market study Korea. Bebedeparis

your baby gifts everywhere
1

FranchisenetworkYour
best
franchise
opportunity

2

Our business: births!
There
will
always
be
births
–

making

this
a
very
reliable

business.

3

The business
bebedeparis
is
leader
in
the
Spanish
baby

gi9s
sector:

.

7.540
gi9s
per
year.

.

An
emergent
e-‐commerce
business.

.

Time
to

internaConalize.

4

The business
bebedeparis
is
a
leading
company
with
more

than
20
years
of
experience
in
its
sector:
Baby

Gi9s
for
Newborns.

The
company
targets
people
or
companies

who
want
to
send
a
gi9
to
the
new
parents.

bebedeparis
oﬀers
a
large
catalogue

containing
more
than
200
diﬀerent
baby
gi9

baskets,
covering
a
broad
price
range
starCng

at
€50
up
to
€300.

The
delivery
of
the
gi9s
is
in
less
than
24h.
The

gi9s
are
delivered
by
our
perfectly
uniformed

bellboy
in
Madrid
and
Barcelona.
Other
ciCes,

private
delivery
service.

Given
the
success
of
our
products
and
the

increasing
number
of
shops
who
wish
to
order

our
products,
Bebedeparis
has
started
a
new

commercial
line
by
wholesaling
to
mulC-‐brand

shops.

5

The business
The
business
started
in
1994
with
a

babies’
shop
in
Barcelona.

Now
in
2015,
the
business
in
each

country
consists
in
retail
sales
(with
no

shops)
to
customers
and
also
wholesale

selling
to
mulC
branding
babies’
shops.

6

Founders & Shareholders
Elena Gomez del Pozuelo
Founder / General Director
A
serial
Internet
entrepreneur
with

more
than
11
co-‐founded
companies.

Expert
on
e-‐commerce
and
digital

markeCng.
President
of
Adigital
(the

Spanish
Digital
Economy
AssociaCon).
es.linkedin.com/in/elenagomezdelpozuelo

Sara Fernandez de la Aldea
Founder / CEO
Internet
entrepreneur
with
22

years
experience
in
product

design,
logisCcs,
imports
and

exports.
Responsible
in
dealing

with
customers
and
prospects.

es.linkedin.com/in/sarafernandezdelaaldea

Luis Comas
Founder
A
well-‐known
lawyer
in
Spain.
Over

30
years
experience
advising
MNC.

17
years
as

global
legal

leader
at

PWC.
Currently
General
Counsel

and
member
of
the
Management

Board
of
the
Volkswagen
Group
in

Spain.

7

Shareholders
Juanjo Azcárate
CEO
at
CCC.
Vicepresident
of

Adigital.

Founding
shareholder
at

Womenalia,
GesCón
de
Medios

(Zenith
OpCmedia),
Incipy,

Inesdi,
Increnta,
Incube,

Yoquieroescribir,
HallSt…

Alfonso Torres
CIO
at
AUIRGA
GLOBAL

INVESTORS.
Shareholder
and

member
of
the
Management

Board
at
Womenalia,
HallSt...

AROÑUCA 2007 SL
Represented
by
Rafael
Saenz
de

Santa
María
and
Juan
Saenz
de

Santa
María.
Business
angels

specialized
in
technology
based

start-‐ups.

8

2011
2014
CHANGE
BRANDING
FROM
“la
Cigüeña
del

Bebé”

To
“BebeDeParis”.

2015
Chronology
OUR BIRTH
La
Cigüeña
del
Bebé
S.L.
started

in
Barcelona
with
a
shop.

Sara
Fernandez
was
in
charge
of

the
business

1994
ECOMMERCE

Elena
Gómez
IncorporaZon.

Central
warehouse
Madrid

We
opened
a
showroom
in
Barcelona.

Wholesales
Opening
of
the
new

wholesaling
commercial

line.
PRESENT
internaZonalizaZon
process
through

a
unique
e-‐commerce
master

franchising
concept,
granZng
only

one
license
per
country.

9

Vision
To
create
the
1st
world

network
in
baby
gi5s.

your baby gift
everywhere

10

competitors
A
highly-‐fragmented
local

market.

there is no other international
network in baby gifts
.

11

.

Service,
service
and
service.

.

PerfecCon
and
glamour.

.

Fast
and
elegant.

·∙

Very
prepared
for
selling
to
companies.

.

100%
saCsfacCon
amongst
our
customers

and
moms.

.

Word
of
mouth.

Why we are different?
Our
bellboy

12

A
baby
is

born.

The
customer

buys
a
gi9

online
or

through
his

phone.

We
prepare

the
gi9.

We
deliver
it
to

the
hospital
or
a

home
address.

