UB capstone

1. Investment Business Plan
Project Proposal
2021
LA
GALERIE
1

2. AGENDA
2
MEET OUR TEAM
01 LEAN CANVAS
02
03 EXECUTIVE
SUMMARY 04 INDUSTRY
ANALYSIS
05 MARKET
ANALYSIS 06 COMPETITIVE
ANALYSIS
07 MARKET
PLAN 07 OPERATING
PLAN

3. AGENDA
3
FINANCIAL
PLAN
09 INVESTMENT
HIGHLIGHTS
10
11 CONCLUSION,
Q&A

4. MEET OUR TEAM
Management team plan and potential
strategic partners
01

5. LA GALERIE’S
LEADERSHIP TEAM
5
Gareth Low
CEO & Founder
Joined 2022
Bachelor’s in business
marketing
Singapore Premier
League
Erica Irawan
President
Joined 2022
Bachelor’s in supply
chain management
Tier 1 Bi-Cultural
Studies Program and
Scholarship
Esha Sarkar
Product Research Analyst
Joined 2022
Bachelor’s in
psychology
Bachelor’s in
communications
Tjong Kai Sen
Chief Financial Officer
Joined 2022
Bachelor’s in business
marketing
AGS-certified diploma
in gemotology

6. SHENZHEN BATAR
INVESTMENT HOLDING
GROUP
6
Capital Overview

7. Sponsor and Advisor
Trusted investment partner to private equity sponsors and institutional investors.
Established jewelry company in manufacturing, wholesale and retail.
Edmund Chau Tsankwan
Chairman & CEO,
Batar Group,
Shenzhen Batar
Investment Holding
Group Co, Ltd.
● Member of Shanghai Gold Exchange
● Outstanding Entrepreneur of the Year, JNA
Awards, 2015
● Honouree in Young Entrepreneur of the Year
Select Prior Experience
● 21+ years of experience in private equity and gold manufacturing
● Co-founded MJSU and appointed as National Jewellery Standards Technical Committee
● Headquartered in Hong Kong, joint efforts with ASEAN jewellers
Main Honorary Titles
China 's Number 1 Gold Manufacturer
China 's Top 500 Private Enterprises in the Manufacturing Sector
The State AAAA -Class Standard of Good Conduct Certification
China Gems & Jewelry Trade Association of Science and Technology
Award
Advanced Collections in National Gold Industry
Shenzhen Mayor Quality Award Encouragement Award
Shenzhen High-Tech Enterprises
7

8. LEAN CANVAS
Key information
02

9. 9
LA GALERIE’S LEAN CANVAS

10. 10
LA GALERIE’S LEAN CANVAS

11. 11
LA GALERIE’S LEAN CANVAS

12. “These jewellery look like they are designed for older
people. It is so time-consuming to find one for a young
professional like myself.
“Travelling to different locations just to purchase what I
want is so inconvenient.”
12
PROBLEM SOLUTION
POOR VALUE FOR TIME
LACK OF ACCOUNTABILITY
LACK OF AVAILABILITY
“The lack of pricing or cost breakdowns makes me feel
insecure. Am I am paying more for less?”
ONE STOP SHOP
PRICE TRANSPARENCY
EXPERTISE
Customization + Ready-to-wear = Convenience
Comfortable shopping experience
Quality reassurance

13. COMPANY OVERVIEW
03
Executive summary

14. LA GALERIE’S VISION AND MISSION
14
VISION MISSION
A canvas where creativity,
freedom, and art transcends
across all genders in quality
heirloom jewelry.
Customer-oriented, ethical,
socially responsible, trend-setter

15. MARKET & CUSTOMER BASE
LA GALERIE AT A GLANCE
*Lean canvas
● 25 - 39 years old, white-collared
● Engaged couples
MARKETING & SALES ● Attracting and retaining customers
COMPETITION
● Local and global
● Goldsmiths
OPERATIONS ● Customized vs ready-made
FINANCIAL ESTIMATES ● $ 181, 674 startup capital

