Yep, there's now a subscription handbag service: Ivory Clasp
There are subscription services for clothes, shoes, accessories, makeup, and even tampons, so why not one for handbags? That's the premis...
What customers want
At Ivory Clasp we deliver stylish handbags at a fraction of the cost of retail. We provide personalized style, direct to their door while maintaining the added element of surprise and delight each time a customer receives their bag. Fashion is a luxury to most and we strive to give our customers that experience of luxury for less.
Because of our unique partnerships with well known brands, we are able to provide our customers the experience of luxury product that is in-season and still marketed at full price but at the exclusive Ivory Clasp price of $49 a month. Retail value of the full price bags range from $79-$230 so this is an incredible value and service to the customer.
We have developed unique partnerships with many well known fashion brands allowing us to offer their handbags at our exclusive price. Partnering with us provides multiple benefits to the brands beyond simply a sale. Examples include:
Overwhelmingly, the number one reason brands look to partnering with us is that we are NOT a discount store that will not cheapen their brand.
We have our own in-house design team that creates handbags for 3 separate handbag lines called A.V.I. Collection, With 212 and Republic of Aces. Currently sold through their respective websites, these brands will soon be sold at multiple other retailers. We also move these brands through Ivory Clasp and, in fact, some of the most loved and requested handbags have come from our in-house team! Because of this we are able to design bags we know our customers will adore, and are able to hit fantastic margins as we do not have to pay the mark-up required when purchasing from outside brands.
We love to engage with our customers and encourage them to post their #ivoryclasp style. But it became so much more, and after watching this community of positive, stylish handbags lovers blossom we knew we needed to create them a place of their own. So we launched Bagaholics as a handbag Facebook community for our highly engaged customers. This allows us to foster a community which highlights the need for many handbags through peer-validation as well as allows users to buy/trade/sell their Ivory Clasp (and other) handbags.
Our business model is simple and proven to work:
We're simultaneously a discounter that can supply full-price and in season bags, and a full priced retail shop that can operate/sell to the mass market. TJX is currently soaring at $45b market cap, while Macy's is nosediving ($7b). We're the best of both worlds.
Ivory Clasp’s Competitive Advantage
Brands and licensors are often prohibited by their retail contracts from selling in-season handbags to other retailers that will advertise those same handbags at a discount.
Since Ivory Clasp does not advertise which exact handbags its customers will receive, the brands and licensors are still capable of selling in-season handbags to Ivory Clasp at a discount.
Therefore, brands and licensors can sell to Ivory Clasp to hit higher factory MOQ’s and offload inventory, while customers receive discounted, but still in-season, handbags.
In addition to being a distribution channel for brand name handbags, Ivory Clasp is also an incubator for brands created based on data from subscribers.
The Handbag Market
The handbag market is a fragmented $12B market, with even the largest brand, Michael Kors, owning less than 20% market share.
According to Signal Brands (world’s largest handbag licensee) research, the average consumer purchases 5-7 handbags priced at $100-200 a year ($900/year average across multiple brands).
Ivory Clasp’s subscribers spend on average $380 a year in lieu of other brands.
Right now we're profitable on every unit we send out and our churn and customer acquisition costs metrics are 11% and $25 over the past 3 months) with an LTV (life-time-value) of $93. We can sustain the business, but wish to raise capital to increase Advertising spend and the rate of new customer acquisition. This allows us to show growth and (a) raise a larger venture backed round and (b) take over a segment of the market. Using our ability to A/B test product we intend to take our learnings to the market and produce data-driven bags based on what people want. We also intend to scale into different verticals leveraging our understanding of single-product subscription boxes.
Benefits of scale
We're excited to work with companies who continue to push the needle and provide irresistible consumer experiences. We love introducing students to our awesome partner brands!
Short term (3 months)
Improve Style Quiz
Expanding Quarterly Service
Interim term (3-9 months)
Faster Shipping Times
Long term (1 year +)
Full Price Handbag Shop
Expand single subscription purse model to jewelry (already in progress) shoes, apparel, sunglasses/accessories, luggage, scent.
Allow customers to choose which product category they want each month, like a modern Sears Catalogue or TJ MAXX/Ross/Marshalls competitor. They can choose a new handbag one month, a bathing suit the next, a new kitchen accessory the following month, and yoga pants the following one still while maintaining a single CPA and significantly increased LTV, as well as substantially increased retention
Interim term (3-9 months)
Expanded Private Label Brand Product
Long term (1 year +)
"As I started to become fully immersed in the fashion industry, I started to quickly become passionate of the idea of what it is consumers want and why is it that they want this specific product and style."
"One of the most exciting things about Ivory Clasp is that customers love us! We are seeing incredible traction. What this tells us is that not only are we on to something with handbags, but we're on to something in the more broad look of how business models and subscription businesses should look in the 21st century."
- Sean Rimokh
"Ivory Clasp is addressing two problems in the market: - The first, is that today’s millennial women love brand names, however they’re brand agnostic to which of the hundred brands they see in stores and online. The second is that brands and licensors on the other hand struggle with recouping costs of unsold inventory."
"Why do Brands love us? Simple, brands and licensors are often prohibited by their retail contracts from selling in-season handbags to other retailers that will advertise those same handbags at a discount. Since Ivory Clasp does not advertise which exact handbags its customers will receive, the brands and licensors are still capable of selling in-season handbags to Ivory Clasp nearly at cost. Therefore, brands and licensors can sell to Ivory Clasp to hit higher factory MOQ’s and offload inventory, while customers receive discounted, but still in-season, handbags."
- Avi Zolty
The smallest investment amount that Ivory Clasp is accepting.
$50,000 – $107,000
Ivory Clasp needs to raise
before the deadline. The maximum amount Ivory Clasp is willing
to raise is $107K.
The Crowd Safe is an agreement for future equity in the startup,
meaning that it can convert to equity in the future.
The Crowd Safe is an agreement for future equity in the startup, meaning that it can convert to equity in the future.
We are a handbag subscription company that delivers on-trend brand name handbags directly to your doorstep for only either $49/month or quarterly.
I Like the business modelFrancesco ManciniInvested about 1 year ago
I believe that women would love this process and that they would be repeated buyers for the companyDavid CarterInvested about 1 year ago
I see this trend, and it's such an it thing among women, know matter the age.Ingrid AndrewsInvested about 1 year ago
A member since 2016, this is my first investment i felt strongly for. I invested because it's a model that appeals to the buying habits of most people i know. The box it arrives in shows a dedication to quality + increases customer appeal.Chereen GamalInvested about 1 year ago
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