What is changed in our Canvas?

1)Value Proposition

Our MVP is an application that provides users to upload their closet to their applications and make combinations. Then, if they want they can share on their Facebook to get 'like's or comments. Besides they can share their closet with some of their friends by changing their privacy settings.

By considering our survey results, next step we should follow is adding 'professional advices' to this application.

2)Customer Segments

Basic Product is “Making virtually combinations with an app”

What do customers expect in terms of functions:

·      Girls from 16-24 (87% of this group would use app; 57% of the yes-users would pay ext. wardrobe; 29% of this yes-users would use prof. advice)

·      Girls from 25-34 (87% of this group would use app; 81% of the yes-users would pay ext. wardrobe; 57% of the yes-users would use prof. advice)

·      Boys from 16-24 (61% of this group would use app; 29% of the yes-users of theses would pay ext. wardrobe; 21% of the yes-users would use prof. advice)

·      Boys from 25-34 (64% of this group would use app; 81% of the yes-users would pay ext. wardrobe; 33% of the yes-users would use prof. advice) 

By considering survey results, we have three customer segments regarding sex, age, preference of functions etc.

1.     16-24 female: Like’ing (28%), Commenting (12%), Sharing Closet (24%)

2.     25-34 female: Getting professional advice (40%), Sharing Closet (40%)

3.     16-34 male: Like’ing (19%), Commenting (19%), Getting professional advice (24%)

Depending which strategy we want to focus on we have two different main target groups:

1.     Getting Followers: 16-24 female

2.     Getting money: 25-34 female (see table below which is not focusing on functions but instead on spending money for our service)

3)Customer Relationship

We have 3 main steps:

            1)GET

Earned demand creation activities: blogging, social media

Paid demand creation activities: publication in fashion magazines( Vogue, VanityFair..)

-Acquire: awareness cooperating with local designer blogs and fashion magazines.

·      Coco: promotion on social media, app. Store and school party

·      Marilyn: advertisement on fashion magazines and app.store

·      Hugo: social media, app. Store

-Activate: take the trial application and then simply paying with your phone bill

            2)KEEP

-Product updates/extended features:  new features as magazines/blogs links, follow models wardrobe(like Twitter), professional advises

            3)GROW

-Up-selling: fremium modelà basic plus experts advices

-Referrals: send the link for inviting new friends and you get further free combinations

-Cooperation with companies (Zara, Mango, H&M virtual wardrobe..)

4)Channels

Arteixo is a virtual product that is delivered through mobile application and web browser. Between two, the mobile application has more importance than its counterpart, as the customer segments find the value of Arteixo in on-the-go feature. The application will be connected to the account of social medias such as Facebook, to remove repeated registration process and to access existing customer data from the social medias.

Furthermore, using social networks as an intermediary channel to acquire customers brings additional advantage to Arteixo. According to the interviews with potential customers, about 93% of young population aged between 16 and 34 were using one or more social networks such as Facebook, Twitter or Instagram. In terms of frequency, Facebook accounted for the most in all age groups, especially females aged from 16 to 24. Twitter was the second most used platform to communicate, followed by Instagram.

The abovementioned services are important for Arteixo to determine key channels to deliver the value, which is a virtual closet with social function. Frequent exposure to social media means that people are accustomed to share, comment and “like” day-to-day activities of others, which is directly related to the expected customer behavior of Arteixo. Based on the survey, a considerable number of people are willing to share their closet, which is likely to be linked to their current behavior.

5)Revenue Streams

To define the Revenue Streams strategy we have considerate our customer segment defined and also the business sector, comparing similar business models that provides customers’ different features. The strategy was defined based on the subscription fee pricing.

·      First 19k users Free – For the first 19k users we will provide the APP for free, we believe that these users will be able to experience our service and influence and recommend others to use it. We defined these amount of people considering the total market in our segment and the percentage of people representing the innovators (2,5%).

·      User 19001 and others 0.99 Euros fee – The other users (early adopters and early majority) will pay the regular fee, 0.99 Euros. This fee was defined considering the usual application cost and also the results of our survey, where we can see that 52,43% of people interviewed are interested in buying the application for this cost.

·      Free for a user that invites three friends to use the App – To better promote our APP we also defined that first 18K users (who need to pay the fee) that invites 3 friends can download the APP for free.

6)Key Partners

We have chosen our key partners in order to provide us with the resources and needs to make our business work. We have designed a close relationship in order to promote a win to win situation for both parts.

·      Traffic partners; for the first stage we have choose to follow traffic partners in order to reach the wished members for our actual business model:

o   Bloggers: Small growing bloggers. They will benefit for be users of our app for free we will benefit to increase our Acquire in the phase of getting customers.

o   Fashion staff: Models and designers. They will benefit for getting our free app in case of models and in case of designers they will benefit of time saving to dress models in shorter time and ahead allowing them to make changes. We will benefit from new users and to keep and grow costumers, as we will be a referee for fashion.

·      Close look to future partners.

o   Strategic alliance: Companies for the fashion industry such as Inditex, Mango, H&M and Gap, will be able to add their collections to the virtual clothes of members, giving them the chance to buy clothes from there.

o   Business Development: SME in fashion will be able to upload their collection into clothes and create a buyers profile.

7)Key Activities

·      Digitalizing  your wardrobe : we re-adapt your simple images in the right format to allow you to match upper-part, lower-part and shoes in order to make combinations.

·      Providing a "fashion social community": we allow you to upload your combinations, write comments, “liking” friends’ pictures, get advices, sharing your closet  within the same cloud community.

8)Key Resources

The most important assets required to make our business model work are the following:

·      Virtual: application, cloud services

·      Intellectual: copyright on our software

·      Human: IT developers, team of qualified employees

·      Financial: friends, family, friends of friends(FFF)+ our savings

9)Cost

To define the Costs to operate our business model we estimated fixed and variable cost based in our needs.

·      Software development/ APP/ Cloud – 20k Euros/ year

·      Administrative – 58,8k Euros/ year

·      Advertisement – 10k Euros/ year