Scandinavian Vintage Furniture - Online Auctions in Asia
MÖBLER AB is entering the completely untapped market of vintage furniture in Asia Pacific. Möbler will sell unique Scandinavian antiques and vintage furniture through online auctions, through our own auction platform and own application. Join a unique concept with a huge market, fantastic profit potential and scalable opportunities.
We offer our investors a possibility to be part of building a new unique concept in Asia Pacific, potential of great future growth and to gain healthy return.
- Möbler brings unique Scandinavian antiques and vintage furniture to Asia for the first time
- Sales are made through our own online auction platform and our own application
- Direct sales to interior designers
- The vintage furniture market is booming in Asia
- Minimal supply of unique vintage furniture in Asia
- Scandinavian design is highly popular
- The interior trend of mixing modern furniture with old has come to Asia
- Furniture market is expected to grow with 17% every year
- The scalable opportunities of Möbler are huge and the goal is to expand second year to Shanghai, followed by Kuala Lumpur, Hong Kong, Jakarta and Sydney
- E-commerce and m-commerce is growing exponentially in Asia
- The founder and CEO, Emelie Hedén lived in Singapore for six years
- She worked in the furniture industry and had her own successful vintage business
- She has great relationships with antique dealers in Sweden that will streamline the purchase process
- She has good relationships with media and interior designers in Singapore and a personal network of 30,000
- Emelie Hedén won Venture Cup spring 2015
What´s in it for you?
- Revenue is expected to increase with 100% every year for five years
- Investor is expected to break even at the beginning of year three
- Profit margins are high due to low cost of goods and premium pricing, expecting a net profit margin of 60% and gross profit margin: 90%
- We expect to break even already after the first container
- Our goal is to provide our investors dividend already the second year
Möbler´s Founder and CEO Emelie Hedén won the entreprenuership competition Venture Cup with her business plan in may 2015. She won the category People & Society and was one of the few winners out of 300. The jury´s motivation was: “Fantastic idea that is scalable and has great potential! A great strength lies with the driven founder with a strong interest in the export of Sweden to Asia”.
BACKGROUND & THE PROBLEM WE SOLVE
The background to the desire to open up Möbler came when Emelie was looking frantically for unique vintage furniture in Singapore. She found a trader with a large stock of old furniture. The two decided to collaborate and Emelie opened a store: Re(tro)born in her own living room that was open every other Sunday. Sales and interest among customers were far above expectations, despite very little marketing. The need for unique vintage furniture was evident and the idea of bringing Scandinavian vintage furniture to Asia was born. The need has increased due to the fact that the Singaporean consumer is well travelled and often follow trends from Europe and now has embraced the trend of mixing new furniture with old. Despite this increasing trend the amount of retailers in that field is extremely low and the collections are also narrow and seldom renewed.
Emelie also assisted the owner of her former employer Dream Interiors (an exclusive furniture company in Singapore) when selling vintage furniture from Europe. Once again the interest of the furniture and the willingness to pay premium prices of vintage was evident. During the three years as Marketing Manager at Dream Interiors, the market even more expressed the desire for unique vintage and antique furniture. Emelie asked professionals in the industry what they thought of the idea, interior designers and editors at furniture magazines told Emelie in unison "Hurry up, come! Singapore needs you." Since the discovery of the gap Emelie has examined the neighboring markets and realized the need is similar also there.
THE PRODUCT & HOW IT WORKS
Some styles and items Möbler brings to Singapore have not been seen in Singapore before, or Asia Pacific. Singaporeans will be the first in Asia given the opportunity to decorate their home with unique Scandinavian antiques. Möbler brings furniture produced in 1700s to 1960s. Styles such as Swedish Retro, Gustavian, Rococo, Allmoge, Country/Shabby chic, Industrial, Baroque. A grand mix of furniture, chairs, lighting and character adding accessories. Compared to the few competitors of Möbler we have a wide collection and sell styles never seen before in Asia. The first year Emelie will do the purchase in Scandinavia herself, to the second have created relationships strong enough to place accurate orders from Singapore - in order to streamline the purchasing process. Möbler will ship at least three containers per year per country, purchased at various supplying partners in Scandinavia, for more info see document: SIX YEAR PLAN AND BUDGET.