16. INDUSTRY
ANALYSIS
04

17. MARKET
POTENTIAL
SINGAPOREAN MARKET
($/ million)
ASIAN MARKET
($/ billion)
17

18. MARKET
OPPORTUNITY
18
FRAGMENTED INCUMBENT
No clear market leader
Singapore
437M/yr
1.1B/yr
6.2B/yr
China
Malaysia
Singapore
MASSIVE MARKET
Upside via regional expansion

19. MARKET ANALYSIS
Who our customers are
05

20. CUSTOMER
ANALYSIS
20
HIGH INTENT CUSTOMERS
MVI Market Survey (2018)
World Gold Council Survey (2019)

21. 21
EARLY ADOPTERS
Gen Y: 25 - 39 year olds
TARGET GROUP 1
Engaged couples
22,651 pax
TARGET GROUP 2
White-collared women* and men
981,259 pax
● Bridal jewellery
● Customized jewellery
● Self-purchasing
● 80th percentile in Singapore’s
income earnings
● Female-oriented and
androgynous designs

22. 22
CUSTOMER
EXPERIENCES
WHAT OUR
CUSTOMERS WANT
1
2
3
4
5
Display wealth
Excellent investment
Display individuality
Jewellery style
Purchasing satisfaction

23. COMPETITIVE
ANALYSIS
Our competitors and competitive
advantage
06

24. COMPETITIVE
ANALYSIS
24
● Jewelry retail chains: 24%
● Independent small retailers:
76%
● Massive fragmented market
● No prominent brand
● Mid-range: Local brands
● High-end:
International brands

25. 25
S W O T
Strengths Weaknesses Opportunities Threats
SWOT ANALYSIS
Lean cost structure
Lower overheads
Focused product range
Superior customer experience &
product turnaround
No brand reputation
No brand loyalty
High start-up costs
Barriers to entry
Rising demand
Growth opportunities
in untapped market
Fragmented market
No prominent brand
High material costs
Supply chain issues
Economic volatility

26. STRENGTHS: POINT OF DIFFERENTIATION
Semi-fine
brands
Richemont LVMH
Independent
retailers
Local Brands
Brands Pandora
Cartier,
Van Cleef Arpels
Tiffany & Co.,
Bvlgari
Family-owned
goldsmiths,
Independent
jewellers
SK Jewellery,
Poh Heng
Market segment
Mass,
Female
High-end,
Female
High-end,
Female
Mass to high-end,
Female
Middle,
Female
Product type Semi-fine (silver) Fine Fine Fine Fine
Product range High Low Low Moderate to low High
Product source Manufacture-sell Manufacture-sell Manufacture-sell
Outsource and
inhouse
manufacturing
Manufacture-sell
Customizability
Low
(mix & match,
engraving)
Low
(engraving)
Low
(engraving)
Dependent
(limited design
capability)
Low
(limited design
capability)
Duration of
custom process
N/A N/A N/A 8 - 12 weeks 8 - 12 weeks
La Galerie
Middle,
Unisex
Fine
Low
Outsource
manufacturing
High
4 weeks

27. COMPARISON OF RESULTING EXPERIENCES
Semi-fine
brands
Richemont LVMH
Independent
retailers
Local Brands
Brands Pandora
Cartier,
Van Cleef Arpels
Tiffany & Co.,
Bvlgari
Family-owned
goldsmiths,
Independent
jewellers
SK Jewellery,
Poh Heng
Customizability + ++ ++ + ++
Delivery time ++ ++ ++ + ++
Product range - - - - -
Status display ++ - - + +
+ : La Galerie offers more of specified experience/ service
- : La Galerie offers less of specified experience/ service

28. NO MANUFACTURING
OVERHEAD
28
STRENGTHS: COST ADVANTAGE
Lean cost structure
CONCENTRATED
PRODUCT RANGE
Low inventory cost
Low obsolescence
CUSTOMIZATION-
ORIENTED
No obsolescence
Low costs
Quality assurance
1 2
3

29. A range of products to
release each season
Client design approval
Cast 3D wax model
Outsource manufacturing
MANUFACTURING PROCESS
DESIGN SOURCE DELIVERY
29
MANUFACTURE
Shipping to La Galerie
Receive finished and
make necessary
adjustments

