Confidential Investor Presentation - December 29, 2016 International LLC
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DEAL SUMMARY KEY INVESTMENT MERITS CEO Anibal Marin Product Interchangeable Button System Location New York, NY Seed Capital $120K Use of Funds Go-To-Market Womens and Mens Accessories Market $43.9 Billion est. Current Status Pre-revenue Projected Gross Margin 78.9% Please mark CONFIDENTIAL and treat with the same standard of care with which you treat your own confidential information and documents. THE OPPORTUNITY WHY NOW THE MARKET FINANCIALS TEAM 2!
THE BIG IDEA THE BIG IDEA IN 135 WORDS: Make an impression with your wardrobe and set yourself apart, with your own custom details! As it turns out, there’s one particular detail that makes a visible impact on your wardrobe that hasn’t been turned into the accessory it deserves. Worn on billions of shirts and manufactured in the trillions, this detail is everywhere and if you wear buttoned shirts it’s more visibly numerous on your outfit than you can count fingers on your hands. I’m talking about age old buttons and it’s antiquated method of application. Say goodbye to the same old looking shirts, sewing lost buttons or going to the tailor. We have decided to make buttons better allowing shirt customization like never before! This deck is dedicated to a solutions based patent pending fashion innovation creating a new market as category king. THE OPPORTUNITY WHY NOW THE MARKET FINANCIALS TEAM 3!
THE CHANGING MARKET Worldwide accessories revenue will increase at an average annual rate of 4.3% to $11.8 billion over the next 5 years. Men these days are becoming more fashion conscious then ever while women continue to look their best with their attention to detail. Growth Across Segments With all the growing attention to accessories, men’s perception has really changed. Men see accessories as an extension of their style, like a watch, so they are willing to pay more for the right pieces. Men are also staying single longer, according to the U.S. Census Bureau, meaning they have more income to spend on themselves. The typical shopper is 35+ years old and single, living in an urban coastal city and making a bit more than $100,000. While overall sales for men’s accessories grew 9 percent to $13.6 billion in the 12 months ending May 2014 (June’13 – May’14), U.S. online sales for women’s accessories also grew 7 percent, to 7.1 billion, in the 12 months ending March 2014, according to The NPD Group, a global information company. Though the men’s accessories market is growing, it will never equal in size to the women’s accessories market. Baby boomer women 50+ years old account for 9% of all online consumers spending an upwards of $20 billion a year. This statistic explains why the fastest growing segment of ecommerce is apparel and accessories with an average growth of 20% per year. Demand For Innovation In today’s growing accessories and overall fashion market, innovation and technology play key roles. The consumers need for all things innovative has accredited to a wearable tech market the size of $20 billion. At the heart of this technological boom the race to re-invent the way we interact with our fashion is in full steam. THE OPPORTUNITY WHY NOW THE MARKET FINANCIALS TEAM 4!
HOW BIG IS THE MARKET? ACCESSORIES MARKET Scarves Slippers $500 Million WOMENS Small Leather Goods $900 Million Gloves MENS $30.3 Billion $1.4 Billion $400 Million $13.6 Billion Total Market Watches Belts Watches Total Market $1.8 Billion $300 Million $3.1 Billion Sunglasses $1.8 Billion Hosiery $3.3 Billion Jewelry Jewelry Sunglasses $10.7 Billion $4.3 Billion $2.0 Billion Source: Statista Inc. Source: The NPD Group, Inc. Bags $2.3 Billion Handbags $15 Luggage Small Personal Accessories $9.2 Billion $1.2 Billion $756 Million Billion Combined Men’s and Women’s Jewelry Market THE OPPORTUNITY WHY NOW THE MARKET FINANCIALS TEAM 5!
“Today, more men are looking to stand out in a crowd, and accessories are a way to make a bold statement without having to overhaul their wardrobes,” “Overall, men are becoming more interested in fashion, and retailers are building upon this trend by catering to them specifically.” Marshal Cohen, Chief Industry Analyst, The NPD Group
PROBLEM? A SLEEPING DINOSAUR RIGHT UNDER OUR NOSE Buttons have been a staple to our garments both visually and functionally. They are subject to the garments we buy with no choice available. The buttons method of application hasn’t changed in ages. 1. BORING - NO CHOICES 2. NO SKILLS – NO TIME 2. INVESTMENT Shirt buttons look the same They become loose or fall off They can get damaged at the and cannot be constantly over time and many people dry-cleaners causing customized to update outfits. don’t know how to sew. necessary replacement. THE OPPORTUNITY WHY NOW THE MARKET FINANCIALS TEAM 7!
THE SOLUTION INTRODUCING... THE WORLD’S FIRST NO-SEW INTERCHANGEABLE BUTTON SYSTEM™ The easy-to-do patent pending Auxilry Interchangeable Button System allows you to update your outfit with the twist of a button without ever picking up a sewing needle or thread again! It offers multiple solutions: 1. Consumers now have the option to change button styles in seconds customizing their look. 2. Absolutely NO sewing, needle or thread is required. Anyone can do it! 3. Never experience loose threads or buttons again. Costs $4.98 to manufacture Sold as Kits Can be applied to any shirting fabrics for functional and/or decorative purposes. Prolongs the use of shirts saving consumers money in the long-term Unconditional Lifetime Guarantee Sold as Interchangeable Button Packs THE OPPORTUNITY WHY NOW THE MARKET FINANCIALS TEAM 8!
