Expert case by

Benjamin

BCG Beginner Case: Fashion startup

Case information

Difficulty: Beginner

Interviewer-led

0 Ratings

Times solved: 300+

Growth strategy

Case Prompt:

Your client is a D2C (direct to customer) online fashion business in a developing country. It is a new brand, launched about 2 years ago and founded by ex-investment bankers. Their brand focuses on trendy, edgy design that is less main-stream (versus big brands like H&M, Uniqlo, Zara etc) for adult men. While they have been growing fast, they want to understand how they can further improve their sales.

Overview of All Exhibits

Practice makes the difference

Practicing alone helps – with a partner it’s even better. Solve this case in a realistic mock interview.

Sample Structure

Show sample structure Hide sample structure

Show additional information Hide additional information

Market Sizing

Please size the market for the client in their developing country

Show solution Hide solution

Data Exhibit

Please take a look at this data exhibit. What can you tell about the trends in sales and marketing spend?

Show additional information Hide additional information

Show solution Hide solution

Math

What would be the expected profit per store if they were to launch a new store?

Please use the following assumptions

Show additional information Hide additional information

Show solution Hide solution

Solve for Revenue

Annual T shirt revenue = 300 * 50 * 12 = 180,000

Annual Pants revenue = 250 * 35 * 12 = 105,000

Total revenue = 180,000 + 105,000 = 285,000

Solve for Costs

Manufacturing cost = 50% * 285,000 = USD 142,500

Rent = USD 35,000

Labour = 3 * 1,500 * 12 months = USD 54,000

Marketing = 5% * 285,000 = 14,250

Total cost = 142,500 + 35,000 + 54,000 + 14,250 = 245,750

Solve for Profit

Annual Profit = Revenue - Cost = 285,000 - 245,750 = 39,250

A good candidate will note that launching a new store seems to be a good idea because it is profitable, and in addition raise further discussion points such as additional costs that may not have been factored in (e.g. renovation and setup cost)

Note for Interviewer

Clarifying information, if the candidate requests for it

For now, calculate the profit based on only these assumptions (don't need to generate additional ones for the calculation)
Cost of Goods Sold: this is the cost client pays to the manufacturers who make their clothes
Sales is synonymous with revenue here

One common pitfall will be that candidates to forget to convert the numbers to the same basis i.e. all Annual or all Monthly

Brainstorming

Currently the client only focuses on casual wear, what are some new product ideas for the client?

Show solution Hide solution

Recommendation

You are meeting with the founders of the startup, please make a recommendation for them based on all the work you've done so far

Show solution Hide solution

Practice This Case With Peers Who Are Currently Looking for Interview Partners.

All Meeting Slots

Do you have questions on this case?

Ask our community and receive answers and tips directly from our experts.

Related Case Interview Basics Articles

GROW Model

Useful Business Analysis Tools

The GROW model, an acronym for Goal, Reality, Options, and Will, was developed in the late 1980s by Sir John Whitmore and his colleagues Graham Alexander and Alan Fine. It emerged from the realization that traditional training methods often failed to achieve sustainable performance improvements. Whitmore, a former racing driver and a pioneer in the field of executive coaching, played a significant role in popularizing the model and establishing it as a method for performance enhancement in the business world.

To the article

The Blue Ocean Strategy

Common Terms of Business

The Blue Ocean Strategy, developed by W. Chan Kim and Renée Mauborgne in their book Blue Ocean Strategy (2005), turns traditional business thinking upside down. It focuses on tapping into undiscovered markets – the "blue oceans" – where companies can operate alone and avoid competition. The result? More growth and higher profits.In contrast, the "red ocean" refers to the already overcrowded market space where competition is fierce, and companies are constantly striving to outdo each other. This often leads to declining profits and limited growth. 🌊The Blue Ocean Strategy represents a shift away from this destructive competition towards a more constructive and creative form of market development. It encourages companies to go beyond the industry's conventional boundaries and create new markets, making competition irrelevant.

To the article

Growth Strategy

Types of Cases

In case interviews, you are often tasked with developing strategies to increase a company's revenue. It's crucial to conduct a systematic analysis to provide well-founded and actionable recommendations.Below, we’ll break down the key factors you need to consider and show you how to structure your response in a clear, effective way. Our goal is to give you a practical guide to help you ace your case interviews and build strong growth strategies.

To the article

Practice makes the difference

Practicing alone helps – with a partner it’s even better. Solve this case in a realistic mock interview.

Do you have questions on this case?

Ask our community and receive answers and tips directly from our experts.

BCG Beginner Case: Fashion startup i

Case Prompt:

Sample Structure

Market Sizing

Data Exhibit

Math

Brainstorming

Recommendation

BCG Beginner Case: Fashion startup