spread and more MOQ in order to create long term brand retention.

Hence, Shopify and Wix are the right priority partners with whom we can do the integration.

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Get stakeholder buy-in -

Who are the Stakeholders -

1. Sales Team
2. Marketing Team
3. Product team

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Proposal for the Stakeholders -

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Problem Statement - At Fashinza, we as a team are all focused on finding new growth levers which can help the company to enter USA market. However, our current efforts in building brand awareness are definitely helping us to bring website traffic, however the lead conversion is ~ 5% on US website. Hence, we require a strong partner in our growth journey who can help us in bringing legit leads in D2C space in USA as we expand our services.

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US Market Insights - After thorough study of the US fashion market, below are some statistics that we have captured about our ICPs-

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In US market , Shopify and Wix hold ~35% of the overall D2C market, out of which Fashion brands hold ~45%.

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Shopify has ~70k online fashion sellers ( 50k sellers with 100k ARR)

Wix has ~52k online brands , with 30k+ ICPs

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With both the platforms, we can extend our services to the right ICPs and enter the US fashion market as one of the leading sourcing partner for all D2C first brands.

Consumer Problem at Shopify /Wix platform- At the brand side , Both Shopify and Wix provide a platform where the brands can monitor the existing inventory of their top SKUs and the sales prediction on each SKU. But often the top selling SKUs go out of stock due to lack of on-time sourcing, without clear visibility of product dispatch with unreliable fashion manufacturing partners.

Solution for the Mutual Consumers -

1. Consumer can see the sales prediction on Shopify/Wix and plan their inventory in advance.
2. To place a quick order for the top SKU , with just one click they can route to Fashinza order portal and place an order with style details - MoQ, material type, silhouette photo.
3. Displaying Fashinza sourcing solution in Shopify will help consumers to reduce their our of stock time, improving revenue for both Shopify and consumers
4. No large inventory stock up required reducing stock pile up.

Expected Revenue growth with this Partnership -

1. Total TAM - 70k sellers ( Shopify)
2. SAM ~ 50k Sellers
3. Target Conversion in Launch year - 4% ~ 2000 brands
4. Avg Order value ~ $10k
5. Frequency ~ 2 /year

Expected GMV from Partnership ~ $4mn ​

Expected Take rate ~ 10-15%

Net Additional Revenue Expected ~ $400k

Current Revenue run-rate ~ $100k

Potential Revenue growth from the partnership is upto 4X of current ARR. Hence, this could be a good GTM for us to enter US market and grow our Brand Awareness in D2C fashion market in USA.

To make this partnership successful , We will need cross- collaboration from all teams to bring forth their respective expertise-

Reaching out for Partnership

POC Selection Framework - Target Manager/head designation in Partnership team in shopify

Shortlisted POCs-

Lacy Spates - Product Partnership Manager , USA

Jill Morgenweck - Product Partnership Manager , USA

Reach out Message -

Subject - Fashinza & Shopify | Partnership

Hi Lacy,

Hope you are doing great!

I am Saloni Acharya from Fashinza , we are a global B2B fashion-tech startup with 5000+ customers globally solving product sourcing for D2C brands.

After detailed research in US market, the top reason for revenue loss is the inventory stock out issue. There is a sizeable chunk of our mutual customers have given a feedback in our survey that they can improve their revenue by atleast 10-15% month on month if timely delivery of their products was taken care of.

That is where, Fashinza enters, we have an interesting partnership proposal with your team where together we can improve the experience & unlock new revenue growth for D2C Brands across USA.

Can you put me in touch with someone concerned with Partnerships/Integrations?

Regards,

Saloni Acharya

Head of Marketing, Fashinza

GTM for Partnership Launch -

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Target Outcome from GTM - Atleast 100 Brands should signup/enquire on 1st day of launch

In order to create a detailed GTM plan, first need to answer below questions -

Who is the ICP - D2C Fashion brands

Who is the core user/Decision maker - Founder, Head of Operations, Sourcing head

What is the core Value prop we are pitching - Brands can plan better with Fashinza, source top selling SKU in less than 21 days with min MOQ in industry at the lowest price across Asia market.

Is there a demand for our service? - Yes, Brands face issue to find reliable manufacturing partners

Value matrix across the consumer lifecycle to plan the efforts for Launch -

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