Most women have a pricey gown sitting in the back of their closet, unlikely to be worn again, or a stylish handbag they purchased for a special occasion but do not use anymore. However, there are cases when the issue is far more serious.
Janet Wu has been employed as an investment banker since she graduated from college, traveling to numerous countries and developing a wardrobe appropriate for the demands of her position as a successful career lady in high finance.
As she approached her thirties, Wu realized she lacked passion for her profession despite her economic success.
She traveled extensively throughout South America and witnessed firsthand the negative effects of excessive consumption and a lack of environmental concern.
Wu strongly desires to contribute to sustainable and ecologically friendly economic systems.
When she returned to Hong Kong, she began networking with other environmentally conscious businesses and eventually settled in San Francisco.
Having grown up in a community where suits and gowns were the norms, she no longer needs a wardrobe of costly formal wear.”
Wu was now confronted with all women’s dilemmas when they had an unused luxury dress in the closet.
The Bay Area has plenty of consignment businesses, but the return on the items sold through these companies is quite low.
Wu became interested in and concerned about economic sustainability, environmental impacts, and her overabundance of clothing, leading her to explore the “life cycle” of clothing.
She discovered some depressing information. The EPA reported that Americans discarded 13.2 million tons of textiles in 2010, with only 15% being recycled, according to Cassandra Casillas of Opposing Views USA.
An American discards about 80 pounds of clothing per year on average. Their determination of Wu to make a significant difference in the face of major environmental concerns increased.
The “sharing economy” has been gaining traction as the globe slowly shifts from resource surplus to resource scarcity, Wu told Republic.com in a December 12 interview.
This led to her creating an online, high-end clothes swap that would reduce environmental waste and recompense buyers for their old clothes.
Wu met Erin Wold in 2015 during a 4th of July cookout and pitched their concept to her.
After living in San Francisco for almost three years, he founded a company that provided designated driving services.
Wold was particularly interested in this company because a drunk driver struck her father, and he was still suffering the consequences of his injuries.
They both emphasize the purpose of a business, and when they discussed a clothes exchange concept, they realized they might be the right partners.
The prediction proved to be true, and by September of that year, SilkRoll had established a Facebook presence and was generating interest.
SilkRoll had an issue that most new firms face: a lack of inventory to meet growing demand.
The Business with a Purpose Podcast on May 15, 2018, revealed Wu and Wold’s first approach to this problem.”
Recognizing that many consignment retailers have extra inventory, they sent an email campaign to around 1,000 consignment stores offering to remove unwanted things.
In adjacent Walnut Creek, a single store had nearly 3,000 articles in a garage! Today, SilkRoll works with approximately 40 consignment retailers.
SilkRoll makes selling and buying simple. A shipping bag is given to customers who register online and create an account.
The company evaluates and assigns points to clothing and handbags within a week of receipt.
SilkRoll originally allowed points to be awarded solely based on retail value. However, it later added an assessment based on market demand, allowing high-demand items to earn double or triple points.
SilkRoll clothing and accessories can then be purchased using the points. Customers can either pay a 7% fee for transactions or subscribe to a monthly service that waives that fee. They can also purchase points if necessary.
SilkRoll concentrates on women’s clothing for the time being but may include men’s and children’s clothing and accessories, as well as sports gear and other items.
SilkRoll works with non-profits to recycle or upcycle products that cannot be resold on their website in harmony with their mission to extend the life of fashion.
What Is SilkRoll?
SilkRoll is a unique concept of garment and handbag swaps or trades, designed for those with an overflowing closet full of things that may no longer fit. It may be a formerly worn item that hasn’t been worn in years.
The SilkRoll program allows you to send clothes from high-end designer brands (free delivery is available) for Q points.
You can even have them valued if you want to determine how many Q points you will earn before submitting them online.
SilkRoll offers virtual currency called Q points, which can shop online for new clothing and accessories.
Moreover, you can exchange items directly with like-minded individuals via the store.
|Entrepreneur||Janet Wu And Erin Wold-Fettner|
|Product||A marketplace for clothing exchanges online|
|Investment Asking For||$250,000 For 3% equity in SilkRoll|
|Final Deal||No Deal|
|Episode||Season 10, Episode 17|
|Business Status||In Business|
Who Is The Founder Of SilkRoll?
