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ALAYA

Alaya is an Indian e-commerce company based out of Gurgaon. Alaya sells fashion products through their own Website, Myntra & Nykaa Fashion.

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The brand name Alaya is derived from Arabic roots, meaning "Extremely Beautiful"🌸

About ALAYA :

Alaya is a ready-to-wear label showcasing high-fashion Indian and western styles at affordable prices for Modern India.⚡️🛍️

The mission is to bring high fashion closer to people by combining cutting-edge designs with the personal touch of their favourite influencers, celebrities, and designers.

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Understanding the PRODUCT🖍️

Alaya cater to the customers looking for Modern Indian Wear and Contemporary Western Wear.

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Primary category is Modern Indian Wear which can be further categorised into Festive and Casual Wear.

The designs at Alaya are tailored to fit the needs of Gen-Z, featuring bold colours with modern, versatile and timeless fits.

Alaya is known for it’s Festive ethnic wear, which drives majority revenue for the company.

Alaya caters to customers seeking Modern Indian Wear and Contemporary Western Wear.

Product Categories:

1. Modern Indian Wear:
2. • Festive Wear:
   • • Benefits and Features: Alaya's Festive Wear collection is designed with intricate details, vibrant colors, and luxurious fabrics to meet the high standards of special occasions. These outfits blend traditional craftsmanship with modern aesthetics, offering customers unique, standout pieces for weddings, festivals, and celebrations.
     • Solving Pain Points: By offering ready-to-wear festive attire, Alaya saves customers time and effort in searching for tailor-made solutions. The affordability ensures that high-fashion looks are accessible to a broader audience without compromising on quality.
     • Aspirations Addressed: Customers aspire to look their best at significant events, and Alaya's Festive Wear enables them to achieve a runway-worthy look that garners compliments and boosts their confidence.
   • Casual Wear:
   • • Benefits and Features: Alaya's Casual line is perfect for everyday fashion, featuring comfortable, chic designs that can easily transition from day to night. These pieces often include versatile cuts, breathable fabrics, and trendy patterns.
     • Solving Pain Points: The Casual Wear collection addresses the need for stylish yet comfortable attire suitable for various daily activities. It caters to the Gen-Z demand for fashionable outfits that are practical and versatile.
     • Aspirations Addressed: Customers looking for a blend of style and comfort in their daily wardrobe will find Alaya's Casual Wear appealing, helping them maintain a fashionable appearance effortlessly.
3. Contemporary Western Wear:
4. • Benefits and Features: Alaya's Western Wear collection incorporates global fashion trends into stylish and sophisticated pieces. This category includes everything from sleek dresses to casual tops, designed to keep customers on-trend.
   • Solving Pain Points: The Western Wear line addresses the gap in the market for high-quality, trendy Western outfits at affordable prices. Customers no longer need to compromise on style due to budget constraints.
   • Aspirations Addressed: Customers aspiring to keep up with international fashion trends will find Alaya’s Western Wear fulfilling their need for chic, contemporary clothing.

Design Philosophy:

• Tailored for Gen-Z: Alaya’s designs are curated with the preferences of Gen-Z in mind, focusing on bold colors, modern cuts, and versatile styles to suit their dynamic lifestyles.
• Versatility and Timelessness: Each garment is crafted to be versatile and timeless, allowing customers to effortlessly transition from casual outings to festive celebrations.
• Quality Craftsmanship: Alaya ensures that every piece is made with high-quality materials and attention to detail, providing durable and comfortable fashion solutions.

Revenue Driver:

Festive Ethnic Wear: Alaya’s Festive Ethnic Wear is the primary revenue driver, known for its high demand during festive seasons and special occasions. This category's success is attributed to its unique blend of tradition and modernity, catering to a wide range of customer preferences.

