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Smart labels production

Ukraine, Poltava region
Market: Production, Electronics, Another
Stage of the project: Prototype or product is ready

Date of last change: 11.06.2018
Min investment
$  30.000
1
Total required
$ 40.500
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Idea

Making production line for EAS RF and RFID smart labels in Ukraine.

Current Status

EAS (Electronic Article Surveillance) - the technology of triggering an alarm signal on secret electronic tags, has proven itself as a way to reduce losses from thefts in stores. EAS technologies ensure the security of buildings, entrances, exits, passageways and confined spaces by signaling a hazard at a time when items protected by EAS labels / tags are swept past the anti-theft equipment that detects them.
RFID (Radio Frequency Identification) radio frequency identification, RFID is: the use of microchips to identify goods and other objects, simplifies control in the supply system.
The technology of production has been worked out and tested.
The producers are found: main (Ukraine) and auxiliary (Turkey) materials, missing equipment (China). The whole complex of negotiations on the supply of materials and the acquisition of equipment was carried out.
As of today, a prototype has been manufactured. In the warehouse there is prepared for further production the main material and raw materials for production of about 500 thousand pieces labels. Labels EAS and RFID have much in common both in ideological and in technical aspects, therefore the second stage is reasonable works - master the production of RFID labels.

Market

Everyone who has ever bought anything in a supermarket or a store has encountered EAS labels. These are the labels that make themselves felt if the item was stolen and "did not pass" through the cash register of the store. Recently, labels have appeared even on sausage and cheese, which gives an additional volume for an already huge market. The number of labels necessary for Ukraine is being scraped by tens of millions. The EU market also consumes (from different sources) 1 to 2.5 billion labels per month. But since the EU has its largest label manufacturer in the world, and in Ukraine labels are imported exclusively from China. That is because they has low price, but the quality of which not so good (the consumer buys labels without knowing what from the labels will work correctly). The Ukrainian market is a priority. Moreover, by all accounts we will be able to sell labels at their purchase price in China. And the EU market can be considered as a development prospect, especially since it is already possible to arrange deliveries to Germany and Slovakia.
There is also a large global market for RFID labels: it allows for the tracking and control of the progress, up to each unit, of the goods from the manufacturer through the warehouses to the end user, this is the passage of RFID cards through the turnstiles of passenger transport with the possibility of replenishing money on them and much, much more.

Problem or Opportunity

The consumer, being in the same state, in the same legal field with the manufacturer, in case of receiving poor quality products, can operatively influence it by means of complaints and return of poor-quality products, demanding compensation for damages, thereby encouraging the manufacturer to produce only quality products and work on improving it. This gives the opportunity to provide potential customers with the best product on more favorable terms. Fast and logistically more correct deliveries do not leave competitors with chances.

Solution (product or service)

The acquisition of the necessary equipment will allow the production of labels on an industrial scale.

Competitors

In Ukraine are used only labels produced in China because they has low price. Analysis of Chinese labels showed 5 - 20% of defective labels in total.
In laboratory conditions, on imperfect equipment, we obtained labels with 8 percent of the marriage.

Advantages or differentiators

A small percentage of the marriage and the ability of the consumer to promptly affect the quality of products through returns and complaints.
Location and quick response to market demands.

Finance

The investment is necessary for the project to purchase the equipment missing in the production cycle. Now, prototypes are obtained on laboratory equipment with low productivity. The total profitability will allow to make settlements with a potential investor in the shortest possible time and, in parallel, to increase production volumes, increasing production.

Business model

There is a fully prepared Business Plan with all the calculations. About him at the meeting.

Money will be spent on

Investments are necessary for completing the equipment needed to complete a full production cycle on an industrial scale from 1.5 to 3 million labels per month.
Description and business plan for the real investor.

Offer for investor

Return of 80%, invested funds, every year for 2 years. As a result, the investor will receive a full refund, invested funds, plus 60% of income for two years or 10,500 more than for the same period from the deposit in banks of Ukraine.

Risks

The market for labels is so great, and the cost of producing products below the price of supplier-competitors reduces all risks to "0".
The tried and tested manufacturing technology and prototypes, which are available, will allow to start production immediately after installation of the equipment on ready-to-use raw materials without delays.

Incubation/Acceleration programs accomplishment

There are no direct competitors and a large market for the sale of finished products. There is no need for preliminary startup programs. Take it and start production!

Won the competition and other awards

Founder Space incubator competitions

Invention/Patent

Ready for production technology, independently studied and tested on the materials of the study of samples by the Kiev Institute of Metal Physics and the National Technical University "Kharkiv Polytechnic Institute."

Product Video

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