Market Size for TVtoWear

As part of our evaluation of market size for TVtoWear, my team is looking at the different aspects that impact the analysis including:

• Demand
• Addressable Market
• Realistic opportunity vs. competition
• Selection of “winnable” market opportunity

The demand for our business will be dependent on a couple factors that involve the amount consumers will be spending on clothing online as well as preferences by consumers as to how they shop for clothes in general. If we can gain a good understanding of the current demand for online clothes shopping and factor in changes as a result of new technology, impact from economic conditions, and the increasing competition online then we will have a better picture of what the actual demand will look like.

The next step is to identify the addressable market by doing research on the potential revenue opportunity. Our approach to identifying this market is by looking for press releases on trends within the clothing sales industry, reviewing industry websites and department of commerce data that could be applied to where people are spending money within the clothing market. Another approach we are taking is to perform a survey to get additional data points on demographic details and specific customer needs.

In general, U.S. online retail sales have increased close to 13 percent in recent years and the industry is expected to continue to grow. However, with this has come an influx of startups as well as growth of some of the major e-commerce sites such as Amazon and Ebay. While these sites maintain very loyal customers, there is still plenty of opportunity for niche sites. Especially given the fact that access online has significantly grown due to the user of tablets and smartphones in addition to the ease of use of internet searching capability. While some companies are focusing on specific lines of clothing (department sites), certain styles (vintage estores), or simple generic searching (Amazon) there is a realistic opportunity with our model in the area of style savvy consumers needing or wanting a specific look.

Realistically, the market that we’re targeting here given the opportunity is at the higher end of the consumer spectrum. In general, we are looking to take advantage of the convenience of TVtoWear for those of higher levels of education, income, and/or occupation who are willing to pay a little more for a certain style or look. These focus areas can be expanded by providing other cost-effective alternatives or by marketing to other demographic areas in the future. However, our research and analysis on market size has led us to a reasonable strategy for our business startup.

To Inbound or Not to Inbound?

The question whether companies can survive on inbound marketing alone has become of greater interest in recent years.  One byproduct of the continued expansion of the internet is that there is more information available to us today than ever before.  There are answers to our questions and solutions for just about any problem you can think up.  So, when one has a problem they simply “Google it” to find the best possible solution.

While that could be very exciting to a start-up company with very little funding and no access to advertising resources, there is still doubt that they could rely solely on this type of format and succeed as a business.  Some additional questions to consider might be:

• Will the right customers reach them?
• Will there be enough traffic to gain momentum?
• Is it worth the time to create content for inbound marketing?
• How do we know what content will resonate bet?

These are questions that I would ask before putting a strategy together for inbound marketing efforts.  With that said, I feel a company could potentially sustain itself on this type of marketing alone.  There are many companies that have propelled themselves based on word of mouth.  Social media has transformed the way people discover new products, interests, and services.  The ability to share the likes and dislikes of individuals you trust through mechanisms like Facebook and blogs is substantial.  For example, the sharing of a video among friends can result in a viral exposure to the subject of the video.  As almost everyone today has access to the internet, search engines have become more robust, and the interest in social media has increased the likelihood of being noticed is extremely high given the right product.  Companies that are in tune with their target customers would be able to provide appropriate content that will capture attention.

When it comes to outbound marketing activities, the main goal seems to be reaching a large audience with one message.  For example, paying for an advertising firm to put together an ad or slogan that will be presented in TV spots, brochures, or email blasts that could potentially be seen or read by thousands.  This is in contrast to the more passive nature of inbound marketing which allows the customer to seek out the information rather than it being presented to them.  I found an article that discusses five large companies that have been successful with inbound marketing, but what you’ll notice is that it’s more a mechanism to support outbound marketing activities (http://mashable.com/2012/09/13/inbound-marketing-strategies/).  In most of these cases, the outbound activities are still being utilized but are supported with an updated strategy around social media or mobile technology.  It’s important to recognize the benefits of traditional marketing while taking advantage of new trends in the use of technology and access to information.