sample business plan for a fashion distribution company based in Beijing, that was designed for a client who was interested in bringing cutting edge fashion brands to China
2. AXIS is committed to fostering a vibrant and diverse global platform for innovative
high-quality brands, high concept media experiences, and inspiring design that
enhances the environment, lives, and culture for the people and landscape of China.
We seek to share our economic success by promoting, and being at the vanguard of
fashion, music, photography, art and design, film, internet communications, and
expanding this through memorable experiences that leaves and indelible mark on
Chinese culture.
VISION STATEMENT
Sunday, June 8, 2014
3. • To be a world class China market entry platform in fashion, media, and creative services for
the world’s most recognized contemporary lifestyle brands, content creators, and designers.
To define a contemporary lexicon of global design and creativity, and to promote the
best products, experiences, and culture from around the world to the businesses and
people of the greater China region.
•
MISSION STATEMENT
Sunday, June 8, 2014
4. AXIS is a brand management platform specializing in Fashion, Media, and Creative services;
providing greater China market entry solutions for world class organizations, content
creators, and designers
our aim is to foster a vibrant and diverse Chinese culture through innovative high-quality
products, high concept media experiences, and inspiring design; that enhances the image
and lifestyles of a new class of sophisticated and cultured Chinese organizations and
individuals.
BRAND POSITIONING STATEMENT
Contemporary. Fashion, Media and Design
Sunday, June 8, 2014
5. Transcend the platform and services, with a powerful message to our client
and consumer that creates a lasting EXPERIENCE in their minds that makes
AXIS synonymous with:
BRAND POSITIONING
COMMUNICATIONS
CLIENT CONSUMER
TRUST • OPPORTUNITY • REFINED • CULTURE
Sunday, June 8, 2014
6. CORE CORPORATE CULTURE
Passion
Shaping culture through
great Design and Media
content
Economic Driver
Inspiring projects for clients
delivered in a timely fashion
for customers
What are we
best at?
China Marketing and cultural
sensitivity. Client, Customer,
and Government
Relationships
•Trusted Client Relationships
•World-Class Design
•Intimate Customer Relationships
•Accurate Market Insights
•Engaged Customer Experiences
•Cultural Sensitivity
•Open and Transparent
•Global
We compete on Customer Intimacy
and Design and Innovation
Sunday, June 8, 2014
7. CORPORATE STRUCTURE
AXIS FASHION
LTD
AXIS ASIA LTD
AXIS MEDIA
LTD
AXIS CREATIVE
LTD
AXIS FASHION
(Satellite)
AXIS MEDIA
(Satellite)
AXIS CREATIVE
(Satellite)
HONG KONG
CHINA
(Satellite)
•Operating Investment Vehicle
•China Investments held at Operating Level
•Independent P/L for
each Department
•China Satellite co for
each department
Sunday, June 8, 2014
8. A X I S
COMPANY STRUCTURE
100K
30K-50K
15K-25K
Collin ompson
Strategy
Brandon
Liaw
Kit Wong
Commercial
A X I S
Fashion Brand Management
A X I S
Media
A X I S
Creative Services
G e n e r a l M a n a g e r
A c c o u n t M a n a g e r
P r e s s M a n a g e r
Accountant/
Admin
Comsec/Legal30K-50K
15K-25K
S a l e s M a n a g e r
G e n e r a l M a n a g e r
S a l e s M a n a g e r
P r e s s M a n a g e r
C o n t e n t M a n a g e r
G e n e r a l M a n a g e r
A c c o u n t M a n a g e r
S a l e s M a n a g e r
15K-25K
Sunday, June 8, 2014
9. SERVICES
AXIS FASHION
LTD
AXIS MEDIA
LTD
AXIS CREATIVE
LTD
•Brand Management
•Distribution
•Retail Management
•Press Management
•Branding
•Advertising Design
•Account Management
•Film Production OEM
•Mobile Ap Development
•Animation ODM
•Music Production Services
•Artist management
•Localization
•Hosting
• AD Account Management
1 2 3
Sunday, June 8, 2014
13. THE MARKET
e Market
CULTURAL
REVOLUTION
REDUX
Hu listed a number of prescriptions to help China catch up, including,
"Cultivate a high degree of cultural awareness and cultural self-confidence,
improve the quality of the whole civilized nation, and enhance national
cultural soft power."--CNNGo
President Hu Jintao has said China must strengthen its cultural production
to defend against the West’s assault on the country’s culture and ideology,
according to an essay in a Communist Party policy magazine published
this week. The publication of Mr. Hu’s words signaled that a new major
policy initiative announced in October would continue well into 2012.
