Eco 2 Team Feng Huang Hong Yifan Ban Jung Tae Emiri Shigeoka

 Background  Our vision and business model  Market Analysis  Marketing Strategy  Action Plan  Financial Statement Outline

Background 2,300,000,000 plastic bags per year Forgetful Unfashionable

We do! Not remindful enough No fashionable eco bag Lack of recycling system Our features

Sell eco-bags Change mind towards environment Our vision

Executive Summary We sell two kinds of eco-bags made from recyclable materials; (1) Eco bags for mothers and shoppers (2) Eco bags for student organizations and companies

Executive Summary (1) Eco bags for mothers and shoppers with barcodes of point system (2) Eco bags for student organizations and companies with their own logos

Eco bag × point card system Eco-BagEco-Bag Membership card

How the point system works? Oh point card in Korea  Customers can accumulate points and use it just like money  Many cooperated stores → pay for the points ・ Customer loyalty ・ Advertisement effect ・ Get customer information  Point card company can get commission from stores

 Cooperate with a card company  Put the barcodes for point accumulation → Remind people to bring eco bags with barcode → Cut down family budget and saving money How the point system works? Our e-point system

Interview Result (1) 83 % of mothers said they won’t forget to bring eco bags if they have our product.

69% of mothers said they want to buy our e-point eco bag if this service exists. Interview Result (2)

Executive Summary (1) Eco bags for mothers and shoppers with barcodes of point system (2) Eco bags for student organizations and companies with their own logos

Examples Our website  People can design eco-bags for their own use (Choosing materials, size, shapes, colors, designs etc)

 Cf. ClubT in Japan

 OVAL Eco bag

5. Sell 4. Attach barcodes 3. Produce 2. Design 1. Collect materials Garbage company, households, offices Students, designers (Generalized for public) Card companies Supermarkets Student organizations, companies (Customized) Online website How we produce and sell Factories

What we use? Recyclable trash (from garbage company) Old clothes (cf. Clothes box in Korea) Used banners (cf. placards collecting company in Korea)

Generalized for public  University students  New designers Customized  Student organizations  Companies How we design? Who designs?For whom?

Produces the general models Storage them (1) For "mothers“ ^^^ attach the barcodes on the eco-bags (2)For student organizations and companies print the patterns according to customer needs How we produce?

 Supermarkets  Online Where we sell?

Market Analysis Segmentation  Geographic : Beijing  Demographic : Beijing mothers students/organization  Behavior : Try to save budget /want to have good image  Psychology : Pay back is good /use good image

 Mothers who wants to save their family budget  Student organizations that want to have their original goods or promote their own organization  Companies that want to promote themselves as an environment-friendly company Market Analysis Targeting

 The good image of “Environment- friendly company” to youngsters(10~20) and mothers(30~60)  Reducing the usage of plastic bags and encouraging people to use eco bags with e-point barcodes Market Analysis Positioning

Value ・ Use recycling materials ・ E-point system ・ Website for eco bags design ・ CSR and good ad Rarity In China, ・ no fashionable eco bag ・ point system just started ・ lack of recycling company Imitability Entry barrier level will be high once we get alliances with many stores and establish our system Organization Small in the beginning, but grow by year VRIO VRIO Analysis High Medium Relatively low Relatively high Sustainably competitive superiority

Start with a small headquarter Use computer system to collect customer information Cooperate with students and new designers, model the bag size Collect recyclin g material s in a low cost Produce by ourselves Build inventory near factories Mouth to mouth, Selling on the internet and on the spot Website and apps for customers to check their points Margin Value Chain

Marketing Strategies for mothers  Advertisements and promotion in supermarkets  Using internet web, apps to promote (online point check system)  Mouth-to-mouth

CSR (corporate social responsibility) is highly considered  Focus on companies with high awareness towards environment  Heighten our brand images by cooperating with big business conferences and events Marketing Strategies for companies

 Cooperate with fashion magazines - our eco-bags as supplements → popularize - articles about eco-bags - put our advertisement in these magazines Marketing Strategies for students organization and companies

Successful example in Japan 1  These eco-bags (free gift) of the famous Japanese fashion magazines. “Cher” “MARC BY MARC JACOBS”

“Anya Hindmarch”  Made to deal with environmental problems by a British popular brand  Sold in a low price although it is a luxury brand. →Cooperate with Chinese celebrities, famous brands Successful example in Japan 2

 Affiliate system We’ll pay fees to affiliate websites if their products were bought by visitors from affiliate websites  SEO (Search engine optimization)  SNS, apps for young people Digital marketing strategy

Action Plan

Year 1Year 2Year 3Year 4Year 5 Total Sales 913,600 1,552,000 2,016,000 2,424,000 2,744,000 Total expenses 686, , , , ,792 Net Income 227, ,204 1,277,128 1,686,328 2,001,208 Net Income after tax170,553708,153957,8461,264,7461,500,906 Projected Income Statements

Estimated sales in the first year JanFebMarAprMayJunJulAugSepOctNovDecTotals (Units) 5,000 10,000 15,000 20,000 25, ,000 Sales of eco bags with barcodes 20,000 40,000 60,000 80, , ,000 (Units) ,000 1,500 11,700 Sales of customized eco bags 1,600 4,000 8,000 12,000 93,600 Total sales 21,600 24,000 44,000 68,000 88, , ,600

Facilities (Factories) Rent60,000 Machines (recycle, print)40,000 Cost of goods49,200 Utilities, fuels, insurance120,000 Repairs and Maintenance18,000 Total Facilities (Factories)287,200 Facilities (Headquater) Rent7,200 Furniture, office supplies3,000 Total Facilities (Headquater)10,200 Salaries for full-time workers (3)90,000 Salaries for part-time (5)26,400 Trucks and fuels132,000 Cost of clothes boxes10,000 Commission fee to card company16,400 Advertisement110,000 Depreciation3,996 Operating Expenses686,196 Operating Expenses686,196 Total sales913,600 Net Income227,404 Net Income after tax170,553 Estimated expenses in the first year

Year 1Year 2Year 3Year 4Year 5 Facilities (Factories) Rent60,000 Machines (recycle, print)40,0005,00040,00000 Cost of goods49,20079,200100,800122,400137,280 Utilities, fuels, insurance120,000132,000180,000 Repairs and Maintanence18,00021,600 Total Facilities (Factories)287,200297,800402,400384,000398,880 Facilities (Headquater) Rent7,200 Furniture, office supplies3, Total Facilities (Headquater)10,2007,200 Salaries for full-time workers (3)90,000 Salaries for part-time (5)26,400 31,680 36,960 Trucks and fuels132,00072,000 92,00072,000 Cost of clothes boxes10, Commission fee to card company16,40026,40033,60040,80045,760 Advertisement110,00084,000 Depreciation3,996 7,992 Operating Expenses686,196607,796738,872737,672742,792 Total sales913,6001,552,0002,016,0002,424,0002,744,000 Net Income227,404944,2041,277,1281,686,3282,001,208 Net Income after tax170,553708,153957,8461,264,7461,500,906 Cash end 170, ,706 1,836,552 3,101,298 4,602,204

Our Value Can benefit from point system Shoppers (mothers) Can use our website for designing their original eco bags with their logos Student organizations Can show their positive attitudes to environment Companies Can get customer loyalty, customers’ information, and advertise their stores Cooperated companies

 Sell eco-bags and change people’s behavior and mind towards environment Point card system Fashionable eco bag Conclusion

 Lots of ideas from Korea and Japan → Apply them to Chinese market

Thank you