Smart Closet

Faculty of Economics and Business Zagreb, April 2021

Seminar paper: SMART CLOSET

Student: Dora Svekrić Course: E-business Mentor: Božidar Jaković, PhD

Content: 1.

INTRODUCTION...............................................................................................................1

1.

Essay Scope and Purpose....................................................................................................1

1.1. Data Sources and Collection Methods.................................................................................1 1.2. Essay Content and Structure................................................................................................1 1.3. E-business Model – Short Description................................................................................1 2.

PROJECT DESCRIPTION.................................................................................................2

2.1. Project Detailed Description................................................................................................2 2.2. Project Organization............................................................................................................4 2.3. Project Strategic Background..............................................................................................5 2.4. Innovations..........................................................................................................................6 2.5. Competition.........................................................................................................................7 3.

Digital Business Model.....................................................................................................10

3.1. Main Business Partners.....................................................................................................10 3.2. E-business Model Values...................................................................................................13 3.3. Key Activities....................................................................................................................13 3.4. Key Resources...................................................................................................................14 3.5. Clients................................................................................................................................15 3.6. Customer Relationships.....................................................................................................17 3.7. Business Channels.............................................................................................................17 3.8. Project Starting Costs........................................................................................................18 3.9. Revenue Models................................................................................................................18 4.

DIGITAL TECHNOLOGIES............................................................................................19

4.1. Mobile Technologies.........................................................................................................19 4.2. Social networks..................................................................................................................30 4.3. Cloud computing...............................................................................................................35 4.4. Big data..............................................................................................................................35 4.5. Sensors and Internet of Things (IoT).................................................................................35 4.6. 3D Printers.........................................................................................................................35 4.7. Robotics.............................................................................................................................35 4.8. Drones................................................................................................................................35 4.9. Virtual and Augmented Reality.........................................................................................35 4.10.

Artificial intelligence..................................................................................................36

5.

DIGITAL MARKETING..................................................................................................36

5.1. Project Marketing Plan......................................................................................................36 5.2. Project Key words.............................................................................................................37 5.3. Google Ads ad...................................................................................................................37 5.4. Social Networks Advertising.............................................................................................37 5.5. Marketing plan Table.........................................................................................................38 6.

DIGITAL PAYMENT METHODS....................................................................................39

6.1. Digital Payment Methods List...........................................................................................39 6.2. Digital Payment Methods Description..............................................................................39 7.

PROJECT SWOT ANALYSIS..........................................................................................41

8.

PROJECT WEBSITE........................................................................................................42

8.1. Web Hosting and Web Domains........................................................................................42 8.2. Content Management System............................................................................................42 8.3. Website Prototype..............................................................................................................44 9.

CONCLUSION.................................................................................................................47

10. BIBLIOGRAPHY.............................................................................................................47 11. LIST OF WEB LINKS......................................................................................................49 12. LIST OF FIGURES............................................................................................................51 13. Curiculum vitae...................................................................................................................52 14. ABSTRACT......................................................................................................................54 15. ATTACHMENTS..............................................................................................................54

1.INTRODUCTION 1.Essay Scope and Purpose Purpose of this essay is showcase an e-business model presenting the idea of using technology in closets.

1.1. Data Sources and Collection Methods Method used for collecting valuable data is going to be done through internet research.

1.2. Essay Content and Structure This essay consists of nine chapters, each chapter describe particular part of the ebusiness model in detail, finalized with conclusion. Structure is define with the table given above.

1.3. E-business Model – Short Description Smart Closet is smart and easy-to-use tool to help you manage your wardrobe and daily outfits. It supports selecting clothes from thousands of brands/retailers and add them to your closet easily. You need to add photos of your clothes and the closet will make outfits for you which are you able to see via 3D modeling. Clothes will be separated by color, brand, season and more. Closet can create best outfits by combining clothes depending on weather and occasion you will attend. You can also plan what to wear in your calendar and get daily notification if it is needed. It also help to plan looks and clothing for travel. Outfits will be made by your favorite colors, brands and look. Your closet has mirror on which you can see how you look wearing every outfit.

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2.PROJECT DESCRIPTION This chapter is going to deal with a detailed description of the project, answer questions about organization of the project and explain the strategic background through mission, vision and project goals, along with innovation description and our main competitors.

2.1. Project Detailed Description 

Project title and overview Smart Closet is digital startup innovation, specialized in developing technology in everyday furniture supported by technology. It is specialized in furniture industry. Our goal is to provide people an innovative way of using their closets and facilitate the way of life with innovative opportunity to feel nice and comfortable in any outfit.

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Purpose and need Since Smart Closet is startup specialized in introducing new technologies into closets, we wanted to explore new fields and move away from old way of making furniture. We believe that people daily encounter difficulties in choosing suitable clothes for a particular day. Many people spend too much time planning what they will wear because there are many questions such as what the weather will be like, what the occasion is and weather a certain clothes will suit them well. Because of those problems, Smart Closet provides a service where your wardrobe is connected to forecast applications and determines which clothes is suitable and through 3D measurements make decision what will suit people best in order to feel good wearing it.

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Business drivers and significance Key business drivers which will determine the success of our business are following: High performing team – our employees are expected to meet the deadlines, and make realistic goals in achieving sales. Their main goal is to make a good relationship with our partners and provide best service to our customers.

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Innovation – 3D technologies are newly introduced and we want to be one of the first companies that implemented this technology and make the revolution in producing furniture.

Growth – our main goal is growth on the market and in the profit. There is possibility of making partnership with biggest companies for producing furniture and thus growing towards international market. 

Benefits and costs Our benefits lie in the fact that we have competitive advantage by using and implementing new technology as 3D virtual fitting, 3D body measurements, sensors and creating applications. Our products will attract many customers because it is innovative and makes opportunity to customer to test something that they never have experienced before. Our cost will consist of company’s share capital, IT equipment, salaries, taxes and rents. Because we are startup company, it will take 5-10 years that our initial investment become profitable.

