Upload
others
View
5
Download
1
Embed Size (px)
Citation preview
Investor Pitch Deck
Formal Menswear Concept: Made-to-Measure, Made in America
Arbor Brook
New York Style.
Detroit Sensibility.
Arbor Brook | New York Style. Detroit Sensibility.
Well-fitting and high-quality menswear is not affordable for the majority of Americans
2
Problem: No good options for formal menswear
▪ Confusing: Pricing is not well-correlated to quality or fit amongst traditional menswear brands
▪ Expensive: Quality menswear is expensive and often requires time-consuming alternations
▪ Low quality: Affordable options have off-shore manufacturing, long lead times, and poor quality control
Sources: Arbor Brook survey results, GQ Style, Forbes
Arbor Brook | New York Style. Detroit Sensibility.
The Arbor Brook startup concept is well-positioned to change how American men shop online for formal attire
3
Solution: Arbor Brook company concept
▪ Made-to-Measure tailoring- Perfect fit through laser cut fabrics- Simple & accurate measurement inputs
▪ “Made in America” consumer brand- Quality direct-to-consumer product- User friendly online portal experience- Fast domestic shipping
▪ High-end tailoring at affordable prices- Fine all-natural materials- Designed and Made in America- $499+ price point
1
2
3
Arbor Brook | New York Style. Detroit Sensibility.
Our team of Stern MBA graduates has a diverse background and a relevant skillset to menswear manufacturing
4
Team: Our Co-founders
Brag Selvarajan, COOSupply Chain▪ Senor Consultant at Roland Berger▪ BS Chemical Engineering, MBA▪ Six-Sigma Black Belt certified
Fun fact: Our founders came up with the idea for Arbor Brook during a Business School study abroad in Shanghai
Arbor Brook | New York Style. Detroit Sensibility.
Arbor Brook’s fully customizable suits are made using all natural materials and offer a perfect fit guarantee
5
Product overview: Made-to-Measure suit solution for the American man
▪ Perfect Fit Guarantee- Easy-to-use measurement input- Laser cut wool (exact measurements, minimal waste)- Local tailoring credit for final alteration ($30)- Returns are donated to “Dress for Success” non-profit
▪ All Natural Materials- 100% wool fabrics (Super 110s+ quality)- Bemberg linings (cotton cellulose-based fiber)- Horsehair canvas construction interfacing - Authentic Bullhorn buttons
▪ Fully customizable- Details of each suit are fully customizable- Examples: Fabric pattern, lining color, monograms,
button functionality, belt loops vs. suspenders, etc.
Price point: $499 - $699 depending on customizations
1
2
3
Arbor Brook | New York Style. Detroit Sensibility.
Our competitive advantage stems from sourcing contracts, proposed location, and focused branding
Sources of Competitive Advantage
Low cost sourcing: Materials
▪ Branding signals quality and fast shipping to customers
▪ Almost no direct competitors manufacture domestically
▪ Tagline Signals a fashionable product without a pricing premium
Differentiation: Made in America
Attractive location: Detroit
▪ Easy access to low-cost distribution▪ Available low-cost real estate▪ Low labor and utility costs
▪ Wool fabric & thread from India- Low-cost source of high quality
wool fabrics- Sourcing contract signed
▪ Horsehair canvas from Italy- Global low cost source- Italian components imbue
quality feel to consumers- Bulk purchase contacts made
▪ Bemberg linings from Japan- Best price-per-performance
Bemberg fabric in the world- Sourcing contract in-progress
▪ Bullhorn buttons from Illinois- Low-cost Midwest beef
industry byproduct- Bulk purchase contacts made
6
Competitive Advantage
Arbor Brook | New York Style. Detroit Sensibility.
Arbor Brook’s unique brand positioning will enable growth despite a declining overall men’s suit market in the US
7
Market growth: US sales of men’s suits | $mm, 2017-2022
1048 1157
698 496
582568
2328 2220
2017 2022
Made in America: -0.5%
Total: - 0.9%
Made in Europe: -6.6%
Made in Asia: +2.0%
CAGR (2017-2022):Regional Breakdown
Made-to-Measure: +17.6%
Total: - 0.9%
Bespoke: -0.8%
Off-the-rack: -5.2%
CAGR (2017-2022):Product Breakdown
16301248
466
447
233
525
2328 2220
2017 2022
Made-to-measure is by far the fastest growing segment in the US men’s suit market, rapidly capturing share from Off-the-rack products
Sources: Statista, U.S. Imports, Macy’s, GQ Style, Textile Insight Magazine
Suits that are Made in America show strong lasting power amongst US consumers despite pricing pressure from Asian imports
Arbor Brook | New York Style. Detroit Sensibility.
