Photo - FixMix
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FixMix

The digital remote solution for repairing personal items

Poland, Mazovia
Market: Another
Stage of the project: Operating business

Date of last change: 19.04.2021
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Idea

FixMix empowers busy people to live more sustainably and saves them time and hassle by providing online orders of repair services - a courier then collects broken items (shoes, bags, clothes), takes them to a trusted craftsperson and returns the items a few days later - fixed! and ready for a second life.

Current Status

We have first customers - from B2B and B2C models.

We launched the first digital pilot in Warsaw in July 2020 relying on third party SaaS booking software. In October 2020 we switched to another SaaS platform widening range of offering and logistics options giving the ability to order repairs nationwide (with 2 logistics partners). Since then we were gathering customer feedback while commercially operating on the market which resulted in another IT upgrade to the online platform consisting of the following functionalities and integrations: full e-commerce solution, payment gateway, back office systems (stock and logistics management), orders tracking etc. dedicated to our business model.
We are at TRL 7 stage. We operate on the open market and provide services to end users in the commercial model. We constantly gather customer feedback to create our final solution and launch it at the end of 2021.

Market

Our end customers are tech savvy and ecologically minded individuals in the 30-50 years old age group, living in cities. We are helping them to find a trusted craftsperson/s to repair their personal items and then saving them time and effort by providing courier services to take the item(s) to and from the craftsperson. We are helping them to make a repair and give (an) item(s) a second life, hence save money on purchasing new items, and also giving them a solution to make a sustainable lifestyle choice.
With current solutions - finding a craftsperson independently and taking the item to them - much time is wasted (approx. 1hr both ways) and the customer experience is low (inconvenient opening times and locations, poor CS). Similar digital solutions from competitors such as WoshWosh offer a limited range of services (only shoes), whereas the FixMarket will offer a wide range of services - all items that can be transported from the home to the craftsperson.
Our customers are also the craftspeople themselves, who are currently experiencing digital exclusion. By being part of the FixMix service, they increase the revenue streams by 20% and gain digital brand visibility. We are helping a traditional city service (personal item repairs) become smarter and digital - both for the end customer and the craftspeople, whilst also reducing the carbon footprint caused by production and transportation of new items.

Problem or Opportunity

We are solving the problem of time needed and hassle incurred, when dealing with repairing broken personal items. We are also empowering customers to practice a sustainable lifestyle (repair rather than replace mentality).
We estimate the EU + UK repair market to be worth almost EUR 32 billion annually and in Poland alone EUR 1.1 billion. Our independent research shows that 83% of people would like to repair personal items, but most do not do so due to the current unfriendly market offer and their busy lifestyle.
Currently, people put fixing personal items to the end of their “To Do” list, replace items rather than fixing them, or else take time (usually out of working hours, when craftsmen function) to get items fixed and collect them (approx 1 - 2hrs spent). The last decades have shown a significant increase in personal items being replaced rather than repaired, however there is a growing social trend to revert this. We see that the fashion industry is changing and set to focus on sustainability in the coming decade (using high quality materials, paying fair wages) and this will subsequently increase the cost of items - in turn people will be incentivised to repair.

Solution (product or service)

We are building two business models to solve the problem above: B2B(2C) and B2C. Under the B2B(2C) model, corporations and co-working spaces purchase repair services as an Employee Benefit - once a week our couriers collect broken items from the office and bring them back - fixed - the following week. The benefits are employees improving productivity by not spending time on independently engaging in the process, a “feel good” feeling towards their employer for providing such a benefit and the company demonstrating their support of a sustainable lifestyle/promoting CSR.
In the B2C model, the consumer orders the collection and repair service via a mobile app - benefits are saving time, convenience (since pick up is from a chosen address and time) and again - living a sustainable lifestyle.
There are some companies offering similar services (WoshWosh, WielkiShoe, AskHenry, etc), however we are first to market in providing the end customer with a full digital experience in the repair field.

Competitors

The main competitors in Poland are concierge services (however they do not have expertise in the repair market) and various companies who specialise in shoe renovation (WoshWosh, Wielki Shoe), however they specialise in a narrow repair field and don't offer the full digital experience powered with: mobile apps and payments, predictive analytics, items classification, flaw detection etc.

