Pendants and aromatic oils / investment in the creation of TM

Project summary

Devidends: at least 20% in the first year, then more. Full return on investment, excluding devidends, for a period not exceeding 3 years.

A new TRENDING product is offered to the attention of investors - bijouterie with a built-in "sponge" for the use of oil perfumery.

Product: pendants and bracelets with built-in "sponges" in the assortment (by design, color of "sponges", aromas); pendants and bracelets are sold separately from 5 ml bottles. with oil perfumery, or sets.

Average cost for the consumer: pendants - $ 10-15 per unit, bracelets - $ 15-25 per unit, 5 ml bottle. with aroma - $ 4-10 depending on the aroma; gift sets (3 fragrances + a bracelet or pendant in a wooden box) - $ 50-70.

Margin: 4x on pendants and bracelets, 7-8x on oil perfumes (from manufacturer's price to retail price; advertising campaigns, commissions of b2b partners, taxation not included)

Market: girls 18-25 years old about 80%, girls over 25 years old about 20%.

Sales channels:

online - multi-brand online stores that present their goods on marketplaces in Ukraine, Poland, Russia, Kazakhstan (drop-shipping and wholesale); CPA networks (drop-shipping); personal website for b2b partners. IMPORTANT: no personal sales to the b2c market after the end of the test period.

offline - multi-brand stores in the cities of Ukraine from 20 thousand. residents (one partner store is enough for 20 thousand people), in Russia and Kazakhstan after TM registration (cooperation with a large retail network or distributor). Offer for partner stores (one store or a small network) - payment after sales + our advertising banners. Participation in thematic exhibitions.

Implementation steps and costs prior to first sales:

1. Research. to find the best offers from manufacturers of pendants and bracelets with built-in "sponges" (China), a manufacturer of dark glass containers (China) and official distributors of aromatic oils (France), on options for delivering products to Ukraine, to determine the consumer audience, to search for potential distribution channels (already done).

2. Design and tests. Development of a logo, packaging, banners, video, stickers (the total cost of photo and video design + processing is about $ 3k). Creation and launch of advertisements on Instagram and Google Adwords (total cost of developing ads and advertising budgets 1.5k $). At the end of the test period, effective offers for the consumer, templates for landing pages will be ready, the cost of a lead for webmasters who use CPA platforms will be determined, a pricing policy for b2b partners for drop-shipping and for wholesalers (at this stage, only small wholesale). The implementation period for the second point is about one month. Upon completion - a full detailed report for the investor.

3. Registration of LLC and purchase. Writing a statute, registering with a notary, tax office, opening an account, etc. (cost about $ 100-200). Purchase of pendants, bracelets, containers, aromatic oils (the total cost with delivery and customs clearance of the first consignments of goods is about $ 13-15k, depending on seasonal and wholesale discounts; more details with personal correspondence and real readiness to enter the project). Printing stickers for bottles, banners, making the first batch of boxes for sets, perhaps stands for exhibitions in stores (total cost about $ 3-3.5k, more details with personal correspondence and real readiness to enter the project). Sticking, packaging, renting a SMALL warehouse, creating a database for the product (the total cost is relative, depending on the period and place of rent and the intensity of sticking and packaging). At the end of this point of sale, the first batch of goods is ready for sale, a customized database of goods in stock in stock, packages of documents for registration at all necessary sites, a clear scheme for sending goods and receiving payments, a package of documents and promotional products for cooperation with stores are ready and networks. The implementation period is 2 to 3 months (because delivery from China). Reporting in the process of the entire third point of implementation.

4. Start of sales. Creation of landing pages with the variability of our product for webmasters and registration on CPA platforms (budget - about $ 200), creation of ads for multi-brand online stores and broadcast in the appropriate social groups and messenger channels (budget - $ 0), applications are processed manager in manual mode until the CRM system is adapted (budget - $ 100-300 / month), calling the existing base of partner stores and the subsequent exhibition of their goods in these stores (budget - $ 0), recruiting sales representatives in regional centers of Ukraine (recruiting plan - a sales representative works on outsourcing, as an additional income for working trade, receives a one-time cash reward for an open outlet the next month after the exhibition of goods and a monthly percentage of sales from those points that are assigned to him; motivation to open max number of outlets). First results in the first month of operation of this point of implementation. Report weekly. More or less realistic sales forecasts can be made after the implementation of the second point of implementation.

5. Registration of the Trademark. CRM system implementation. Developing a positive turnover history for the ability to use overdrafts and credit lines.

Development prospects: geographic - scaling the established model in other regional centers and new partners with and-no stores, searching for distributors in the CIS countries, accessing Ebay, Amazon; conceptual - launching new products, creating a personal fashion brand.

RISKS: all risks related to low sales will be determined after the end of the second point of sale, but they can be corrected by a greater reach of the audience, as well as by selling goods in the b2c sector to increase margins and create awareness. All risks for the delivery of goods from China are associated with a delay on the part of the factory, but we have partners in China who will be able to control this task.

All financial nuances related to investments are discussed personally with the investor and are approved by the statute of the LLC, or by a written agreement certified by a notary, up to your accountant inside the LLC.

In general, we offer the investor a choice either to be a founder of an LLC with 50% of ownership and investments will become statutory capital, or to be a lender with a floating annual interest rate of 20% in the first year, 25% - the second and 30% - the third, and the loan repayment up to 3 years, but the ability to repay the loan earlier.

PS The backbone of the team is ready, the overall management is yours truly.