tim lagerpusch
DESCRIPTION
Tim Lagerpusch (Founder and CEO, SugarTrends GmbH) held this presentation on SugarTrends at the 2014 SME Assembly in Naples, Italy. Find out more at: http://blogs.ec.europa.eu/promotingenterprise/TRANSCRIPT
Tim LagerpuschFounder and CEO SugarTrends GmbH
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The Internet has everything, butOn SugarTrends you will always find something special and you can trust on it:
Consumers love SugarTrends …
Why we need SugarTrends
On SugarTrends the lifestyle consumer will find special products from great small stores around the world and thus saves time for searching while receiving high quality & service
Our stores love SugarTrends …
People looking for something special
The nice Independent Local Shops
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Some Shop Examples
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The market
The Market is big
In Germany about 8M customers await us that frequently buy high quality, luxuary and organic products. Many are already buying online, many more will join because of our unique service
>2M stores
300K matching
stores
10K Member stores
Total available Market:• $15T retail market• 20% high quality• ~10% online
Serviceable/ Targeted available Market• Independent small stores• Matching products quality & style• Sales $200K p.a.
Signed stores
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The Internet has everything, butOn SugarTrends you will always find something special:
• Collection of special beautifulproducts
• Service from experienced& reliable stores
• Trust in quality & delivery
• Technology & Design for a great shopping experience
Consumers love SugarTrends …
As a gift or
For yourself
Why we need SugarTrends
We all love it
• Access to new global customers
• Economies of scale for shipping, payment & tech. costs
• Exclusive store network
• Great solutions for online sales& easy CM, processing and handling
Our stores love SugarTrends …
People looking for something special The nice Independent Local Shops
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AccessoriesGourmet
Home & Deco
+Fashion
+Art
+Furniture+Jewelry
Ø Shopping Cart €
# purchases
1
2
3
4
14
+Netherlands+Skandinavia+tbd.
+Austria+Swittzerland
Germany
+UK+tbd
+US
+BRICS
t
$35
$65
$95
$125
$160
Year 1 Year 2
Year 35k
0.15M
0.6M
1M €
25M €
50M €
Year 4 Group 1 Group 2 Group 4 Group 5
# Annual marketing & sales budget
$130 Jewelry
6 . M a r k e t E n t r y
Market entry strategy
Our market entry starts actively in Germany with products from $65-$180, which are easy & cheap to ship. With an increasing trust & investment we will expand our product portfolio and enter new countries
Group 3
increase of product depthand focus of marketing etc.
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The Network Effect
Scaling Marketing Potential
We join them
Each shop has a fan-community
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Status Quo – Performance (1/2)
SugarTrends is international with for example 82 stores in 14 EU countries. 30% of our customers are already shopping from the USA, Australia or Brazil
18 Countries
36 Cities
101 Stores
~1.500 Products
9.000 unique visitors p.m.45% international users30.000 USD in sales
European overview1
Germany >40 stores 13 cities >700 products
Portugal 10 stores 2 cities >300 products
Italy 7 stores 6 cities >80 products
Spain 6 stores 1 city >60 products
1 SugarTrends also has stores located in 2 non-European cities: New Delhi and Sydney, First inquiries from the US and Hong Kong
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11T e a m
Christian Schwarzkopf Tim Lagerpusch
Customers Creative CEO Consulting, ITe.g. SAP, Siemens Management Consulting>50 Consulting projects since 2005(e.g. Lufthansa, BASF, Masterfoods)Supporting more than 200 Startups as MDat Center for Innovation & Entrepreneurship
Stores Networking CEO Consulting, Logisticse.g. Deutsche Bank, Booz & Company>50 Consulting projects since 2005(e.g. VBL SCHUFA, Volaris)Supporting more than 200 Startups as MDat Center for Innovation & Entrepreneurship
• The founders are experienced entrepreneurs (IT, Consulting, Logistics, Coaching)• Our team members are international with various profound expertise
We are an experienced, international Team…
The FoundersWorking together since 2001
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Professional full integrationof the stores (Selection, CM, Marketing)
Anonymus
Comparison of some international Online-Marketplaces with special products 1. Selection of the finest products
Easier for consumers
2. Stores work for us Operational & cost advantage
3. Wide high class portfolio Increased shared of wallet High conversion
4. Focus on independent labels Less price competition
5. First store owner community Sustainability
Our USP combination
Competition
Through an invitation only policy of qualified stores and their integration in the operations,SugarTrends will build up a strong market position with its wide product portfolio
Further national concepts
JUNIQUE
WideProduct Categories
SmallProduct Portfolio
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Key
KP
I
• Breakeven in 3rd year possible• Investment:
• Seed: $0,15M• Series A: $2.5-4M• Series B: $6.5-13M• Series C: tbd.
Year 1 Year 2 Year 3 Year 4
Sales $270 K $12.61 M $65.29 M $152.92 M
# Visits/month 0,01 M 0,36 M 1,5 M 2,8 M
# Orders/year 3 K 0,13 M 0,56 M 1,07 MInternal revenues $26 K $1.69 M $9.91 M $27.17 M
Conversion 1,8% 2,8% 3,0% 3,0%
ø shopping cart $80 $95 $120 >$130
Employees 14 38 55 82# Stores 300 700 2.000 5.000Commission & Fees 10% 13% 15% 18%
• >$200K Self-financing• 4,000 visitors p.m.• Conversion Rate ~1% (Q2 2014)• No marketing spending so far• 101 stores, 50 in the pipeline
Financials
In order to grow and establish SugarTrends internationally, several investment rounds are necessary. We would like to start in Q4 2014 with a Series A of over 2.5M USD
2014 2015 2016 2017 2018 $-20,000,000
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
Revenues Costs
EBIT
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www.sugartrends.com
10 Euro Friends-Discount“SME2014”
the network of the nicest independent shops
Next Steps
Hope to see you….