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Understand the COMPETITION 🏆

Online Apparel Market in India is highly competitive, with most of the customers driven towards Marketplaces to fulfil their demand (User Calls Insight). 📞

Additionally Google search for Relevant Products show numerous competitors in each product category, and Alaya’s particularly weak SEO and almost no placement on Google Search Ads is an essential improvement area. 🔨

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However, the brand is particularly strong on Social Media with 2.6L followers and engaging influencer content.📱

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​Understand the CUSTOMER 👩🏻‍🦰

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ICP Prioritisation Framework 👭

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​CORE VALUE PROPOSITION 🪡

Alaya’s Core Value Prop is providing trendy, high fashion designs at pocket friendly prices. User Calls clearly suggest that people like the brand for their affordable pricing and unique designs. Essentially, Alaya is a design-led brand with a focus on the pricing.

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Acquisition STRATEGY 🛠️

📈 Total Addressable Market :

Total Women’s apparel Market in India as per a Statista report is ~48.8 Billion USD and the Online E-commerce Market Penetration in Fashion - 10%. So we can estimate the Online Fashion E-commerce for Women - 4.9 Billion USD, which shall be our TAM.

Total Women’s apparel Market in India - 48.8 Billion USD

Online E-commerce Market Penetration in Fashion - 10%

Estimate Online Fashion E-commerce for Women - 4.9 Billion USD (TAM)

🚀 Serviceable Addressable Market :

SAM - Since Alaya is online only and currently sells ethnic wear primarily, we shall consider only ethnic wear share of the market (60%) and within ethnic wear Alaya only caters to Modern India Wear customers, which essentially leaves out half the online customers. Hence SAM for Alaya is estimated at ~ USD 1.4 Billion

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🏅Serviceable Obtainable Market :

SOM - Since, the competition is high in the online apparel space with organised and unorganised players. With bigger players already sitting tight, Alaya aims to capture ~5% of the online Modern India wear market. Hence SOM is ~ USD 70 Million.

​Sources:

https://www.statista.com/forecasts/758666/revenue-of-the-women-s-and-girls-apparel-market-worldwihttps://www-statista-com.ezproxy.hec.fr/forecasts/758666/revenue-of-the-women-s-and-girls-apparel-market-worldwide-by-country

https://www-statista-com.ezproxy.hec.fr/statistics/1044344/india-e-tail-penetration-rate-by-category/

https://www-statista-com.ezproxy.hec.fr/statistics/1250928/india-distribution-of-female-apparel-market-by-segments/

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⚖️ Competitive Landscape :

Few of the direct competitors of Alaya include Aacho, Mulmul, Indya, True Browns. The bigger names in the industry include W, Biba, Soch, Sabhyata, Global Desi, Fab India, Ritu Kumar.

Although, the market is crowded with 1000s of players from huge Conglomerates to smaller brands. The easy access of e-commerce and low barriers to entry has brought in an influx of many new online clothing brands. Most of the bigger brands opt for an omni-channel strategy which helps them to reduce their online marketing spends and expand their customer base.

Smaller brands (under 100 Cr Valuation) usually rely on Online Marketing and Social Media reach out for their Sales. Until now, Alaya has also been trying strategies like Influencer Marketing & Performance Marketing, similar to that of their competition.

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Acquisition Channel Selection 🎯

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❌ Organic channel : High effort, Medium Flexibility and even then scale will be medium.

✅ Content Loops : Creating buying intent through content loops would require medium effort but CAC will be very low and flexibility is high.

✅ Paid channel : Cost will be hight but highly scaleable and quick within short period of time.

✅ Referral : Cost and CAC maybe medium but is highly flexible and highly scalable.

❌ Product Integrations : High effort, Low Flexibility and even then scale will me very low.

🤝 Referral Program :

Brand has already catered to more than 1.25 Lac customers and not running any referral program and introducing one now will be a robust acquisition channel.

Why would a customer buy from ALAYA?

• Runway Worthy Styles & Designs
• Famous on IG among Top Fashion & Lifestyle Influencers
• Easy Return and Exchange policy so Trust Factor

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AHA Moment

The real Aha Moment for a customer is when their first Alaya order arrives before the guaranteed time with a freebie and also the product is a great fit.