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Implementation method First step is to develop software application which is able to connect your closet with your gadgets. Then your closet will contain sensors which will detect every piece of your clothes and where the certain clothes are stored. In front of you wardrobe, there would be a place where you need to step. Via 3D body measurement technology, the closet will get information about body weight, height and all other measurements to know which clothes fits you.

With 3D virtual fitting, people have opportunity to see 3D pictures of them wearing certain pieces of clothes. Through the application questions, closet will now what customer’s preferences about colors, brand and styles are and make the best possible outfit depending on occasion and weather. The installation process will be conducted by our technicians who will also educate buyers how to uses our product and help them to answer on all questions of using this kind of technologies. Updates and maintenance of our software will be done by developers.

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Timeline

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For development and implementation of our innovations we expect a timeframe of 1 year. In that period we will be focused on advertising our product to create new customers. In the first year of our business we do not expect any profit, but after implementation of our product we expect a yearly growth in sale and profit. 

Requirements To start our business, there are few requirements that we will need. Those requirements include a big team of people, legal matters for starting a business, customers and partners, equipment, office rent and all expenses that need to be fulfilled.

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Expected outcomes Our main objective is growth. In the beginning we expect to sell our products directly to customers. After few years, our plan is to grow and make partners, big companies, who will help us to sell our products in their own stores. This is the way how we will expand to international market.

2.2. Project Organization Since Smart Closet is startup company, it will consist of few departments which will be explained in this chapter. Those departments include sales and marketing, product development and technology support.

Sales and marketing department will contain one sales and one marketing manager and both of them will have their team of employees under their supervision. We will also give opportunities for internships to have team of young people who know much about technology. The task of sales department is to conduct the potential business with potential clients and take care of legal paperwork. Marketing department is in charge of company social media and maintaining web page and take care of advertising our product to make people see new innovative idea in the way they did not see anything like this.

Product development team will consist of employees who will design our product. We will need developers who will create and maintain software and 3D models, while other employees will incorporate that new technology into the closets.

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Technology support team will consist of five IT technicians whose job will be to install the software for our clients and give them instructions hoe to use it.

2.3. Project Strategic Background 1.1.1. Mission Our mission is to provide an innovative way of using technology on daily basis. We want to provide the best experience to our customers by implementing technology in their closets.

1.1.2. Vision Our vision is the establishment of business which has ability to grow and become one of the leading companies providing products and services using the newest technology. We believe that our ideas are innovative and attract a lot of clients. We want to establish something completely new and offer innovation that has significant impacts on trends regarding using the technology 1.1.3. Project Goals Continuously monitor and improve the innovation process in an agile and dynamic way, with the aim to quickly adapt to changes in the internal and external environment, specific to every individual organization.

Finances are our most important priority as a business. The main reason is that even a simple financial mistake can cause our business to fail. Once our startup begins to generate income it’s vital that we maintain positive cash flow. Our goal is effectively manage company’s income and expenses to ensure proper financial health and sustainability.

Marketing is also one of our most important goals. We want to find a proper way to promote our product and make it well known on the market and have chance of reaching success. These objectives should also include various ways to not just reach out our target audience but also encourage them to become our customers. We must determine how to 5

meet consumer needs or expectations, in order to establish a strong and positive sentiment.

Marketing activities will be most important in first few years to gain attention from customers and make possible partnerships. It will be crucial to maintain our web page and social media. Our goal is to reach 5 partnerships and 5 clients on monthly basis for the first year.

Furthermore, we will work with European Union countries so for the next 5 years our goal is to expand our business on The USA market after.

One of the important goals for our business is continuously monitoring and improving the innovation process in an agile and dynamic way, with the aim to quickly adapt to changes in the internal and external environment. Also, we plan to constantly educate our employees while technology is improved and motivate them and encourage to improve their skills.

2.4. Innovations 1.1.4. Innovation List 

Application



3D virtual fitting

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3D human body measurement

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Sensors

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Cloud-based software

1.1.5. Project Innovations – Detailed Description 1.1.5.1.

Application

Application platform has many advantages. Customers will use app especially to answer the questions about their preferences and occasions. The app will be also used to collect data about weather and other important characteristics in decision of clothes.

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1.1.5.2.

3D virtual fitting

Virtual clothing technology means that it can realize the design and performance of clothing by simulating fabric with virtual technology, graphics technology and simulation technology. Ascension of technology makes the study of the , the fitting software and the online fitting have a further development. The existing virtual fitting system generally consists of 3D human body measurement technology, the establishment of digital fitting body model, the interactive stitching of cut pieces and virtual simulation technology.

1.1.5.3.

3D human body measurement

3D human body measurement technology used in our business presents: more fringe method, laser measuring method, three-dimensional camera measurement method, whole body scanning system, digital imaging fitting process and so on. Methods above are all non-contact measurement and needs to have the corresponding hardware equipment, among them, the most convenient and the most suitable for online fitting is the digital imaging fitting process, and its requirement for equipment especially low, just need an ordinary camera or webcam.

1.1.5.4.

Sensors

Sensors will scan every piece of clothes which needs to be in closet, and it will be automatically stored on app.

1.1.5.5.

Cloud

Cloud based software will be hosted over the internet instead on computers. It can be accessed from multiple computers so our employees can complete tasks wherever they are. This will allow software provider to release updates regularly.

2.5. Competition Nowadays recommender and ‘intelligent’ wardrobe websites are quite

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common and appear to be useful. Some of these websites are provided by clothing retailers and are used to encouraging people to make purchasing decisions. Some other websites are provided by fashion publishers and are used to encourage people to think about clothing decisions and which of the current fashion trends to follow.

