Magic Umbrella Cover

the guardians

The Pain

• 174 Rainy days a year

• Wet umbrellas!

– Sticking them into covers

– Messing up your bag and homework

Solving The Problem

• Modify Umbrella Cover to make it…

– Hassle free

– Drip free

• While…

– Keeping it functional

– Compact & convenient

– Not making look “weird”

Prototype 1

Prototype 2

Unconvinced that water will not seep through

Final Prototype

Nylon coverPlastic layerChamois

Our Solution

• No more drips!

– Synthetic Chamois layer• Absorbs water in greater quantity and speed

• Tough, so no more accidental tears or shreds

• Hassle Free!

– Wrap-around Design• No more squeezing or “fighting” your umbrella

• Seals water within the cover

– Velcro Linings• No more fiddling with zips

Our First Chance

LEXICAL Pte Ltd as a corporate gift

Our First Shop

eBay Singapore

Our first SALE!

• Saturday Afternoon!– Informal Survey Session around school area 2 prototypes

• Monday Night!– Friends 8 pre-orders

– Neighbors & Family 11 pre-orders

• Total so far: 21 sold!

Market Research

Manufacturer Woes:– Unable to find a manufacturer

– Umbrella traders unable to customize covers

• Short-term Solution:– Utilize a corporate gifts company

• Long-term Solution:– Approach overseas manufacturers directly

Market Research

Competitor Landscape:– Biggest Competitor: Plastic Bags– Easy to replicate design

• Short-term Solution:– Make it very difficult for new entrants– Bank on low profit margins + large volume

• Long-term Solution:– Good Customer + Vendor relationship

Finances

• To produce an initial 500 at $8 each– Total Cost = $4000– Operating Cost = $0 (Group will self manage without salary)

• Raising the money, 2 options:– Self-raise

• Group members split the $4000 bill amongst ourselves

– GE Money : ezycash• Small loans to cover production• Repay loan with interest• Any leftover revenue will be profit

Revenue & Profit Plan

Low Profit Margins, High Retail Volume

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Retail Price

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Misc Cost

Keeping Expenses Low

• Operation & Logistics

– Operate as a re-seller, not a manufacturer

– Rent, not purchase transport vehicles

• Product Design

– Offer temp jobs to aspiring designers in Polytechnics, NAFA or any other art school

– “Buy” good designs at $50 per design

Sustainable Competitive Advantage

• Good material quality and design

• Easy Customizing

– Different designs

• Multiple markets, shops

• Different Seasons or promotional events

• Developing and maintaining good relationship between our clients and vendors

Original, Creative and Innovative

• Merged new development with a traditional set-piece

– Synthetic chamois to absorb any water

• Completely new approach to covering an umbrella

– Wrap the umbrella like burrito

Why invest?

• Initial start up cost is low,

– No machines or expensive moulds required

– Materials are easily available and cheap

– No complicated supply chain required

• Big, untouched market

– Rain is a big problem in Singapore

– Almost everyone has at least an umbrella

– No near substitutes with similar functionality

Why invest?

• Returns on Investment

– Our offer:• Loan us an amount to cover production cost for contracts

• Re-pay with 10% interest

• +5% of profit made

• All within 3 months

• Low Risk

– Retail strategy discourages new entrants

– Good response from real buyers and clients so far

Why invest?

• Recent Development

– Cost to produce cover down to $2 ($1.50 for workmanship, $0.50 for material)

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with umbrella (amphasis design) with umbrella (tailor) with umbrella (machine)

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Why invest?

• Recent Development

– Cost to produce cover down to $2 ($1.50 for workmanship, $0.50 for material)

$0

$1

$2

$3

$4

cover (amphasis design) cover (tailor) cover (machine)

Retail Price

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Profit

Q & A