Download - China International Fashion Distribution and Brand Management Business Plan

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


• 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


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


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


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


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


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



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


A c c o u n t M a n a g e r


15K-25K


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


RESOURCES

AXIS FASHION LTD

AXIS MEDIA LTD

AXIS CREATIVE LTD

MADETHOUGHT


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


China is BIG.

THE MARKET

e Market

But what are emerging the trends?

We all know


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


http://topics.nytimes.com/top/reference/timestopics/people/h/hu_jintao/index.html?inline=nyt-per

http://topics.nytimes.com/top/reference/timestopics/people/h/hu_jintao/index.html?inline=nyt-per

http://topics.nytimes.com/top/news/international/countriesandterritories/china/index.html?inline=nyt-geo

http://topics.nytimes.com/top/news/international/countriesandterritories/china/index.html?inline=nyt-geo

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)


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


e Market

MARKET SIZE

will account for over 20% of the global luxury market overtaking

as the world’s largest luxury goods consumer.


e Market

MARKET SIZE

e World’s YOUNGEST luxurymarket with

In their 30’s


e Market

MARKET SIZE

CHINA is the only country where

consume more luxury than


e Market

MARKET SIZE

:

Where Men outspend Women


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)


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)


THE PROBLEM

e Market

MARKET ENTRY?

CULTURAL DIVIDECUSTOMER LANDSCAPE

STRATEGY?

NASCENT MARKET

TRUSTRELATIONSHIPS?

INFRASTRUCTURE


THE SOLUTION

e Market

ACCESS POINT

CULTURAL BRIDGECUSTOMER INTIMACY

MARKET INSIGHT

MARKET DEVELOPMENT

TRUSTRELATIONSHIP MANAGEMENT

CREATE INFRASTRUCTURE


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


COMPETITION

e Market

International Culture

Local Culture

Old LuxuryChinaFocus

ContemporaryLifestyleChinaFocus

I.T


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


FOCUS

e Market

CROSS CULTURALLY

ASIANINTERNATIONAL QUALITY

CHINAFOCUSED


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


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


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



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


MARKET LANDSCAPE

e Market

$Sunday, June 8, 2014

e Market

TARGET CONSUMER

Ethnically Chinese and culturally GLOBAL.



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



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


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


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


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


SHOWROOM EXPERIENCEDESIGN MOOD-BOARD

!"#$%&'("%$)#$&*##+,#-$+

Experience


SHOWROOM VENUE(The Space)

Experience



Experience

This is a build out reference



Experience

This is a build out reference with sizing details


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


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


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


(EXPERIENCE)

Experience


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.


(EXPERIENCE)

Experience


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.


(EXPERIENCE)

Experience


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.


(EXPERIENCE)

Experience


Bold and mystical like an untravelled road that leads to a new world where people are different, yet welcoming at the same time

CONTEMPORARYNEW


Inspired by the best of global culture from major world capitals

GLOBALCULTURE


• Aimed to enhance the image and lifestyles of a new class of modern,global, cultured, Chinese organizations and individuals

LIFESTYLEREFINEMENT


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


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


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


3 Arbuthnot Road, 22/F Universal Trade Centre, Central, Hong Kong

Private and Con!dential

Business Plan

2013-2018

Fashion | Media | Creative


Download - China International Fashion Distribution and Brand Management Business Plan

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