184 ENTREPRENEURSHIP
apparel products (bibs, onesies, tees, blankets, burp cloths). If we succeed and grow in this mar-
ket, we will branch out into other customized baby items that our niche customers would appre-
ciate. Some of the critical success factors for delighting our customers and sustaining our prof-
itability will be:
- We will focus on delivering quality products that can be created by our customers via a user-
friendly, intuitive, and fun Web site. Customers will be able to hand-pick the materials and
content for their bibs and to preview their purchases before completing the sales. Customers
can also upload any image(s) that they want printed on the bib. - We will depend heavily on an aggressive marketing campaign (i.e., making sure the 4 Ps are
properly aligned) since we will have to attract our niche customers and prove the value of
our products and services immediately since there are little to no switching costs involved. - We will build a moat around our core business by forming strategic licensing arrangements
with schools of all levels, pro sports teams, record labels, and other businesses and institu-
tions to gain nonexclusive rights to popular designs, logos, phrases, etc.
The Market. There are already companies in this niche engaged in the online marketing of cus-
tomized children’s apparel. However, we have learned that these companies fall into one of two
categories. They are either:
1.Large players with in-house product lines that do not embrace customization but rather offer
only very limited customization options as a complementary service to their core products.
Example include Babies-R-Us, Gymboree, and Baby Gap.
2.Online boutique shops that offer more customization options but operate on a very small
scale, focusing on local providers that lack the capacity, the sophisticated online presence,
and/or the resources to emerge as national providers.The children’s apparel market in general is in the maturing stage. In addition to the niche players
mentioned earlier, Wal-mart, Target, Kohl’s, and other larger retailers aggressively market chil-
dren’s apparel. However, no major player has emerged from the custom bibs or custom baby
apparel competition, and nobody dominates the online marketing of such apparel. We are confi-
dent that this business venture would step into an industry (custom baby/children’s apparel) that
is in the transitional stage of its lifecycle. Shoppers in this niche have sophisticated preferences and
tastes along with high levels of disposable income, so there certainly is plenty of potential for
growth. Still, it is prudent to assume that this window of opportunity is probably closing and that
the industry will undergo a shakeout after which only a few players can emerge as victors.
The Technology. Babyyourway.com will purchase a DuPont Artistri digital printer that employs
new inkjet textile technology, making individual customization cost-effective as shown by the fol-
lowing chart. Resolution can be varied to extremely high levels (720dpi) and the printer can be
purchased for only $185,000. A single printer will have the capacity to handle projected demand
for the first three years and can to handle the demand for the first 5 years with the addition of a
second shift. This technology has been on the market for only two to three years, and prices have
dropped steadily. This makes Babyyourway.com’s entry timing nearly perfect. Unlike many of
our competitors, we don’t need to make the transition from older silk screen equipment, but we
are far enough down the product introduction curve to be poised to take advantage of a new
technology with most of the bugs worked out.