30. SAMPLE
PRODUCTS
EXCEPTIONAL CRAFTSMANSHIP,
QUALITY GEMSTONES,
SOUGHT-AFTER DESIGNS
30

31. 31
OPPORTUNITIES
CAGR +8.6%
Rising demand for luxury jewellery in Singapore
DEMAND FOR GOLD +124%
World Gold Council (2021)
NEXT BEST ALTERNATIVE: DIAMONDS
Gem and Jewellery Export Promotion Council (GJEPC) (2021)

32. 32
OPPORTUNITIES: THE NEGLECTED MALE MARKET
Female Purchasers
(81%)
Male Purchasers
(19%)
$83 million
untapped market

33. MARKETING
PLAN
07
The marketing funnel

34. 34
Advertising
Social media marketing
Influencer endorsements
Trade shows
Personal Selling
One-to-one selling
Customer retention
strategies
Customer
Retention
&
Word-of-mouth

35. 35
ADVERTISING
2021
2022
2024
❏ Instagram posts
❏ Influencer endorsement
❏ Search engine
❏ Goal: 200,000 views/ month
Social media advertising
Physical advertising
❏ Electronic display boards
❏ Trade-shows
❏ Pop-up shop events

36. 36
ADVERTISING

37. 37
CUSTOMER ENGAGEMENT
Customer retention and repeat purchases
❏ High value customers and word-of-mouth
❏ Customer Retention Strategies:
a) Partnership with synergistic brands
b) Well-designed, functional website
c) Loyalty points and Invite-only events
d) Quality service and personal selling
Customer
Retention
&
Word-of-mouth

38. 38
CUSTOMER ENGAGEMENT

39. OPERATING
PLAN
08
Local market and trends

40. EXPANSION ROADMAP
40
2022
PRE-STARTUP
PREPARATION
● Commencement
● Marketing
strategies
● Store
development
● Start-up capital:
$339,674
NOVEMBER
2021
2023 2024
OPENING OF
FLAGSHIP STORE
● Cantonment Road
● Employee Count: 2
● Rent: $54,000
● Advertising:
$103,139
● Employee Count: 6
● Advertising:
$203,138
● Employee Count: 6
● Advertising:
$303,138
2025 2026
OPENING OF
OUTLET NO. 2
● Shanghai, China
● Employee Count: 9
● Advertising:
$403,138
● Capital expansion:
$155,000
● Employee Count: 12
● Advertising:
$503,138

41. FINANCIAL PLAN
Key information
09

42. MARKETING
IMPRESSIONS
200,000
in the 1st month
5%
compounding
monthly growth rate
IMPRESSION → WALK-IN
CONVERSION RATE
0.2%
500 impressions = 1 walk-in visit
WALK-IN →
PURCHASING CUSTOMER
CONVERSION RATE
5%
20 walk-ins = 1 purchasing customer
42
SALES GROWTH ASSUMPTIONS

43. 43
GROWTH PROJECTIONS & PATH TO PROFITABILITY
REVENUE
/
$
UNIT
SALES
2022 2023 2024 2025 2026 2022 2023 2024 2025 2026
137
572
1,027
1,844
3,311
9,933,499
5,531,344
3,080,059
1,715,092
411,000

44. GROWTH PROJECTIONS & PATH TO PROFITABILITY
NET
INCOME/
$
EDIBTA
/
$
2022 2023 2024 2025 2026 2022 2023 2024 2025 2026
- $436,791 - $100,934
$345,053
$827,904
$2,318,960
- $484,936 - $240,366
$54,708
$267,803
$1,197,229

45. 45
FINANCIAL SUMMARY
2022 2023 2024 2025 2026
Revenue $411,000 $1,715,092 $3,080,059 $5,531,344 $9,933,499
Gross profit $164,400 $686,037 $1,232,024 $2,212,538 $3,973,400
Operating
Income
-$456,166 -$120,309 $325,678 $789,154 $2,280,210
EBITDA -$436,791 -$100,934 $345,053 $827,904 $2,318,960
Net Income -$484,936 -$240,366 $54,708 $267,803 $1,197,229
Free cash
flow (FCF)
-$768,419 -$380,878 $52,082 $254,949 $1,139,762