New York Times
A walk down any main street in a first or second tier Chinese city reveals
how China's internet-savvy youth are fast-becoming fashion conscious and
are adopting the hairstyle, clothes and musical tastes of their cutting-edge
peers – in neighbouring South Korea, Taiwan and Japan--London Telegraph
Sunday, June 8, 2014
14. e Problem
OPPORTUNITY
CHINESE CONSUMERS are not getting the kind of
luxury services renowned international chains would offer their customers
overseas (SCMP January 12, 2012)
CHINA is not a single, homogenous market for luxury and is showing
increasing signs of segmentation and differentiation, with consumers motivated by
more diverse factors and seeking satisfaction in different ways. (KPMG 2011: China’s Luxury
Consumers: Moving up the curve)
an explosion of information on the internet, an increasing penchant for overseas travel, and
first-hand experience purchasing and consuming luxury goods are contributing to a substantial rise in
sophistication among luxury consumers in China. Contrary to popular belief, a growing number of
Chinese luxury consumers are exhibiting a noticeable trend away from overt displays of wealth,
and towards more understated forms of luxury consumption. (Mckinsey Report 2011: Understanding China’s
Growing love for Luxury)
THE CHINA MARKET is supply-driven,
new store openings creates more demand (BAIN 2010: China Luxury Market Study)
Sunday, June 8, 2014
15. e Market
MARKET SIZE
Even in the global recession of 2009, luxury goods saw 16% sales growth.
hitting US$ 10 billion.
2009
$10B
Growth of 16%
2015
$27B
20% of Global market
e market is projected to grow 18% annually (YOY) hitting US$ 27 billion
in 2015: 20% of the global luxury market
Sunday, June 8, 2014
16. e Market
MARKET SIZE
will account for over 20% of the
global luxury market overtaking
as the world’s largest luxury goods consumer.
Sunday, June 8, 2014
20. e Market
MARKET SIZE
100 Million Luxury Consumers
In 2010, Chinese men spent (US $1.1 billion) on their wardrobes,
far more than the (US $450 million) spent by women.
(Mckinsey Report 2011: Understanding China’s Growing love for Luxury)
Sunday, June 8, 2014
21. e Market
MARKET SIZE
100 Million Luxury Consumers
e average male luxury shopper in China is less than
45 years old, educated, well-traveled and entrepreneurial.
(Mckinsey Report 2011: Understanding China’s Growing love for Luxury)
Sunday, June 8, 2014
22. THE PROBLEM
e Market
MARKET ENTRY?
CULTURAL DIVIDE
CUSTOMER LANDSCAPE
STRATEGY?
NASCENT MARKET
TRUST
RELATIONSHIPS?
INFRASTRUCTURE
Sunday, June 8, 2014
23. THE SOLUTION
e Market
ACCESS POINT
CULTURAL BRIDGE
CUSTOMER INTIMACY
MARKET INSIGHT
MARKET DEVELOPMENT
TRUST
RELATIONSHIP MANAGEMENT
CREATE INFRASTRUCTURE
Sunday, June 8, 2014
24. OUR VALUE
e Market
AXIS is your trusted brand partner in expanding
internationally derived creative opportunities to a
burgeoning class of sophisticated, progressive
Chinese organizations and consumers
Sunday, June 8, 2014
28. Age: 45-65 years old
Mandate: Build native Chinese cultural infrastructure to
enhance the profile of Chinese business and society
Hubs: Hong Kong, Shanghai, Beijing, Sanya,
Education: EMBA or Self Taught through reading
Connect: Major Domestic trade events, universities, and
through international fashion governing counsels
Need: Highly capable entrepreneurs to shape the Chinese
marketplace and to lead industries to a globally competitive
standard
Problem: Lack of capable cross cultural organizations and
leaders able to grow successful business that bring prestige to
the country by effectively competing on a global level
Opportunity: To provide a culturally sensitive global organization
that can bridge the divide between Chinese customs and
international markets.
TARGET INFLUENCER
e Market
GOVERNMENT OFFICIALS
Sunday, June 8, 2014
29. Domain: National governing trade bodies tier 1 countries in
fashion
Mandate: Expand trade opportunities and understanding of
national brands to the global marketplace
Hubs: London, New York, Paris, Copenhagen, Tokyo
Connect: Major International trade events, Hong Kong
Economic trade offices, and through personal connections
Need: High quality alliances and partnerships with trade bodies
in emerging markets
Problem: Lack of understanding of emerging markets and few
contacts that can provide trade opportunities with buyers in new
markets
Opportunity: To provide a culturally sensitive global organization
that can bridge the divide between Chinese buying behaviours
and international brands
TARGET INFLUENCER
e Market
NATIONAL FASHION ASSOCIATIONS
Sunday, June 8, 2014
30. Company Turnover: 200-800m RMB
Focus: Retail Property development and Management, Real
Estate Speculation, Ownership in companies/sale
Invests: Undervalued or newly acquired government lands
Hubs: Hong Kong, Shanghai, Beijing, Hangzhou
Need: Fill existing or planned structures with viable tenants
that differentiate their offerings from competitors
Problem: lack of access to contemporary international
brands, lack of knowledge in managing/educating
consumers about brands, driving foot traffic to locations
based on their tenant offering
Risk: brand erosion for clients based on poor locations and low
foot traffic. Lack of understanding in managing brands and their
customers, cultural divide with key management
Opportunity: Source relevant brands that fit customer profile,
provide customer with the knowledge and people to manage
brands, ensure the proper markeing mix to create demand and
drive foot traffic.