Platform Currency

Alaya Store Credits

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Motivation for Referral

Self-esteem, Monetary Benefit, Acceptance, Self-Actualisation

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For every referral , a referrer would get access to exclusive Alaya Insider Club (Exclusive Excess, Priority Shipping, Birthday Coupon) and Alaya store credits worth 20% of Order Value of the referee's every order.

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The referee would get a flat 20% off on their first order.

When to ask for referral?​

When a customer has NPS of 8 or above, Can immediately ask for it or When a customer successfully receives 2nd order.

Message for referral

"Hey Shreya

Its time to show off!

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Guess what? You are just one step away from accessing Alaya's Exclusive VIP Club! 🤩

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As an Alaya Insider, You get to share your very own referral code with your friends/family. How cool is that?

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Share the code SHREYA20 with them and you will get reward on every purchase done by using your code, plus, your friends also get bonus. 💸

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And you can track all your earnings in your account.

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Tap the link and spread the love."

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Placement of Referrals

• When a customer posts a positive review on google. ➡️ Email.
• When NPS rating is 8 or above ➡️ WhatsApp Automation.
• After 2nd Order is Delivered ➡️ WhatsApp Automation.
• When someone tags Alaya in photos/videos on Social Media ➡️ Instagram DM.
• After 1st successful order➡️ On Last Page

FLOW & TEXT :

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Enhanced Referral Strategy :​

1. Tiered Rewards System:
2. • Offer / Rewards based on the number of successful referrals a person makes. For example, after the first three successful referrals, a customer will get additional exclusive benefits like early access to new collections or special discounts.
3. Referral Contests:
4. • Periodically, Top referrers can win bigger rewards such as shopping vouchers, exclusive merchandise, or VIP experiences. This gamification motivates customers to actively participate and refer more friends.
5. Social Proof and Testimonials:
6. • Top referrers success stories can be highlighted through testimonials or case studies on social media and the website. This not only encourages others to participate but also builds credibility around the referral program.

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Tracking referrals on Platform :

To ensure transparency and ease of tracking for referees, we will implement:

Personalised Referral Dashboards:

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Personalised Dashboard:

• Provide each referrer with a personalised dashboard within their Alaya account where they can track the status of their referrals, earned rewards, and upcoming benefits.

Real-Time Notifications:​

• Send real-time notifications via email or SMS to referees whenever a referral makes a purchase using their code. This immediate feedback reinforces engagement and encourages ongoing participation.

Referral Analytics:​

• Offer detailed analytics to referees, showing metrics such as the number of clicks, conversions, and overall impact of their referrals. This data empowers them to optimiSe their sharing strategies for better results.

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​📇 Paid Advertisements :

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Rationale Behind Metrics:​

CAC to LTV Ratio: The CAC (Customer Acquisition Cost) to LTV (Lifetime Value) ratio is a crucial metric for evaluating the effectiveness and sustainability of your marketing efforts. A ratio of 4x indicates that for every ₹1 spent on acquiring a customer, company earns ₹4 in revenue over the customer’s lifetime. This is a positive indicator, suggesting that the ROI from paid ads is profitable and sustainable.

To understand this deeply, let's break down the key components:

Customer Acquisition Cost (CAC): ₹800

• Definition: CAC is the cost associated with acquiring a new customer through various marketing efforts, including paid ads.
• Calculation: If Alaya spends ₹800 on average to bring in a new customer, this figure includes costs from advertising, marketing personnel, tools, and any other expenses directly tied to customer acquisition.

Average Order Value (AOV): ₹2850

• Definition: AOV is the average amount spent by a customer in a single transaction.
• Importance: A higher AOV means each transaction contributes more to the overall revenue, helping to recover CAC faster.

Profit Margins:

• Gross Margin: 60%
• Calculation:
• Revenue per Order: ₹2850Cost of Goods Sold (COGS): ₹1140 (40% of AOV, assuming 60% margin)Gross Profit per Order: ₹1710 (60% of AOV)

Frequency of Purchase: 3 times per year

• Definition: This is the average number of times a customer makes a purchase in a year.
• Importance: Repeat purchases increase the customer's lifetime value and overall profitability.

