- Market validation
- business model
- Founding team
Women today struggle to find high quality , stylish , and unique handbags that match their personality and their needs. Mass-produced handbags often lack individuality and are not customer expectations. As a result, customers are deprived of the opportunity to own a bag that truly matches their style and practical needs.
Take the example of Emma, a young and ambitious entrepreneur from New York. She had a meeting with her investors and needed a handbag that matched her professionalism and unique style. Although she visited several stores and searched online for hours, she could not find any handbag that matched her expectations.
The problem is that today’s market has limited options for women who aim to find practical and stylish handbags. Although there are many mass-produced options, they are all similar and lack individuality. Women need a solution that provides them with unique, handcrafted and stylish designs that truly match their personality and practical needs.
The relevance of this issue is high, especially since the fashion industry is continuously evolving. Women are becoming more fashion conscious and are increasingly looking for products that provide them with individual style. The current handbag market is lacking in this regard, leaving women looking for a solution that satisfies their needs.
The current solution to this problem is not enough, because customers are always looking for a handbag that really matches their style. There are mass-produced handbags available in the market, however, they cannot provide the individuality and uniqueness that women are looking for. Women need a solution that gives them a sense of belonging and pride in their handbag.
What has led to this problem is the lack of variety in handbags, as well as societal pressure to conform to fashion trends. The mass production of handbags has created a homogenization of styles, which does little to satisfy the need for unique, stylish and practical handbags. Women need a solution that caters to a diverse range of styles and preferences.
Solution / value proposition
At the handbag business, we recognized the problem that women face when buying handbags. Our handcrafted, unique and elegant handbag designs offer customers the opportunity to own a one-of-a-kind bag that matches their style and practical needs. We pride ourselves on providing customers with a wide range of designs, sizes, colors and styles of hardware to suit individual preferences.
We understand that customers want a bag that is not only stylish but also practical and specific to their needs. We’ve designed our handbags for everyday use, including spacious compartments, pockets and a durable exterior to ensure a lasting investment for our customers.
Our handbags aren’t just a solution to the problem; They also offer value unmatched by mass-produced handbags. Handcrafted with the finest quality, each handbag is unique and no two bags are the same. Our customers will feel a sense of pride in owning a unique handbag that no one else can duplicate.
What sets us apart from our competition is that we offer customers the opportunity to learn and pack their bags with our courses and supplies. Customers can enjoy the experience of creating a personalized bag and take pride in knowing that they made it themselves. This unique offering allows us to appeal to a wider audience and contribute to the maker and DIY community.
As entrepreneurs, we have identified this problem and created a solution that not only solves the problem but also delivers value to our customers, giving them a product they can trust.
The TAM for handmade handbags is billion and it is growing at a rate of 10% per year . This represents a significant opportunity for our handbag exchange to do business to capture market share with our unique and customizable products.
The specifics of our addressed market include Revenue per customer , which is estimated at 0 For a handmade handbag purchase. Additionally, customers tend to have a high degree of brand loyalty and are willing to pay a premium for unique, high-quality handbags. Our company’s sales cycle involves online and in-person sales, with customers typically purchasing from us several times a year.
Starting a business in the handmade handbag market is a good idea as there is a growing trend towards sustainable and ethical fashion products, which our business aligns with. Additionally, there is a high demand for unique and customizable products that mass-produced handbags cannot offer. Our handcrafted handbags and courses provide a unique value proposition that cannot be found elsewhere.
The market for handmade handbags is growing, with more customers becoming aware of the negative impact that mass-produced products have on the environment and society. As a result, there is a growing demand for locally made and ethically sourced products, which our company caters to. Additionally, the global pandemic has made online shopping more popular than ever, which has opened up new opportunities for our business to reach customers around the world.
Our company’s customers are willing to pay a premium for unique, high-quality handbags that meet their individual needs and style preferences. Our handcrafted purse prices range from -0 depending on design, size and material style. Customers who take our online and in-person classes are also willing to pay for supplies and instruction, with our online classes priced at an average of and in-person classes priced at an average of 0 .
