china international fashion distribution and brand management business plan
DESCRIPTION
sample business plan for a fashion distribution company based in Beijing, that was designed for a client who was interested in bringing cutting edge fashion brands to ChinaTRANSCRIPT
Private and Con!dential
Business Plan
2013-2018
Fashion | Media | Creative
Sunday, June 8, 2014
AXIS is committed to fostering a vibrant and diverse global platform for innovative high-quality brands, high concept media experiences, and inspiring design that enhances the environment, lives, and culture for the people and landscape of China.
We seek to share our economic success by promoting, and being at the vanguard of fashion, music, photography, art and design, !lm, internet communications, and expanding this through memorable experiences that leaves and indelible mark on Chinese culture.
VISION STATEMENT
Sunday, June 8, 2014
• To be a world class China market entry platform in fashion, media, and creative services for the world’s most recognized contemporary lifestyle brands, content creators, and designers.
To de!ne a contemporary lexicon of global design and creativity, and to promote the best products, experiences, and culture from around the world to the businesses and people of the greater China region.
•
MISSION STATEMENT
Sunday, June 8, 2014
AXIS is a brand management platform specializing in Fashion, Media, and Creative services; providing greater China market entry solutions for world class organizations, content
creators, and designers
our aim is to foster a vibrant and diverse Chinese culture through innovative high-quality products, high concept media experiences, and inspiring design; that enhances the image
and lifestyles of a new class of sophisticated and cultured Chinese organizations and individuals.
BRAND POSITIONING STATEMENT
Contemporary. Fashion, Media and Design
Sunday, June 8, 2014
Transcend the platform and services, with a powerful message to our client and consumer that creates a lasting EXPERIENCE in their minds that makes
AXIS synonymous with:
BRAND POSITIONINGCOMMUNICATIONS
CLIENT CONSUMER
TRUST • OPPORTUNITY • REFINED • CULTURE
Sunday, June 8, 2014
CORE CORPORATE CULTURE
PassionShaping culture through great Design and Media
content
Economic DriverInspiring projects for clients delivered in a timely fashion
for customers
What are we best at?
China Marketing and cultural sensitivity. Client, Customer,
and Government Relationships
•Trusted Client Relationships
•World-Class Design
•Intimate Customer Relationships
•Accurate Market Insights
•Engaged Customer Experiences
•Cultural Sensitivity
•Open and Transparent
•Global
We compete on Customer Intimacy and Design and Innovation
Sunday, June 8, 2014
CORPORATE STRUCTURE
AXIS FASHION LTD
AXIS ASIA LTD
AXIS MEDIA LTD
AXIS CREATIVE LTD
AXIS FASHION(Satellite)
AXIS MEDIA (Satellite)
AXIS CREATIVE (Satellite)
HONG KONG
CHINA(Satellite)
•Operating Investment Vehicle•China Investments held at Operating Level
•Independent P/L for each Department
•China Satellite co for each department
Sunday, June 8, 2014
A X I SCOMPANY STRUCTURE
100K
30K-50K
15K-25K
Collin ompsonStrategy
Brandon
LiawKit WongCommercial
A X I SFashion Brand Management
A X I SMedia
A X I SCreative Services
G e n e r a l M a n a g e r
A c c o u n t M a n a g e r
P r e s s M a n a g e r
Accountant/Admin
Comsec/Legal30K-50K
15K-25K
S a l e s M a n a g e r
G e n e r a l M a n a g e r
S a l e s M a n a g e r
P r e s s M a n a g e r
C o n t e n t M a n a g e r
G e n e r a l M a n a g e r
A c c o u n t M a n a g e r
S a l e s M a n a g e r
15K-25K
Sunday, June 8, 2014
SERVICES
AXIS FASHION LTD
AXIS MEDIA LTD
AXIS CREATIVE LTD
•Brand Management•Distribution•Retail Management•Press Management
•Branding•Advertising Design•Account Management•Film Production OEM•Mobile Ap Development•Animation ODM•Music Production Services•Artist management
•Localization•Hosting• AD Account Management
1 2 3
Sunday, June 8, 2014
RESOURCES
AXIS FASHION LTD
AXIS MEDIA LTD
AXIS CREATIVE LTD
MADETHOUGHT
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FASHION CORE BUSINESSProperty, W/S, E-Commerce
YEAR 1 YEAR 2 YEAR 4 YEAR 5YEAR 3
2 UnitsPROPERTY ➔ 5 Units
10 Accounts
8m RMB 12m RMB 20 RMB18m RMB
WHOLESALE
E-Commerce
➔ 7 Units
20 Accounts 30 Accounts 50 Accounts 80 Accounts
Sunday, June 8, 2014
China is BIG.
