www.ducoteduparc.

com
info@ducoteduparc.com

Du Côté du Parc
from Handicraft
to Industry
Dec. 2014

Maguana SAC – Calle Manuel Cisneros 1055, La Victoria, Lima - Peru

 WHO WE ARE

 Developper, Maker and Exporter

of tabletop decoration items

 French managed company,

established in Peru
 WHAT WE MARKET

 High end usefull tabletop items

(mainly trays and chests)

 Excellency in Reverse painting

on glass & eglomise techniques

 Designs according to destination markets

 HOW WE MAKE THEM

Felt pasting

Design

Wood structure Cleaning

Finishing
Glass cutting

Packing

Sanding
Serigraphy

Hand painting
Coating
HOW DID WE GET THERE

 2007 : First import of

mirrors

 2009 : First original designs

 2010 : First international

trade show

 2011 : Opening of carpentry

 2012 : Opening of workshop

(100% making in-house)
ACHIEVEMENTS

 Know how
(best quality on the market)

 Recurring
Customer base
(with growing revenue per
customer)

 Brand recognition
(name is known by buyers)

 Logistics and trade

shows expertise
SALES STATS FY 2014
 COMPETITORS

 Peru : 99% worldwide production

 Other Peruvian makers have no contract with

buyers (selling through exporters)

 No investment in R&D

 No dedication to quality (only pricing)

 OBJECTIVES FOR 2016

 #1 worldwide reverse painting on glass

maker

 Recognition of “DU COTE DU PARC”

as a luxury Brand

 Achieve $1 million dollar revenue with

20% net margin
 LIMITATIONS

 Limited production capacity

 Seasonality effect (wholesales channel)

 Low profitability (approx 10%)

 Product with limited strength

resitence

==> HUGE GROWTH POTENTIAL

 WE FOUND THE SOLUTION

 Switch from Wood structure to

Aluminium structure and
turn a 4 days finishing process
into a 10 min assembly
process
 SOLUTION : Aluminium Structure
Production

 Increases production output  Allows perfect resistant

with reduced labour force (no finishing
more coating and sanding. Only paste glass
with metal structure)  Optimized Build-To-
Order reactivity

 Reduces working area

needs

 Softens seasonnality
effect
SOLUTION : Aluminium Structure
Logistics

 Reduces weight and volume of

packaging

 Increases quantity per container

 Allows stand alone shipment (for

us and retailers)

 Reduces damaged products

during shipment from
distributor to retail shop
 SOLUTION : Aluminium Structure
Finance

 Change costs structure (Labour cost

from 55% to 25% of revenue)

 Reduces impact of fixed costs

(rent, admin)

 Increases Revenue per shipment

and limits % of export costs

 Betters purchasing prices

(packaging, materials)
 NEW COMMERCIAL OPPORTUNITIES

 Larger customers (retail chains, dept stores)

 Conquer competitors’ customers

 Corporate/Wedding gifts

 On-line sales (B2C) to USA

and Europe (recent close down of m
US distributor frees a $2million market)

 Hotels, catering services

and restaurants
 INVESTMENT :
Die Cast Molds

 Description
Production leadtime : 12 weeks

Cost : from $20k to $60k each

Lifetime : 100k to 200k hits

Quantity : trays = 5 molds

chests = 4 molds
paper bin = 1 mold
 INVESTMENT :
Dust Free Painting Area

 Building in-house dust free painting area:

– Owned know how

– Cost efficency

– Reactivity/Flexibility
 INVESTMENT :
Stock of structures

Trays

Small rectangular : 2,500 units

Chests Square : 3,000 units

Small rectangular : 2,000 units Large rectangular : 1,500 units

Tissue box : 1,500 units Round : 500 units

Tea chest : 1,000 units

Jewelry chest: 200 units

Paper bin : 500 units

 INVESTMENT :
Human capital

Sales :

Hotel/Restaurant - full time position

Marketing : part time position to define

– Corporate image (logo, font, colors, etc)
– Digital marketing (website, facebook, videos,
etc)
– Trade shows (stand design, flyers, display, etc)
 INVESTMENT :
New Channels

 Dedicated sales person - Hotel/Restaurant

 On-line ads to launch B2C sales in the USA

===>high margin projects

INVESTMENT :
Marketing

 New photos and

updated catalogue

 2 videos
(B2B and B2C)

 New stand design

 Update website

 Develop use of
Facebook page
 FUNDS NEEDED FOR 2015

 Total investment : $350k

– Molds : $175k

– Dust free painting area : $7k

– Marketing : $8k

– Stock of structures : $160k

BUINESS PLAN
 Return On Investment

2015 2016 2017 2018 2019

Net income 80 206 334 429 625

Net margin 16,08% 20,58% 22,25% 21,44% 25,00%

Revenue 500 1 000 1 500 2 000 2 500

Investment (in US$ '000) 50

Share of capital 4,00%

Dividends (in US$ '000) 3,22 8,23 13,35 17,15 25,00

Yearly ROI 6,43% 16,46% 26,70% 34,30% 49,99%

 THE BEST TIME TO INVEST

=>Stepping from handicraft to industrial production

=>Opening of new channels (Hotel & B2C)

=>Significant margin improvement and High ROI

=>Huge potential growth of brand value

=>Close down of US main player