Before overviewing the main concept of this project, this section will review some of the products which are currently on the market. Then at the end of these reviews there are a comparison between the proposed system and the other implemented available systems.

1.1.6. Main Competitors

1.1.6.1.



“I wear”

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“My fashion closet”

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“Closet buddy”

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“What is in my wardrobe?”



“Tailor: The smart closet”

“I wear”

“I wear” (Free of charge) is a complete and easy to use catalogue of a user’s wardrobe.

For example, in the morning when the user wakes up, he/she can grab their Iphone/Ipad/Ipod and decide what they want to wear, which clothes from their wardrobe can be marched with other clothes. They can also let their friends know what they want to wear today or share what new clothes they have just bought or ask them if they think that the chosen clothes are suitable for today.

2.5.1.2. “My fashion closet” “My fashion closet” (free of charge) is implemented to make picking outfits more fun, easy and organized. Start by taking a picture of all the clothes in a user’s closet including tops, skirts, pants, dresses and shoes. My fashion closet then organizes user’s clothes such that they can easily scroll through all the available clothes while mixing and matching different pieces of clothing to find the perfect outfit. Once the users finalized their outfit, then they can share it with their friends and families to get their opinion on what they choose to wear. While there is an effort involved in taking pictures of the clothes, the idea 8

of allowing these pictures to be combined together into an organized catalogue is interesting and could form the basis of a recommender system.

2.5.1.3. “Closet buddy” “Closet buddy” helps users to catalogue and organize the contents of their closet. User can easily create custom categories. They can take photo of their belongings with the iPad and closet buddy will allow users to import these pictures and create an easy use catalog of their belongings. Again, this is very much like the fashion closet application.

2.5.1.4. “What is in my wardrobe?”

“What is in my wardrobe?” is an application that user can have their own wardrobe and use it while on the go, like to pack for the weekend. This application let the user to know what they’ve got, where it is, keep track of their belonging, at the same time when they need to find something, help save money by not buying other stuff they already own and free up valuable space. This application is very easy to use and users can easily enter an item by taking a photo and add the location, category, list and write a note on it

2.5.1.5. “Tailor: The smart closet” Tailor, the smart closet, uses miniature sensors to automatically detect what clothing items you own and when you wear them. Tailor helps you figure out what to wear by providing you with personalized outfit suggestions according to your style and the day’s weather conditions.

1.1.7. Similarities and Differences with Existing Projects in the Market Digital wardrobe is the newest idea in the market, which connects all these application for

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people to use. There are many smart wardrobes implement applications in the market, but these applications are not as famous as social networking or recommender websites. But nowadays people are quite into technologies and many of them have a smart phone or a tablet such as iPhone/iPad and iPod that let users to be introduced to all these implemented applications.

The main difference between these implemented websites/applications and this project is that our startup Smart Closet wardrobe is a new idea of combining recommender system, social networking and the virtual wardrobe which let the users to choose what they want to wear considering their different personalities and tastes by using 3D measurements and sensors to get perfect outfits.

1.1.8. Project Competitive Advantage 

Partnerships:

By partnering up with big furniture companies, we can sell our brand more easily by them. If we have chance to partner up with some big names it will work in favor in terms of our reputation. 

Brand image recognition

Smart Closet is concept of making old furniture more fun and convenient by implementing the newest technology and give people daily solutions to related issues. 

Knowledge

Key values in our business are people and knowledge. We have assembled our team of specialists who high educated and ambitious whit constant orientation of improving their skills and take care of learning new things. 

Intellectual property

Legal protection such as copyrights and patents that prevent other competitors to use our ideas and designs will play big role.

3.Digital Business Model 3.1. Main Business Partners 3.1.1. Main Business Partners List 10

    

Infin Artec 3D IST AG Theorem Elgrad

3.1.2. Main Business Partners Description 3.1.2.1.

Infin

INFIN is a group of young 3D artists devoted to the world of Architecture and Design.

They are the curious dreamers who are full of whims and fancies in pursuit of creativity.

Aiming to forge a long-lasting relationship with their clients, they promote open exchange of ideas upon mutual trust, which helps to foster a solid base for future cooperation. As part of this industry, they have worked closely with Architects, Property Developers, Interior Designers and various other agencies worldwide to visualize their ideas. INFIN is committed to communicate our vision and help tell our story. Their success lies in the professionalism, excellent 3D technology, punctuality and competitive prices.

At INFIN studio, based in China, they are dedicated to providing excellent services to our customers. Loyalty, trust and great care for our customers are core values for our company.

3.1.2.2.

Artec 3D

Artec 3D is a global leader in handheld and portable 3D scanners and has been at the forefront of developing innovative 3D technology since 2007.

They

pride theirselves on manufacturing high quality, yet easy to use portable 3D

scanners, smart, user-friendly 3D software and an SDK that provides the best integration possibilities, whatever the application. With a worldwide presence and a large number of global clients, they supply state of the art 3D technology to these respective areas: 

Industrial Design & Manufacturing

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Healthcare

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Science and Education

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Art & Design 11

Always seeking to innovate, Artec 3D is constantly striving to offer its clients the most advanced in 3D technology, releasing a next generation scanner every one-two years and new scanning softwareevery 12 months. While handheld 3D scanners are at its core, Artec also develops biometric 3D recognition technology and one-click 3D body scanning solutions.

3.1.2.3.

IST AG

Innovative Sensor Technology IST AG is not only a manufacturer of sensor products – they are a global team of experts in the field of sensor technology offering our skills and experience as development partners for customers. They offer extensive service when it comes to advanced application needs or the development of new technologies.