Overall, the market for handmade handbags is large and growing, with opportunities for our company to capture market share with our unique and customizable designs and classes.
Our business model revolves around selling handmade handbags, offering classes and supplies for customers to make their own handbags, and collaborating with local markets and boutiques. Our business is designed to be flexible and scalable, allowing us to reach a wider customer base and generate revenue from multiple sources.
Sources of income
We have three main sources of income:
- Selling handmade handbags: We sell our handmade handbags online, through pop-up stores and local markets. Customers have the option of owning a unique handbag design that meets their individual preferences. We charge a 50% markup on the cost of materials and labor, generating a healthy profit margin.
- Offer classes and supplies: We provide classes and supplies online and in person to enable customers to make their own handbags. We charge fees for classes and a markup on the cost of supplies, generating additional revenue.
- Collaborating with local markets and boutiques: We partner with local markets and boutiques to sell our handmade handbags. We offer wholesale pricing to our partners, generating a smaller profit margin but increasing our sales volume, brand awareness and reach.
Our projected revenue for the first year is 0,000, with revenue increasing 25% each year for the next five years. We plan to achieve this by expanding our product offerings, marketing efforts and operations.
Our product offerings include:
- Handmade handbags: Our handmade handbags are unique, stylish and of high quality. We offer a wide variety of designs, sizes, colors and hardware styles to meet each customer’s individual preferences.
- Classes and supplies: Our classes and supplies allow customers to learn how to make their own handbags. We offer a range of classes, from basic to advanced, and provide all supplies needed for purchase.
As a new entrant in the handmade handbag market, we face competition from several established brands. These include:
- XYZ Handbags: XYZ Handbags are known for their high quality materials and unique designs. They have a strong online presence and a loyal customer base. However, their products are more expensive than ours, and they do not offer classes or supplies for customers to make their own handbags.
- ABC Bags: ABC Bags offers a wide range of sizes and colors of handmade leather bags. They have a loyal following on social media and sell their products through their website and local markets. However, they don’t offer the same level of customization options that we do.
- PQR Handbags: PQR Gurses is a local company specializing in small handbags and designer handbags. They have a strong reputation for quality and customer service and have built a loyal following. However, their product line does not offer the same variety as ours.
Despite this competition, our Unique Selling Points (USPS) set us apart. First, we offer a wider range of designs, sizes and colors than any of our competitors. This means we can cater to a wider range of customer preferences, giving them more choice and control over their handbag purchase. Second, our courses and supplies give customers the opportunity to learn new skills and create their own bespoke handbags. This unique offering poses the growing interest in DIY culture and appeals to customers looking for something more practical and personal.
Additionally, we believe that our pricing strategy is very competitive. While we offer the same level of quality as our competitors, our prices are more accessible to a wider range of customers, allowing us to capture a larger market share. Therefore, we are confident that our product range and unique business model positions us well to capture a portion of the growing market for handmade handbags.
Finally, we believe that our greatest threat comes from competitors who offer a comparable range of customization options and courses/supplies for making handbags. However, we are confident that our strong social media presence and marketing efforts will enable us to build a loyal customer base and drive sales growth.
The primary goal of our handbag purse is to provide customers with unique, high quality handbags that meet their individual style and practical needs. Our team consists of three experienced fashion designers and entrepreneurs who share a passion for creating innovative and sustainable fashion products.
Michelle Kim, Founder and CEO
Michelle holds a Bachelor of Fine Arts in Fashion Design from Parsons School of Design in New York. She has over a decade of experience in the fashion industry, having worked as a designer for several high-end fashion brands. Michelle’s expertise lies in designing handbags that are both functional and aesthetic. She oversees all aspects of our product line, from design to production, ensuring that each handbag is of the highest quality.
Jessica Wong, cooed
Jessica holds an MBA from the Stanford Graduate School of Business and has extensive experience in business development and operations. Prior to co-founding our company, Jessica worked at a technology start-up, where she helped the company expand its operations globally. She oversees our daily operations and is responsible for ensuring that our business runs smoothly.
