Photo - Home decor
30898

Home decor

Ukraine, Kyiv city
Market: Culture, art, Trade
Stage of the project: Prototype or product is ready

Date of last change: 09.08.2018
Min investment
$  350.000
0
Total required
$ 700.000
Rating
equalizer 72 из 1000
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Idea

Project in the market segment of niche articles of home décor. On-line store of interior design items with unique range (modern design, large full scale and floor décor). Stable stock availability and guaranteed 48 hours product delivery on all European Union territory. Creation of off-line stores franchise network.

Current Status

Taking into account project unicity and absence of direct competitors, launch of test prototype is non-rational. Testing of web-site beta version requires full-scale, filled with unique content, multilanguage site with mass targeting for the territory of few European countries.
Project launch is split in 3 key stages, thus requires investments split in few parts as well:

1) On territory of Ukraine, allowing to essentially optimize resources in terms of fixed assets, advertising content, web-design, alfa/beta testing of on-line store. Sales on territory of Ukraine as well.
2) Launch on EU territory. This stage is aimed for set up, testing and tuning of B2C sales channels. Identify priority country markets for product promotion and set up B2B communication scheme.
3) Growth of sales volume, average bill amount increase. Items range extension, optimization of fixed costs. New markets penetration.

Market

Market is continually growing, share of European home décor segment (DIY home décor) in 2017 comprised 3,7 billion euro, demonstrating a total growth of 3,5 % compared to 2016. Market share of Europe DIY home décor leaders, which are Germany, France and Great Britain remains stable for few years in a row with 50% respectively. Reason for absence of direct competitors in our niche segment has to do with specifics of décor market segmentation, which forces large agents (IKEA, Zara Home) to focus on large niche of pricing segment “medium minus”. While small agents of home décor market position themselves as multibrand platforms of premium products in pricing segment “medium plus”.

Problem or Opportunity

Target audience needs:
No one will be surprised to discover that mass market trend has lost its significance in the modern world. Everyone is headed towards standing out, individual style choice and self-expression. It does not have to do only with clothes style, personal look, car choice…Same trend appears on demand side of décor market. At the same time most of décor agents offer mass market products only.
Target audience:
Men and women, aged 28-50, with higher education, individualistic approach and average income medium/medium+ (starting from 3000 Euro), active internet and social networks users. Inclined to self-expression, prefer stylish and modern clothes/shoes/accessories, trace modern fashion tendencies, are owners of medium/medium + price segment automobiles, travel for tourism purpose few times per year. While making a purchase pay special attention to modern style, choose creative solutions, prefer niche products and brands to mass market. They value high product quality, it’s important for them to choose from wide product range. They analyze competitors’ offers prior to purchase, pick products of pricing category medium/medium +, value their time and often buy on-line.

Solution (product or service)

Offer for target audience:
Creation of market offer based on the request of target audience. Launch of the new trade mark, which has a wide range of various décor items, helping to create individual style – offering variety of creative, exclusive and modern items of home décor for individualists. Niche product of high quality and wide assortment made of different materials in variety of design solutions and forms brings a unique opportunity to enrich your home interior with stylish items.

Competitors

In this niche market segment we are facing only indirect competitors, which can be categorized according to the following 3 types:
-small off-line stores with narrow product range within high pricing category;
-small on-line stores which often place their offers on online market platforms, but rarely have products available, and either work on prepaid order basis or specialize on market demand researches;
-large and medium size agents of décor and furniture market, which might have partially style wise and price wise overlapping positions vs. our assortment, but which, however, are targeting average customer. Thus, due to essential sales volumes of mass-market standard products, these market agents are not focusing on the personalized approach.
Good example is German company Kare (http://www.kare.de), which offers wide but poorly segmented range of décor, upholstery and cabinet furniture and household equipment capturing all existing styles in a wide price range. Our project, on the other hand, is focused on a narrower market niche, where customers demand is precisely clear with defined parameters and characteristics.

Advantages or differentiators

Contrary to the mass-market agents, were are not trying to cover all segments of enormous home décor market with our offer, our projects focuses on the clearly defined niche of this market.
Our offer is meant to satisfy demand of the target audience with specified requirements regarding home décor items and service, namely:
-individual style;
-modern tendencies alignment;
-full size of décor items;
-widest product range within niche segment;
-5 material types (metal, wood, plastic, rubber, glass);
-product availability on stock;
-48 hours delivery.
Having short reaction time regarding new trends, we will be one of the leaders in terms of new products offer to the market.

Finance

1st stage (period-6 month, investment-250000usd): On territory of Ukraine, allowing to essentially optimize resources in terms of fixed assets, advertizing content, web-design, alfa/beta testing of on-line store. Sales on territory of Ukraine as well.
2st stage (period-6 month, investment-350000usd): Launch on EU territory. This stage is aimed for set up, testing and tuning of B2C sales channels. Identify priority country markets for product promotion and set up B2B communication scheme.
3st stage (period-12 month):Growth of sales volume, average bill amount increase. Items range extention, optimization of fixed costs. New markets penetration.

Money will be spent on

1st stage (period-6 month, investment-250000usd): On territory of Ukraine, allowing to essentially optimize resources in terms of fixed assets, advertizing content, web-design, alfa/beta testing of on-line store. Sales on territory of Ukraine as well.
2st stage (period-6 month, investment-350000usd): Launch on EU territory. This stage is aimed for set up, testing and tuning of B2C sales channels. Identify priority country markets for product promotion and set up B2B communication scheme.
3st stage (period-12 month):Growth of sales volume, average bill amount increase. Items range extention, optimization of fixed costs. New markets penetration.

Team or Management

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Idea
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