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Author
Goicoechea, Ane
Massons, Jana
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Abstract
Nowadays, there is an increasing and, in some cases, worrisome trend of people comparing with others and being more self-critic with their appearance. Looks are an important factor when it comes to a person’s level of confidence, and the fact of picking an outfit can cause stress, mood swifts and bad time management.
InnovaStyle is born with the idea of helping people live a stylish life comfortable with themselves, without having to stress about picking an outfit, while contributing to a circular economy.
On the present day, the fashion industry is one of the most polluting ones, and we want to prove that fashion does not always entail damaging the environment, as it can be environmentally friendly.
InnovaStyle’s idea is to create an Intelligent Mirror whose function is to assess people on how to dress for each circumstance, while providing ideas and alternatives on how to wear and recycle unworn garments.
The price of the mirror will be placed at 900€, including the application needed to be downloaded to upload garments to the screen. The price will rise by 100€ for each additional wardrobe, with a maximum of 5 avatars per mirror. Moreover, an annual subscription fee of 50€ will be charged to add new clothes to the virtual closet and upgrade the informatic system.
Considering a market volume of 438.435 people in Spain and a market value of 416.513.250€, on the first year of running the business, sales are expected to reach 588 units, which equal earnings of 529.155,85€. On the second year, the firm is expected to sell 608 units, equalling 546.558€. Finally, on the third year, sales are expected to amount 647 units or 581.838,58€.
Besides, the business idea is viable both economically and financially and is shown in a financial plan, in which benefits are foreseen during the first three years of operations.
The project requires an initial investment of 50.000€, that will be allocated by the two shareholders of the firm as the concept of share capital. The money will be obtained from personal cash, as well as from Family, Friends, and Fools’ donations. This investment will be necessary to pay our supplier, workers, and tangible assets.
Naturally, one of our long-term goals is to reach more people, up to the point where the brand is well-known throughout Spain. Moreover, our ambition is to be recognized as a high-quality brand in an international environment, being able to ship globally and potentially opening physical establishments, since in the beginning of the business, the company will only sell through its webpage.
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