BUSINESS MODEL

FRANCHISEE STORES

Gloob: Who Art Thou?

An enterprise by Alumni from IIT, India’s first multi category design and production enterprise in the space of home

décor and furnishing.

Working with a vision of redefining how people decorate their spaces by introducing them to clutter breaking wall

décor, furnishing and furniture products.

Create a market differentiation by bringing the highest level of product quality and service to partners which creates

value in their association

Gloob: The road so far

5000+

1.5 lakh

100+cities

50000

Unique Products (in-house manufacturing)

Size and color variants

Network partners across India, UK,Bahrain and Nepal

Cumulative store space area in Sq ft

Current Network

Presence in 100+ major cities in India50000 sq. ft.(+) of cumulative display

areaInternational distribution in UK,

Bahrain, NepalOver 60 exclusive store spaces in India

Store Presence

Mumbai, Delhi, Ahmadabad

Bangalore, Chennai, Kolkata

Store Presence

Punjab, Kerala, Guwahati, Rajkot

Store Presence

Hyderabad, Andhra Pradesh & many more

International Store Presence

Bahrain

UK & Nepal

International Store Presence

Business Model

Who can associate with Gloob?

• Small and medium scale business owners in home décor space

• Furnishing shop, Wall-Paper shop, Furniture shop owners

• Architects, Interior designers &Consultants, Real estate developers

• Designer furniture stores

• Single individuals who wish to start a new business/expand their current portfolio

Business Model

Benefits & USP

• Free 3D layout of dedicated area in store where products are to be applied

• Free visualization support whereby products can be applied on actual photograph of customer site.

• Free customization support whereby designs in catalogs can be changed in terms of color or size to fit a particular area

• Dedicated Interior design team and single support number to understand retail and project requirement from retail or institutional clients.

• Doorstep delivery of the products. No hidden charges. Anywhere in India in 5-7 working days

• Very strong issue redressal system whereby any problems are resolved with lighting speed.

Benefits & USP

• Implementation and product training

• 30 detailed architect proposals, 200 customer pamphlets to be distributed in locality.

• Special incentives for store sales people against monthly sales.

• Milestone based incentives to architects and interior decorators – foreign trips , phones and tablets.

• Special training in Mumbai for sales executives/ owners where boarding and lodging is taken care by Gloob.

• Access to over 5000 products in growing home décor industry.

• New products every month matching different ethnic sensibilities.

Business Model

Business Model

Gloob Support for Institutional Sales

1. India’s only company to provide 3-d layout for products in customers’ spaces

Usually when a customer buys a home furnishing product (wall paper, wall graphic,painting, clock), they cannot imagine how it will look when they finally apply it in theirhouse. Gloob creates 3-d layouts of their spaces with products applied in them to givethem a clear visualization of their interiors after the product is applied. This service isfree of cost and the customer is only charged for the product according to the theme onlyif the project is approved.

All that is required from the Partner’s side are the dimensions of the space withphotographs if possible. The usual time for creating such designs is 1-2 days.

Business ModelGloob Support for Institutional Sales

Actual Design Visualization for a Bungalow

Business ModelGloob Support for Institutional Sales

Actual Design Visualization for a Bungalow

Business Model

Gloob Support for Institutional Sales

2. India’s only company to provide customized products for bulk projects

A lot of times corporate/hotels/schools or even retail customers want to createsomething specific for a certain project which might be outside the products in thecatalog. Gloob is the only company in India which creates these customized designs in a3-d environment for these big projects without any extra charge for design as aservice to their partners.

All that the partners need to do is give the client requirement along with the spacedimension and photographs. The usual time for creating such layouts in 3-d is 3-7working days.

Business ModelGloob Support for Institutional Sales

Design Customization As Per Client’s Demand

Business ModelGloob Support for Institutional Sales

Design Customization As Per Client’s Demand

Gloob Support for Institutional Sales

Business Model

Gloob Support for Institutional Sales

Business Model

Business Model

Gloob Support for Training

Gloob conducts 3 – 5 days training in Mumbai which includes boarding and lodging for partners’ personnel which includes;

1. Product and warranty training

2. Implementation and process training

3. Sales and marketing training

4. 3-D modeling of store display and implementation done by Gloob team.

Free of cost training with only cost of travel borne by partner.

Gloob Support for Marketing

1. Free SMS/e-mail campaigns for the existing customer database of a partner. Used to connect with interior decorators/architects

2. Proposals for interior designers/architects/consultants (International Tours as incentives against fixed milestones)to be distributed among them

3. Routing of local enquiries through facebook to local partners (over 50000 FB fans and growing)

4. Continuous support through a team of interior designers for 3-d layouts and customized designs for big projects

Business Model

FINANCIAL TERMS

Financial Terms of Association

Franchisee Stores

Initial investment of 35 lakhs –stock + advance

66-80% mark-up discountRetail plus project sales

FINANCIAL TERMSM1 M2

Laptops 40000

Lighting and fixtures 3500 210000

POS 50000

Projector and display 50000

Wall furnishing display 200000

TOTAL FIXED EXPENSE 550000

Cysur Furnitur set 2 250000 500000

Clock Stand 2 33000 66000

Painting stand 2 113150 226300

Album Set 4 57000 228000

Sculpture and Accessories 2 400000 800000

Decal Accessories 2 50000 100000

3 Piece paintings and other back framed painting 1 100000 100000

Total Stock Value 2020300

Franchisee Fee 500000

Advance deposit against future orders 479700

Security 500000

FINANCIALSM1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

Rent 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000

Electricity 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000

Internet 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500

Others 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000

Marketing Exec 1 25000 12500 12500 12500 12500 12500 12500 25000 25000 25000 25000 25000 25000

