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The WOW Closet

Solving the problem of having nothing to wear while running out of closet space

The WOW Closet solves the problem of having nothing to wear while running out of closet space. It is a creative beauty and fashion space built around the idea of a curated rental closet of designer dresses. At The WOW Closet you can rent designer dresses for special occasions, rent out dresses you no longer wear as well as book makeup and hair styling before your event. The WOW Closet also features a co-working space for makeup-artists and stylists, organizes bachelorette parties and styled photo shoots.

Investor proposal

The offer relates to Class B shares with a voting value corresponding to 10% of the voting rights of Class A shares.
Most importantly, by investing into The WOW Closet you are investing into creating an incredible alternative to thoughtless fast fashion consumption. Beside that you will get the following perks when you invest:
  • 10 000 kr (40 shares) – 10 % discount on dress rental for one year
  • 20 000 kr (80 shares) – 15 % discount
  • 30 000 kr (120 shares) – 15 % discount and a styled photo shoot (incl. makeup, hair styling, dress and 30 retouched pictures)
  • 60 000 kr (240 shares) – 15 % discount and a girls night for six people (incl. makeup, hair styling, dress and 60 retouched pictures)

Product

The problem this product solves

We always want something new to wear, particularly when it comes to special occasions. You have to agree, it is impossible to go to all of your friends' weddings wearing the same dress you wore to the school ball. However, buying new things all the time is expensive, destroys the planet and clutters your closet, giving you that exhausting feeling of having nothing to wear.

How the product solves it

The WOW Closet is a rental service for designer dresses where you can rent dresses for special occasions and rent out dresses you no longer wear. We want to make reusing special occasion dresses fun, inspiring and easy. That is why we have a strong focus on creating memorable experiences, like bachelorette parties or styled photo shoots, and making the rental process smooth for the clients. Trying a dress does not require a booking. We also offer full look with makeup and hair styling services, and take care of dry cleaning and dress maintenance.

Product features

  1. Rent designer dresses - cheaper than buying designer dresses, better quality than buying from mass market brands
  2. Rent out dresses you no longer need - are you tired of a dress you've already worn? Bring it to us, get paid and let someone else feel beautiful
  3. Makeup and hair styling - we make it easy to book a full look
  4. Bachelorette parties - a girls night with makeup, styling, dresses, bubbles and a photographer (a unique format for Sweden)
  5. Co-working for makeup artists – work with your own clients in our store and pay only for the hours you actually need

Product use cases

Our vision is the largest and the most inspiring rental closet of designer dresses. We want every woman to be able to come here last minute before her event, without knowing what she wants to wear that night, nor what suits her best, and be able to choose a dress that is perfect for her occasion, size, body type, color and personal style preferences. To make this possible we are creating a closet with over 4 000 dresses for any kind of special occasion, from a casual date on a Wednesday evening to the Nobel banquet.

Team

Oksana Poliakova avatar
Oksana Poliakova Co-founder and CEO
Oksana has a Master degree in Quantitative Finance from St. Gallen University in Switzerland and had already worked as a risk and investment analyst both in Singapore and in Stockholm, when she realized that entrepreneurship was what she was really passionate about. Oksana has experience of running a business within ... See more
Oksana has a Master degree in Quantitative Finance from St. Gallen University in Switzerland and had already worked as a risk and investment analyst both in Singapore and in Stockholm, when she realized that entrepreneurship was what she was really passionate about. Oksana has experience of running a business within sharing economy, business development, marketing and social media. She understands numbers as well as she understands people and is as comfortable talking in front of a group as she is working with financial analyses. See less
Anna Ceornea avatar
Anna Ceornea Co-founder
Anna's area of expertise is clothing design, pattern making and textiles. She is our superpower when it comes to keeping our store inspiring, the dresses in perfect condition and making sure we don't work with counterfeit products. Anna is most passionate about working with dresses, textiles and styling.

Market

Target Market

We have launched the service through a boutique right next to the luxury department store NK, in the middle of the Stockholm fashion district. Having a physical store lets the client try the dress and creates a memorable experience. There are around 700 000 women between the ages of 20 and 59 living in the metropolitan area of Stockholm. Our assumption is that 1 out of 10 women is going to a special occassion once a year. If every 5th woman chooses us, we'll have 14 000 clients per year (40 per day).
Eventually, we'll expand to the other Nordic capitals.

