Hi!
We are ... “ THE CIRCULAR REVOLUTION ” #upcycle #circulareconomy #circularity #nowaste #sustainability #recycledmaterials #reuse
Leon Chengqi Wang Yolanda WanZhi Du Kiki QI LIU
Hi!
We are ... “ THE CIRCULAR REVOLUTION ”
At Exist, every day is Earth Day. Beautiful, luxurious, comfortable products, don’t always need to come at a cost to our environment. Moreover, they can even help preserve it, as our circular homeware, re-engineered exclusively from the things you discard, is proving.
Leon Chengqi Wang Yolanda WanZhi Du Kiki QI LIU
Key Innovation
Waste
Treatment
Design
Fabrication
Sale
Profit
Procduct
Design
Wholesaler
Fabrication
End-to-End STRUCTURE
Traditional STRUCTURE Distributor
VERSUS
Procduct
Retailer
Sale
Consumer
Consumer
ARTIFICIAL
NATURAL
VERSUS
AUD$5/KG * 2TON = AUD$10,000.00
EXIST * 2TON = AUD$0.00
VERSUS
PHA
POLYSTYRENE
CNC (Computer Numerical Control)
HANDCRAFTED
VERSUS
Manufacturing Machine
INCREATE EFFCIENCY
Machine purchase on STAGE 01
Machine purchase on STAGE 02
Machine purchase on STAGE 03
4 hours / 1 chair
3 hours / 1 chair
2 hours / 1 chair
Manufacturing Progress STAGE 01
STAGE 02
STAGE 03
Collect the polystyrene
STAGE 04
STAGE 05
Clean and classify the type of polystyrene.
Manufacturing Progress STAGE 01
STAGE 02
STAGE 03
Heat in 140 degree to transform polystyrene waste into oil that contains 83% of styene. “Elementary Bricks“
STAGE 04
STAGE 05
Transform the oil into the special container to feed to a specific bacterium, Pseudomonas putida.
Manufacturing Progress STAGE 01
STAGE 02
STAGE 03
This bacterium has provide capable of turning the styene oil into tiny granules of PHAs (Polyhydroxalkanoate), which is the white area in the picture.
STAGE 04
STAGE 05
Then we add predator cells (bacteriovorus) into this container to make the bacteriovorus predation occour, which will release the hydrolytic arsenal form the prey cell and generate the Pure PHAs.v
Manufacturing Progress STAGE 01
STAGE 02
STAGE 03
STAGE 04
STAGE 05
So we got soild PHAs which is suitable for CNC process.
After we get the pure PHAs, we transform it into small granule to be prepared for melting into the row material we need.
So we got PHAs wire which is suitable for Fused Deposition Modeling process.
Manufacturing Progress STAGE 01
STAGE 02
STAGE 03
STAGE 04
STAGE 05
STAGE 04
Than we use CNC mechine to generate our chairs, which will save lots of labor fee.
In terms of the Waste PHA generate form the CNC process, as it is a material that can be heated to dissolve, so we can bring the waste to the melting process to generate the new row material.
Risk analysis
Risk
Likelihood
Impact
Strategy
The Polystyrene material not ableto performe at a required level.
Likely
High
Ensure to do the material test before put into pfroduction.
The CNC machine might have a break down affecting the delivery.
Likely
High
Check and repair the machine regularly.
Our products are copied by other competitors companies.
Likely
High
Apply for patents to protect for our products.
Material suppliers don't provide materials on time.
Unlikely
Low
The amout of wasting polystrene is very large, and we have our own storage to avoid this situation happens.
Buying behaviour
Recycled
Personal statement
Technology
Affordable price
Purchase decision
Post-purchase behavior
A potential Exist consumer may have a environment protection concept and want to bring it into real life.
The Exist's product has a strong natural aesthetic. It fits consumers who are looking for a strong personal statement to meet their lifestyle quality.
The consumer who is looking for the products made by newest technology and easy to be afftected by new fahion trend.
The young generation may not have too much money to afford an expensive chair. The low costing of Exist's product solves this problem.
The final decision is taken mostly due to the function and the design of the Exist products. A Exist's chair is comfortable and design-driven.
If the consumer is satisfied for the Exist's product, he can choose to change a new chair after a period of using with a lower price.
" This chair doesn't make any unnecessary rubbish to our environment. Every small change in our lives meant a huge deal for the planet. "
—— An environmentalist
" I'have a chair is made by the newest technology. My room is the coolest space in the world. "
—— A just graduated student
"It is a unique chair in my office and it fits my sitting position perfectly. Everyone thinks It costs me a lot. "
— A young designer
"My children need bigger chairs as they growing up. It really helps me save lots of money. "
— A Mother
Key consumers
Y Z GENERATION
Our main target is concentrate on the generation Y and Z who has a personal statement and recycling awareness wants have a fine comfortable chair with the latest CNC technique and an affordable price.