Sales will be made through online auctions, via the website and our own application. Singaporeans often live a hectic life, trying to juggle work with family life. The customers can do their bidding and purchase online from home, in the taxi or on the plane from computer/iPad/smartphone, which saves time for the customer. The innovative way of purchasing via online auction might also add excitement for the customer, it is proven that winning an auction create more positive feelings compared to normal physical or online purchase. It does not exist any online auctions in Singapore today, which will further make the customer feel unique. The auction process can also create a feeling of control, instead of getting prompted by sales staff. Customers will also be able to view, try and feel the products before bidding at online auction, which gives peace of mind. They take little risk compared if they would buy directly from Europe. It is proven that the majority of the Singaporeans still need the ”touch and feel” component when shopping.
Singapore has the highest residing percentage of millionaires in the world and Singaporeans show an extreme willingness to spend money on beautiful items, increasingly for their homes, which will result in a growth in the furniture market of 17% every year for 5 years. The interest for vintage furniture has grown massively the past few years, due to the fact that the well-travelled Singaporean population has been inspired by the European interior trend of mixing modern furniture with vintage. The market is also growing; at least 2-3 small vintage furniture retailers have entered the market every year the past 3 years.
Möbler has one small direct competitor Noden Collective selling Danish retro furniture. Home & Décor, the undisputed leader of interior design magazines in Singapore recently wrote about the retailer: “The pieces come and go quickly, and therefore they change the look of the store every two to three weeks..” The popular blog Citynomads recently wrote: Now so popular, they've relocated to a larger showroom which simply means more goodies, hurrah for us!
The download rate of applications in Singapore has increased with 20% in one year. The e-commerce trend is growing exponentially in Singapore and Singaporeans are looking for more unique way of shopping. 50% of e commerce traffic in Singapore is accessed via mobile and 75% of the pre-purchase search and screening is made via mobile phone.
The estimated target market size of the private customer segment in Singapore is approximately 1 million. A number based on the following demographics of the target market: - 25-65 years old - Income >6000 SGD - Well educated, minimum bachelor - Singaporeans and caucasian expatriates
The second layer of customers is interior designers that will be given the opportunity to buy the products before the products are up for auction. This market segment benefits Möbler in three ways: Möbler has the opportunity to do fast and big sales. Möbler will be able to take big special orders directly for bigger interior projects. For the private customer nothing is worth as much as it is when it is already sold, which will create hype.
The scalable opportunities for Möbler are great for three reasons. The popularity of Scandinavian design is increasing as well as the interest in decorating homes and other spaces mixed modern with old furniture in Asia Pacific. The market need for Scandinavian vintage has been proven in especially Kuala Lumpur, Shanghai, Hong Kong and Sydney. Antique dealers from Kuala Lumpur are even coming to little Singapore (to supplier of Re(tro)born) to purchase retro furniture, despite the small supply. The second aspect that is looking good for Möbler is the increased online furniture markets that will continue to increase steadily on high levels. For example is the yearly growth of this market in Malaysia on 29%. Thirdly is the Asia Pacific region certainly leading the world in mobile commerce. The numbers of mobile phone shopping enthusiasts in the region are set to boom in the near future.
The first year of operation in Singapore we expect to learn a lot from the market, locally and regionally and let these learning decide which country to enter next. However the goal of expanding to one more country each year remains. As mentioned the auction tool is not only great for sales but is also a highly effective market research tool. We receive constant information of customer preferences, how much they are willing to pay for the different products and from where the interest is coming from. The information extracted will help us make strategic decisions on where to expand next plus what to purchase in Sweden and what reserve price to place.
