1

ELEMBO PROJECT

Introduction The 21st century is the century where globalization is growing up building a world where people can know, learn and have everything by one click or quickly satisfy their need. Globalization won’t have been what it is today without technical and technological progress. Indeed the advent of Internet, telecommunication, cheaper travel costs are among the master keys of the evolution of our actual global society. Globalization has allowed people to be more open minded and this allows cultural exchanges between communities and nations. One of the master keys of those exchanges is fashion. Indeed, since 2011 there has been a new trend called “Ethnic- chic”. What is “ethnic-chic”? : This concept came from Africa in the beginning of the 2000s. The concept is the customization of European clothes with African textiles. This concept came from the aim to give some colours to the European fashion that mostly lack hot colours and remains timbered with cold colours. Unfortunately, by a lack of communication and an inefficient distribution channel this concept is only accessible to Africans or since 2012 the people who can afford a Yves Saint Laurent or an other great fashion designer’s ethnic-chic’s clothes. In fact our Young Entrepreneur Project is target on the democratization of this concept through our brand ELEMBO. We will sell our products at lower prices through an adapted communication and an efficient distribution channel.

Competitors INYÜ: He is an ethnic-chic fashion designer with a very diversified collection. But the brand doesn’t have physical shops because he’s specialized in online shopping. UNFORMAL DRESSMAKERS: There are many informal dressmakers in the ethnic chic market. However, they are limited to a specific target composed by people who already know the ethnic chic concept.

Indirect competitors Our indirect competitors are great distributors like ZARA or H&M who have a great distribution channel and applying affordable prices. They aim to get into the ethnic chic market.

2

Company Our company is called ELEMBO. ELEMBO means “precious” in LINGALA (official language of DRC). We want that our customers feel precious when wearing ELEMBO clothing. We aim that the concept “ethnic-chic” attracts Africans and those who already know the concept. We also want to see all cultures and nations find an interest on wearing ELEMBO clothing because today we believe that we are firstly a world of citizens before being African, Asian, or European. ELEMBO exist to remind us of it.

Logo Our logo represents two horizontal lines joining a central circle that contains the first two letters of ELEMBO under which we can see our slogan: “ I’m Precious”. The circle represents the crossroad of cultures and the two lines represent these cultures mixing together through ELEMBO.

Location The head office will be located at “Espace de Coworking” in Mons. We have chosen a coworking place because it’s a system that helps start-ups to begin their activity without paying heavy location fees. It’s located at: 2b rue des archers, 7000 Mons. We will take benefit of Wi-Fi free access, computers, office space and meeting office. The rent is 80 euros / month.

Business sector Our business sector is manufacturing. Indeed our company will sew African printed fabrics on European clothes. We will buy the different parts from various suppliers. Our job consists on sewing African printed fabrics on semi-finished clothes to make our final products.

3

Legal Status Our company will be created under the Belgian law as a “Société de Personnes à Responsabilité Limitée” (SPRL). We have chosen this legal status for several reasons: • At the creation step, it’s recommended to seek financial advice. This helps to evaluate the financial needs in order to avoid the bankruptcy risk. • Founder(s) can release the funding gradually. • The partners' liability is limited to their contributions. • The company tax rate is lower than the individual tax rate. • It's better to start as a company because it's considered as a proof of seriousness and

professionalism. Yet we are aware of the main problems involved by this legal status: • 6.200 € of the funding have to be released when the company is founded. • The funding fees are quite high. • A financial plan is required. • You have to hold a double entry bookkeeping.

Mission

Our mission is to promote African fashion in the European way of getting dressed. We want the culture being see in our clothes, our mission is to allow people to travel being precious (ELEMBO) with our clothes.

Product description We have various clothes in our collection. We have 7 categories for men and 9 for women. Men clothings (1000 Qty) T-shirts (400) *Polos (400) *Sweaters (100) *Jackets (70) *Vests (40) *Short pants (30) *Slim pants (30)

4

Women clothing (1500 Qty) *combishort(400) *minishort(300) **Jeans ***Simple (150) ***Studded (100) **With belt (120) *Pants (100) * Jackets (150) *Jeans skinny (100) *Denim jackets (200) *Sweaters (350) *T-shirts (360)

On these categories, will be sew African printed fabrics called super wax. Super wax is a fabric made principally in Africa, but production’s process comes from Netherland which is the greater wax exporter in the world. There are so many categories of printed wax that we cannot quote them all on this file but you can see below some examples:

Product name Our product is called ELEMBO. It refers to the feeling of being precious wearing ethnic chic clothes. The name ELEMBO gives a sense to those clothes. It gives a sense to the feeling of being unique in this world where things, people or culture are more and more uniformized.

Innovation

Colours: thanks to warm colours on wax fabricclothes will be more colourised and original.

Design: the print of a wax fabric can pour out from all kind of imagination. Concept in Belgium: the innovation will be the physical shop in Brussels. Indeed, we’ll

be the first brand to open an ethnic-chic shop in Belgium.