Competition Analysis
Exist’s product position is communicated as being unique, environmental friendly, innovative, recycled, quality, technique, fabrication and natural form. We are aiming to offer second life products. Exist’s competitors are companies which using recycled materials to produce furniture.
Introduction
Pentatonic
Emeco Industries
IKEA
Estblishment
Size
Value to customer
Strength
Weakness
Start-up company Pentatonic is aiming to "radically transform consumption culture" with a range of furniture and products created from food, electrical, plastic and textile waste.
2017
50 employees
A superior aesthetic, durable product, recycle the waste
Cooperate with other companies, affordable price, multiple design directions, good design
The size of company is small, lessknown, not provide purchase service on website
Emeco provides iconic seating and tables fabricated from aluminum and recycled waste products, which include chairs, benches, tables, and an outdoor collection.
1944
200 employees
Sustainable, handmade, innovative design, top design furniture brand, the making of timeless furniture
Long history brand story, big company, has their own factory, close cooperate with famous designer, detailed information on the website
High price
IKEA furniture and home accessories are practical, well designed and affordable. The Swedish furniture company is also not shying away from its role in sustainability and has set a goal to reach 100 percent recycled materials by 2020.
1943
208,000 employees
Easy to buy, convenient assembly, countless design
One of the leading furniture companies worldwide, affordable price,a long lasting relationship with their suppliers, online shopping
Low quality, few countries, general design
- Unique use of material - Low costing - Long lasting product - Unique design - Sustainable production process - Follow the circular economy - Provide trade in service - Simple and easy to use interface - Affordable price - Bespoken service - End-to-end market
- Low production efficiency - High machine maintenance fee - May need large storage spaces, increase the rental fee - Materials rely on third party suppliers
S
W
Strength
Weakness
- Growth in international market - New product line - Cooperation with other company - New consumers group
O
Opportuinities
- Strong competitors in the market - Delay of delivery date - Cooperation with other company may not happen
T
Threats
Advertising & Sales Website We have our own website to build the End-to-End service which consumers can directly buy our products on that. In the future, we will use a simply and easy interface to help consumers bespoke their own chairs on the website.
Advertising & Sales
Social media We maintain social media platform to keep products information updates. That also attracts our main younger consumers groups.
Advertising & Sales Email We provide email subscription service to make a timely connection with our consumers to promote our new products.
Advertising & Sales Packaging Use our appealing design packaging to attract public attention.
Advertising & Sales
Manufacturing Partners We work build connects with professional companies to develop a vision of purchasing chape digital fabrication methods
Advertising & Sales Aesop
Cooperation We would like to cooperate with some famous company to expand our brand awareness. We revolutionise our partners’ supply chains with bespoke solutions that commoditise their waste.
By cooperating with Aesop's store designer to design chairs matching their product's concepts.
Starbucks
We are planing to work with starbucks through producing innovative consumer's chair design.
Nike
Re-design the chairs in Nike's fitting room. To Support Nike spreading their environmental friendly concept to their consumers.
Advertising & Sales
AMAZON
Sales and distribution channels In the future, we will cooperate with other online sales platform to ensure a high engagement in the market.
ETSY
Our market plan split into 4 parts, eyery parts is based on the previous one. We change our market strategy at the different stage in order to achieve our break even point as soon as possible.
Market Plan Timeline
6 months
3 years
4 years
5 years
1
2
3
4 1
2
3
4
Stage 1
Stage 2
Stage 3
Stage 4
On the first stage, our market is foucsing on the young generation. We will foucus on producting 1 or 2 kind of chairs. Using ouar limit CNC machine by low price to occupy the market.
After 6 months, we will arrive the second stage. When we start making some profits, we will get the investment from the government. Using the investment to expand the scale of company with purchasing more machine and putting advertisements. We will produce more tyoes of chair such as using by officers and families.
We need one and a half yeas to get the third stage. We will continure to expand our markert on ideal situation. To carry out a bespoken service and cooperation with some large and famous compines.
At the fifth years, we will achieve the breakeven point. Our products will not limit on the chair. We can produce more furniture, like desks or cabinets.