Janet Wu and Erin Wold founded SilkRoll as co-founders and business partners.
Janet is a California mother who worked as an investment banker in the Middle East and the United Kingdom.
Erin was the founder and CEO of successful operations and logistics start-ups, assisting them in achieving tremendous growth over four years.
SilkRoll began to shape Janet’s thinking when she transitioned from one stage of her life or work to the next.
These constant changes required her clothing to be updated – often from scratch since designer wardrobes can cost thousands of dollars to maintain.
Therefore, she began to wonder if designer apparel could not be packaged as commodities assets with a trade-in value similar to a vehicle and could be used as credit toward another purchase.
This procedure would also be advantageous for the environment, resulting in fewer garments ending up in landfills.
Therefore, she launched a crowdsourcing campaign in 2018 to raise over $100,000 to launch her company.
To achieve profitability, the concept requires individuals to register online and pay an annual membership fee or a 7% transaction fee.
SilkRoll’s website generated over $1 million in sales within the past year. As a result, they began seeking investors to assist in scaling the business.
SilkRoll Before Shark Tank
SilkRoll, a digital clothing exchange network for women, is introduced in episode 1014 of Shark Tank by Janet Wu and Erin Wold.
There are many occasions when you do not want to wear an outfit again after you’ve worn it.
What happens to the cute little dress you bought and only used once? It can stand in your closet for days or even months without you wearing it.
It is a waste of time to throw away clothing that you love. We’ve found a solution to that problem with Silkroll.
Now, you can send in clothes to get a free shipping container to exchange for items that are similar in value.
The fashion trading platform Silkroll allows users to trade in secondhand clothing to earn rewards. The rewards are based on the actual cost of the purchased clothing.
You can then start trading with other people and buy clothes that are in good condition.
It is like killing two birds with one stone because you get to trade in some of your clothes and get points from the company to purchase clothing you like.
SilkRoll allows people to easily trade in their clothing and get the clothes they want delivered to their door.
SilkRoll is great for people who want to get rid of old clothes and purchase something nice for their new wardrobe.
SilkRoll gives consumers a unique way to exchange clothing worn a few times and then receive a reward based on how many points the item costs.
This means that SilkRoll is unique because other clothing exchange sites do not allow consumers to earn points by trading with other community members.
SilkRoll lets you create an infinite closet by trading old clothes for points. Points are calculated based on the cost of the original purchase. They can be used to purchase new clothes.
The average millennial only wears an outfit three times, so they developed a company that allows users to trade in gently used clothing for a comparable amount of points based on the cost of the item itself.
After the items are processed, users can shop for high-quality clothing items from the site.
Those points earned are used to purchase items similar in value. Anyone who wants to sell their clothes online can register and receive a prepaid trading kit that they can use to exchange clothes for other goods.
It is simple to fill the kit with clothing you rarely wear and then drop it in the mail.
After receiving it and being processed, it earns the consumer points and allows the person to browse the site and compete with other Silkroll users.
It allows people to trade in their clothes and deliver items directly to their door. This way, they can receive new clothes delivered to their door.
The women launched SilkRoll in early 2018 after raising $104,773 through the crowdfunding platform Republic.
The two initially met at a friend’s barbecue and debated the futility of high fashion purchases. That barbecue also netted them a photographer and a web designer.
In essence, they’re developing digital money for apparel exchange. Their points (referred to as Q’s) have a monetary worth.
SilkRoll members pay an annual membership fee – this is advised if you frequently use the service.
Non-members may shop, but they will be charged an additional 7% service fee on top of their purchase price.
SilkRoll has processed more than $1 million in transactions to date. It is probably a Shark that will add a few zeros to that figure.
How Was The Shark Tank Pitch Of SilkRoll?
Janet and Erin appeared on Shark Tank requesting an investment of $250,000 in exchange for a 3% stake in SilkRoll.
Barbara wanted to know how they dealt with customers who told them they should pay more for the clothes they sent.
Erin explained that they had a database that helped them determine the price of clothing that customers would pay for them.
Erin said that they have a database that allows them to evaluate any clothes sent to them. They also look at the clothes’ condition and the brands sent to them.