Advantages or differentiators

We will initially introduce our solution on the Polish market - this is a large market in Europe, with a population of 38mln and 4,75mln people in our addressable audience (employed people earning over Polish median). There is also a growing trend towards zero waste lifestyle. Whilst consumerism and buying new products rather than repairing has been a growing trend in Poland in the last decades, the culture of using craftspeople has remained from communist times and is again growing in popularity. Poland is our “home” market and also a good starting point from a size and potential and mentality perspective. We plan next to scale across Europe, using a similar model to Booksy - the IT hub will remain in Poland, whereas local community managers will assist scaling in new countries.

Finance

Our customers are corporations and co-working spaces (B2B2C), under both business models the end customer segment is firstly mid-senior level office employees. Under the B2C model, there are a number of additional core segments: young families, mobility impaired, family heads, self-employed.
We are a part of the apparel/fashion industry industry. Our ultimate goal is to be present on the market of the whole EU+UK area (starting from Poland and UK). Our research shows that the repair market currently is 10% of the Clothing & Footwear market (and this is likely to increase post Covid-19 pandemic).
TAM top down:
We are a part of the clothing and footwear industry. Our ultimate goal is to be present on the market of the whole EU+UK area (starting from Poland and UK). Our research shows that the repair market currently is 10% of the Clothing & Footwear market (and this is likely to increase post Covid-19 pandemic).
EU (28 countries incl. UK, as per 2018) = 10% x ( clothing + footwear) = 10% * €406.5bn = €40.6bn
Poland (1 phase) = 10% * €15.2bn = €1.5bn
TAM bottom up:
To present a bottom up calculation we have researched info on the working age population in the EU+UK & Polish markets and combined it with the percentage of people connected to the internet, value of a single service as well as the frequency of repairs.
TAM bottom up = working age population (UK+EU) x (value of the service) x (4 times a year) x (% of people connected to the internet)
332€284*85%=€31.6bn
TAM bottom up = working age population (Poland) x (value of the service) x (4 times a year) x (% of people connected to the internet)
23€154*84%=€1.1bn
As a next step we have identified our beachhead market which is Warsaw, Poland. As we are developing a platform solution we have estimated both sides of the market, demand and supply. On the supply side we have taken into account only basic services provided by our partners in main categories (cobblers, leather crafts, watches). Based on our research and cooperation to date with our partners, average basic repair fee is estimated on the level of PLN 45.

All of the algorithms applications we plan to offer as a component to include in the processes of our business partners, namely:
E-commerce websites and retail partners
Brands (fashion and footwear producers)
Marketing departments and agencies

Business model

We make money in the following ways:
Employee benefit subscriptions (B2B2C)
Pay-per-repair employee service
Transactions with B2C customers
Sale of data and AI/ML methods to e-commerce businesses, fashion brands and marketing departments/agencies.
Pricing strategy:
B2B2C model - we estimate the average number of repairs per employee, calculate the costs of the repair, item batch courier services and add a 20% margin on top. We will also offer a pay-per-repair model.
B2C model - a single service cost is calculated and a 30% margin added on top of the service cost
AI/ML solutions - we provide a self learning and self improving solution in the SaaS model with dedicated pricing for business partners (for now)

Money will be spent on

Scaling the business and improving the IT solutions - we will discuss in more detail at the meeting - we have very detailed business plans.

Offer for investor

We will discuss at the meeting.

Team or Management

Risks

The following risks have also been identified with the mentioned mitigation measures, at least risk reduction measures:

Logistics: damage or loss during transportation - we will purchase micro insurance for the periods of time when items are idle/the insurance of the couriers/craftsmen does not cover damages/loss.

Repair quality and completion times: we will cooperate only with craftspeople who as standard offer a returns or reimbursement policy in such circumstances. End customers will have the possibility to rate craftspeople and those with consistently low ratings will be excluded from the FixMarket platform.

Building trust: we will openly share reviews and testimonials of end clients and actively market best practice amongst cooperating craftspeople.
IT security: we will implement best practices to mitigate against attacks from hackers/bots/fraudsters - limited platform access, external fraud prevention software solutions and/or use services such as CloudFlare.

Incubation/Acceleration programs accomplishment

Huge Thing x Google for Startups - pre-acceleration
Wschodni Akcelerator Biznesu - Incubation

Won the competition and other awards

Winner of Krakow Technology Park pitching competition

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video