The resulting Serviceable Obtainable Market for Arbor Brook suits will be $375 mm by 2022
8
Addressable market size: Arbor Brook | $mm, 2022
2,220mm
525mm
Total Addressable Market
Serviceable Available Market
Serviceable Obtainable Market
375mm
Market size adjusted for buyers who favor low price (-$175 m) and American-
made (+$25 m)
Size of the Made-to-Measure
market in 2022
Total size of the US men’s suit market in 2022
Sources: Statista, Macy’s, GQ Style, Arbor Brook survey results
Arbor Brook | New York Style. Detroit Sensibility.
We have defined a clear go-to market approach to capture Arbor Brook’s Serviceable Obtainable Market
9
Business model: Go-to market approach
Market
▪ Formal menswear
▪ Made-to-measure
suiting
▪ All natural fiber
attire
Customer
▪ Young
professionals
▪ Savvy affluent
buyers
▪ Graduate students
▪ Demographics:
- US resident
- Ages: 22-35
- Income: $70k+
Product
▪ High quality suits
at affordable price
points
▪ Customer friendly
online shopping
experience
▪ Perfect fit
guarantee
Channel
▪ Online retail portal
▪ On-Campus
measuring events
for MBA and JD
students
▪ Corporate tie-ins
and bulk orders
(e.g. monograms,
matching suits)
Arbor Brook | New York Style. Detroit Sensibility.
As part of our strategy, Arbor Brook will target an untapped segment within the crowded formal menswear marketplace
10
Competitive Landscape: Formal menswear industry
Made-to-Measure Off-The-Rack Target Market
Co
nte
mp
ora
ryN
eu
tral
Tra
dit
ion
al
Mass Market Attire Designer Clothing Luxury Fashion
<$200 $500 $800 >$1,100
Combatant
Gentleman
Indochino
Knot Standard
Express
Men
H & M
J. Crew
Ludlowe
Charles Trywitt
Black Lapel
Alton Lane
Suit Supply
Ryan
Seacrest
Ermenegildo Zegna
Armani
Hugo BossCentury 21
Jos. A Bank &
Men’s Wearhouse
Van Heusen
Tommy
Hilfiger
Banana
Republic
Stafford
Calvin Klein
Kenneth Cole
Michael Kors
Ralph Lauren
BarneysBloomingdales
Tailor 4
Less
My.Suit
LVMH
Gucci
Bironi
Burberry
Tom Ford
Brooks Brothers
Saks Fifth Ave CanaliProper Suit
Sources: Arbor Brook market research, Industry experts, Macy’s, GQ Style
Arbor Brook | New York Style. Detroit Sensibility.
Our consumer survey results indicate that there is a strong interest in affordable high-quality menswear
11
Market validation: Survey results | Sample size = 221 responses
Sources: Arbor Brook survey (221 respondents: 195 Americans, 26 Internationals | 136 Urban, 85 Rural | 210 Male, 11 Female )
Given identical pricing, where would you like your suits to be manufactured?
44% of respondents selected “Made in the United States”
USA
44%Europe
31%
Other
10%
Asia
15%
What is the price you are willing to pay for a well-fitted suit (including tailoring)?
40% of respondents selected “$400 - $550”
What type of materials would you prefer your suit to be made out of?
64% of respondents selected “Natural Materials”
Natural
64%
Blends
27%
Synthetic
9%
What is your expectation on the longevity of a suit? How long do you expect it to last?
35% of respondents selected “24 – 36 months”$400-550
40%
$550-700
31%
>$700
8%<$250
12%
$250-400
24%
24-36mo
35%
>36mo
19%
<6mo
6%6-12mo
18%
12-24mo
22%
Arbor Brook | New York Style. Detroit Sensibility.
Our 3-year financial projections indicate that Arbor Brook will become profitable by Quarter 6
12
Financial Projections: 3 year cash flows | Est. 2017-2019, $ k, units
Cash flows ($ k)
Profitable operationSetup phase
(734)(591)
(268)(135) (25)
241 545
943
1,430
2,077
2,707
3,371
Start date: ▪ Facility and equipment ordered▪ Marketing campaign running▪ Website framework setup
Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Year
Suits Sold / QTR - - 300 750 1,350 2,250 3,450 4,800 6,750 9,000 11,250 13,500
Year 1 Year 2 Year 3
Arbor Brook | New York Style. Detroit Sensibility.
We are looking for 18 months funding to reach profitable operations at ~1,000 suits sold or $540 k revenues per month
13
Investment requirements: Financials
Initial investment opportunity
$2.5 mmPost-investment
valuation
$12.5 mmEquity share
20%
Expected Year 3 Net Profit
$9.6 mm
Arbor Brook | New York Style. Detroit Sensibility.
Please contact any of our co-founders for more information on Arbor Brook
14
Contact information: Our Co-founders
Brag Selvarajan, COOSupply Chain▪ [email protected]▪ +1 (203) 243 - 7448
Thank You
Arbor Brook
New York Style.
Detroit Sensibility.