THE MARKET
e Market
But what are emerging the trends?
We all know
Sunday, June 8, 2014
THE MARKET
e Market
CULTURAL REVOLUTION
REDUXHu listed a number of prescriptions to help China catch up, including, "Cultivate a high degree of cultural awareness and cultural self-con!dence, improve the quality of the whole civilized nation, and enhance national cultural soft power."--CNNGo
President Hu Jintao has said China must strengthen its cultural production to defend against the West’s assault on the country’s culture and ideology, according to an essay in a Communist Party policy magazine published this week. The publication of Mr. Hu’s words signaled that a new major policy initiative announced in October would continue well into 2012. New York Times
A walk down any main street in a !rst or second tier Chinese city reveals how China's internet-savvy youth are fast-becoming fashion conscious and are adopting the hairstyle, clothes and musical tastes of their cutting-edge peers – in neighbouring South Korea, Taiwan and Japan--London Telegraph
Sunday, June 8, 2014
e Problem
OPPORTUNITY
CHINESE CONSUMERS are not getting the kind of luxury services renowned international chains would offer their customers overseas (SCMP January 12, 2012)
CHINA is not a single, homogenous market for luxury and is showing increasing signs of segmentation and differentiation, with consumers motivated by more diverse factors and seeking satisfaction in different ways. (KPMG 2011: China’s Luxury
Consumers: Moving up the curve)
an explosion of information on the internet, an increasing penchant for overseas travel, and !rst-hand experience purchasing and consuming luxury goods are contributing to a substantial rise in sophistication among luxury consumers in China. Contrary to popular belief, a growing number of Chinese luxury consumers are exhibiting a noticeable trend away from overt displays of wealth, and towards more understated forms of luxury consumption. (Mckinsey Report 2011: Understanding China’s
Growing love for Luxury)
THE CHINA MARKET is supply-driven, new store openings creates more demand (BAIN 2010: China Luxury Market Study)
Sunday, June 8, 2014
e Market
MARKET SIZE
Even in the global recession of 2009, luxury goods saw 16% sales growth. hitting US$ 10 billion.
2009
$10BGrowth of 16%
2015
$27B20% of Global market
e market is projected to grow 18% annually (YOY) hitting US$ 27 billion in 2015: 20% of the global luxury market
Sunday, June 8, 2014
e Market
MARKET SIZE
will account for over 20% of the global luxury market overtaking
as the world’s largest luxury goods consumer.
Sunday, June 8, 2014
e Market
MARKET SIZE
e World’s YOUNGEST luxurymarket with
In their 30’s
Sunday, June 8, 2014
e Market
MARKET SIZE
CHINA is the only country where
consume more luxury than
Sunday, June 8, 2014
e Market
MARKET SIZE
:
Where Men outspend Women
Sunday, June 8, 2014
e Market
MARKET SIZE
100 Million Luxury ConsumersIn 2010, Chinese men spent (US $1.1 billion) on their wardrobes, far more than the (US $450 million) spent by women.(Mckinsey Report 2011: Understanding China’s Growing love for Luxury)
Sunday, June 8, 2014
e Market
MARKET SIZE
100 Million Luxury Consumers
e average male luxury shopper in China is less than45 years old, educated, well-traveled and entrepreneurial.
(Mckinsey Report 2011: Understanding China’s Growing love for Luxury)
Sunday, June 8, 2014
THE PROBLEM
e Market
MARKET ENTRY?
CULTURAL DIVIDECUSTOMER LANDSCAPE
STRATEGY?
NASCENT MARKET
TRUSTRELATIONSHIPS?