Competitive landscape

There are several options when going to a party:
  1. reusing what you already have - however, three out of four women said they have nothing to wear if invited to a special occasion
  2. buying a new dress from cheaper brands - we offer better quality and design than the mass market (from HM to ASOS)
  3. buying a new dress from more expensive brands - we offer a cheaper option that also allows for more variation (NK, Wakakuu, Boozt)
  4. buying a second-hand dress - we offer the possibility to try on the dress before committing to buy it (Tradera) and larger selection than second-hand stores

Unique differentiator from competitors

By renting from us clients get a significantly better quality and more interesting design as compared to what they could have bought for the same money from cheaper mass market alternatives. Our clients also spend four times less money as compared to buying from luxury brands. What really gives us a competitive advantage though is our incredible choice of dresses, that already now surpasses many stores and websites proposition. Combined with the possibility of getting a full look this creates a unique service for the clients.

Company revenue streams

Current (in two years)
  1. Designer dress rental - 84% (60%)
  2. Styling bar & co-working for makeup-artists - 9% (34%)
  3. Girls nights and styled photo shoots - 7% (6%)
  4. Pop-up markets for other brands - not yet included in the sales projections and valuation
  5. Influencer profile - not yet included in the sales projections and valuation
The idea is that all the different areas work in a synergy with each other and together create something larger than any of them could be separately.

Product/service distribution

We have an inspiring store in NK Passagen where our clients can book styling, makeup, experience photo shoots, girls nights and bachelorette parties. In the future we also hope to be able to offer movie nights, runway shows, pop-up markets for other designers and brands. Our boutique is going to become a meeting place for everyone who is interested in fashion in Sweden. We are also working on having a strong presence in social media to be able to sell influencer services to other designers and brands.

Execution

Previous milestones/traction

  • September 2017: 35 followers on Instagram, 32 dresses
  • December 2017: launched the website, pop-up store in NK Passagen, 60 dresses, first dress rental
  • February 2018: 100 dresses, first photographer cooperation
  • April 2018: launched NK Passagen store. 1300 followers
  • May 2018: sponsored BISS gala, Pokerface gala and Mammagalan. Pernilla Wahlgren wore a dress from us. 2000 followers. 20000 SEK in sales.
  • June 2018: launched bachelorettes, co-working and styling bar
  • August 2018: 3000 followers, 400 dresses in the service, 68000 SEK in sales. Our dresses are worn to Kristallen and published in Bröllopsguiden

Next key objectives

December 2018: Sponsorship of Nobel Night Cap
January 2018: Moving to a permanent store with separate space for styled girls nights and a styling bar
April 2019: 600 kSEK in sales during the first year
December 2019: 2.7 MSEK in sales (where 1.8 MSEK is coming from dress rental, 0.45 MSEK from the styling bar, and 0.45 MSEK from experiences)
December 2020: 7.6 MSEK in sales (4.9 MSEK - dress rental, 1.8 MSEK - styling, 0.8 MSEK - experiences)

Previous Financing

We have tested the concept last December through a pop-up store at NK Passagen, bought the first 120 dresses, created the website and shot the first 65 dresses for a website catalogue by using only our own investments of around 225 000 kr. Later we got a micro loan from Almi and bootstrapped, which has let us rent a larger store at NK Passagen, increase the number of dresses in the service to 400 and the number of dresses on the website to 230.


Partnerships

All these partnerships contribute to creating an inspiring store environment, generate materials for our Instagram and blog and help us get exposure in each other's social channels.
  • Photographers: 2Brides, Art of You, Clarity Sweden, Jessica Lacina, Jessica Wikström, Malin Eld
  • Wedding planners and stylists: Fanny Staaf, TheWildRose.se, Rental Stories, Wedding by Moalee
  • Decorations: Theo & jag, Icon Mirror
  • Wedding blog: SistersInLaw.se
  • Stylists: Dobroziy hair, Braid & blow

Use of funds

If reaching minimum goal of 600 kSEK (if reaching maximum goal of 2 MSEK):
  • Marketing and growing our customer base - 25% (20%)
  • Signing a permanent lease on a store space - 50% (25% into signing a lease, interior design and potential renovation)
  • Hiring stylists both to the rental service and the styling bar - 25% (25%)
  • Development of software that allows our clients to keep track their dresses in our service - 0% (30%)

Industry Certifications/Awards


Return on Investment

A likely exit is a business acquisition agreement within 7-10 years, alternatively a listing on a stock exchange in conjunction with international expansion.

Risk Analysis

The market requires that physical stores change their strategy and start building their business around meaningful experiences that feel genuine. By being an early adopter of this strategy we will become a natural platform for other brands and designers to reach out to their clients. Fast fashion is another risk yet we see opportunities in its development. As buying an enormous amount of clothes that are disposed after a single use becomes an increasing phenomenon, we also hope to see a larger interest for creating a thought-through and sustainable wardrobe.