About Club Melon
Feasibility
Our pattern maker is currently working on our second prototype after a very successful first (which you will see at the pitch). An experienced custom bra maker and manufacturer, she is confident our design is feasible. We have had preliminary conversations with multiple Melbourne-based manufacturers all with positive results. We plan to show manufacturers our next prototype next month to firm up production quotes and estimates.
Business Model
We plan to fund our first manufacturing run using a crowdfunding campaign. Then, Club Melon will earn revenue from sales direct to consumer through a Shopify store. Our first product is a radically adjustable sports bra. We anticipate each customer will purchase between 1and 2 bras per year with our CAC estimated at approximately $15 (cost per click $1, conversion rate 6.65%). Still in the prototyping phase, we are currently building out the cost of goods sold and margins. Our closest competitor SheFit has a margin of about 70% while the industry average is about 50%. We will be manufacturing in Australia and applying for ethical accreditation so we estimate our margins will be higher, to begin with until we are producing at scale. While Club Melon will be sold D2C, we plan to build the possibility for wholesale into our margins. Another point to consider is the low level of price sensitivity in our market as this is a latent market. Less than 1% of our 600 survey respondents said the price was a concern when purchasing a sports bra as 88% of respondents cannot currently purchase a sports bra that meets their needs. We also A/B tested price points of $109 and $199 in a Fake Door Test with the higher price winning. We plan to expand to other activewear products as soon as possible with plans to begin designing leggings and tops as soon as September.
PFC Pitch
Pitch Deck
