The fashion industry might need to invest up to $30 billion per year on sustainability, or many multiples of what it is c...
Deal supported by Wharton Impact Venture Associates (WIVA)
Conscious consumers need an efficient way to shop sustainably
90% of millennials report they will spend more for socially responsible products, but it's too hard to find ethically sourced products you can trust. The conscious consumer needs a simple solution to find sustainably sourced clothing in an era where personalization is the norm.
34 million women in the US identify as conscious consumers; they want to know that the garment workers who made the clothing they buy were paid fairly and sustainable materials were used. Without Wearwell, they must spend hours researching options, decoding the many and often conflicting certifications, and combing through hundreds of brands to learn which can be trusted.
Wearwell: Personal style meets powerful impact
Wearwell makes it easy to find clothing that fits your personal style and the difference you want to make in the world. Wearwell does this with a unique subscription service where shoppers can easily discover and purchase ethically and sustainably made clothing.
We deliver a monthly selection of products digitally to our customers' inbox and make it seamless for them to buy the products they like directly through our platform. This makes it easy for shoppers to buy ethical and sustainable clothing that fits their personal style.
Shop ethically and sustainably made clothing, curated just for you
Wearwell makes it easy to buy clothing that creates a positive impact. When subscribing to our service, users create a profile with their personal style preferences. Our expert stylists then use that information to curate a selection of clothing and accessories which is delivered digitally to the customer's inbox. The user purchases products they like directly through our website, provides feedback, and continues working with their designated stylist to tailor future selections to their personal preferences.
500+ monthly members
We have earned an average of 20% month-over-month growth in membership since our launch to build our community to 500+ subscribers. We have a 96% retention rate and are on track to expand to 3,000 monthly members across the next year.
Wearwell is on track to become a B Corporation in 2020. The B Corporation Certification is a testament to our commitment to social impact and conscious consuming.
On brand with sustainable shoppers
With over 34 million women in the US looking to shop sustainably, our members appreciate the options, ease, and ethics of our products.
Wearwell's current 500+ members are:
- millennial women, typically age 25-39
- earning an average household income of $75,000+ and hold a Bachelors degree or higher
- leading busy lives: career climbing and/or raising children
- aware and engaged in the community and the world around them, striving to live meaningfully
They report that their greatest challenges when shopping for ethically and sustainably made clothes are: "It's time consuming," "I don't know which brands to trust," and "I can't find options that fit my style."
Subscription + sales of clothing and accessories
Simply put, we earn revenue through: 1) monthly membership fees and 2) sales of clothing and accessories:
- Monthly membership fee is $8.50 for members to receive a monthly selection by a stylist of clothing and accessories
- We then earn on every transaction performed on our platform, which brings in an average of $92/order.
- Our average margin is 55% on products sold. We are working to increase that margin to 65% over the next 2 years.
We're on track to increase our membership to 3,000 monthly members by early 2021, and based on our current financials and unit economics, will exceed $17 million in revenue by 2022.
The right time for Wearwell
Navigating ethical and sustainable consuming
This is Wearwell’s moment. As more and more consumers demand sustainability, they also demand ease of purchase and curated experiences.
67 million millennials are willing to spend more on sustainably made products. This is a $360 billion addressable market in the US alone.
A trusted source for conscious consumers to build a more ethical and sustainable wardrobe
Wearwell's membership service offers a lower carbon footprint and has operational advantages compared to subscription box services, none of which are focused on conscious consumers. For customers, Wearwell stands apart by helping them to discover emerging brands, creating social connection with their stylist, and clearly articulating the impact of each item they purchase.
We stand apart from subscription box services with our focus on conscious consumers, a lower carbon footprint model with operational advantages, discovery of emerging brands, and social connections built between stylist and consumer.
The authority on conscious living
Here are our goals through 2022:
- Grow membership from 500+ (current) to 3,000 across 2021, putting us on a path to scale to 80k+ members and $17 million in revenue by end of 2022
- Pilot partnership opportunities with large retailers
- Expand to serve customers in need of inclusive sizing
- Extend business to serve conscious consumers' needs in home goods, beauty, and more.
Large multi-brand retailers are looking for opportunities to break into the conscious consumer market. Our goal is to exit through an acquisition in the next 5-7 years.
We bootstrapped the company in its earliest days while we prototyped, ran a beta, and iterated the business model. Wearwell raised $200,000 in a pre-seed round and with that limited budget, we built the product, secured partnerships and grew our membership base to 500+ monthly members. With additional funding we will be able to scale the business to 3,000 monthly members and a $1+ million run rate.
Our founders experienced the frustration of just how time consuming and opaque shopping for ethically and sustainably made clothing is and, leveraging a combined 20+ years of experience in global development, measuring impact, sales, and corporate partnerships, they decided to do something about it.
Erin Houston and Emily Kenney met at American University while earning their master's degrees and have been working together for the past 4 years. The team includes a Head of Tech, 6 stylists, 2 developers, and 2 interns.