FashionTap – Fashion App for Influencers
NO DEAL
EPISODE SUMMARY
🕓 Air Date: April 29, 2016
Asking For:
$100,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
FashionTap is a fashion, social-networking app that allows bloggers, brands, and influencers to tag and share their fashion items, enabling users to directly purchase those items online. Users, especially bloggers, earn commissions on sales generated through the app.
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Background Story
FashionTap’s CEO and founder, Amy Roiland, resides in Los Angeles, California, and brings a wealth of experience as a fashion blogger. Her passion for fashion and desire to bridge the gap in the fashion networking space led her to create FashionTap. Recognizing the limitations of existing platforms like Instagram, which lacked the ability to directly tag and purchase items showcased by influencers, Amy conceptualized FashionTap to cater specifically to the fashion community. Her vision was to create a platform that not only served as a hub for fashion inspiration but also facilitated seamless transactions between users and retailers.
The Product
FashionTap operates as a fashion-focused social networking app where users, predominantly bloggers, brands, and influencers, can showcase their outfits, makeup, and accessories. Users generate content by uploading photos and tagging individual items they are wearing, from eyeshadow to shoes. Upon seeing an item of interest, followers can tap the tag, which redirects them to the online store where the item is available for purchase.
Through this process, influencers earn commissions on each sale, providing them with an incentive to tag their attire. The app streamlines the shopping experience by eliminating the need for followers to inquire about product details, enhancing user engagement, and driving sales for brands and retailers.
FashionTap’s appeal lies in its ability to capitalize on the burgeoning influence of fashion bloggers and online influencers, who have become pivotal in shaping consumer preferences and purchasing decisions. By facilitating direct transactions within the app, FashionTap not only benefits influencers by monetizing their content but also provides a lucrative platform for brands to engage with their target audience in an authentic manner.
FashionTap aims to revolutionize the way fashion is marketed and consumed by leveraging the power of social media and e-commerce integration. With a user-friendly interface and a focus on incentivizing content creation, FashionTap endeavors to carve out a niche in the competitive landscape of social networking platforms.
How It Went
The company’s position before Shark Tank
FashionTap had achieved 6,000 downloads within its first six months of launch, with approximately 1,500 monthly active users. The company’s growth primarily relied on organic marketing through Amy’s channels as a fashion blogger, without any paid advertising. Revenue streams included e-commerce partnerships, sponsorships, and affiliate links. FashionTap generated $60,000 in sales within the first six months, with plans to reinvest profits into incentivizing users and further marketing efforts. The company’s current structure included Amy Roiland as CEO and founder, owning 33% of the company, alongside a chairman who owned 38%.
Other stakeholders included the COO (5%), CTO (23%), and a developer (1%). FashionTap’s financial stability depended on personal savings and the chairman’s investment of $90,000 to develop the app. Despite initial success, FashionTap faced challenges in scaling its user base and monetizing its business model effectively. Negotiations with big-box retailers for e-commerce integration posed difficulties, requiring significant investment in business development efforts. The company’s profitability hinged on achieving a substantial user base and securing lucrative partnerships with brands and retailers.
The Negotiations:
Despite Amy’s compelling pitch, the sharks expressed concerns regarding FashionTap’s ability to compete with established platforms like Instagram and execute its ambitious business plan. While Amy’s enthusiasm and vision resonated with some sharks, they questioned the feasibility of her revenue model and the challenges associated with scaling the platform. Barbara was the only shark to extend an offer, citing similarities between FashionTap and a previously successful investment.
However, her offer of $100,000 for 25% equity was declined by Amy, who remained firm on her initial terms of $100,000 for 10%. This lack of flexibility and refusal to negotiate ultimately led to all sharks backing out. Despite leaving the tank without a deal, Amy remained resolute in her belief in FashionTap’s potential. She acknowledged the challenges ahead but expressed determination to continue pursuing her vision for the app.