IST AG has more than 25 years of micro-system experience in developing new technologies and solutions for customers. Close collaboration with a broad network of partners, universities and technical institutes means they push the boundaries of existing technology, creating innovations that fulfill increasing customer demands, across a wide spectrum of industries. This gives their customers a competitive edge.

Sensors made by IST AG are proven to be reliable and cost effective, evident by our repeat customers. Their versatile technological portfolio covers different substrate material choices, the use of thin- and thick-film technologies and patterning technologies as well as diverse test and assembly options.

3.1.2.4.

Theorem

They advise clients on product strategy, engineering, design, and culture, then partner with them to build and launch technology-driven solutions to their most complex problems.

Theorem is an innovation and engineering company that advises clients on product strategy, engineering, design, and culture, then partners with them to build and launch technologydriven solutions to their most complex problems. Theorem is chosen by clients when results matter most — becoming the agent of change, and driving a transformation that involves not only technology, but also people, process and leadership. They believe that the best solutions to complex problems are created through a combination of technology, people, passion, and the scientific process.

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Their mission is to dismantle the existing consulting ecosystem and replace it with a distinctive, durable and effective system for transforming the way businesses think about and solve critical problems.

3.1.2.5.

Elgrad

Expertise and modernization are a constant guarantee of the high quality of their services.

They offer services: Optimization of cutting measures, sawing according to customer measurements, straight edges, CNC curvilinear processing and edges, laser edging, pressing and transport of materials to customers. Their range is based on the processing of boards from plywood-based materials. We also offer MDF boards, furniture backs and plain plywood. Other materials include high-gloss plywood, GetaCore, composite material, high-gloss acrylic and veneered plywood and solid wood (carpentry). With their offer, they enable us to make closets by customer’s measure and according to the customer's wishes.

3.2. E-business Model Values Our core values consist of offering solutions to our customers both businesses or direct customers. Our main goal is offering innovative service by implementing our model and thus make long relationships with our clients and bring them the value of our product.

3.3. Key Activities Key activities that are connected to our business are: 

Development Since we need a whole team to implement technology in closets, we need to make sure that our product development team is capable for delivering end product of high quality to our customers.



Sales

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Our sales department is responsible for finding potential customer and represent to them our product. This team need to make sure that our products are increasingly selling. 

Operations After selling products, we have obligation to maintain the software for our customers.

3.4. Key Resources Key resources for our business are following: 

Financial resources: To funding our startup, we need to have financial resources which we will get by taking a loan.

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Human resources

We need a great team to operate our business and that will be the most valuable resource. 

Educational resources Our employees will always have opportunity to improve their skills and educate them.

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Physical resources Our business will need an office to make our people to work in comfortable atmosphere with the newest technology.

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3.5. Clients 3.5.1. Main Clients List 

3LHD



Interior design by Mirjana Mikulec

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Ikea

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Prima



Lesnina

3.5.2. Main Clients – Detailed Description 3.5.2.1.

3LHD

3LHD is an interdisciplinary architectural office, interested in integrating various disciplines; architecture, urban and landscape, design, art. Such an approach has resulted in a series of projects and realizations in Croatia and abroad over the last twenty years.

3LHD has an integrative approach to projects and believes that in addition to functional, the architecture must answer many other questions.

3.5.2.2.

Interior design by Mirjana Mikulec

The interior design studio led by Mirjana Mikulec has been operating for 14 years and is one of the most successful in the region. The studio consists of more than twenty employees of various professions - architects, interior designers, architectural technicians, but also media and marketing experts are just some of the creatives who work under the guidance of a famous interior designer.

3.5.2.3.

Ikea

Today, it is a global home furnishing brand that provides people around the world with affordable solutions, design and comfort established in Sweden.

3.5.2.4.

Prima 15

The largest Croatian furniture manufacturer with 6 production plants and an extensive retail network of as many as 59 salons in Croatia and 9 in Macedonia. They employ more than 2,000 employees, and in addition to their own production and quality guarantee, special attention is paid to product development and the selection of the highest quality, domestic raw materials. Apart from the domestic market, PRIMA furniture is also present in markets throughout the EU.

3.5.2.5.

Lesnina

The company Lesnina was founded in 1949 under the name LES, and in 1956 it was renamed LESNINA. In the 1970s and 1980s, Lesnina grew into a recognizable brand that, with its stores, was present in virtually every major city in the former state.

3.5.3. Markets and Website Language Our initial market would be in Croatia. Since, we will be partners with international companies, the web page and all other advertising tools will be available in Croatian language and English. After expanding our business in international market, we would use other languages.

3.5.4. Client Registration There would be no registration requirements to access our web page for oue customers. There would be free content to introduce our business to possible clients and giving them the latest news about technology used.

As far as app is concerned, it will be free for download and for use but here our customers will need to register and have their account to use the app. After our clients sign in, they can use all possible services regarding to app.

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3.5.5. Registered Client Benefits OR Direct and Indirect Benefits of Free Content We decided for free model because we believe that it will help us to have opportunity to present our business to all people. The free content will not only be present in web page. We will also use other social media platforms to promote ourselves and that would also be free.

On our social media profiles, like Snapchat, Facebook, Instagram, and LinkedIn, we will out the link of our web page so our followers can easily learn something new about as. Our social media platforms will help us to see how many people exactly heard for us and get engages with our content and to know have many of them leave our pages.

3.6. Customer Relationships On of the main goals and priorities of our business is good relationship with our customers. All of our departments are responsible for some segments that bring the end value to our clients and build relationship. Our sales department is responsible for bringing the new customers and sell products to them and make good relationships with them. Our product development team is responsible for making our product of high quality to satisfied our end customers. Our marketing team will sta yin touch with our customers to get feedback for possible improvements and satisfaction.

