LUXSY PITCH DECK LUXURY CLOTHING - Liderkey
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LUXSY
LUXURY CLOTHING
PITCH DECK
2018
ABOUT
US
LUXSY is an alternative to Super Fresh clothing store.
Which was started in 2008 then later closed in 2012. It’s
LUXSY
a multi-brand clothing store was located in Localizer
Mall Riyadh.
The idea of LUXSY came after studying for several
years to shift from physical store to online boutique.
The switching mechanism involves a radical change in
terms of idea and content. Where it will be a
specialized in luxury fashion, covering all the world
and Saudi Arabia in particular.
LUXSY is the integration of the words "luxury" and
"sexy".
LUXSY
VISION
We operate with perfection in every aspect ,
cherish beauty and style within the fashion industry,
and we aim at maintaining our brand name and
reputation.
LUXSY
INTRODUCTION:
The luxury fashion industry is very important in
terms of its monetary sales volume (more than
“
US$ 252 billion annually in 2011 (The
Economist 2011). The global luxury industry
has seen steady growth over the past 16 years
and it is commonly believed to be one of the When I became the CEO of
most appealing and profitable industries in the
world. In addition to its economic value, luxury Burberry, in July 2006, luxury was
fashion brands help develop the best fashion one of the fastest-growing
products for the market. They are leaders in the
fashion world and drive a lot of mass-market sectors in the world.
imitators. Undoubtedly, luxury fashion is a
Angela Ahrendts
critical part of modern fashion world and luxury
fashion branding is a timely and important
topic.
LUXSY
THE PROBLEM
The following are the most important problems in the online fashion market in Saudi Arabia.
Saudi Arabia online fashion industry is moderately Most of online fashion websites in Middle
concentrated with the presence of around 20-30 East are based in UAE, Jordan, Kuwait,
fashion websites, With the absence of luxury Therefore delivery to Saudi Arabia takes 3
fashion websites. to 8 working days.
Most of Middle East shoppers are not spending at Luxury fashion's customers in Saudi Arabia
websites based in the Arab world; the majority of state that they don't find most of
online shopping is done in the US (35%); Asia international brand collections or limited
(30%) and Europe (25%), with the Arab world pieces in physical stores.
accounting for 10% of e-trade.LUXSY
WHY LUXSY UNIQUELY POSITIONED TO WIN THE
E-COMMERCE FASHION MARKET
Our team is a blend of creative intent Providing most of the world famous
01 with ability to ground ideas and projects, 05 brands, furthermore highlighting
making a difference by offering designers from the Middle East
excellence based work with high quality
Our main goal is to be one of the best Developing one-to-one relationships
02 international online boutiques, with 06 with younger generations, local
the Middle East focus. consumers and tourists
Planning to cover Saudi Arabia in Reaching consumers through a
03 particular, and launch a fast shipping 07 professional and creative marketing
and delivery service (24 hours) within
the Kingdom.
Investing in the talent and We will provide the most online
04 capabilities required to win in 08 payment methods and
this new luxury era technologies, to facilitate the
purchase processLUXSY
BUSINESS
MODEL
E-commerce
Selling physical goods:
01 Clothing 03 Accessories
02 Beauty Cosmetics 04 FootwearLUXSY
MARKET
SIZE The Saudi e-commerce market has enjoyed steady
growth in recent years with the turnover increasing by
11% on average (Ecommerce Foundation). The market,
Saudi Arabia is the largest and among the most with its 12.94 million users (50% of total Internet
04 users), is one of the largest across the MENA region and
attractive markets in the Middle East. It’s home to a
young, tech-savvy population with a median age of is expected to continue its growth in the upcoming
01 26. The Saudi government will have invested over years, 6.34 million additional Internet users are
$100 + billion in the development of logistics expected to shop online,
infrastructure between 2010 and 2020.
By 2021, Fashion will still be the most purchased
There are currently 12.94 million eCommerce users in
online category in Saudi, with an estimated value of
Saudi Arabia, with an additional 6.34 million users 05
02 3.08 billion USD, and second favorite, Electronics &
expected to be shopping online by 2022. Four years
Media, will have an expected worth of 2.66 billion USD.
from now, these 19.28 million eCommerce users will
spend an average of 487.70 USD online.
