ChemAmore beauty project

ChemAmore beauty project

Project Cost: USD70k-100k

Amount Invested : USD 10k

Amount Required : USD70k-100k

Knowledge / Experience Required: n/a

Proposed Investor’s Role: as mentor

Industry:
manufacturing
consumer goods

Project Stage:
seed
start-up

EXECUTIVE SUMMARY:

Company History: Founder: Chung Yueh Chyn
JPA scholar
Northwestern University, BA Chemistry

Product / Service Description:

ChemAmore is a brand that manufactures, markets and sells beauty products in skin care, makeup, fragrance and hair care categories. ChemAmore’s distinctive innovation lies in producing hybrid products that combine functions from different categories like skin care and makeup to increase convenience and effectiveness of use to consumers.

Our skin care line improves skin from within and without. It nourishes skin and replenishes it with vital food for a healthy complexion. On top of that, our skin care products also have an instantaneous cosmetic effect to improve skin complexion upon application. ChemAmore brings unbelievable results to hybrid personal care. Beauty lies in simplicity.

Business Opportunity:

The latest market research from Lucintel, “Global Beauty Care Products Industry 2012-2017: Trend, Profit, and Forecast Analysis,” projects that the beauty industry, taking into account skincare, sunscreens, hair care, color cosmetics and fragrance, could reach around $265 billion by 2017 and that the industry will grow at a CAGR of 3.4% over the next five years. According to this research, growth will be driven by rising consumer incomes and changing lifestyles, with increasing demand coming from Europe and Asia Pacific region.

Another highlight from this report is premium cosmetics has outperformed mass cosmetics across Western Europe, North America, and Asia Pacific in 2011, growing at 4.7%.

This report also highlights skincare as the largest product category, followed by hair care. Highlights on hair care segment include rising demand for multi-feature products such as moisturizing cream with sun protection and hair dyes with more dramatic effects.

In terms of geographical region, emerging markets, especially in the Asia Pacific region, has generated $21 billion of incremental retail value in 2011. Throughout 2010, skincare was the most significant segment, with 23% of the market share driven by Asian markets. Two-thirds of skin care sales are facial care sales, and the rest goes to hand and body care and sun care. A particularly important trend in Asian skin care markets is the role of skin-whitening products. In India, for example, over 80% of face creams have whitening functionality.

Revenue Model:

Establish relationship with key distributors and retailers in local regions
Expand operation in the luxury retail space to other geographical regions like Singapore, Taiwan, Europe and USA where prestige beauty has been growing fast and is expected to be the drivers of sales growth in the future

More effective management of brand and portfolios of products that innovatively cater to the diverse demands and buying patterns of consumers, including shifts to higher-margin product categories
Open a brick-and-mortar store to utilize an important sales channel that cater to the way most people shop in malls

More investment in brand building through advertisements, particularly TV ads that have a wider and more effective consumer reach, especially in regions that are still not heavily connected to the internet

Outsourcing production to contract manufacturers to improve efficiency and production rate of inventories to align with sales expansion
Secure venture capital investment to support current and future ambitious sales and production plans

Management Team:

Main founder is Chung Yueh Chyn, a Northwestern University graduate with a BA in Chemistry. A former JPA scholar, Miss Chung has a background in Chemistry and is capable of formulating new products and researching new ingredients and techniques to incorporate into production. She is also methodical and organized and can handle operations including hiring, training, scheduling, inventory management, procurement, design, and packaging. She can also perform webpage design and can utilize her managerial capability to align production activity with e-commerce activity.

Current Status:

Prototype made. Procuring seed investment.

Funding Milestone:

Currently only seeking seed investment to develop products and advertise brand. Subsequent expansion will rely on venture capital.

Business Valuation:

Valuation will be determined with serious discussion with investor.

Expected Return On Investment:

Investor’s Return on Investment = (Capital Invested/Revenue) x Net profit
Example: If an angel invests $100 000 in Year 1, then in Year 2, his return will be (100000/350375) x 159875 = $45630 (45.6% ROI). If the sum is reinvested into Year 3, his return will be (100000/ 825937.5) x 247799.5 = $30 002(30% ROI). (100000/1500000) x 699773 = $46 652(46.7% ROI). Cumulative ROI in 3-year period is 122.3%.

Investment Risk and Mitigation:

The common challenge for beauty care manufacturers is to provide quality products at a low cost and with sustainable environmental impact. . To reduce risks associated with start-up operations, a few strategic efforts will be made. Among them are low initial investments in capital, high initial investments in marketing and branding, constant product innovation, quick response to market demand, clear brand association with specific values and standards, personalized customer experience and relationship and brand entry into different geographical regions.

Exit Strategies:

IPO, or competitor buyout

CONTACT INFORMATION

Jeannie Chung ( yuehchung2012@u.northwestern.edu)
Company Name: ChemAmore
Postal Address : Mont Kiara
State : Kuala Lumpur
Post Code :
Country : Malaysia
Telephone : 016-6927389
Website : N/A
Mobile: 016-6927389

 

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