The typical customer is a well travelled asian that wants to be first and unique, that never follows streams. Always want to be first with the new and interested in design. They tend to spend a lot of time on the computer or smart phone with busy lifestyle with little leisure time. Bragging right is key for Möblers customers, they want to tell the story of the pieces as we tell them.
Möbler has only two small direct competitors in Singapore, and approximately five indirect competitors. Noden Collective sells Danish retro items at premium prices and only one style available. Second Charm sells Singaporean retro items also at high prices. For more information see document: BUSINESS PLAN.
Estimated target market size in Singapore is 1 million. For Möbler to break even at the first container it is enough if 500 people purchase products at the average selling price of 500 SGD. That requires a conversion rate of only 0,0005% of target market. Emelie has control of the COG and the operational costs. Based on the prices charged in Emelies previous vintage business, vintage sold at her ex employer and prices charged by Möblers only direct competitor the estimated profit margins are facts. Therefore we can confidently state that the net profit margin will remain at a fantastic level of 60%. Our profit margins are going to be greater than for most other furniture companies, looking at a gross profit margin of 90%. A solid furniture company is usually on a GPM of 60%. Therefore we are sure that the ROI is very high for our investors, with an expected yearly increase of revenue of 100% the coming four years.
The goal is to expand to one more country each year, and the first year of operation only bring three containers followed by five containers each year per country. One container will have a COGS of € 15,000-€ 20,000 kr, providing revenues of €170,000. The costs involved is not linear to the expansion of the concept, the profit is consciously increasing with the growth of the company, high solidity.
Below you find the financial forecast for the coming four years, including profit and loss calculation, for Moblersingapore AB.
• The company’s estimated revenue is € 500 000 for 2016, provided that three containers will be sent to Singapore from Scandinavia.
• Revenue is expected to grow with 100% every year, with one expansion per year. • Net profit is expected already the first year of € 162 000, which will continue to grow with 100% every year.
For a more specific plan see document: SIX YEAR PLAN AND BUDGET.
Our beautiful brand is not only selling products that there is a huge need for, Möbler supplies a lifestyle, selling items to brag about. Every piece has a story to tell. As we know retail is no longer just about what you sell, it is the story behind the product that the customer wants to be a part of. Social media has a key role in the decision making process for purchases. We will tell as much as possible of each and every product. Customers will also be follow us purchasing, restoring, dancing on the container before departure on facebook, instagram and pinterest; to create a familiar feeling, educate and retain customers. For more information and budget see document: MARKETING PLAN.
Möbler will sell second-hand goods at a high-end market at higher prices; Therefore, there is an attractive sustainable aspect to the concept as well. The energy a second hand wood furniture consume during their second life cycle (restoring and logistic) is < 1/1000 of the energy required of the manufacturing, logistic of and discard of a new wooden furniture. The home furnishing industry in Singapore is expected to increase even more in 2015, fueled by increased consumer interest in home decoration, especially in environmentally-conscious products and their willingness to pay a premium for luxury furniture increases.
Emelie has set up a great team of people with immense experience and expertise. Ivar Erlandsen will be our main supplier with 20 years of experience in the antique industry and can supply Möbler with limitless stock of vintage/antique furniture. Two other dealers in Växsjö in Helsingborg will be able to complement the collection. Ellen, the younger sister of Emelie has been on board since day one and will eventually have same responsibilities as Emelie but first and foremost act as the creative director of Möbler. Ellen will be the right hand of Emelie but first and foremost responsible for all branding material and package the brand to attract customers. From a marketing perspective, the partnering siblings aspect is a very attractive component to, an aspect that will create even more hype to the brand and cause important PR.
USE OF FUNDS
With the current crowdfunding campaign at FundedByMe and the wherewithal rased, we want to be able to purchase products and start market to Asia, compress time to market and time to sold in order to exceed customer expectations and fast accelerate our business. In addition, we will focus on marketing activities to reach a wide market and create a high conversion rate in Singapore. Funds will be used for:
Purchase furniture filling one 40 feet HC (high cube) container (67m3), approximately 500 products.
