Our vision for what our company will become in the future is to have developed relationships with key retailers so strong that they will view us more as indispensable partners, than just any other supplier.
We will work very closely with each retailer we serve in order to recommend product assortment unique for their customer base, appropriate stocking levels, pricing and display assortments.
We will constantly seek out and work with the manufacturers we represent in order to deliver the most innovative and exciting products which are possible to the retailers that we serve.
1. Overseas manufacturers agreements in place ... done.
2. Verbal commitments from many West Coast retailers ... done.
3. Presentation to potential investors ... underway now.
4. Presentation to potential banks for inventory and receivable financing ... underway now.
5. Financing commitments in place .. 60 days.
6. Product catalog completed ... 30 days ...
7. Additional sales reps being recruited ... underway now.
8. Sales rep selection finalized ... 60 days.
9. Warehouse lease signed ... 90 days.
10. First written orders from retailers ... 75 days.
11. First orders to manufacturers ... 110 days.
12. First shipments from our warehouse ... 160 days.
The Overall Market
The overall size of the industry is currently $150 million in the US and Canada.
Because the industry includes a very diverse group of product types with substantially different characteristics, it will be a lot more meaningful to break out analysis of the industry into two rough groups.
The first group and by far the larger unit volume are lower end kites sold primarily through mass market outlets such as discount department stores.
The second group are higher end kites that are sold largely at independent and specialty chain stores.
Whilst the unit volume might be much less, the dollar volume is approximately the same ($75 million) as that for lower end kites because the average price point might be much higher.
Changes In The Market
The most important development in this marketplace in recent years has been the shift in toy and kite business away from independent stores to national mass marketers over the past decade.
Nevertheless, recently, this trend has slowed as independent toy and novelty retailers have become more efficient at differentiating themselves and their product selections from those offered by national mass marketers.
The market is primarily segmented by distribution channel.
The mass market retailers are looking for low-priced products and a high percentage of their products are licensed merchandise, based upon kid's cartoon characters for example.
Independent specialty retailers however are trying increasingly to be as different from the mass merchants as possible and are generally selling much higher priced product and seldom want merchandise based upon licensed cartoon characters.
It should be mentioned that there are few stores that sell just kite merchandise -- even amongst independent specialty stores, most of the volume in kites is sold at stores that tend to sell a wide assortment of other merchandise such as toys or other novelty items.
Target Market And Customers
Our target market is independent and many small chain merchants which are committed to selling higher end kite products.
We particularly want to focus on accounts that just sell higher end kite products and which are committed to stocking a selection of at least a dozen different kite products.
These accounts we feel offer the best growth potential and will benefit the most by the help we can bring to them in selecting and demonstrating our higher end merchandise.
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