Target market Our target market is the fashioned clothes market. Our product can be described as innovative because we offer to the consumer the opportunity to colour and customize his clothes with unusual prints in European way of

5

getting dressed. Indeed we are in a market characterized by standard colours, where people don’t dare to give colours to their clothes. We know that it won’t be easy on changing people’s mind. It won’t be easy to convince people to give some colours and wear wax fabric that is not well known in Europe. But we trust in our strategies to live up this challenge.

Other markets We don’t want to be in a luxury market because our products won’t be affordable neither in a discount market because our products would be depreciated. We will develop our brand in the market of fashion accessories because accessory is a huge tool in modern fashion. It will be African rings, necklaces, and bracelets.

Target group Our target is organized according to our short, medium and long-term objectives.

At short term, we will target an audience who already know the concept according to our market survey, 62% know the ethnic chic concept and are ready to buy our products in our shop.

At medium term, we will target an audience who didn’t know the concept before, but would be ready to buy our products in our shop. According to our market survey, they represent 20%. This target is made of those who are attracted by fashion and appreciate news fashion trends, so we will communicate around the ethnic-chic concept by creating several events and fidelity cards.

At long-term, we will target an audience who don’t know the concept. We have chosen this target strategy because of our awareness toward risks on this difficult market. This target is mainly European, and has never heard about ethnic chic and doesn’t know African fashion and trends. We will communicate through TV spots and our website.

6

Marketing Mix

Product Full description: Our product policy is based on three criteria: functionality, innovation, the audience. Our product range represents an innovation in the Belgium market according to the fabrics used to customize clothes. The audience corresponds to our short, medium and long term objectives. Short and medium term:

Our clothes are 100% cotton made Super wax fabrics are 100% certified. T-shirts, shirts, pullovers, polo, cotton dress. Sizes: from size “XS” to “XL” for women and from “S” to “XXL” for men. Launching of an after sale service.

We have made this choice because we’ll lack financial means to afford technology in order to manufacture other fabrics except cotton. Long term:

Enlargement of the range Manufacturing of other fabrics like silk, leather and cashmere. Through our website customers will have the occasion to customize personally their

wax fabric print

Price Men collection (1000) T-shirts (400) 24,99 € *Polos (400) 33,99 € *Sweaters (100) 43,99 € *Shirts (70) 41,99 € *Waistcoat (40) 41,99 €

Women collection (1320) *combishort(400) 46,99 € ***Simple (150) 23,99 € ***Studded (100) 24,99 € **With belt (120) 31,99 € *Trousers (100) 37,99 € *Shirts (150) 35,99 € *Jeans skinny (100) 37,99 € *Denim jackets (200) 43,99 € Our price relies on our market research aimed at determining the psychological price of our product. A lower price would be a positioning mistake and would give our product a low-end image. On the contrary a higher price would be a strategic mistake due to our poor brand awareness in the audience.

7

Promotion Our goal is to play on the feeling of being precious with ethnic chic products to promote our product. ELEMBO is the ambassador of ethnic chic. Ethnic chic frees the customer from constraints “imposed” by “conventional” colours. Our product belongs to a particular market, so we have to choose which advertising channels are most appropriate on that market. The mainstream media such as television and radio are excluded because it is too expensive according to our short term’s goals, and of their lack of accuracy with our target audience. We’ll be present on social networks and our websites. We will use posters, flyers and brochures. Items Cost Quantity Amount. Advertising poster 4X3

25 10 250

Advertising poster 4X3

36 10 3600

Brochures 2€ 2000 4000 €

Choice of the media

2014 2015

Médias Support Format Sept Oct Nov Dec Janv Fev Mars Avr Mai Juin Juil Aout Sept Oct Nov Dec

Fashion/trends Magazines

« Metro Times »

1 simple page

« ELLE Belgique»

1 simple page

x

Billboards 3 advertising posters

4x3 X X

Out of media

Events

Mons 2015 x x x x x x x x x x x x Afrobal x Ethno Tendance

x

Fashion Weekend Brussels

x

« Les Afro'péros »

x

social networks

Facebook x x x x x x x x x x X x x x x X Google+ Instagram Twitter x x x x x x x x x x X X x x x x YouTube x x x x x x x x x x X x x x x X Wat TV Dailymotion x x x x x x x x x x x x x x x x

Brochures 2000 Mini brochures

A5 x x x x x

8

Distribution In order to carefully launch our product, we will open a shop in the first phase. We will also have a website: it will be a good window between ELEMBO and the consumer. ELEMBO collaborates with “OPENSOON” Atrium that encourages audacious projects and helps them to open a Short-lived store with duration of 6months of one year.

Strengths Weaknesses ‐ Innovative and

ambitious concept

‐ Small-sized company reactivity

‐ One productspecialization

‐ Promotion of cultural expression

‐ Lack of brand awareness

‐ Lack of experience

‐ Limited financial means

‐ Limited distribution channels

‐ Tough credit access

Opportunities Threats ‐ The growth of the

audience

‐ No legal restrictions

‐ Requires skills on fashion design

‐ New concepts to develop Innovation

‐ No seasonal product

‐ Quick copying by a competitor

‐ High labor costs in Belgium

9

Financial plan   In our financial plan, you will find our:

Cost of prices (for three years) Break even point Project sales.

Cost of prices

10

11

12

Break even point

13

Project sales :

14

15

Turnover Evolution :

----------------------------------------------------