Lifetime Value (LTV): ₹5130

Calculation:

Annual Revenue per Customer: ₹2850 (AOV) * 3 (frequency) = ₹8550

Annual Gross Profit per Customer: ₹1710 (Gross Profit per Order) * 3 = ₹5130

Customer Lifetime: Typically, if we're considering a one-year period for this calculation, the LTV would be the gross profit per customer over that year.

CAC to LTV Ratio: 4x

Calculation: LTV (₹5130) / CAC (₹800) = 6.41

For every ₹1 spent on acquiring a customer, Alaya earns ₹6.41 in gross profit over the customer’s lifetime.This ratio suggests that the investment in acquiring each customer is significantly outweighed by the revenue that customer brings in, leading to a strong return on investment (ROI).

Profitability Analysis:

• Gross Profit Margin: 60%
• This means that for every ₹100 in sales, Alaya retains ₹60 as gross profit after covering the cost of goods sold.
• Net Profit Margin: Assuming additional operating expenses (e.g., marketing, fulfillment, overheads) are covered within the remaining 40% of sales revenue:
• If total operating expenses (including CAC) per customer are within the profit retained (₹3420 per customer over their lifetime), Alaya remains profitable.

Justification for Paid Ads:

• ROI and Sustainability: A CAC to LTV ratio above 3x generally indicates a sustainable business model, as the revenue generated from customers is significantly higher than the cost to acquire them.
• Scalability: With a 4x ratio, Alaya can afford to invest in scaling its paid advertising efforts without risking unprofitability. Each new customer contributes positively to the company's bottom line.
• Market Penetration: Effective use of paid ads can help Alaya penetrate the market more deeply, increase brand recognition, and drive higher volumes of traffic and sales, further leveraging the already favorable CAC to LTV ratio.

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Objectives for Paid Ads :

1. Increase Brand Awareness:
2. Goal: Establish Alaya as a go-to brand for modern Indian and Western fashion.Why: Building brand recognition is essential for attracting new customers and fostering trust.
3. Drive Targeted Traffic:
4. Goal: Attract high-intent visitors to Alaya’s website.Why: More targeted traffic increases the likelihood of conversions and sales.
5. Enhance Customer Engagement:
6. Goal: Create compelling content that resonates with our target audience.Why: Engaging content fosters a community of loyal customers and encourages repeat visits.
7. Optimize Conversions:
8. Goal: Convert visitors into paying customers.Why: Effective ad targeting and personalised messages boost conversion rates, directly impacting revenue.
9. Promote Repeat Purchases:
10. Goal: Encourage existing customers to make multiple purchases.Why: Increasing customer lifetime value (LTV) is critical for sustained growth and profitability.

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Paid Advertisement Framework :

Based on the above strategy, 60% of the budget will go to Facebook and Instagram Ads because that’s where the ICP spends most of the time.

Advertisement Details :

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Objective : Increase Brand awareness and drive Traffic

Audience Strategy : Women aged 18-35 Interests : Fashion, online shopping, sustainable fashion.

Creative Strategy : Image, Videos and Blogs

Reference : https://www.instagram.com/p/C7B1Yn-yoWx/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==

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Objective : Increase brand awareness, Initiate engagement, create an intent to enquire/buy

Audience Strategy : Women aged 40+

Interests : fashion, follow fashion influencers/pages, visit similar fashion websites

Creative Strategy : Facebook Live, Facebook Stories, Facebook Videos​

Reference : https://www.instagram.com/p/C3kTH4GPc1g/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==

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Objective : Boost Conversions

Audience Strategy : Women aged 18+

Interests : fashion & Lifestyle content, follow fashion influencers, follow trends, creates content

Creative Strategy : IG Reels, Static Pictures, IF Stories​

Reference : https://www.instagram.com/reel/C7gwqPhIeuw/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==

