Table of Contents
Introduction
When SilkRoll was featured on Shark Tank, the company’s value was estimated at $8 million. Erin Wold and Janet Wu were hoping to receive a $250,000 investment for 3% of the business. However, they did not get a deal. The Sharks were not convinced that it was a good idea, and none of the sharks were willing to invest. This was a huge setback for Silk Road and its owners.
Idea
SilkRoll is a digital clothing exchange. It allows people to send in their unwanted, high-quality fashion items for points that they can use to shop for clothes on the site. Customers pay an annual membership fee to join, and they must pay a service fee of 7% for items they buy. Currently, the company has processed more than one million transactions. They earned more than $1 million in sales during the previous year.
Solution
SilkRoll is a great solution to the problem of unused, worn-out clothing. Approximately 75% of the clothes in a typical woman’s wardrobe only get worn once. In addition, a person’s wardrobe can cost thousands of dollars to maintain. By putting these items up for sale, SilkRoll helps reduce waste and saves users money. Additionally, they provide a way to sell unused clothing that is still in excellent condition. Those who want to sell their clothes can choose to drop them off at a local collection point or send them to SilkRoll, where they are valued.
Market
You are not alone if you have a lot of clothes in your closet that you rarely wear. SilkRoll’s founder, Janet Wu, hopes to alter this occurrence by bringing the fundamental principles of a sharing economy to the fashion industry. SilkRoll is an online peer-to-peer exchange that promotes eco-friendly shopping. Do you need to update your wardrobe? Turn in your unwanted clothes and accessories to earn points that can be used to “buy” items on SilkRoll’s platform.
Business model
In the Shark Tank episode, the owners of SilkRoll explained their business model to the Sharks. They said that they were creating a marketplace that would allow people to swap items without worrying about how much each piece of clothing was worth. For example, if you have a dress you haven’t worn in years, you can give it to SilkRoll, where it can be sold for points. You can also receive a prepaid trading kit if you wish to sell your clothing.
SilkRoll is also a great way to get a new wardrobe without spending a lot of money. Users can earn points on each item they purchase. Depending on the number of points they earn, they can then choose to purchase clothing from the site or go on a shopping spree. Some people even rave about their new purchases.
Quality
According to SilkRoll’s website, the average millennial wears an outfit three times. That means that there are over 900 billion unused clothing items in American closets. If those items were reused instead of thrown away, it would be a great solution for the environment.
SilkRoll is an innovative solution to the problem of unwanted, unused, and high-quality apparel. The company has received numerous 5-star reviews. Users can also shop for pre-owned fashion on the site and have their clothes delivered directly to their door. Besides offering high-quality clothing items, SilkRoll also accepts designer labels for send-ins.
Revenue
Since its appearance on Shark Tank, SilkRoll has generated more than $20 million in revenue. As of June 2019, the business had a net worth of more than $1 million.