NEWROBE

Rent! Return! Repeat!

A Report By:
Bharat Maru (E007)
Akshat Vora (E014)
Naitik Jain (E023)
 TABLE OF CONTENTS

Sr.No Title Page No

1 Problem Definition 1
2 Business Idea 1
3 Value Proposition 1
4 Secondary Market Analysis 2
1) Shared Economy 2
2) Apparel Industry 3
5 Primary Market Analysis 4
6 Costing 5
7 Conclusion 6
 PROBLEM DEFINITION
In the current clothing industry, the customer's only option in clothes is shopping, maintaining it
and shopping again, which has become too difficult for bachelors with jobs, students and men
living away from their homes.

India as a country has a large number of youngsters who have high aspirations, bigger dreams
and who love a fast moving and practical life. In the clothing industry, the consumers have to
spend a large number of their resources in deciding what to wear and from where to buy, and
also have a fixed budgeting. Many youngsters aspire to wear branded and new clothes on a daily
basis but aren’t well supported financially to fulfil this aspiration. Especially the working class
salaried people always have to plan and segregate their expenditures based on their resources.
Another problem faced by the youngsters and working-class people face is of maintaining the
clothes that they buy, i.e., washing and ironing the clothes. NewRobe is a one-stop solution for
all those people who don’t want to spend their valuable resources in these petty processes.

BUSINESS IDEA
NewRobe is a company that provides people with clothes on rental for daily wear, i.e., day-to-
day fashion. The company's aim is to fulfil a dream of many to wear new clothes everyday from
top brands and latest trends. 365 days, 365 new clothes! NewRobe is also about breaking
through the markets and consumers’ perspective of buying clothes and changing it to renting
clothes in order to save wastage of resources. It is also about pricing the rental in such a way that
the consumer can wear 20 different clothes at the price of one. It will reach the customer’s
mainly through digital advertisement and will attract them by explaining how they can fulfil their
dream of wearing new clothes every day at relatively low prices. NewRobe will majorly target
the lifeline of the country, i.e. the youth.

VALUE PROPOSITION
Many people have a dream to wear new clothes every day without having to spend time and
resources on maintaining them, but are financially incapable to fulfill these wants.

NewRobe will help them fulfil their dream at a low cost with a maximum satisfaction. The
service is targeted to aid the young working professionals, who have tight schedules of work, by
saving them from shopping and maintaining clothes regularly. Oh-Look aims to help their
customers invest their time on things that matter. In addition, they are eliminating one of the
major challenges from one’s life: Deciding what to wear each day.

An after-sales team will always be in touch with our customers to provide them with choices of
clothes to wear on any day, and also provide assistance to any other issues related to our
services.

1
 SECONDARY MARKET ANALYSIS

1. Shared Economy
The sharing economy has exploded over the last few years, and the implications of this
technology-driven economic model are beginning to be properly understood by upcoming
startups. From eBay to Airbnb, consumers are increasingly more comfortable interacting directly
with one another, offering services ad-hoc and saving on costs as a result.

As people are given access to larger amount of information, they are unsurprisingly more
trusting of, and persuaded by, reviews over traditional advertising. Consumers can now bypass
traditional marketplaces - ‘cutting out the middleman’ if you like - instead accessing a
decentralized model of distribution that essentially creates more opportunities for everyone,
whilst stripping power from some corporations. Technology evens the playing field between
these corporations and individuals and, as a result, the market is now more hyper-competitive
than ever. The more optimistic commentators see the economists’ theory of ‘perfect competition’
as edging closer to reality, the opposite of a monopoly as individual buyers and sellers become
so numerous.

It is the notion of sharing services and resources with others for a fee that underpins what could
well be the future of the economy. The automobile is a good example - soon, it is feasible that
very few people will actually own cars, particularly within urban areas. Rather, people will have
access to cars. It is a crucial distinction, as we move toward an economy where ownership is less
of a central tent pole, one where access is the key concept.

Shared economy in India is poised to become a USD 2 Billion industry by the end of the year, a
report by Maple Capital Advisors said on Thursday. Also, such services attracted about USD 3.5
billion worth of private equity, and USD 262 million in mergers and acquisitions (M&A)
between 2015-19, the report titled 'Shared Economy - India Story' said.

The younger generation also has different preferences that they see as requirements. Being a
“two-car family” (or even three or four cars) was once a mark of status, whereas today many
consider better social status in being a one-car or even zero-car family and making use of
services like Uber, Lyft, CarGo. There is also a trend towards minimalism and efficiency feeding
off a growing awareness about climate change and the environment which is also contributing
towards a shift in such consumption behavior among the youth.

Details aside, the sharing economy, in its current state, will eventually permeate other industries,
and it could be set to revolutionize the way we work.

2
2. Apparel Industry
● Revenue in the Men's Apparel segment amounts to US$24,508 million in 2020. The
market is expected to grow annually by 10.2% (CAGR 2020-2025).
● In global comparison, most revenue is generated in the United States (US$112,251m in
2020).
● In relation to total population figures, per person revenues of US$17.76 were generated in
2020.

SHIRTS
● Revenue in the Shirts (men) segment amounts to US$6,026m in 2020. The market is
expected to grow annually by 10.0% (CAGR 2020-2025).
● In global comparison, most revenue is generated in the United States (US$16,466m in
2020).
● In relation to total population figures, per person revenues of US$4.37 are generated in
2020.
● In the segment for Shirts (men), volume is expected to amount to 1,161.21 m pcs. by
2025.

3
 PRIMARY MARKET ANALYSIS

Gender – 55% of our respondents were

female.

4
 Would You Ever Consider Renting
Daily Wear Clothes?
75% people replied with a sometimes
25% replied with a Yes

If Yes, How Much Would You Be Willing

To Pay Per Month?

If No, what is the reason behind it?

COSTING

Per shirt 500 33.33333333

Dryclean and Iron 30 30
Sanitization 20 20
Logistics 75 75
158.3333333 160

Considering 500 customers (350 monthly and 150 semi-annually) and a operation cycle of 6
months, the following calculations have been done to create a basic ideology of our revenue
generation

5
Item   Count Price per Piece Total Monthly Pricing
Inventory   5000 500 2500000 208334
Android 1 Year 10000 10000 834
iOS 1 Year 15000 15000 1250
App & Web Development
Websit
e 1 Year 25000 25000 2084
Drycleaning & Sanitization   10000 50 500000 500000
Logistics   500 300 150000 150000
862502

Profit
Subscription Subscription Cost Price Per based on
Type Price Month Total Cost Price Package
Monthly 2500 1725 1725 31
Semi-Annually 13500 1725 10350 23.33333

  Customer Count Costing Income Profit

162750
Monthly 350 3622500 5250000 0
Semi-Annually 150 1552500 2025000 472500
210000
5175000 7275000 0

6
 CONCLUSION
According to our secondary source of data, there is a boom in the shared economy, which in turn
shows that our business model has great potential. Also, the current economic crisis will incline
people towards our rental service, as it is one of the most financially feasible option available.

The COVID situation doesn’t impact much on our plan, since we are providing completely
sanitized and hygienic products. Our only barrier would be to change the customer sentiment and
behavior. The Work-From-Home nature does provide relaxation to a working professional from
dressing up, but he still has to appear his best above waist, thus opting our facilities.

We do not wish to start our operations full-fledged. A pilot run of few months will be started for
close and known customers only, allowing us to analyze and integrate the changes we might
need to adapt to best overcome the COVID scenario.