3.7. Business Channels We will heavily work on our social media profiles to create more relationships with customers. Also, our sales department will call posible clients and send emails about news in our business. In that way, customers can be informed on the newest offers and posssibilities to have with our business. Furthermore, technicians will be responsible for the improvement and maintainance of our prdoucts and they will sta yin touch with customers. Another positive point is that our clients can have full decscription of our business in any time. The most cost-effective way to present ourselves is trough social media.

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3.8. Project Starting Costs Our initial costs consists of company’s share capital, office rent, IT equipment, salaries and taxes. Since we will need funds to develop our business, the first step of funding will be taking a loan to cover project starting costs. The most expensive resource will be IT equipment and office rent.

Project starting costs are given below: 

Hosting and domain cost:

Since our initial plan is to create the website by WordPress.com, we will need to pay introductiory prices of 5 euros per month. We belive that the price will increse to 10 euros per month. 

Promotion cost:

To introduce our brend to new customers, we will need to do most of promotional activities. Our plan is to spend 10000 euros on promotional activities during the first year of our business. 

Mobile app cost:

Our developers will be responsible for that. 

Hardware and software costs:

We plan to spend about 10000 euros to provide our employees the high quality equipment.

Our developers will be responsible for our software developing.

3.9. Revenue Models 3.9.1. Revenue Models List 

Sponsorships of website section



Affiliate revenue



Subscriber data access for e-mail marketing

3.9.2. Revenue Models – Detailed Description

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3.9.2.1. sponsorships of website section Certain amount of our internet space will be rented to other companies which are connected to our busines. For example, we will have icons of AppStore and google play.

3.9.2.2. Affiliate revenue Affiliate revenue will be collected through our webpage. We will offer links of catalogues for architects and pay the fee for planning the projects.

5.2.3. Subscriber data access for e-mail marketing We will promote our business partners and educate our clients about them.

4.DIGITAL TECHNOLOGIES 4.1. Mobile Technologies 4.1.1. Mobile e-business Ecommerce business classification •

B2B: Business to business

Our business model is focused on B2B concept. We plan to sell our products to other companies such as furniture stores and companies, providing an innovative way of living in digital world. They can provide their business and take a step further in implementing digital innovation in their business.

•

B2C: Business to consumer

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Considering that app will be free for use for our buyers, our clients will have possibility to inform themselves about our company and business.

4.1.2. Mobile Application for Smartphone Description Our mobile application is our end product. You can not use the Smart Closet without mobile application. Premium features are available for all buyers of our product. The application is free because without the closet there is no sense to use it. The businesses which are selling our product can promote and show to end buyers how our application works. Also, if end buyers are buying the product directly by us, they can have full experience before buying.

4.1.3. Mobile Application Functionality Description 

3D measurement

First step for working of our mobile application is to measure the body of the consumer to see height, weight and proportions of the body to know what fits them. 

Choosing preferences

Our consumer need to answer on few questions about their preferences regarding to colors, style, type of clothes, lifestyle. The application will work regarding the answers of consumers after we get the information about our consumer. 

Scanning the clothes Consumers need to take photos of the clothes so application can suggest outfits for certain occasions.

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4.1.4. Graphic of Mobile Application Functionality 

Initial screen

By tapping on our app, the user is presented with an initial screen as showcased in picture below.

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Figure 1 Initial screen



Sign in form

After application load, the user is represented with our sign in screen. Our users can sign in with mail and password.

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Figure 2 Sign in form



Homepage

Our homepage contains menu, option to contact us, option to read about us, and main three options My Body, My clotheas and My preferences.

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Figure 3 Home page



My body

In this option consumer will get body measurements by 3D scanning and this will help us with size of clothes and suits of outfit.

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Figure 4 MyBody



My preferences

In this option, consumer needs to select colors, lifestyle, occasions he mostly attends, preferences about type of clothes and this will help us to make outfits.

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Figure 5 My Preferences



My clothes

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Here our consumer needs to upload photos of his clothes to have data of what is in the closet.

Figure 6 My Clothes



Payment selection

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Picture below showcase our interface for paying via banking cards

Figure 7 Payment selection

4.1.5. Mobile Advertising 28

Mobile advertising is used to send marketing messages to consumers. This is done by our marketing employees b looking for the best way of advertising via SMS, email, banner ads and mobile websites.

Advertising models we decided for are explained below: 

Interstitial ads:

We will use it as a commercial before application start or in case of game after the level is completed. This will be like watching commercial on television and user can download the app after watching the video. 

Banner ads

This type of add is typically at the top or bottom of the app. User can click to download the add.

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4.2. Social networks 4.2.1. Project Facebook Profile

Figure 8 Project facebook profile

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4.2.2. Project Author LinkedIn Profile

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Figure 9 Project LinkedIn profile

4.2.3. Project Twitter Profile

Figure 10 Project Twitter profile

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4.2.4. Project Instagram Profile

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Figure 11Project instagram Profile

4.2.5. Project Snapchat Profile

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Figure 12 Project Snapchat profile

4.3. Cloud computing The goal of cloud computing is to increase accessibility and convenience for users. With internet connection you can open application everywhere and get the newest updates.

4.4. Big data Using big data for data mining to decide which outfit is the best is one way of using big data in our business model.

4.5. Sensors and Internet of Things (IoT) Using of 3D technology is closely related to today’s culture. It allows us to offer something innovative that is never have been seen before and make it more realistic it can.

4.6. 3D Printers In future, we might invest in 3D printing of our own sensors and other devices important for our product. We will invest in 3D printing and be our own suppliers.

4.7. Robotics We can expand our business in robotics. Robots can help us in production of closets so we can save time and costs.

4.8. Drones Drones can be used in production of our products.

4.9. Virtual and Augmented Reality 35

Virtual reality is implemented in our busines by 3D technology.