FINANCE Start-up cost forecast
Unitised cost
Bank loan (One Year Contract) - Bank loan interest (6.5%)
100,000 6,500
TOTAL FUNDING
100,000
COST
Other small parts Warehouse Rent
20,995 4129 200 10,000
Brand Development
2,000
Rent & rates
2,900
Advertising & marketing Software licences
Income
Profit
Series R (RAIN) * 540
41
49.99
8.99
Series W (WIND) * 540
41
49.99
8.99
INCOME
Manufacturing machines (CNC) Coolant: Liquid Tool Starter & Maintenance kit
Expense
Profit & loss forecast
Fixed costs
Machine: Mini Mill-EDU (16” x 12” x 10” 7.6 m/min)
STAGE 01
STAGE 01
FUNDING
750 1,200
Product income (excl. GST) Total income (excl. GST)
EXPENSES Salaries Employee salaries & commissions
42,179
Variable costs Utility connections & bonds (electricity, gas, water) Employee salaries & commissions
250 5,000
Supplies & stationery
150
Repairs & maintenance
200
Adobe Creative Cloud subscription
30,000
General expenses Utility connections & bonds (electricity, gas, water)
TOTAL FIXED COSTS
53,989.2
1,500
Supplies & stationery
900
Repairs & maintenance
900
Adobe Creative Cloud subscription
480
Vehicle rental
600
Bank loan interest
3,252
Miscellaneous
6000
Total general expenses includ. GST
13,632
Total expenses includ. GST
43,932
80
Vehicle rental
100
Bank loan interest
542
Miscellaneous
1000
NET INCOME
Total average monthly costs
7,322
Cash Flow Repayment to Bank Investment in Stage Two
67,878 50,000 17,878
Total amount to Break-event Point (Stage 01)
50,000
Number of months
6
Total monthly costs
43,932
TOTAL START UP COSTS
86,111
10,057.2
Stage 02 cost forecast
Unitised cost
Angel investor funding Government of Australia
10,000
Local Government Victoria (LGV)
10,000
Andrews Labor Government
10,000
Municipal Association of Victoria (MAV)
10,000
Department of Environment, Land, Water and Planning (DELWP)
10,000
Resource Recovery Groups (WRRGs)
10,000
Investment From Stage one
17,878
TOTAL FUNDING
77,878
STAGE 02
STAGE 02
FUNDING
Expense
Income
Profit
Series R (RAIN) * 5430
25.07
49.99
24.92
Series W (WIND) * 5430
25.07
29.99
4.92
Profit & loss forecast INCOME Product income (excl. GST)
434,291.4
Total income (excl. GST)
EXPENSES
COST Fixed costs (additional)
Salaries Employee salaries & commissions
Manufacturing machines (CNC) Machine: Mini Mill-EDU (16” x 12” x 10” 7.6 m/min)
20,995
Coolant
14,248
Other small parts Advertising & marketing TOTAL FIXED COSTS
500 20,500 56,243
Variable costs Utility connections & bonds (electricity, gas, water) Employee salaries & commissions
500 7,500
Supplies & stationery
200
Repairs & maintenance
400
Adobe Creative Cloud subscription
1000
Vehicle rental
100
Bank loan interest (Half Year)
542
Number of months Total Bank loan interests (Half Year)
General expenses Utility connections & bonds (electricity, gas, water) Supplies & stationery Repairs & maintenance
15,000 6,000 12,000
Adobe Creative Cloud subscription
2,400
Vehicle rental
3,000
Miscellaneous
30,000
Bank loan interest (Half Year) Total general expenses includ. GST Total expenses includ. GST
3,250 71,650 296,650
80
Miscellaneous
Total average monthly costs
225,000
9,780 30 3,250
Total monthly costs
296,650
TOTAL COSTS IN STAGE TWO
324,969
NET INCOME
137,641.4
Cash Flow Repayment to Bank Repayment to Government Investment in Stage Three
159,276.4 50,000 30,000 79,276.4
Total amount to Break-event Point (Stage 02)
30,000
Unitised cost
FUNDING Investment From Stage Two TOTAL FUNDING
79,276.4 79,276.4
STAGE 03
STAGE 03
Stage 03 cost forecast
Expense
Income
Profit
Series R (RAIN) *6320
18.11
49.99
31.88
Series W (WIND) * 4320
18.11
24.99
6.88
Series C (.......) * 2320
18.11
69.99
51.88
Profit & loss forecast INCOME
COST Fixed costs (additional)