Tina Chen, CMO
Tina holds a Bachelor of Fine Arts in Graphic Design from the Rhode Island School of Design. She has worked as a graphic designer and marketing consultant for several fashion brands. Tina is responsible for our branding, marketing and social media efforts, ensuring our business resonates with our target audience. She also manages our partnerships with local markets and shops.
Our team’s shared passion for sustainable fashion and craftsmanship is what brought us together. We believe that our combined expertise in fashion design, business development and marketing allows us to offer a unique and valuable product to our customers.
We are convinced that our team has what it takes to make this adventure a huge success. Our team’s track record of creating innovative and sustainable fashion products, combined with our commitment to handbag manufacturing, makes us the right people for this challenge.
There is no shortage of skills in our team, as each member brings a unique skill set that complements the others. We work perfectly together to ensure that our business runs smoothly and that our customers are satisfied with our products and services.
At the handbag business, we have gained significant traction, proving that our business is heading for success. Our online courses have been a major hit among DIY enthusiasts, with enrollment increasing by 10% each week. Additionally, our social media presence is growing daily, our Instagram after reaching 10,000 followers in the first six months of launch.
We have successfully secured partnerships with local markets and boutiques to sell our handmade handbags. This has helped us reach a wider audience while providing our customers with the convenience of purchasing our products from physical stores. Additionally, our online sales have grown exponentially over the past quarter, with a growth rate of 100% per month .
Our customers love our unique and stylish handbags, and our products have received overwhelmingly positive feedback. Our 5-star product reviews on our website and social media are a testament to our commitment to providing our customers with high-quality, personalized products.
We use the following metrics to measure our growth:
- Monthly active users on our website
- Sales conversion rate
- Reference rates from our clients
- Customer retention rate
- Net Promoter Score (NPS)
Our market research indicates that the handmade handbag market is growing exponentially, with an expected CAGR of 16.5% through 2025 . We are well placed to capitalize on this trend and deliver sustainable and unique products to our customers.
Our milestones include expanding our online courses on popular e-learning platforms, such as Udemy and Skillshare, and launching our in-person courses in major cities. We also plan to introduce new product lines, such as wallets, clutches and tote bags, to provide our customers with a wider variety of handmade accessories.
In the purse doing business, we are looking for million seed funding to help us scale and release a beta version of our business. With your investment, we are accelerating our growth and expanding our offerings to reach a wider audience.
The funds raised will be distributed between the following areas:
- Product Development (30%): A significant portion of the funds will be allocated for the completion of product development of our handmade handbags, including sourcing high-quality materials, designing new patterns and l improving the features and functionality of our website.
- Marketing and Advertising (40%): We will use a considerable portion of the funds to increase our brand awareness and expand our customer base by investing in digital marketing channels such as Google AdWords, Facebook ads and influencer marketing campaigns Instagram. We will also increase our social media presence, organize local events and participate in more markets and pop-up stores.
- New hires (10%): Growing our team is essential to achieving our milestones and maintaining our competitive edge. We will hire new employees who have the skills, experience and passion to help us achieve our vision and goals.
- Online and In-Person Classes (20%): A significant portion of funds will be spent on expanding our online and in-person classes so more customers can learn how to create their own unique handbag handbags. We will also increase our partnerships with art schools and fashion institutes across the country.
With the funds raised, we aim to achieve the following milestones:
- Release a beta version of our website with enhanced functionality and enhanced functionality within six months
- Launch our in-person classes in major cities across the country within eighteen months
- Create a brand ambassador program to leverage our customers’ enthusiasm and loyalty to our brand within 12 months
- Achieve a 15% increase in customer engagement and sales within six months of launching our digital marketing campaigns
Investing in a handbag to make a handbag do business means not only supporting a unique, sustainable and innovative business, but also contributing to a more ethical and environmentally friendly future. We are committed to delivering on our promises and maintaining our growth by providing high quality, stylish and unique products and services in the handbag industry.
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