Saudi online shoppers are rather frequent buyers as
Total Saudi eCommerce revenue across all product 23% of e-commerce buyers purchase a product at least
categories is 6.13 billion USD, and is expected to grow once every two weeks, while only 3% buy less
to 9.41 billion USD by 2021. Fashion is currently the 06 frequently than every six months. Overall 19% of male
03 leading product category in Saudi Arabia, accounting and 27% female Internet users are considered 'heavy
for 1.91 billion USD market share, followed by buyers' (purchasing online at least once every two
Electronics & Media, which generates 1.85 billion USD weeks), a rate that reaches 29% among under 30-year-
in sales. olds (both genders combined).LUXSY
77% of GCC nationals like to create their own style,
It has been observed that a large percentage of online 74% claim it is important to stand out and be noticed.
shoppers in Saudi are between the age group of 25 to Being able to purchase originality is paramount,
07 34 years constituting almost 50% of the total orders whether through exclusivity, capsule collection or
received in online fashion market followed by 34 to 54 12 customizations. 89% of affluent Gulf nationals look for
years old population. a unique luxury product, and strong preferences for
special/limited edition items are well pronounced
On average, 42% of GCC luxury consumers splurge on across the region.
luxury clothes on a one to two month basis, 41% on
08 90% of Riyadh affluent consumers prefer heavily
luxury shoes and 37% on luxury bags every two to 13 branded and very recognizable luxury items.
three months.
Women in Saudi Arabia also tend to focus more on
One average, 78% of GCC affluent consumers said they
buying clothing and footwear that is special, customized
like to keep up with the latest trends, with 76% of them
09 converting this desire into consumption by claiming
or personal. In general, Saudi women have enough
they like to have the latest in everything they own. 14 money to buy expensive dresses by luxury brands. So in
order to express their wealth, they differentiate
themselves from their female friends by purchasing
$2,400 GCC average of monthly spend on fashion,
10 beauty & gifts.
high-end cloth and footwear.
In the four years since 2013, fashion purchases made
online in the UAE jumped from $85m in 2013 to $272m
Middle Eastern consumers have the highest per capita
15 in 2017, and are expected to grow to $354m by 2018.
11 spending on luxury goods, The Middle East is now the
Online fashion sales in Saudi Arabia also jumped from
9th largest luxury goods market globally, and is
$86m in 2013 to $249m in 2017, and are expected to
steadily moving up the ranks.
climb to $293m by 2018.LUXSY
Over 60% of online purchasing in Saudi is split
75% of the Saudi Population is 35 years or younger.
between Riyadh and Jeddah (two biggest cities) with
16 the rest of the cities making up much smaller shares 21 With 15.6 million internet users, 3.9 Million of these are
already online buyers.
of online sales.
According to Saudi CITC, 58% of the addressable Saudi In the GCC, Shopping is deeply embedded in the region’s
population have shopped online at least once in the culture, with 90% of nationals saying that they go out
17 past. Most of these online shoppers (87%) have made a shopping ‘regularly’, and 95% whenever they ‘feel like it.
transaction in the past 12 months, which shows an Unlike elsewhere in the world, where malls tend to be for
increasing shift towards online shopping. the mass market, in the GCC they are a natural
22 environment for luxury, too. And their purpose goes far
Saudi also has a very large middle and upper class, deeper than the act of shopping: they are a pillar of social
life, serving as ‘social clubs’, especially for the young –
18 meaning there are a lot of individuals with high
disposable incomes. being one of the few socially acceptable places for even
limited mingling between men and women.
Saudi e-Commerce sales have increased by more than
30 percent on average every year. This growth is GCC nationals are high spenders, both at home and
19 predominantly driven by fashion and electronics & abroad. Locally, they spend an average of $1,300 monthly
appliances. on clothing and accessories of which $700 is on ready-to-
wear and $300 on shoes, compared with $120 and $15
Saudi nationals are driven by strong contradictions. 23 respectively for UK shoppers in the UK. The pattern is
While they yearn for individual expression 97% look repeated when travelling: in London’s West End, the
20 for ‘something unique’ when purchasing luxury average transaction value for Saudis is $3,180, the highest
products – they are strongly attracted to anchor of all nationalities; for Kuwaitis it is $2,860, Emiratis and
labels and shop within a limited set of brands. Chinese are equal at $2,065, with Russians at $1,430.LUXSY
A strong digital ecosystem is emerging in
Middle East ecommerce market at $5.3
GCC, and Governments are particularly active
billion in 2015 when consumers in the
in promoting a digital future, with both the
U.A.E. contributed 44 percent of total
UAE and Saudi Arabian governments
ecommerce sales in the region. By 2020
investing heavily in making government
Saudi Arabia is expected to overtake the
services and hubs available online. The aim is
U.A.E.
for citizens to be able to access all services
via mobile anywhere, at any time.