Connect: Major International trade events, Hong Kong Economic
trade offices, and through personal connections
TARGET CUSTOMER
e Market
PROPERTY DEVELOPERS
Sunday, June 8, 2014
31. Age: 35-60 years old
Marital Status: Married
Orientation: heterosexual
Life Choice: Successful Entrepreneur
Wealth Created: Manufacturing, Property, Tech, Media
Ownership in companies/sale, Investment ROI
Net Worth: UHNWI--30m USD+
Invests: Unlisted companies, Stock, Art
Hubs: Hong Kong, Shanghai, Singapore, Beijing, Sanya,
Education: EMBA or Self Taught through reading
Travel: Frequently for business, 20 days for pleasure
Shopping Destination: Hong Kong
Smart Phone: HTC, Samsung
Collects: Watches: Audemaurs Piguet, Rolex-- Classical
Paintings: Calligraphy--Cars: Ferrari, Bentley, Mercedes
Sport: Golf
Drinks: Red wine, Whisky
Hotel: Ritz Carlton, Four Seasons, Mandarin Oriental
Internet: Sina.com, sohu.com, Tencent
Liesure: Travel, Drinking tea, reading
TARGET CUSTOMER
THE ENTREPRENEUR
e Market
Sunday, June 8, 2014
34. Age: 25-40 years old
Marital Status: Mixed
Orientation: Predominantly heterosexual
Life Choice: Entrepreneur, Banker, Restauranteur, Architect
Hubs: NYC, London, Hong Kong, Los Angeles, Paris,
Shanghai, Singapore, Beijing, Jakarta, Berlin
Education: University Overseas (USA, UK)
Travel: Frequently for business, moderately for pleasure
Music: JayZ, kanye West, Hotchip, Kitsune
Smart Phone: HTC, iPhone for personal
Social Media: Twitter, Facebook, Weibo
Restaurant: Whatever’s new and untried
Hotel: Soho House, Aman, Four Seasons, Opposit House
Books: Anything by Malcolm Gladwell and Daniel Goleman
Movie: Blade Runner, The Matrix, Jean Luc Godard
Magazine: Businessweek, Creative Review, AnOther, Arena
Homme, Huge, Dazed, I-D, GQ, The Economist
Gadget: Canon S100, iPad
OPPORTUNITY
MALE TARGET CONSUMER
LITTLE EMPEROR
e Market
Sunday, June 8, 2014
35. Age: 20-35 years old
Marital Status: Mixed
Orientation: Predominantly heterosexual
Life Choice: Entrepreneur, Editor, Photographer, Marketing Director
Hubs: NYC, London, Hong Kong, Los Angeles, Paris, Shanghai,
Singapore, Beijing
Education: University or Above (USA, UK)
Travel: for business, personal escapes, and new experiences
Music: Lykke Li, Santogold, La Roux, Yelle, Uffie
Smart Phone: iPhone
Social Media: Twitter, Facebook, Whatsapp, Instagram, Weibo
Restaurant: Whatever’s new and untried, with Friends
Hotel: W hotels, Soho House, Aman, Upper House, Opposite House
Books: Personal improvement
Movie: Midnight in Paris, Tree of Life
Magazine: Monocle, Creative Review, Vogue, Elle Decor, Vanity Fair
Gadget: Canon S100, iPad
OPPORTUNITY
FEMALE TARGET CONSUMER
LITTLE EMPRESS
e Market
Sunday, June 8, 2014
36. INFLUENCER
Cultural Opinion Leaders
NETWORK SCALE
“Pollinators”
NETWORK EFFECT MARKETING
TARGET INFLUENCERS
High Social Network Potential
Trustworthy
Credible, Real
Peer-to-Peer Influence
High Public Visibility
Recognized Leader
Strong Community Profile
Strategy
Sunday, June 8, 2014
37. THE NEW WAVE
e Market
I want to make a mark, create my own future. I have my own values.
Background: Successful entrepreneurs in their own right. ey come
from wealthy families, were educated overseas, and have returned
“home”. ey love luxury but are not slaves to brands; they are
experienced luxury consumers.
ey are Global, speak English and understand luxury as a lifestyle of
choice and discernment.