HOW IT WORKS APPLY AUXILRY YOURSELF Apply the permanent fasteners and button bases in minutes and change your button styles in seconds to customize your shirts! Anyone at any age without sewing skills can do it. 1. Remove your old 2. Attach the fastener 3. Twist on any button 4. Quickly change them buttons in seconds with the base button. style of choice and anytime to compliment with the included tool. No sewing required. you are done! your daily outfits. AFTER APPLYING Wash and wear your shirt as accustomed. The Auxilry Interchangeable Button System is made with medical grade high crystalline polymer that withstands most industrial chemicals and high temperatures. THE OPPORTUNITY WHY NOW THE MARKET FINANCIALS TEAM 9!
HOW IT WORKS SEND US YOUR SHIRT Don’t have time to change all of your shirts? No problem! Choose our button tailoring option and we will take care of the rest, all with free shipping! 1. Upon placing your 2. Simply pack your 3. We apply Auxilry 4. Create new shirt order we send you a shirts in the envelope and send your shirts looks with your own self addressed and drop it in the mail. back to you. signature style. envelope. AFTER RECEIVING Wash and wear your shirt as accustomed. The Auxilry Interchangeable Button System is made with medical grade high crystalline polymer that withstands most industrial chemicals and high temperatures. THE OPPORTUNITY WHY NOW THE MARKET FINANCIALS TEAM 9!
ELEGANT, SIMPLE, UNIQUE.
MAKING-A-MARKET UNFAIR ADVANTAGE AND PATHS TO CATEGORY DESIGN Patent Online Sales on i l e s conv ers Direct worldwide consumer sales, online retailers, Amazon FBA Direct Online Purchase and drop ship partners. Higher Margin % sa ct Patent B2B Manufacturing re Retail t o di Condition the Market Sold to retailers on branded Garment Retail Purchase garments conditioning retailers. Patent Direct to Retail After conditioning retailers with B2B sales, introduction of stand-alone Retail Purchase product as a category. Licensing IPs (Sports, Character, etc.) Patent Licensing Licensing Patent Novelty IP & Novelty THE OPPORTUNITY WHY NOW THE MARKET FINANCIALS TEAM 11!
SALES CHANNELS KEYS TO BECOMING CATEGORY KING Unfair Advantage Auxilry will be the only interchangeable button system on the market with US and other international patents pending. The term “Interchangeable Button System” has also been filed for trademark with the USPTO. This unfair distribution advantage will allow Auxilry to establish itself as the original interchangeable button brand while dominating the market becoming category king. Consumer Acquisition B2B Manufacturing / Garment Retail Purchase – building a strategic partnership with branded garment manufacturers will introduce the product to retailers and ease the pain points of consumers. By adding extended value of lifetime guarantee and product options past the point of consumer purchase, Auxilry will gain direct consumers. This would be the first time a fashion trim offers extended value to the consumer past the point of garment purchase changing the traditional trim manufacturing model. Direct Online Purchase - will be set in place with online retailers, digital marketing via SEO, social media, bloggers, influencers, paid advertisements and public relations. Retail sales through B2B garment purchases will serve as a form of advertisement and drive consumer conversion to direct online purchases yielding higher margins. Retail Sales – the introduction of interchangeable buttons and product conditioning from B2B manufactured garments, will aid in facilitating brick and mortar retail sales. Licensing – Licensing external IP’s for novelty product and licensing proprietary patent for other industries will increase sales revenue and product awareness. THE OPPORTUNITY WHY NOW THE MARKET FINANCIALS TEAM 11!
Over 30 million women 50 years and older are online. They account for 9% of all online users in the United States. Baby Boomer women spend upwards of $20 billion each year on clothing alone. That statistic explains why the fastest growing segment of ecommerce is apparel and accessories with an average growth of 20% per year.
FUTURE GROWTH ADDITIONAL MARKET STRATEGIES Strategies below list additional market points of entry for sales growth NOT calculated in this plan. PRODUCT CATEGORY EXPANSION Utilizing existing sales channels and target consumers, the introduction of Interchangeable Suit Buttons would double sales figures. In addition complimenting product categories (interchangeable cufflinks, dress studs, tie bars, lapel pins, key chains, small leather goods, etc.) will substantially boost overall sales creating an accessories one stop shop. CUSTOM LUXE COLLECTION A luxury market could be served by producing customized buttons tailored to a customers need using precious metals and stones with an in-house or partnering machining shop. MASS MARKET TARGETING By creating a diffusion label within a lower price point, the interchangeable button system can be marketed to larger volume retailers or craft stores as “Do-It-Yourself” button kits. CORPORATE PROMOTIONAL ITEMS Promotional items can be offered with custom branding or pre-applied on promotional garments for special corporate events. THE OPPORTUNITY WHY NOW THE MARKET FINANCIALS TEAM 15!
Auxiliare International LLC (pronounced /awks-zeel-ier/) is an innovation- focused company with a passion for enriching people's lives through premium accessories and meaningful connectivity. Commencing with our Auxilry® Interchangeable Button System™ we seek to establish ourselves as the timeless brand of high quality interchangeable buttons, creating and dominating a new patented category of accessories allowing consumers shirt customization in seconds while solving the common problems of sew-on buttons. Your shirts will never be the same again!
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