Erin said they first looked at the clothes to see if they were of good quality. They also considered the brands, the condition of the clothes, and the style of those clothes.
Erin stated that they are analyzing databases to see how many people buy clothes from them.
Then they will look at what clothes people have sent to them. As time goes on, the databases will become more dynamic.
Mark Cuban asked if they had completed a transaction complex by charging a fee to customers who wanted to buy or sell clothes.
Erin told him that a fee would be charged to customers whenever someone made a transaction on their website.
Erin then gave an example of how they would determine the price someone will pay for a dress based on its brand and quality.
Kevin wanted to know what happened to the clothes that were sent to him but damaged.
Erin stated that they do not charge customers for the clothes that they send but that customers are aware of it.
Erin stated that if high-end clothing were damaged, they would list it on their website, but they would say it was damaged.
Barbara wanted to know what they were going through regarding receiving defective or damaged clothing.
Erin stated that the company looked at the clothing and determined how much they should charge people to send clothes that could be repaired or replaced.
Erin said they did not keep all the clothes they received but instead gave them to charity.
Kevin was curious whether he would still receive points if he did not keep the clothes they received.
Erin stated that customers do not earn any points if the clothes that they send are not in perfect condition or if they send are damaged.
Once Kevin complained about the punishment that they were handed. Herjavec asked Erin and Kevin how they were earning money from their site. Erin said she was confused about how they made money from their website.
Herjavec gave a detailed example where he sent clothes to them, and Kevin bought them from them. How would the women earn their money from a garment sale?
Erin said that every time they do a transaction, 5% of the money paid to the seller would go into that transaction, whether the person bought or sold clothes.
Kevin asked if customers knew this before doing business on their website.
Kevin wanted to know whether they earned 5% of their profits on each transaction, and Janet told him it was $10.
Erin mentioned that they made 5% apiece on every order. Herjavec said that was insane. Herjavec then asked them again how they were making money.
Janet said they only sell points because people cannot buy or sell items with points. Janet gave them the prices people paid for the points they bought.
Janet explained to Kevin that they were special and that because of their business model, they could get a very high price for each item.
Janet said after only one year, SilkRoll had made over $35,000. She said it was very disappointing, and they were very disappointed with the amount they received.
Janet claimed that they were building a marketplace that would be highly competitive and able to create a massive network effect. Mark Cuban stated that there was no such thing.
Mark Cuban stated that there was no network effect. Barbara said she was not a good income source because her commission was excessive. She also believed they did not have a good name.
Mark Cuban was the next person to leave SilkRoll. He mentioned that they were doing a very complicated business.
Mark Cuban said they were expelled because they made a very simple concept that seemed complicated.
Robert Herjavec said that he did not understand what they were saying and would have appreciated them being honest and saying they weren’t quite there yet, but they were working on it.
Mark Cuban stated that he couldn’t understand what they were saying and was leaving because he didn’t understand them.
Kevin O’Leary said they had made a rookie mistake in overvaluing their company. He then promptly left the room. Kevin O’Leary promptly left.
Lori left because she thought the amount offered was too low for any of them to be happy with.
Erin and Janet blamed their failure to get an offer from a high-profile investor on their failure to communicate effectively.
They were fine. They would do it all by themselves, hoping that America would accept the offer.
Final Deal: No deal between Sharks and Silk Road.
What Happened To SilkRoll After Shark Tank?
A rebroadcast of the show was first broadcast on ABC in June 2019. SilkRoll is still in business and is doing well.
An episode of Shark Tank from June 2021 showed that SilkRoll was still in business and had $1 million in revenue per year.
SilkRoll Shark Tank Update
Although Janet and Erin did not end up with any deal with Sharks, the firm had worked diligently to expand.
The valuation of SilkRoll was $8.3 million before and after the presentation. After its appearance on Shark Tank, SilkRoll has performed admirably, generating over $20 million in revenue.
Is SilkRoll Still In Business?
Yes, SilkRoll is still in business as of 2022, with over $20 million of lifetime sales.
What Is the Net Worth of SilkRoll?
The valuation of SilkRoll was $8.3 million when it appeared on Shark Tank. The net worth of SilkRoll is above $1 million as of 2023.