Motivation: ey associate themselves with a sophisticated group of
international and stylish people. ey want to differentiate themselves
from superficial show-off attitudes.
Habits: ey mix established brands with niche brands to create their
individual style as long as it fits into the peer group. ey tend to be
creative, intrepid and entrepreneurial.
Modern China Luxury
Sunday, June 8, 2014
38. Emphasizing the drama and theatre of the AXIS brand experience. An
unconscious space that becomes real through cultural relevance, and clean—
resonant design
SHOWROOM PLATFORM
FLAGSHIP CONCEPT
(EXPERIENCE)
Experience
Sunday, June 8, 2014
48. Imagine a warm and inviting, yet cool, boutique character hotel, and the feeling one gets
when entering the foyer. An environment congruent to a sophisticated, progressive,
individual or couple.
SHOWROOM PLATFORM
CONCEPT
(EXPERIENCE)
Experience
Sunday, June 8, 2014
49. Synthesize this experience with the spatial essence of a contemporary art gallery—
without the pretense. A space that focuses on the cultural relevance to its patrons as
opposed to the lofty paradigms of art movements, aesthetics, and demagoguery.
SHOWROOM PLATFORM
CONCEPT
(EXPERIENCE)
Experience
Sunday, June 8, 2014
50. Fusing this experience with the effortless cool of a modern speakeasy. A lounge filled with
the ambient syncopated sounds of cutting-edge music that inspires and doesn’t disrupt the
conversation
SHOWROOM PLATFORM
CONCEPT
(EXPERIENCE)
Experience
Sunday, June 8, 2014
51. The flash of a large LED screen emanating visuals of nostalgic noir-esque
movies from yester-year provides a backdrop that enhances the experience
without distraction.
SHOWROOM PLATFORM
CONCEPT
(EXPERIENCE)
Experience
Sunday, June 8, 2014
52. An experience that is layered, deep, and innocuous. This is an environment where people come for
the conversation, to see what’s new, because they feel like they have a place where they finally
belong.
SHOWROOM PLATFORM
CONCEPT
(EXPERIENCE)
Experience
Sunday, June 8, 2014
53. Our products innocuously populate the space as fixtures and accents;
interspersed through a well-curated selection of music, books, and films,
completing the environment as a whole without over powering the totality
of the encounter.
The space is organized for coherence as opposed to sensationalism, and
presented to express the clarity of a holistic lifestyle and identity.
SHOWROOM PLATFORM
CONCEPT
(EXPERIENCE)
Experience
Sunday, June 8, 2014
54. Bold and mystical like an untravelled road that leads to a new
world where people are different, yet welcoming at the same time
CONTEMPORARY
NEW
Sunday, June 8, 2014
55. Inspired by the best of global culture from major world capitals
GLOBAL
CULTURE
Sunday, June 8, 2014
56. • Aimed to enhance the image and lifestyles of a new class of modern,global, cultured, Chinese
organizations and individuals
LIFESTYLE
REFINEMENT
Sunday, June 8, 2014
57. SHAREHOLDER
D’Tention by limited
D’Tention by limited
Intrepid & Company limited
OWNER
Kit Wong
Brandon Liaw
Collin Thompson
SHARES
40
30
30
%
50%
30%
20%
RIGHTS
COMMON VOTING
COMMON VOTING
AXIS
CORPORATE STRUCTURE
COMMON VOTING
Sunday, June 8, 2014
58. Common Shares are directly issued to [Limited partners] and would result in the following shareholding
structure (fully-diluted):
SHAREHOLDER
Axis Management Group Limited
NOMINATED INVESTOR VEHICLE
OWNER
Kit Wong, Brandon Liaw, Collin
Thompson
INVESTOR
SHARES
40
60
%
40%
60%
RIGHTS
COMMON VOTING
PREFERRED NON-VOTING
CIPHER International Limited
INVESTMENT PROPOSAL
POST MONEY STRUCTURE
Sunday, June 8, 2014
59. Investment Proposal
AXIS together with its subsidiaries and affiliates
This sheet summarizes the key terms of the investment in “AXIS” (together with its subsidiaries and affiliates, “Company”) with the
intent of developing the Company into a leading international Fashion and media conglomerate.
The terms stated herein are not exhaustive. The Common Shares are directly issued by the Company.
The terms below are subject to further negotiation and final shareholder(s), board of directors and if any, regulatory approvals and a
legally binding agreement.
$20,000,000 RMB equity financing
Investment capital to be utilized according to the Company’s Business
Plan duly approved by the Board of Directors of the Company and the
incoming Limited Partners
Company
Financing
Purpose
Sunday, June 8, 2014
60. 3 Arbuthnot Road, 22/F Universal Trade Centre,
Central, Hong Kong
Private and Confidential
Business Plan
2013-2018
Fashion | Media | Creative
Sunday, June 8, 2014