INFRASTRUCTURE
Sunday, June 8, 2014
THE SOLUTION
e Market
ACCESS POINT
CULTURAL BRIDGECUSTOMER INTIMACY
MARKET INSIGHT
MARKET DEVELOPMENT
TRUSTRELATIONSHIP MANAGEMENT
CREATE INFRASTRUCTURE
Sunday, June 8, 2014
OUR VALUE
e Market
AXIS is your trusted brand partner in expanding internationally derived creative opportunities to a
burgeoning class of sophisticated, progressive Chinese organizations and consumers
Sunday, June 8, 2014
COMPETITION
e Market
International Culture
Local Culture
Old LuxuryChinaFocus
ContemporaryLifestyleChinaFocus
I.T
Sunday, June 8, 2014
PRICING
e Market
FASHION SERVICES
Luxury
Contemporary
Bridge
Moderate
Mass
International
Premium
Local
Value
Cheap
We only work with contemporary brands and International class designers and creatives. Service providers must adhere to a marketable
price range that may not be the same as their home territory
Sunday, June 8, 2014
FOCUS
e Market
CROSS CULTURALLY
ASIANINTERNATIONAL QUALITY
CHINAFOCUSED
Sunday, June 8, 2014
Age: 45-65 years old
Mandate: Build native Chinese cultural infrastructure to
enhance the profile of Chinese business and society
Hubs: Hong Kong, Shanghai, Beijing, Sanya,
Education: EMBA or Self Taught through reading
Connect: Major Domestic trade events, universities, and
through international fashion governing counsels
Need: Highly capable entrepreneurs to shape the Chinese
marketplace and to lead industries to a globally competitive
standard
Problem: Lack of capable cross cultural organizations and
leaders able to grow successful business that bring prestige to
the country by e!ectively competing on a global level
Opportunity: To provide a culturally sensitive global organization
that can bridge the divide between Chinese customs and
international markets.
TARGET INFLUENCER
e Market
GOVERNMENT OFFICIALS
Sunday, June 8, 2014
Domain: National governing trade bodies tier 1 countries in
fashion
Mandate: Expand trade opportunities and understanding of
national brands to the global marketplace
Hubs: London, New York, Paris, Copenhagen, Tokyo
Connect: Major International trade events, Hong Kong
Economic trade o"ces, and through personal connections
Need: High quality alliances and partnerships with trade bodies
in emerging markets
Problem: Lack of understanding of emerging markets and few
contacts that can provide trade opportunities with buyers in new
markets
Opportunity: To provide a culturally sensitive global organization
that can bridge the divide between Chinese buying behaviours
and international brands
TARGET INFLUENCER
e Market
NATIONAL FASHION ASSOCIATIONS
Sunday, June 8, 2014
Company Turnover: 200-800m RMB
Focus: Retail Property development and Management, Real
Estate Speculation, Ownership in companies/sale
Invests: Undervalued or newly acquired government lands
Hubs: Hong Kong, Shanghai, Beijing, Hangzhou
Need: Fill existing or planned structures with viable tenants
that di!erentiate their o!erings from competitors
Problem: lack of access to contemporary international
brands, lack of knowledge in managing/educating
consumers about brands, driving foot tra"c to locations
based on their tenant o!ering
Risk: brand erosion for clients based on poor locations and low
foot tra"c. Lack of understanding in managing brands and their
customers, cultural divide with key management
Opportunity: Source relevant brands that fit customer profile,
provide customer with the knowledge and people to manage
brands, ensure the proper markeing mix to create demand and
drive foot tra"c.
Connect: Major International trade events, Hong Kong Economic
trade o"ces, and through personal connections
TARGET CUSTOMER
e Market
PROPERTY DEVELOPERS
Sunday, June 8, 2014
Age: 35-60 years old
Marital Status: Married
Orientation: heterosexual
Life Choice: Successful Entrepreneur
Wealth Created: Manufacturing, Property, Tech, Media
Ownership in companies/sale, Investment ROI
Net Worth: UHNWI--30m USD+
Invests: Unlisted companies, Stock, Art
Hubs: Hong Kong, Shanghai, Singapore, Beijing, Sanya,
Education: EMBA or Self Taught through reading
Travel: Frequently for business, 20 days for pleasure
Shopping Destination: Hong Kong
Smart Phone: HTC, Samsung
Collects: Watches: Audemaurs Piguet, Rolex-- Classical
Paintings: Calligraphy--Cars: Ferrari, Bentley, Mercedes
Sport: Golf
Drinks: Red wine, Whisky
Hotel: Ritz Carlton, Four Seasons, Mandarin Oriental
Internet: Sina.com, sohu.com, Tencent
Liesure: Travel, Drinking tea, reading
TARGET CUSTOMER
THE ENTREPRENEUR
e Market
Sunday, June 8, 2014
MARKET LANDSCAPE
e Market
$Sunday, June 8, 2014
e Market
TARGET CONSUMER
Ethnically Chinese and culturally GLOBAL.
