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First a little Quiz…What is a Jibbitz ?

First a little Quiz…What is a Jibbitz ?. a. a homemaker's craft project. b. shorthand for " flibbertijibbit ". c. a decoration for Crocs. d. a multimillion dollar industry. Shoe Skins. Customer-Driven Feasibility Study Bristol, Cuozzo, Holz, Lyman, Patibandla, Sexton.

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First a little Quiz…What is a Jibbitz ?

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  1. First a little Quiz…What is a Jibbitz? a. a homemaker's craft project b. shorthand for "flibbertijibbit" c. a decoration for Crocs d. a multimillion dollar industry

  2. Shoe Skins Customer-Driven Feasibility Study Bristol, Cuozzo, Holz, Lyman, Patibandla, Sexton

  3. Executive Summary: Shoe Skins • Research Performed and Customer Pain. • Shoe Skin System, Benefits, Target Market • Macro-Market analysis • Macro-Industry analysis • Key Lessons and Conclusion Shoe Skins is a unique system that makes footwear fun by allowing children to easily change the look of their shoes any time they want.

  4. Research Data Child and parent interviews Parent Survey • “I like clothes and styles that nobody else has. “ Phoebe (Age 7) • 90% of parents said kids influence their shoe buying decision. • “At school, you don’t like to be the same. You want to stand out.” Vika (age 11) • 95% of parents said they buy kids shoes because kids outgrow the old ones. • “Being different makes me feel good.” • Colin (age 8) • Sneakers are the most popular shoes.

  5. Customer Pain Kids: More choices and styles with their shoes. Parents: Having to buy multiple shoes for kids.

  6. Benefits of the Shoe Skin Solution Benefits High “cool” factor with something new and innovative Offers individuality and self-expression The Shoe Skin System Variety of colors and styles Green: less shoes, recyclable skins Online social network Ability to share, collect, and trade skins Fun online games and activities Cost effective – less need for other shoe purchases.

  7. Related Offerings and Expansion Possibilities Color, and pattern options truly endless. Unique designs, match with outfit Fitness tracking: GPS, Pedometer Limited Editions from artists Licensing potential Accessories (matching Laces, pin) Add-ons such as noises, LEDs

  8. SECONDARY SOURCES Pricing of existing novelty shoe offerings: Customizable Converse sneakers: $58 - $95 Heelys: $43 - $80 Crocs: $20 - $40; Jibbitz (clip-on decorations) $3 - $6 Sneakart stickers: $12-$14 PRIMARY SOURCES All parents interviewed would pay $30 for the shoe skin system. 40 parents surveyed on typical price paid for a pair of children's shoes: < $25 35.9% $25-$35 43.6% $35-$50 17.9% > $50 2.6% Potential Pricing This data supports a price of about $30 for the Shoe Skins system.

  9. Target Market • Benchmark shoe accessories • Jibbitz ** • Feb 06 sales: $212K • Aug 06 $2.2M • Target Market: 5-12 YO • Est. 36M age 5-12 in 2008 * • 68% of the total $6.2B children’s footwear market • $4.2B in 2009 for this age • Benchmarks: • Heely’s: $186M US sales in 06’ • Croc’s: $366M US sales in 08’ • * US Census • ** Oct 06 sold to Crocs for $20M

  10. Macro Market Size • Children’s Accessories • Market Size in Value Sales: $2.6 Billion* • Difficult to estimate kids’ shoe accessory segment • Competing with all types of accessories • Growing at roughly 3% per year Children’s Footwear Market Size in Value Sales: $6.2 Billion* • Expected to grow at 1.9% during year 2006-11 • Children’s market represents 13% of overall US footwear market • Both Children’s and Women’s footwear market is expected to grow at a faster rate compared to Men’s market *2009, Euromonitor International *2006, Euromonitor International

  11. Macro Trend Analysis Summary

  12. Macro Market Summary Overall Assessment: ModeratelyFavorable • Footwear is a necessity • Must be replaced often • Large customer base • Slow but steady growth • Opportunity for focused online marketing • Favorable social trends towards re-usable products

  13. Industry Attractiveness SUPPLIERS Low NEW ENTRANTS Moderate SUBSTITUTES High BARRIERS TO ENTRY Moderate RIVALS High BUYERS Large Chains: High Small Retailers: Moderate Online: Low ?

  14. Industry Trends Summary Assessment: Low Attractiveness • Consolidation among wholesalers and retailers • Discount stores surpassing specialty footwear outlets • Retailers beginning to bypass wholesalers • Implications Innovative products can find success (e.g., Crocs, Heelys) • Must be even more thoughtful about strategy • Design strategy (IP) • Channel strategy

  15. Conclusion In summary… • Kids want variety; parents want value • Appetite for customization • Market is moderately attractive • Industry is unattractive • Will continue to research micro market to strengthen our value proposition • Business model development will be crucial to overcome industry unattractiveness

  16. Appendix

  17. Who are the customers? Who is seeking the benefit? • Parents • Want durable shoes that are comfortable for the kids • Want their kids to be happy • Save money on multiple shoe purchases • Boys and Girls • Ages 5-12 yrs • Friends important • Very active (sports, dance, etc.) Who else would buy? • Companies • Access to a large target market to extend their brands. • Grandparents/Aunts/Uncle • Want their kids to have something to remember them by and like them. • Want their kids to have best, latest things.

  18. Benefits over other solutions CROC Jibbets Custom Converse SNEAKART • Cool styles, make your own styles. • Use with any shoe. • Strong word-of-mouth. • Loyal customer base • Established brand. PROS • Break easy • Warm weather only, limited activities • Hard to Adhere • Fall off easy • Difficult online setup • Limited to colors. CONS • Many styles, accessories • Share and swap. • Online social network • Many activities • Any season, any weather. • Easy to attach, remove • Durable SS BEN

  19. Current Challenges • Do we want to take on the full shoe manufacturing? Should we just stick with skins for any shoe? • Will it stay on with excessive activity?

  20. Shoe Skins Shoe Skins is a unique system that makes footwear fun by allowing children to easily change the look of the their shoes any time they want. The Shoe Skin System Web site mock-up

  21. The System • The Shoe Skins system comprises a base model casual shoe (or line of shoes) plus a removable “skin,” such as those available for laptops and cell phones. • The skin will affix to a special surface on the shoe. • Shoe Skins will be sold separately in many different colors and patterns and contain robust potential for licensing opportunities.

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