Logistics in Sweden, rental of car and trailer
Photography material and computer
Wrapping material and stuffing
Shipping of container
Clearing in port, taxes and insurance
Logistics in Singapore
Advertisement: Straits Times, Life. Home & Decor, Tatler Homes
Barter with high profile bloggers in Singapore
Total set up costs are estimated the first year to € 321 000, however the revenue is expected to amount to € 161 000 per container. We project that if everything moves as expected we will be able to ship 3 containers the first year of operation in Singapore, which means that revenue will be € 483 000- a profit of: € 162 000 the first year.
For specific numbers and timings, see document: SET UP COSTS.
Our valuation is moderate and based on various factors weighed together.
- Vintage trend increase – Scandinavian Vintage trend in Asia is booming
- Market size - expected to grow with 17% every year
- Market knowledge and experience of founder
- Connections in Asia
- High gross profit margin
- High net profit margin
- Low COG
- Low overheads
- The popularity of Scandinavian design
- Increased market
- Connections in Asia
- Purchasing connections
- Established strategic partnerships
- E-commerce and M-commerce trend in Asia
Commitment to Growth
- Solid operation
- Financial bootstrapping
- A strong and scalable business model
Awards and Partnerships
- Winner of Venture Cup
- ALMI Partnership
- A balanced and experienced management team and strong established partners in key operations.
For further explanations and specific numbers in terms of return and growth please see documents: VALUATION and RETURN ON INVESTMENT.
We offer our investors a possibility to be part of building a new unique concept in Asia, potential of great future growth and to gain healthy return. In addition to the monetary gain possibility do also consider this an opportunity to be a part of something new and highly unique. See the offer in numbers below.
EXPECTED RETURN ON INVESTMENT
Our goal is to provide our investors with a return on investment already the second year and expect the investor to break even in the beginning of the third year. The projections below are based on a cash dividend payout ratio of 70%. Reminder; if it turns out reinvesting the profits is needed we will do so, these projections represent our intentions.
Pre- money valuation of Moblersingapore AB is € 666,700. For more specific numbers see below table: Investor X invests 150 shares (100 euro), which is the minimal investment. X starts receiving dividends second year and breaks even second quarter of third year. X has received dividends yearly of total 807 euro (7504 kr). X sells the 150 shares for 2449 euro (22774 kr). X has therefore made a profit of total € 3 256-€ 100=€ 3156 and a ROI of 32 times invested money.
This is a finished business, we have done everything needed to prepare. We got the best connections and collected all the information we need to get started and all partners ready to run at full scale. We hope we have demonstrated we do not only have a fantastic profit potential with the concept, the seriousness of our commitment, but that we are also capable of delivering on our returns due to the scalability of the company not only on a country but also on a continental level. A total investment of € 100,000 you will allow us to commence the business, as well as offer you the opportunity to gain healthy return.
By the end of 2017 we see Möbler as a market leader and after five or six years we are open to different possibilities, e.g. IPO or merge/acquisition. Potential acquiring companies could be large furniture players in Asia, with established distribution channels and marketing capacity. Since the focus of Möbler is quite narrow the possibility of being acquired is rather bigger. Another possibility is to merge with other auction companies selling other products such as art, jewelry and/or wine to earn bigger capacity, reach a wider market and create a greater brand. Possibly set up a full auction house a few players together. What would encourage companies to acquire/merge with Möbler would be. a. our IP/ brand value b. access to our established customer base (emerging market) c. added value to their portfolio d. possibility to gain from the high profit margins
As the company is new and in the start up phase these are all hypothetical scenarios but we we have a strong product and concept which are highly desirable for future investment, merge or acquisition proposals.
If you are an investor and would like to know more about our investment proposal or see additional aspects on how you might help us to develop, please feel free to contact Emelie Hedén, CEO at +46 (0) 73 983 86 86 or email [email protected] to schedule a meeting.
Do join us and be a part of our exciting journey. Welcome on board!