46. LOW CAPITAL,
LOW INVENTORY
OPPORTUNITY FOR
REGIONAL EXPANSION
RAPID DEMAND
GROWTH
MARKETS FOR
CAPITALIZATION
46
INVESTMENT HIGHLIGHTS
LA
GALERIE
1
2
3
1
$228B WORLDWIDE, $437M SINGAPORE
5.1% CAGR WORLDWIDE,
8.6% CAGR SINGAPORE
$6.2B CHINESE MARKET,
$1.1B MALAYSIAN MARKET
OUTSOURCED MANUFACTURING

47. Thank you
Q&A Session
http://www.amberbambie.com
+65 6337 6589
Monday to Saturday, 8.30 a.m. - 10.30 p.m.

48. REFERENCES
Branstratorbrecken.branstrator@nationaljeweler.com, B., Branstrator, B., editor, B. B. the senior, Fedow, L., &
Davis, A. (n.d.). Study: 51 percent of millennial women buy jewelry for themselves. nationaljeweler.com.
Retrieved November 14, 2021, from https://www.nationaljeweler.com/articles/2082-study-51-percent-of-
millennial-women-buy-jewelry-for-themselves.
Dauriz, L., Remy, N., & Tochtermann, T. (2018, January 8). A multifaceted future: The jewelry industry in 2020.
McKinsey & Company. Retrieved November 14, 2021, from https://www.mckinsey.com/industries/retail/our-
insights/a-multifaceted-future-the-jewelry-industry-in-2020.
Graffmichelle.graff@nationaljeweler.com, M., Graff, M., Michelle Graffis the editor-in-chief at National
Jeweler, Fedow, L., Branstrator, B., & Davis, A. (n.d.). 70% of consumers are interested in ethically sourced gold.
nationaljeweler.com. Retrieved November 14, 2021, from https://www.nationaljeweler.com/articles/2130-70-
of-consumers-are-interested-in-ethically-sourced-gold.
Luxury jewelry - Asia: Statista market forecast. Statista. (n.d.). Retrieved November 14, 2021, from
https://www.statista.com/outlook/cmo/luxury-goods/luxury-watches-jewelry/luxury-jewelry/asia.
Luxury jewelry - singapore: Statista market forecast. Statista. (n.d.). Retrieved November 14, 2021, from
https://www.statista.com/outlook/cmo/luxury-goods/luxury-watches-jewelry/luxury-jewelry/singapore.
ReportBuyer. (2018, June 28). Bridal jewellery market analysis in Singapore. Retrieved November 14, 2021,
from https://www.prnewswire.com/news-releases/bridal-jewellery-market-analysis-in-singapore-
300066583.html.

49. 49
APPENDIX: PROJECTED INCOME STATEMENT

50. 50
APPENDIX: 5-YEAR PROJECTED CASH FLOW

51. 51
“New money” Consumers
Flaunt newly acquired wealth
Emerging Markets
Established brands inspire trust
Young Consumers
Self-expression through brands
%
Year
90%
87%
81%
81%
80%
60
-70%
10%
13%
19%
19%
20%
30
-
40%
2003 2005 2007 2009 2011 2020
BRANDED VS UNBRANDED
JEWELRY
(McKinsey Analysis, 2020)
= unbranded jewelry
= branded jewelry
APPENDIX: CUSTOMER EXPERIENCE GROWTH DRIVERS

52. 52
APPENDIX: 5-YEAR PROJECTED CASH FLOW

53. 53
Free cash
flow (FCF)
-$768,419 -$380,878 $52,082 $254,949 $1,139,762
● Founder’s contribution: $500,000
● Investment required: $649,297
○ Cost of goods
○ Fund operations / expansion
○ Labour expenses
○ Marketing budget
● Pro forma enterprise value of
$1,623,242
● Management awards will vest upon achieving
90% of 2025 target
PRO FORMA OWNERSHIP
Founders (35.0%)
Management
(20.0%)
Management awards (5.0%)
$649,297 (40.0%)
APPENDIX: TRANSACTION OVERVIEW

54. 54
2025 2026
Revenue $5,531,344 $9,933,499
EBITDA $827,904 $2,318,960
EBITDA Margin 14.97% 23.34%
Net Income $267,803 $1,197,229
Net profit margin 4.84% 12.05%
APPENDIX: LONG-TERM FINANCIAL TARGETS