Venture Concept 1

Opportunity

               I believe that the jersey and sports apparel industry has been severely under-served since its inception. There are many existing problems with the current market: The professional leagues have their own websites that are the most popular shopping outlet for apparel. Unfortunately, the leagues recognize this and have set ludicrous prices on their gear, taking every last penny from loyal consumers.

               The second problem that many people run in to is the difficulty of selecting a jersey. The most common issues here are:

1.       Which player and team do I want to commit hundreds of dollars toward supporting?

2.       How do I know this player will still be on the team in the future? Is this a sound investment?

If your favorite player gets traded, retires, or gets injured the week after you bought his jersey, you are going to be pretty disappointed. Currently, distributors and manufacturers have offered no solution for this problem.

               My solution would cater to every class and group of people, but it would mainly target kids, teens, and young adults who are unable to afford jerseys that cost hundreds of dollars. This market is unmet around the world, but my proposal would begin focusing on North America, where gambling, fantasy sports, and general fandom is most popular. The consumers in my targeted market are unable to satisfy their needs without significant financial support, therefore they are also disloyal to the current outlets. This opportunity is potentially worth hundreds of millions of dollars, if not more. Unfortunately, the window of opportunity will be closing in the near future, as jersey-rental companies are beginning to grow. 

Innovation

               My proposed solution for this opportunity is a jersey-rental company called JerseyPro. Instead of purchasing jerseys outright for hundreds of dollars, allow members to subscribe to a monthly payment plan, at more affordable prices. I would estimate the base-package at around $10 to $15 per month. This price is comparable, if not cheaper than the $150 jerseys that the NFL sells.

               This idea would prioritize convenience and customer satisfaction. The factor that separates my idea from existing competition is allowing members to exchange jerseys whenever they want. The base subscription would give members two jerseys, to keep as long as they want. With quick, two-day shipping, we will get our gear in the hands of our members as quickly as possible. Members can send back their jerseys whenever they want in exchange for two new jerseys.  

Venture Concept

               This concept has no major risks for customers. We have eliminated the risk of investing in a player that changes teams or retires, rendering the jersey useless. We have eliminated the full-time risk of paying an arm and a leg for a jersey directly from the professional leagues. Another added factor is the customers who want to constantly have the most recent jerseys of new players, including rookies and superstars. Jerseys are a common fashion statement and are popular at parties and other social gatherings. This proposal would perfectly cater to those who need a jersey as quickly as possible and under budget.

               This business is defined by the price points, distribution, and the customer experience. Getting our jerseys in to the hands of the members is our most important responsibility, while maintaining a lower price than the greedy leagues can offer. This business would grow rapidly and would need at least 200 employees to effectively serve North America. Roles include Marketing, Sales, Customer Support, Inventory and Distribution.  

Three Minor Elements

1.       Our advantage over the competition is our knowledge of our consumers. This idea came to me as I was shopping for a jersey for myself, and was unsatisfied by the existing mode of shopping. I hated spending $150 for one jersey, only to see the player traded the next month. I was then stuck with a jersey that had little to no value. I wanted to be able to have access to any jersey I wanted, at all times. We have access to an essentially unlimited focus group, myself and my peers. Everyone I have talked to has voiced the same concerns and frustrations that I have. The professional leagues are only concerned with turning a profit and have not stopped to listen to their customers.

2.       The next step for this venture would be to acquire capital in order to begin building an inventory of jerseys. This will take a lot of pitching and intensive labor. Gathering finances to afford hundreds of thousands of jerseys will be difficult, and then storing and distributing jerseys on top of that will be a challenge in itself.

3.       In five years, I would want this venture to have direct partnerships with the professional leagues. As we will have hopefully dominated their sales with our streamlined service, partnering ourselves with the leagues will lower our inventory costs on jerseys, and multiply our distributing power exponentially. As an entrepreneur, I do not want to be invested in multiple ventures at once. I would much rather see one thing through until the end.  I truly think this venture has the potential to be big.