GOGGUV – a trendy women’s clothing boutique e-commerce by Arcnoid Technologies Sdn. Bhd

GOGGUV – a trendy women’s clothing boutique e-commerce by Arcnoid Technologies Sdn. Bhd

Project Cost: RM5,000,000

Amount Invested : RM80,000

Amount Required : RM5,000,000

Knowledge / Experience Required:
general management
strategy
finance
sale & marketing

Proposed Investor’s Role:
as mentor
as consultant

Project Stage:
early expansion

EXECUTIVE SUMMARY:

Business Opportunity:

Gogguv is a brand owned by Arcnoid Technologies Sdn. Bhd. a leader in retail and E-Commerce business ventures. Gogguv is a trendy women’s clothing boutique that opens in January 2014. Gogguv approach to retail and e-commerce is to provide a sophisticated boutique experience for on-line customers. Gogguv positions it to cater for trendy urban lady professional in the mid-to-high income bracket. Gogguv’s niche fashion product focus allows the company to provide sophisticated fashion trends and designs to customers at an affordable price.

Furthermore, Gogguv will invest in strong customer relationships by hiring knowledgeable fashion advisors; provide bespoke design services and customer care center to cater to customer’s needs. Gogguv’s retail outlets and e-commerce store carries the right mix of product designs serving a wide range of sizes, colors and styles. This strategy allows the company to focus on enhancing Gogguv brand appeal and brand experience that will drive customers to both the retail and e-commerce store.

Revenue Model:

To achieve the projected revenues, Gogguv is requesting an investment of RM 5.2 million from investors. During the 5 year period 80% of the revenues will be generated from the retail outlets and 20% from the E-Commerce store. To achieve this Gogguv is planning to open 12 retail outlets, with 4 outlets each year in the first three years. The average sales from each outlet in the 5 year period is estimated at RM650,000/year/store. The average sale from the E-Commerce store for the same period is RM 1.6 million. The management team at Gogguv is proposing that the investment can be disbursed in 3 phases as follows:-

• Investment Round 1 – During Start-up : RM 2.6 million
• Investment Round 2 – Beginning of Year 2: RM1.3 million
• Investment Round 3 – Beginning of Year 3: RM 1.3 million

Described below is the summary of the proposed plan on how this investment will be allocated. Refer to Table 1 for a detailed breakdown of the requested investment.

Management Team:

With over 12 years’ experience in marketing and retail, owner Shastri Pillay has gathered the expertise to complement and grow the business. Our advisory team holds expertise in retail accounting, retail merchandising, legal contracts, fashion and design. A detailed project plan has been created and all tasks are on schedule. Buying for the opening season was completed in October, and store design and marketing elements are currently being finalized.

Current Status:

This business plan will be used for three purposes:
• To map out all the necessary components to create a successful and well-run e-commerce store
• To provide management with a blueprint to follow
• To secure financing through private institutions and investors

The Start-up table which follows details the start-up requirements, including start-up inventory, Long-term Assets in the form of fixtures and equipment and web development cost for the e-commerce store. Start-up funding consists largely of owner investment and a long-term loan and funding from private investors. The Start-up period for this plan runs from October 2013 through January 2014. Gogguv opens on December 1 2013, and the management team projects real sales beginning in January 2014 of Year 1.

Funding Milestone:

To achieve the projected revenues, Gogguv is requesting an investment of RM 5.2 million from investors. During the 5 year period 80% of the revenues will be generated from the retail outlets and 20% from the E-Commerce store. To achieve this Gogguv is planning to open 12 retail outlets, with 4 outlets each year in the first three years. The average sales from each outlet in the 5 year period is estimated at RM650,000/year/store. The average sale from the E-Commerce store for the same period is RM 1.6 million. The management team at Gogguv is proposing that the investment can be disbursed in 3 phases as follows:-

• Investment Round 1 – During Start-up : RM 2.6 million
• Investment Round 2 – Beginning of Year 2: RM1.3 million
• Investment Round 3 – Beginning of Year 3: RM 1.3 million

Business Valuation: 10%

Expected Return On Investment: 5 Years

Investment Risk and Mitigation:

Exit Strategies: Sell of the share at current Market Value

CONTACT INFORMATION

SHASTRI PILLAY ( shastri@arcnoid.com)
Company Name: ARCNOID TECHNOLOGIES SDN BHD
Postal Address : B801 KELANA SQUARE,
NO.17 JALAN SS7/26,
KELANA JAYA, PETALING JAYA
State : SELANGOR
Post Code : 47301
Country : MALAYSIA
Telephone : 60162132158
Website : http://www.gogguv.com
Mobile: 60162132158

 

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