Product income (excl. GST) Total income (excl. GST)
Manufacturing machines (CNC) Machine: Toolroom Mills - TM-3P *(40” x 20” x 16” 10.2 m/min) Coolant
37,795.5 7124
Milling End
200
Other small parts
200
TOTAL FIXED COSTS
41,757
Variable costs Utility connections & bonds (electricity, gas, water) Employee salaries & commissions
800 12,500
Supplies & stationery
400
Repairs & maintenance
500
Adobe Creative Cloud subscription Miscellaneous Vehicle rental Total average monthly costs Number of months
586,270.4
80 1,500
EXPENSES Salaries Employee salaries & commissions
150,000
General expenses Utility connections & bonds (electricity, gas, water)
9,600
Supplies & stationery
4,800
Repairs & maintenance
6,00
Adobe Creative Cloud subscription
960
Vehicle rental
3,600
Miscellaneous
18,000
Total general expenses includ. GST Total expenses includ. GST
42,960 192,960
300 16,080 12
Total monthly costs
192,960
TOTAL COSTS IN STAGE THREE
234,717
NET INCOME
393,310.4
Cash Flow Repayment to Bank Repayment to Government Investment in Stage Four
430,829.4 0 30,000 400,829.4
Total amount to Break-event Point (Stage 03)
0
Unitised cost
FUNDING Investment From Stage Three TOTAL FUNDING
400,829.4 400,829.4
STAGE 04
STAGE 04
Stage 04 cost forecast
Expense
Income
Profit
Series R (RAIN) *130,200
7
49.99
42.99
Series W (WIND) * 80,200
7
14.99
7.99
Series C (CUSTOMISE) * 50,200
7
69.99
62.99
Series C (CUSTOMISE) * 20,200
7
99.99
92.99
Profit & loss forecast INCOME
COST Fixed costs (additional)
Product income (excl. GST) Total income (excl. GST)
Manufacturing machines (CNC) Machine: Mini Mill-EDU (16” x 12” x 10” ) VF Series (Large) - VF-5/40TR (64” x 32” x 30” 12.7 m/min) Kuka KR150 Robot w/ KRC2 Controller Coolant
20,995 138,595.50 7,999.99 71,240
Milling End
2000
Other small parts
2000
TOTAL FIXED COSTS
242,830.49
EXPENSES Salaries Employee salaries & commissions
Variable costs
Utility connections & bonds (electricity, gas, water) Supplies & stationery
Employee salaries & commissions Supplies & stationery Repairs & maintenance Adobe Creative Cloud subscription Miscellaneous Vehicle rental
Adobe Creative Cloud subscription 2000 25,000 900 1200 80 3,200
Number of months Total monthly costs
TOTAL COSTS IN STAGE FOUR
120,000 5,400 72,000 4,800
Vehicle rental
30,000
Miscellaneous
192,000
Total general expenses includ. GST Total expenses includ. GST
472,800 1,972,800
500 NET INCOME
Total average monthly costs
1,500,000
General expenses
Repairs & maintenance Utility connections & bonds (electricity, gas, water)
13,244,192
32,880 60 1,972,800
2,215,630.49
Cash Flow Repayment to Bank Repayment to Government Investment in Stage Five Total amount to Break-event Point
11,271,392 11,429,388.9 0 0 11,429,388.9 0
STAGE 01 - First 6 month
Revenue
$1,200K
$1,000K
$800K
$600K
$400K
$200K 53,989.2 $0K
$100K
$200K
$300K
$400K
0
6
12 32,122
86,111
18
24
30
36
42
48
54
60
66
72
78
84
Profit
Expense
STAGE 02 - Frst 30 month
Revenue
$1,200K
$1,000K
$800K
$600K 434,297.4 $400K
$200K 53,989.2 $0K
$100K
0
6
12 32,122
18
24
30 30,000
86,111
$200K
$300K
$400K
324,969
36
42
48
54
60
66
72
78
84
Profit
Expense
STAGE 03 - The 4th YEAR
Revenue
$1,200K
$1,000K
$800K
$600K
586,270.4 434,297.4 400,829.4
$400K
$200K 53,989.2 $0K
$100K
0
0.0 6
12 32,122
18
24
30
36
42
30,000
86,111 234,717
$200K
$300K
48
324,969
$400K
Break-even Point 33th Month at Stage 2
54
60
66
72
78
84
Profit
Expense
STAGE 04 - The VISION of 5 years Upcoming
Revenue
Profit
13,244,192
$1,200K 11,429,388.9 $1,000K
$800K
$600K
586,270.4 434,297.4 400,829.4
$400K
$200K 53,989.2 $0K
$100K
0
0.0 6
12 32,122
18
24
30
36
42
54
60
66
72
78
84
30,000
86,111 234,717
$200K
$300K
48
324,969
$400K
Break-even Point 33th Month at Stage 2
2,215,630.49
Expense