4.10. Artificial intelligence Possible use of Artificial intelligence can be to see consumer satisfaction with outfits. This can be done by sensors which can detect the emotions. Also, there is possibility to use surveys so based on the answers we can see wishes and needs.

5.DIGITAL MARKETING This chapter is focused on marketing strategy regarding website and social media accounts. In this chapter we will explain our digital marketing plan.

5.1. Project Marketing Plan We will primarily focus on following types of marketing: 

Display advertising

We will promote our business on partner’s websites in form of pop-up ads and banners. This need to be done with payment. 

Search engine optimization

To be on higher rank in search engine we will use various tactics such as linking, targeting key words. We will devote a lot of time and effort to get a higher rank by Google search. 

Blogs

We will make our own blog to have chance of updating so Google place up our website on a higher list. This will help us to promote links of other companies so they will do it for us the same way.

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

Newsletter

Our subscribed users who are on our mailing list will be provide by weekly updates and latest news about our business. 

Video ads

We will place video ads on YouTube because they are the number one platform for video advertising and our target audience will watch it. 

Slogans

Smart Closet. Designed for fit, loved for style.

Smart Closet. Smart clothing, everyday living.

5.2. Project Key words Here are the keywords for our Google AdWords campaign: SmartCloset, Smart, Closet, Wardrobe, Clothes, Style, Fit, virtual styling, new, startup, innovation, innovative, lifestyle, experience, outfit, digitalization, digital, development, software, plan.

5.3. Google Ads ad As mentioned above, here are our keywords: SmartCloset, Smart, Closet, Wardrobe, Clothes, Style, Fit, virtual styling, new, startup, innovation, innovative, lifestyle, experience, outfit, digitalization, digital, development, software, plan. Daily budget for our promotion is 100$ and it depends on number of words used. Monthly budget for Google AdWords will be 1300$.

Our main goal of Google ads Campaign is to attract consumers on our website. Ads will be written on English and Croatian language. Our target audience are young adults who are capable for digitalization of their lifestyle and able to learn and adopt to new way of living.

Most of them are businesspeople who do not have time to plan outfits and styling is important for their job.

5.4. Social Networks Advertising We will use following social media networks: Facebook, LinkedIn, Twitter, Instagram and Snapchat. Different social media will be used for different purposes. Twitter and LinkedIn will target business people and help us to find clients while Snapchat, Instagram and 37

Facebook will be used in purpose of promoting our business. On these profiles, we will post some pictures and reviews of satisfied customers so other people decide to buy our product. Our marketing department will be in charge of social media profiles to maintain them and promote our business. Alongside the posts, we will invest in Facebook and Instagram ads which needs to be paid. These will give us the higher rank on Google search engine.

5.5. Marketing plan Table No.

Promotion type

Promotion period Continuous advertising

costs

Promotion description

1

Banners, pop ups

3-20 cents per click

Investment in display advertising on partner’s website

2

Google Ads

Continuous advertising Continuous advertising

1200$ per month 400$ per month

Continuous investment In Google Ads and keywords Continuous promotion of our website via affiliate links posted on blogs connected to our busines

3

Blogs

4

Newsletter

Continuous advertising

free

Copywriter material customized for our customers

5

Video ad

Continuous advertising

1$ per view

Video ads, posted on YouTube

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6.DIGITAL PAYMENT METHODS 6.1. Digital Payment Methods List 

Banking cards



PayPal



Mobile banking



Revolut



Internet banking

6.2. Digital Payment Methods Description 6.2.1. Banking cards Internet payments via banking cards are mostly used. Our customers can pay with following cards: American Express, Visa, Mastercard, Maestro. For this process the customer need to type its name and surname, IBAN and CVC number.

6.2.2. PayPal PayPal is an American company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users. It charges a fee in exchange for benefits such as one-click transactions and password memory.

6.2.3. Mobile banking Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet. Unlike the related internet banking it uses software, usually called 39

an app, provided by the financial institution for the purpose. Mobile banking is usually available on a 24-hour basis. Some financial institutions have restrictions on which accounts may be accessed through mobile banking, as well as a limit on the amount that can be transacted. Mobile banking is dependent on the availability of an internet or data connection to the mobile device.

6.2.4. Revolut Revolut is a global money app that includes a debit card ( MasterCard), currency exchange, and peer-to-peer payments.

6.2.5. Internet banking Online banking offers customers almost every service traditionally available through a local branch including deposits, transfers, and online bill payments. Virtually every banking institution has some form of online banking, available both on desktop versions and through mobile apps.

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7.PROJECT SWOT ANALYSIS

Strengths:

Weakness:

Very transparent and great after sale No brand image or credibility in the service.

beginning.

Easy to navigate/ great useability.

New technology that can load to errors.

Graphically pleasing user interface.

Start

Compatible on both IOS and Android.

environment.

up: automatically

in

risk field

Innovative concept.

New technology.

Skilled employees Opportunities:

Threats:

Collaboration with major furniture stores.

Emerging competitors.

No local competitors

Fast moving tech environment.

Unsaturated market.

Big initial investment.

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8.PROJECT WEBSITE 8.1. Web Hosting and Web Domains 8.1.1. Project Web Hosting Our plan is to create website through WordPress.com so we want to make sure that our hosting pick compliments our CMS choice. We decided for HostGator.com. this should make our website faster for mobile users. It will cost 10$ per month.

8.1.2. Project Web Domain 8.1.2.1.

.hr Domain

Commercial web domain will be explained in next chapter.

8.1.2.2.

Commercial Domains

We have both .com and .hr domains. In first years we will operate in Croatian countries, so when we expand to international market we will use .com domain.

8.2. Content Management System 8.2.1. Possible CMS for Project 

WordPress

WordPress is software designed for everyone, emphasizing accessibility, performance, security, and ease of use. They believe great software should work with minimum set up, so we can focus on sharing our story, product, or services freely. The basic 42

WordPress software is simple and predictable so you can easily get started. It also offers powerful features for growth and success. WordPress contributors work around the globe, and have dedicated countless hours to build a tool that democratizes publishing. WordPress is open source software that is both free and priceless. 