Store Sales 1 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000

Store Sales 2 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000

Sales Manager 35000 17500 17500 17500 17500 17500 17500 35000 35000 35000 35000 35000 35000

Office Assistant 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000

Marketing Exec 2 0 0 0 0 0 0 25000 25000 25000 25000 25000 25000

Marketing Exec 3 0 0 0 0 0 0 0 0 25000 25000 25000 25000

Outdoor media 30000 18000 18000 18000 18000 18000 18000 30000 30000 50000 50000 50000 50000

Justdial / Yellow pages 6000 3600 3600 3600 3600 3600 3600 6000 6000 6000 6000 6000 6000

Architect / ID networking 25000 15000 15000 15000 15000 15000 15000 25000 25000 40000 40000 50000 50000

Localized SMS 5000 3000 3000 3000 3000 3000 3000 5000 5000 5000 5000 5000 5000

Localized E-mail 5000 3000 3000 3000 3000 3000 3000 5000 5000 5000 5000 5000 5000

In Cinema 50000 30000 30000 30000 30000 30000 30000 50000 50000 50000 50000 75000 75000

Any other 50000 30000 30000 30000 30000 30000 30000 50000 50000 50000 75000 100000 100000

19000 19000 19000 19000 19000 19000 19000 19000 19000 19000 19000 19000

327100 327100 327100 327100 327100 327100 450500 450500 510500 535500 595500 595500

RETURN ON INVESTMENTAll numbers in thousands

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

WALL FURNISHING

Per month sales 200 300 450 600 800 900 1000 1000 1200 1200 1300 1300

Earning 80 120 180 240 320 360 400 400 480 480 520 520

PAINTING

Pieces sold 25 30 40 40 50 50 60 60 80 80 100 100

Average price / painting 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35

Total revenue 33.75 40.5 54 54 67.5 67.5 81 81 108 108 135 135

Earning 13.5 16.2 21.6 21.6 27 27 32.4 32.4 43.2 43.2 54 54

SCULPTURE

Pieces sold 10 20 25 30 30 40 40 50 50 60 60 60

Average price / piece 12 12 12 12 12 12 12 12 12 12 12 12

Total revenue 120 240 300 360 360 480 480 600 600 720 720 720

Earning 48 96 120 144 144 192 192 240 240 288 288 288

DECAL CLOCK

Pieces sold 30 30 30 45 45 45 60 60 75 75 90 90

Average price / piece 1 1 1 1 1 1 1 1 1 1 1 1

Total revenue 30 30 30 45 45 45 60 60 75 75 90 90

Earning 12 12 12 18 18 18 24 24 30 30 36 36

DECAL ACCESSORY

Pieces sold 30 30 50 50 75 75 75 90 90 90 110 110

Average price / piece 1 1 1 1 1 1 1 1 1 1 1 1

Total revenue 30 30 50 50 75 75 75 90 90 90 110 110

Earning 12 12 20 20 30 30 30 36 36 36 44 44

FURNITURE

Pieces sold 8 10 12 18 22 25 29 32 35 38 40 40

Average price / piece 20 20 20 20 20 20 20 20 20 20 20 20

Total revenue 160 200 240 360 440 500 580 640 700 760 800 800

Earning 48 60 72 108 132 150 174 192 210 228 240 240

Turnover 573750 840500 1124000 1469000 1787500 2067500 2276000 2471000 2773000 2953000 3155000 3155000 24645250

Total earning 213500 316200 425600 551600 671000 777000 852400 924400 1039200 1105200 1182000 1182000 9240100

Profit -113600 -10900 98500 224500 343900 449900 401900 473900 528700 569700 586500 586500 4139500

GLOOB CONTRIBUTION

Contribution from Gloob's side M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11

0 0 0 0 0 0 0 0 0 0 0 0

People cost to be shared as half 30000 30000 30000 30000 30000 30000 0 0 0 0 0 0

Cost of sales to be shared for first 6 months 68400 68400 68400 68400 68400 68400 0 0 0 0 0 0

98400 98400 98400 98400 98400 98400 0 0 0 0 0 0

590400

INVESTMENT BREAK UP

INVESTMENT BREAK UP PAYABLE TO GLOOB

Stock 2020300

Display Fixed 200000

Rotating Credit against orders 279700

Security 500000

Franchisee Fees 500000

Total investment payable to Gloob 3500000

SUPPORT OVERVIEW

OPERATIONAL SUPPORT

Free store layout as per company norms Yes

Free wall furnishing display - changing every year Yes

Free customization of any customer project Yes

Training and induction of operational work force by company Every six months

Door step delivery to store Yes

Customer relationship management systems Yes

Implementation tie ups with local implementation teams for wall furnishing Yes

MARKETING SUPPORT

Cost sharing of sales force for first 6 months Yes

All marketing cost sharing for 6 months Yes

5000 customer pamphlets One time

10000 emailers plus 10000 smses One time

1st priority passing of leads through social media or direct enquiry in city Yes

Cost sharing of architect meetup in city for project sales Yes

Incentives up to 3% depending on milestone for sales force Yes

200 Architect proposals for distribution among architects Yes

Social media activity structured around store sales Yes

Seasonal discounts and offers on select items Yes

Sharing marketing collaterals for school, corporate, institutional sales Yes

Training and handholding of sales force towards in-store and project sales Six months

SUPPORT OVERVIEW

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GALLERIA

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Creativity is just connecting things. When you ask creative people how they did something, they feel a little guilty because they didn’t really do

it, they just saw something. It seemed obvious to them after a while…Unfortunately, that’s too rare a commodity.

Every once in a while a revolutionary idea comes along that changes everything. … One is very fortunate if you get to work on just one of

these in your career, more so, if you’re able to introduce a few of these into the world.

Steve JobsBorn - 1955 – Became immortal - 2011