Outlines: A Sustainable Shower Curtain Startup

Sep 25, 2024

Lecture Notes: The Pitch for Outlines

Overview

  • Presenter: Josh Muccio
  • Focus: Outlines, a D2C startup focused on recyclable shower curtains
  • Founder: Luke Barkley-Young
  • Key Themes: Circularity, Subscription, Sustainability

Company Introduction

  • Outlines' Mission: Pioneering a circular subscription model taking responsibility for recycling products.
  • Product: Recyclable shower curtain with a subscription model.
  • Problem Addressed: Low recycling rates of flexible plastics in the US.
  • Value Proposition: Frictionless process with prepaid mailers for product returns and recycling.

Business Model

  • Product Offering: Shower curtains with an organic cotton top and a replaceable bottom.
  • Price Point: Initial set costs $55; replenishment costs $25.
  • Market Strategy: Target products that are needed but not loved, such as shower liners and dish scrubbers.
  • Recycling: Current cost is $1 per item, with potential future revenues from recycling.

Traction and Growth

  • Sales: Over 5,000 units sold since launch in January of the previous year.
  • Subscription Rate: 75% of users opt for recurring deliveries, five times the industry standard.
  • Customer Base: 3,500 subscribers.
  • Recycling Participation: 88% responsible replenishment rate.

Market Challenges

  • Pricing: High price point challenges mainstream adoption.
  • Market Perception: Concerns about reinforcing bad habits by not offering cloth alternatives.
  • Direct-To-Consumer Environment: Navigating a less favorable environment for D2C businesses.

Investor Feedback

  • Positive: Strong mission and potential niche market appeal.
  • Concerns: High price point limits the customer base; unclear path to becoming a large business.
  • Suggestions: Consider focusing on logistics for replenishment or simplifying the business model.

Investment Outcomes

  • Investment Secured: $50,000 from Bec Bamberger.
  • Investor Strategy: Leverage PR to drive consumer awareness and change.

Future Considerations

  • Business Scope: Evaluate whether to focus on being a product company or a logistics/recycling service.
  • Partnerships: Potential for collaboration with large retailers to handle product recycling.

Conclusion

  • Final Thoughts: Outlines' approach to sustainability appeals to a niche market, but scaling will require overcoming price barriers and expanding market reach.