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Business start-up

4

Latin Design Front

LDF offers Latin American designclothing to the retailindustry worldwide and thereby gives local designers a chance to sell.

Under the label Latin Design Front (LDF), Latin American fashion designers sell their exclusive and hip clothing and accessories to the international market. Because all the clothes are designed and produced locally, the cost and therefore the price is relatively low. The customer can buy an exclusive piece of designer clothing, for the price of a little bit more than popular retail! LDF sells mainly to retailers, who are looking for small and relatively fast rotating collections to spice up their product offer. LDF doesn’t work with stock, so the risk of overproducing is non-existing, but guarantees fast delivery times.

LDF functions to the designers as a platform, offering the designers insight and training them in the aspects of the international market (sizes, foresights), LDF takes care of the sales, marketing and logistics. LDF has contracts with designers about producing times, amount of pieces in their collections, quality checks by LDF directly at the sowing factories and labour conditions that have to be met.

Retailers use Latin Design Front as a reliable label, where they can (online) order different (sizes and sorts of) collections from a range of designers. There are no minimum orders, and we can deliver exclusive clothing in a relatively short time, therefore matching the trend of working with more and smaller collections throughout the year.

The sender of the clothing is the Latin American Designer, united under Latin Design Front. We use clear standards for producing, delivery and quality, because Latin Design Front only wants to sell ‘Fairwear’, honestly designed and produced clothing. Herewith we match strongly with the European trends of people wanting to make a statement with their fashionable clothing (and other purchases), but don’t want to pay a lot more or spending a lot of energy while ‘changing the world’ (eco-iconic, hiphonest).

Facts

Legal status business
Formally registered
Year of establishment

2008

Sales (US$)
Two years ago:
Last year:
This year (forecast): 0
Year 2 (forecast): 128,500
Year 3 (forecast): 266,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 0
Year 2 (forecast): -10000
Year 3 (forecast): 30,000
Total number of Employees
Two years ago:
Last year:
This year (forecast): 2
Year 2 (forecast): 3
Year 3 (forecast): 5

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 2,500
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 122,500
Total finance needed (US$) 125,000

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash 5,000
Loans (debt) 2,500
Share capital that you seek from investors (equity) 175,500
Other sources 0
Total finance needed (US$) 183,000

The Business

What is your product/service?

Offering exclusive and hip latinamerican designer clothing and accessories to retail channels.

What customer need/problem do your products/services satisfy?

Now everyone can wear fairmade designer clothing for a little bit more than the cost of popular retail clothing!

How will you make the product/service?

Starting with offering collections of local ecuadorean designers, which are designed and produced locally in Ecuador. We give opportunity to both designers and producers to grow outside the (small) local market.
All products will be offered through the internet and agents to international retail channels. Retailers have a reliable source for their exclusive but still affordable clothing.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

We will create the demand for our product with consumers through different channels, such as free publicity(magazines and more), finding ambassadors, guerillamarketing and (online) fashionshows. At the same time we will approach the retailers with more traditional methods, such as agents, samples and catalogs.
All sales will go through the internet to retailers, located all around the world.

To whom are you selling, what is your market?

As we work with different designers, our target market is broad. What they all have in common, is that they want to wear exclusive pieces for a reasonable price. Our customers are fashion-oriented, curious to what’s going on in the world, want to support development organizations, but don’t like the 'woolen-sock' approach.

Our retail clients are looking for original collections that they can sell social responsable design at a commercial price

Describe your competitors?

Social responsable labels, and ecofriendly collections. Big retailers with high rotation of collections at a cheap price.

What makes your business different/better than your competitors (competitive advantage)?

The latinamerican designer is the central element in our business philosophy. Furthermore, every store in the world has the opportunity to choose the designer of their liking and to sell in their store.

What makes your business, your product or service innovative?

Not only the production but more importantly the creative force of the designers is our competitive strength. We sell a positive image of emerging countries, not the more traditional 'sad' fairtrade story.
Through our website we offer a complete range of different designers so all retail channels can find a product of their liking

How will you ensure the growth of your business?

Besides our more traditional approach to sell our different designer collections to retail stores, we want to create a demand for our products through our (aggresive) marketing strategies. Customers should be asking for our designers at stores. We start in Holland but our customers could become retailers around the world. We begin by offering Ecuadorian designers, but could grow to latin american designers.

The Entrepreneur & Management

Describe the entrepreneur & management

Judith was a freelance communications advisor in Holland and is now living and working in Ecuador since the beginning of 2008.

Nicole has been living in Ecuador for the past 8 years, during which time she has had a concept store in Quito that sells Ecuadorian and Latinamerican designers.

What specifically makes you and (if relevant) your management team most qualified to build this business?

The combination of knowledge of communication and marketing with connections and working experience with Ecuadorian designers makes our team invincible!

How much time do/will you expect to spend per week in the business?

During the setup phase much time a week will be spend to come to agreements with local designers and to set up a marketing plan for the business. In the beginning an average of 20 hours a week per person.

Development

How does your business improve the local living standards (social and environmental)?

Many young and talented people in Latin America have a degree in fashion, but aren’t able to excel in their work and make a good living, simply because they don’t have the funding to invest in their product. Also the local market is rather small. By exporting this product to a bigger market, Europe, they have more chance to be successful in their work and make a living. Also all their collections are produced locally, which generates work.

4 comments

goede start

heb jullie plan gevonden. Idee is goed en kansrijk. Het is modern en ambitieus. Goed om verder uit te werken.

19 Aug 08, 20:33 Jan Vinkenvleugel, 19 Aug 08, 20:33

SWFI.

Please check out the Sovereign Wealth Fund Initiative as an option for accessing investment funding the website is:
www.swfinitiative.org, should you have interest in exploiting this funding option; please revert to me ASAP.

JB.
info(at)iifg-eu.net

22 July 10, 17:19 'James Borgensen' - DISABLED SPAMMER, 22 July 10, 17:19

I take interest...

I take interest in your business.

ghaliinvestment@gmail.com

23 Nov 10, 11:23 Ghali Marnwan, 23 Nov 10, 11:23

PROJECT FUNDING

Greetings,

We the Abu Dhabi United Group invite you to partner with us and benefit in our new Loan and Project funding program. We offer flexible loans and funding for various projects bypassing the usual rigorous procedures. This Funding program allows a client to enjoy low interest payback for as low as 3 - 4% per annum for a period of 5-7 years. We can approve a loan/funding for up to USD 500,000,000.00 or more depending on the nature of business. We are currently funding for:

  • Starting up a Franchise
  • Business Acquisition
  • Business Expansion
  • Commercial Real Estate purchase
  • Contract Execution

We are open to having a good business relationship with you. If you think you have a solid background and idea of making good profit in any venture, please do not hesitate to contact us for possible business co-operation.

Best Regards,
Ahmed Ali Tahir
Abu Dhabi United Group,
Abu Dhabi,
United Arab Emirates.
Email:admin@abudhabifinancialgroup.com
www.abudhabigroup.com/

2 Jan 12, 10:42 Ahmed Ali, 2 Jan 12, 10:42