​Objective : Drive Traffic and Boost sales

Audience Strategy : Women aged 40+

Interests : Search history is fashion related, shares a lot

Creative Strategy : Youtube Live/Video​

Reference : https://www.instagram.com/reel/C7dUtASSWYK/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==

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Objective : Increase Brand Awareness

Audience Strategy : GenZ audience 18-25

Interests : follow influencers/stylist, likes posting a lot

Creative Strategy : Videos​

Reference : https://www.instagram.com/reel/C68bk-SyGSI/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==

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(Experiment) :

Objective : Get website engagement

Audience Strategy : All women Visitors

Interests : DIY, Outfit Inspiration, fashion projects

Creative Strategy : Static Carousel Photos

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🔁 Content Loops:

Alaya aims to create content loops that creates buying intent by leveraging high-quality, engaging content across various platforms. The strategy is to show Alaya’s unique fashion pieces, styling tips, and influencer collaborations to inspire potential customers and drive sales.

Decision-Making Process:

Audience Insights: Detailed demographic and psychographic(user calls insight) analysis informed platform preferences and content preferences.

Performance Evaluation: Past campaign analytics identified effective content types and engagement metrics as the company has more than 2.5 Lacs customer base on social media.

Influencer and UGC Strategies: Leveraging micro-influencers and UGC highlighted authenticity and community engagement.

Resource Allocation: Balanced budget allocation between paid influencer collaborations and organic UGC initiatives optimised ROI and brand impact.

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Content Loop - 1 (Created by Company and Distributed by User and Co)

Hook?

Styling Tips, Exclusive Collab Capsules, Seasonal Styles, Customer Stories

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Generator?

Alaya’s Content Team, Micro-Influencers(through barter deals), Customer Ambassadors.

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Distributior?

Company & User

Rationale?

• Decision Making: This loop prioritises content generated by Alaya's internal team, ensuring consistency and quality across all platforms. By integrating micro-influencers and customer ambassadors, the brand amplifies its reach while maintaining authenticity.
• Distribution Depth: Alaya uses a dual approach by directly distributing content and encouraging users to share it. This method enhances engagement and widens the audience, leveraging both brand-controlled channels and organic user networks.

Distribution Strategy?

• Company Distribution: Alaya directly shares content through its official channels, ensuring controlled messaging and brand consistency.
• User Distribution: Encouraging users to share content extends reach organically, leveraging personal networks for greater engagement and credibility.

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https://imgr.whimsical.com/object/MHGd4CRfT5R2MraKzM3tuf

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Content Loop - 2 (Co-Created and Distributed by User & Company)

Hook?

Alaya Styling Challenge - Every Order has a message - “Style your Alaya Product in your way and our In-house stylists will share your picture on our Social Pages with what they like the best about your styling. Our community would love to see how you style your Alaya outfit.”

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Generator?

User and Company

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Distributor?

User and Company

Rationale?

• Decision Making: This loop focuses on co-creation with customers, encouraging active participation and fostering a sense of community. By showcasing user-generated content (UGC), Alaya strengthens brand loyalty and authenticity.
• Distribution Depth: Customers become brand advocates by sharing their styled looks, thereby extending Alaya's reach organically. The company further amplifies this content through its official channels, ensuring wider visibility and engagement.

Distribution Strategy?

• Customer Distribution: Participants share their styled looks on personal social channels, enhancing peer-to-peer influence and organic brand advocacy.
• Company Distribution: Alaya amplifies customer-generated content through its social media platforms, showcasing community creativity and enhancing brand visibility.

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https://imgr.whimsical.com/object/Gm7uUDuD7A61TUuRiL1evB

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• Instagram: Reels, stories, IGTV, and posts Facebook: Posts, videos, and live sessions
• Pinterest: Boards for different collections, seasonal styles, and fashion inspirations.
• YouTube: Detailed tutorials, Lookbooks, and influencer collaborations.
• IGTV: Longer-form videos on styling tips and behind-the-scenes content.
• Blogs: Articles on fashion trends, styling guides, and interviews.
• Personalised Emails: Based on customer preferences and purchase history.

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Thank You!

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