Wix

Wix.com is an Israeli software company, providing cloud-based web development services. It allows users to create HTML5 websites and mobile sites through the use of online drag and drop tools. Along with its headquarters and other offices in Israel, Wix also has offices in Brazil, Canada, Germany, India, Ireland, Lithuania, the United States, and Ukraine. Users can add social plug-ins, e-commerce, online marketing, contact forms, e-mail marketing, and community forums to their web sites using a variety of Wix-developed and third-party applications. The Wix website builder is built on a freemium business model, earning its revenues through premium upgrades. 

Drupal

Drupal is content management software. It's used to make many of the websites and applications you use every day. Drupal has great standard features, like easy content authoring, reliable performance, and excellent security. But what sets it apart is its flexibility; modularity is one of its core principles. Its tools help you build the versatile, structured content that dynamic web experiences need.

It's also a great choice for creating integrated digital frameworks. You can extend it with any one, or many, of thousands of add-ons. Modules expand Drupal's functionality. Themes let you customize your content's presentation. Distributions are packaged Drupal bundles you can use as starter-kits. Mix and match these components to enhance Drupal's core abilities.

8.2.2. Best CMS for Project – Description 

WordPress

WordPress is software designed for everyone, emphasizing accessibility, performance, security, and ease of use. They believe great software should work with minimum set up, so we can focus on sharing our story, product, or services freely. The basic WordPress software is simple and predictable so you can easily get started. It also offers powerful features for growth and success. WordPress contributors work around 43

the globe, and have dedicated countless hours to build a tool that democratizes publishing. WordPress is open source software that is both free and priceless.

WordPress is offering 5 deals: 

Free: allows user to design website without publishing it.



Personal: best for personal use, cost only 4$. It can add some personality to website.



Premium: best for freelancers



Business: best for small businesses, 200GB storage



E-Commerce: best for online stores, designed to grow their business.

We are going to use business option since we are private start up.

8.3. Website Prototype 8.3.1. Project Website Structure

Figure 13 Home page

44

Figure 14 About us

Figure 15 Services

45

Figure 16 Contact us

8.3.2. Project Website Sitemap Homepage

ABOUT US

SERVICES

CONTACT US

MISSION

VISION

46

Figure 17 Website Sitemap

8.3.3. Project Website Structure Description As presented in previous sections, our website is set up intuitively. The user can access the section by clicking on it in the menu on the top of the page. 

Our home page have brief description about our business and latest news.



About us section contains mission and vison.



Services section contains description of our offering services and what we do



Contact us section urges user to leave some feedbacks and submit a business proposal. It also gives information about our opening hours.

9.CONCLUSION To conclude everything, the proposed system of smart closet can be used effectively by every person, fashion blogger, organization, etc. it is easy to understand the system. After detailed description of each chapter, we strongly believe that business model will successes. All of the information given in this paper are our own vision how startup should conduct and start the company. In the future, we can expand our business and add some ne innovations like sensors for detecting smelling or dirty on the clothes. We hopefully believe that this model can attract foreign investors.

10.

1. Artec

BIBLIOGRAPHY 3D.

available

at:

https://www.artec3d.com/?

utm_source=google&utm_medium=cpc&utm_campaign=2030888541&utm_term=art ec%203d||kwd-351016197247&utm_content=71494264523||&keyword=artec %203d&gclid=Cj0KCQjwgtWDBhDZARIsADEKwgM6j71VsE4HQYF8xItjbRk3wf D9l3Q3ZOFSpMh8Gkxl0UWEFm068-saAjoeEALw_wcB 2. Drupal. Available at: https://www.drupal.org/ 3. Elgrad. Available at: https://www.elgrad.hr/ 4. Ikea. Available at: https://www.ikea.com/hr/hr/ 47

5. Infin. Available at: https://infinalliance.org/ 6. ISTAG. Available at: https://www.ist-ag.com/en 7. Theorem.

Available

at:

https://www.theorem.co/?

utm_term=theorem&utm_campaign=S+%7C+BR+%7C+EU+ %7C+FA&utm_source=adwords&utm_medium=ppc&hsa_acc=6680343229&hsa_ca m=12085041077&hsa_grp=1 8. Interior design Mirjana Mikulec. Available at: https://www.mirjanamikulec.com/hr/ 9. Lesnina. Available at: https://www.xxxlesnina.hr/ 10. Prima.

Available

at:

https://www.prima-namjestaj.hr/?

gclid=Cj0KCQjwgtWDBhDZARIsADEKwgMBgGiw2sk2fynrUINLzXRqyfV6_FwN bLIs1ZhauHtjn7YK5t-3RKMaAodoEALw_wcB 11. Tailor. Available at: http://www.tailortags.com/ 12. Word

Press.

Available

at:

https://wordpress.com/create/?

utm_source=google&utm_campaign=google_wpcom_search_brand_desktop_row_en &utm_medium=paid_search&keyword=wordpress&creative=353006520224&campai gnid=655562327&adgroupid=55312602867&matchtype=e&device=c&network=g&ta rgetid=kwd313411415&gclsrc=aw.ds&gclid=Cj0KCQjwgtWDBhDZARIsADEKwgMLOuyTaR Yu0AqbKLnaxZiGxutYYbOgphHe_BAo2TqMgUj2SnkXwJgaAj7SEALw_wcB 13. Wix. Available at: https://www.wix.com/freesitebuilder/hiker-create? utm_source=google&utm_medium=cpc&utm_campaign=179424220^10375166980&experi ment_id=wix^e^49108312300^;? h=https://ad.atdmt.com/s/go;adv=11038200900119;ec=11038200904332;c.a=179424220;s.a= google;p.a=179424220;as.a=10375166980;qpb=1;? bidkw=wix&dvc=c&h=http://www.wix.com/freesitebuilder/hikercreate&cq_src=google_ads&cq_cmp=179424220&cq_con=10375166980&cq_term=wix&cq _med=&cq_plac=&cq_net=g&cq_pos=&cq_plt=gp&gclid=Cj0KCQjwgtWDBhDZARIsADE KwgMmWbpKJZMk7gzIWn5HZml5iKVbVnxfZXnFr3u2jHYz_MTQUMFj27saAkREALw_wcB

48

11.