Sunday, June 8, 2014
Age: 25-40 years old
Marital Status: Mixed
Orientation: Predominantly heterosexual
Life Choice: Entrepreneur, Banker, Restauranteur, Architect
Hubs: NYC, London, Hong Kong, Los Angeles, Paris,
Shanghai, Singapore, Beijing, Jakarta, Berlin
Education: University Overseas (USA, UK)
Travel: Frequently for business, moderately for pleasure
Music: JayZ, kanye West, Hotchip, Kitsune
Smart Phone: HTC, iPhone for personal
Social Media: Twitter, Facebook, Weibo
Restaurant: Whatever’s new and untried
Hotel: Soho House, Aman, Four Seasons, Opposit House
Books: Anything by Malcolm Gladwell and Daniel Goleman
Movie: Blade Runner, The Matrix, Jean Luc Godard
Magazine: Businessweek, Creative Review, AnOther, Arena
Homme, Huge, Dazed, I-D, GQ, The Economist
Gadget: Canon S100, iPad
OPPORTUNITYMALE TARGET CONSUMER
LITTLE EMPEROR
e Market
Sunday, June 8, 2014
Age: 20-35 years old
Marital Status: Mixed
Orientation: Predominantly heterosexual
Life Choice: Entrepreneur, Editor, Photographer, Marketing Director
Hubs: NYC, London, Hong Kong, Los Angeles, Paris, Shanghai,
Singapore, Beijing
Education: University or Above (USA, UK)
Travel: for business, personal escapes, and new experiences
Music: Lykke Li, Santogold, La Roux, Yelle, U"e
Smart Phone: iPhone
Social Media: Twitter, Facebook, Whatsapp, Instagram, Weibo
Restaurant: Whatever’s new and untried, with Friends
Hotel: W hotels, Soho House, Aman, Upper House, Opposite House
Books: Personal improvement
Movie: Midnight in Paris, Tree of Life
Magazine: Monocle, Creative Review, Vogue, Elle Decor, Vanity Fair
Gadget: Canon S100, iPad
OPPORTUNITYFEMALE TARGET CONSUMER
LITTLE EMPRESS
e Market
Sunday, June 8, 2014
INFLUENCERCultural Opinion Leaders
NETWORK SCALE“Pollinators”
NETWORK EFFECT MARKETINGTARGET INFLUENCERS
High Social Network Potential
Trustworthy
Credible, Real
Peer-to-Peer In!uence
High Public Visibility
Recognized Leader
Strong Community Pro"le
Strategy
Sunday, June 8, 2014
THE NEW WAVE
e Market
I want to make a mark, create my own future. I have my own values.
Background: Successful entrepreneurs in their own right. ey come from wealthy families, were educated overseas, and have returned “home”. ey love luxury but are not slaves to brands; they are experienced luxury consumers.
ey are Global, speak English and understand luxury as a lifestyle of choice and discernment.
Motivation: ey associate themselves with a sophisticated group of international and stylish people. ey want to differentiate themselves from super!cial show-off attitudes.
Habits: ey mix established brands with niche brands to create their individual style as long as it !ts into the peer group. ey tend to be creative, intrepid and entrepreneurial.
Modern China Luxury
Sunday, June 8, 2014
Emphasizing the drama and theatre of the AXIS brand experience. An unconscious space that becomes real through cultural relevance, and clean—
resonant design
SHOWROOM PLATFORMFLAGSHIP CONCEPT
(EXPERIENCE)
Experience
Sunday, June 8, 2014
SHOWROOM EXPERIENCEDESIGN MOOD-BOARD
!"#$%&'("%$)#$&*##+,#-$+
Experience
Sunday, June 8, 2014
SHOWROOM VENUE(The Space)
Experience
Sunday, June 8, 2014
SHOWROOM VENUE(The Space)
Experience
Sunday, June 8, 2014
SHOWROOM VENUE(The Space)
Experience
Sunday, June 8, 2014
SHOWROOM VENUE(The Space)
Experience
Sunday, June 8, 2014
SHOWROOM VENUE(The Space)
Experience
Sunday, June 8, 2014
SHOWROOM VENUE(The Space)
Experience
This is a build out reference
Sunday, June 8, 2014
SHOWROOM VENUE(The Space)
Experience
This is a build out reference
Sunday, June 8, 2014
SHOWROOM VENUE(The Space)
Experience
This is a build out reference with sizing details
Sunday, June 8, 2014
Imagine a warm and inviting, yet cool, boutique character hotel, and the feeling one gets when entering the foyer. An environment congruent to a sophisticated, progressive,
individual or couple.