The GCC region has a substantial
population of wealthy individuals with an Worldwide, the personal luxury goods market
appetite for luxury goods. experienced growth across all regions, driven
both by more robust local consumption (up
GROWTH E-commerce sales in Saudi Arabia are
expected to average $11.3 billion from
4%) and by strong tourist purchases (up 6%).
E-commerce accounts for just 2% total retail
OPPORTUNITIES 2017-2021, recording an average growth
rate of 13.7 percent during the period.
sales in the Middle East ($3 billion), but is
expected to reach $70B by 2025 with several
new entrants adding to the sophistication of
Online fashion market in Saudi Arabia is the market.
expected to increase at a CAGR of 20.2%
in next five years during 2018 and 2022 Only 34 percent of major GCC retailers
have an eCommerce channel, compared
Online shopping is popular among millennials with about 58 percent in the United States.
in the GCC, with 76% of UAE and 58% of The GCC eCommerce market could almost
Saudi Arabia millennials shopping online. They quadruple to reach $20 billion by 2020.
feel that online shopping empowers them,
In the GCC, eCommerce luxury market is
giving them a sense of exclusivity, and
expected to reach a total value of US$1.5
offering them access to aspirational products
billion within four years.
from prestigious brands.LUXSY 18 20
LUXSY 18 20
LUXSY
MARKET EVALUATION
All three areas of clothing, jewelry and
cosmetics are expected to show strong
growth going forward. The possibilities for
these areas lie in the high-end brands,
because the low-end market is primarily
fulfilled and dominated by products from
East Asia or local production.
Focus should in general be on unique,
02 JEWELRY diversified and customized products,
since Saudis in general can afford more
dear products. The way the Saudis show
03 COSMETICS their wealth is through buying products
that has been personalized or good
exclusive quality products.LUXSY
MIDDLE EAST COMPETITORS
LUXSY
Website luxsy.me ounass.com elmuda.com bysymphony.com gothelist.com themodist.com
Languages Multi-Language Multi-Language English Only Multi-Language English Only Multi-Language
Sections Men/Women Women Only Women Only Women Only Men/Women Women Only
Delivery to Saudi Within 24 Hours 2-6 Days Within 5 Days 2-3 Days 3-7 Days 1-2 Days
Attractive web style
Mobile App
Exclusive Items
Middle East Brands
Special Events &
Lifestyle LUXSY
INTERNATIONAL COMPETITORS
- Most of these competitors are
targeting the GCC lately, and some
of them made a partnerships in the Our top competitors:
region - Net-A-Porter
- Farfetch
- Fashion is one the biggest
- Ssense
winners in Saudi Arabia’s retail
- Lyst
boom, international e-commerce
- Luisa Via Roma
players are battling for a piece of
the Saudi fashion pie.LUXSY
TIMELINE
SUPER FRESH is born
We hit the market with a new style, targeting the new generation.
#1 in the country
L Super Fresh became #1 favorite urban clothing store for fashion lovers
Sorry we’re closed
The store was closed for reasons beyond our control, but it’s not the end.
LUXSY is the new era
We're back, better, different and more creative than ever!LUXSY
FINANCIAL USE OF
FUNDS
Purchasing Inventory 50%
$1M
Marketing & Business Development 25%
Operational Cost 15%
We are looking for
$1M seed funds to
start and realize this Equipments & Softwares 10%
project. PHASE ONELUXSY
POTENTIAL REVENUE
Revenue
$4,120,000M
Revenue
$2,920,000M
Revenue
$1,200,000M
2019 2020 2021LUXSY
OUR TEAM
Majed Alshehri Musaed Almasoud
Co-Founder Co-Founder
Sara bint Basmah AlSaud Jawaher Aldokheel Saud AlDossariLUXSY
MAJED PERSONAL INFO
ALSHEHRI WORK EXPERIENCE
ADDITIONAL EXPERIENCE
EDUCATION
SOCIAL
MOTTO
“LUXSY
MUSAED
ALMASOUD
PERSONAL INFO
EDUCATION
WORK EXPERIENCE
SOCIAL
MOTTO
“OUR
CONTACT
www.luxsy.me
info@luxsy.me
LUXSY
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