1.

LIST OF WEB LINKS

Artec

3D.

available

at:

https://www.artec3d.com/?

utm_source=google&utm_medium=cpc&utm_campaign=2030888541&utm_te rm=artec%203d||kwd-351016197247&utm_content=71494264523|| &keyword=artec %203d&gclid=Cj0KCQjwgtWDBhDZARIsADEKwgM6j71VsE4HQYF8xItjb Rk3wfD9l3Q3ZOFSpMh8Gkxl0UWEFm068-saAjoeEALw_wcB 2.

Drupal. Available at: https://www.drupal.org/

3.

Elgrad. Available at: https://www.elgrad.hr/

4.

Ikea. Available at: https://www.ikea.com/hr/hr/

5.

Infin. Available at: https://infinalliance.org/ 49

6.

ISTAG. Available at: https://www.ist-ag.com/en

7.

Theorem.

Available

at:

https://www.theorem.co/?

utm_term=theorem&utm_campaign=S+%7C+BR+%7C+EU+ %7C+FA&utm_source=adwords&utm_medium=ppc&hsa_acc=6680343229&hsa_ca m=12085041077&hsa_grp=1 8.

Interior

design

Mirjana

Mikulec.

Available

at:

https://www.mirjanamikulec.com/hr/ 9.

Lesnina. Available at: https://www.xxxlesnina.hr/

10.

Prima.

Available

at:

https://www.prima-namjestaj.hr/?

gclid=Cj0KCQjwgtWDBhDZARIsADEKwgMBgGiw2sk2fynrUINLzXRqyfV6_FwN bLIs1ZhauHtjn7YK5t-3RKMaAodoEALw_wcB 11.

Tailor. Available at: http://www.tailortags.com/

12.

Word

Press.

Available

at:

https://wordpress.com/create/?

utm_source=google&utm_campaign=google_wpcom_search_brand_desktop_row_en &utm_medium=paid_search&keyword=wordpress&creative=353006520224&campai gnid=655562327&adgroupid=55312602867&matchtype=e&device=c&network=g&ta rgetid=kwd313411415&gclsrc=aw.ds&gclid=Cj0KCQjwgtWDBhDZARIsADEKwgMLOuyTaR Yu0AqbKLnaxZiGxutYYbOgphHe_BAo2TqMgUj2SnkXwJgaAj7SEALw_wcB 13.

Wix. Available at:

https://www.wix.com/freesitebuilder/hiker-create? utm_source=google&utm_medium=cpc&utm_campaign=179424220^10375166980& experiment_id=wix^e^49108312300^;? h=https://ad.atdmt.com/s/go;adv=11038200900119;ec=11038200904332;c.a=1794242 20;s.a=google;p.a=179424220;as.a=10375166980;qpb=1;? bidkw=wix&dvc=c&h=http://www.wix.com/freesitebuilder/hikercreate&cq_src=google_ads&cq_cmp=179424220&cq_con=10375166980&cq_term= wix&cq_med=&cq_plac=&cq_net=g&cq_pos=&cq_plt=gp&gclid=Cj0KCQjwgtWD BhDZARIsADEKwgMmWbpKJZMk7gzIWn5HZml5iKVbVnxfZXnFr3u2jHYz_MT QUMFj27saAkR-EALw_wcB

50

12. LIST OF FIGURES Figure 1 Initial screen...............................................................................................................24 Figure 2 Sign in form................................................................................................................25 Figure 3 Home page..................................................................................................................26 Figure 4 MyBody......................................................................................................................27 Figure 5 My Preferences...........................................................................................................28 Figure 6 My Clothes.................................................................................................................29 Figure 7 Payment selection.......................................................................................................30 Figure 8 Project facebook profile.............................................................................................33 Figure 9 Project LinkedIn profile.............................................................................................34 Figure 10 Project Twitter profile...............................................................................................34 Figure 11Project instagram Profile...........................................................................................35 51

Figure 12 Project Snapchat profile...........................................................................................36 Figure 13 Home page................................................................................................................45 Figure 14 About us....................................................................................................................46 Figure 15 Services.....................................................................................................................46 Figure 16 Contact us.................................................................................................................47 Figure 17 Website Sitemap.......................................................................................................48

13. Curiculum vitae

52

53

14.

ABSTRACT

Smart Closet is digital startup innovation, specialized in developing technology in everyday furniture supported by technology. It is specialized in furniture industry. Our goal is to provide people an innovative way of using their closets and facilitate the way of life with innovative opportunity to feel nice and comfortable in any outfit. Since Smart Closet is startup specialized in introducing new technologies into closets, we wanted to explore new fields and move away from old way of making furniture.

Key words: closet, smart, technology, innovation, sensors, new, 3D

15.

1.

2.

3.

4.

5.

ATTACHMENTS

Registration Form for Website Visitors Newsletter Project Website Screenshots Mobile Application Screenshots Presentation Handouts

Written essay publishing deadline: April 06, 2021 Other terms: June 20, September 05, 2021, 1.00 p.m.

2021,

1.00

p.m.

Student presentations April 06, 2021 - April 27, 2021

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