SHOWROOM PLATFORMCONCEPT
(EXPERIENCE)
Experience
Sunday, June 8, 2014
Synthesize this experience with the spatial essence of a contemporary art gallery— without the pretense. A space that focuses on the cultural relevance to its patrons as
opposed to the lofty paradigms of art movements, aesthetics, and demagoguery.
SHOWROOM PLATFORM CONCEPT
(EXPERIENCE)
Experience
Sunday, June 8, 2014
Fusing this experience with the effortless cool of a modern speakeasy. A lounge !lled with the ambient syncopated sounds of cutting-edge music that inspires and doesn’t disrupt the
conversation
SHOWROOM PLATFORM CONCEPT
(EXPERIENCE)
Experience
Sunday, June 8, 2014
The "ash of a large LED screen emanating visuals of nostalgic noir-esque movies from yester-year provides a backdrop that enhances the experience
without distraction.
SHOWROOM PLATFORMCONCEPT
(EXPERIENCE)
Experience
Sunday, June 8, 2014
An experience that is layered, deep, and innocuous. This is an environment where people come for the conversation, to see what’s new, because they feel like they have a place where they !nally
belong.
SHOWROOM PLATFORMCONCEPT
(EXPERIENCE)
Experience
Sunday, June 8, 2014
Our products innocuously populate the space as !xtures and accents; interspersed through a well-curated selection of music, books, and !lms,
completing the environment as a whole without over powering the totality of the encounter.
The space is organized for coherence as opposed to sensationalism, and presented to express the clarity of a holistic lifestyle and identity.
SHOWROOM PLATFORM CONCEPT
(EXPERIENCE)
Experience
Sunday, June 8, 2014
Bold and mystical like an untravelled road that leads to a new world where people are different, yet welcoming at the same time
CONTEMPORARYNEW
Sunday, June 8, 2014
Inspired by the best of global culture from major world capitals
GLOBALCULTURE
Sunday, June 8, 2014
• Aimed to enhance the image and lifestyles of a new class of modern,global, cultured, Chinese organizations and individuals
LIFESTYLEREFINEMENT
Sunday, June 8, 2014
SHAREHOLDER
D’Tention by limited
D’Tention by limited
Intrepid & Company limited
OWNER
Kit Wong
Brandon Liaw
Collin Thompson
SHARES
40
30
30
%
50%
30%
20%
RIGHTS
COMMON VOTING
COMMON VOTING
AXIS
CORPORATE STRUCTURE
COMMON VOTING
Sunday, June 8, 2014
Common Shares are directly issued to [Limited partners] and would result in the following shareholding structure (fully-diluted):
SHAREHOLDER
Axis Management Group Limited
NOMINATED INVESTOR VEHICLE
OWNER
Kit Wong, Brandon Liaw, Collin Thompson
INVESTOR
SHARES
40
60
%
40%
60%
RIGHTS
COMMON VOTING
PREFERRED NON-VOTING
CIPHER International Limited
INVESTMENT PROPOSALPOST MONEY STRUCTURE
Sunday, June 8, 2014
Investment Proposal
AXIS together with its subsidiaries and af!liates
This sheet summarizes the key terms of the investment in “AXIS” (together with its subsidiaries and af!liates, “Company”) with the intent of developing the Company into a leading international Fashion and media conglomerate.
The terms stated herein are not exhaustive. The Common Shares are directly issued by the Company.
The terms below are subject to further negotiation and !nal shareholder(s), board of directors and if any, regulatory approvals and a legally binding agreement.
$20,000,000 RMB equity !nancing
Investment capital to be utilized according to the Company’s Business Plan duly approved by the Board of Directors of the Company and the incoming Limited Partners
Company
Financing
Purpose
Sunday, June 8, 2014
3 Arbuthnot Road, 22/F Universal Trade Centre, Central, Hong Kong
Private and Con!dential
Business Plan
2013-2018
Fashion | Media | Creative
Sunday, June 8, 2014