13

Client acquisition
EXHIBITIONS
CALL CENTER
OTHERS
E-COMMERCE COMMERCIAL WORK
CUSTOMERS:
.Retail
.Wholesale

14

Customer Profile
31%
Large
Accounts
-‐
Mul>na>onal
Companies

Small
and
Medium-‐Sized
Companies

36%
Individuals

33%
Today,
bebedeparis
has
a
ﬁxed
clientele,
divided
into
Large
Accounts
or

MulCnaConal
Companies
and
Small
and
Medium-‐Sized
Companies,
with

around
12.000
customers
only
in
Spain.

These
customers
have
made
special
agreements
with
bebedeparis,
as

their
Human
Resources
policies
include
providing
a
courtesy
gi9
for

employees,
customers
and
business
partners
when
they
give
birth.

The
Human
Resources
Department,
or
General
Manager’s
Assistant
are

normally
in
charge
of
buying
the
gi9
baskets.

Some
companies
may
prefer
to
order
their
baskets
over
the
phone.
The

web
page
also
includes
a
hotline
in
each
country
alended
by
a
direct

sales
person.

15

Some of our customers

16

Baby baskets
! 
Personalized
gi9s.

! 
Licenses;
e.g.
gi9s
for
football
fans.

! 
Gi9s
for
special
events;
baby
showers,
bapCsms,
etc.

! 
Personalized
company
gi9s.

! 
Special
gi9s
for
twins.

! 
Special
gi9s
for
older
siblings.

! 
Special
spa
gi9s
for
moms.

! 
Special
spa
gi9s
for
stressed
dads.

! 
Special
gi9s
such
as
photo
sessions,
baby
massages,

baby
sinng
vouchers,
etc.

! 
Special
gi9s
such
as
personalized
DVDs
and
books.

! 
Diaper
cakes.

! 
GreeCngs
cards.

! 
Text
proposals.

! 
Photo
frames.

! 
Xmas
presents.

! 
Gi9
vouchers.

! 
Personalized
embroideries.

! 
DifferenCated
baby-‐boy
and
baby-‐girl
gi9s.

!  Gi9s
are
classified
by
theme,
price
and
occasion
(birth,

christening,
etc.).
There
are
more
than
200
different
gi9
basket
combinaZons
available.
Customers
can
choose
from:

17

Order
history

Order
History
in
Spain

bebedeparis
started
its
internaZonal
expansion
in
2014

18

The heart of the company
The
bebedeparis
warehouse

The
heart
of
bebedeparis
is
its
warehouse.
A
well-‐organized

storage
area
of
about
300/
600

sqm
depending
on
the
country’s

potenCal,
fully
stocked
with
products
and
baskets
and
serving
as

the
business
base
for
the
franchise
concept.

19

Internationalization plans
bebedeparis
is
now
looking
for
exclusive
internaConal
franchisee
partners
in
each
country.

The
company
has
prepared
a
compelling
business
strategy
aimed
at
bringing
success
to
both
franchisor
and
franchisee.

More
than
80
diﬀerent
domains
have
already
been
registered
worldwide.

.com

.cn

.com.ar

.com.br

.es

.fr

.it

.jp

.mx

.ru

.pe

.co.uk

.de

.cl

.ma

.in

.tw

.at

.be

.dk

.hu

.ec

.pl

.pt

.cz

.se

.ae

.us

.com.ve

.ch

.nl

.hk

.ca

20

Benefits of a bebedeparis franchise
franchise
12
reasons
to
choose
bebedeparis

21

1st reason
The
future
is
online:

e-‐commerce
and
mobile

commerce
in
Europe
2013:

€280
billion,
+
20%
(every

year).

22

2nd reason
Country
exclusivity:

Possible
franchisee
income
is
very
high:
ranging
from

€0.25
million
to
€20
million,
covering
2-‐5%
of
births
in

the
country
in
5
years.

The
turnover
in
each
country
depends
on
3
factors:

1.  The
number
of
births
per
year.

2.  Internet
penetraCon
and
development
of
e-‐
commerce
in
the
country.

3.  Purchasing
power
of
companies
and
private

individuals.

23

3rd reason
No
high
street
retail
store

is
needed:
only
a
local

warehouse
(around

300-‐500
sqm
on
the

outskirts
of
a
large
city)

with
no
major
investment

outlay.

24

4th reason
A
secure
business
that
is
not

subject
to
fashion,
regulatory

changes,
etc.
Babies
will

always
be
born
and

companies

and
friends
will

always
send
gi9s
to
new

parents!.

25

5th reason The
Franchisor
will
produce
all
the
products

needed
by
the
franchisees
network
so
all
the

Stocks
will
be
provided
by
Franchisor.

So
franchisees
do
not
have
to
worry
about

products.
They
only
have
to
place
their

orders
2/4
Zmes
a
year
to
Franchisor

(3
months
in
advance).

The
Franchisor
will
send
the
merchandises

3
months
a9er
the
placement
of
the
order.

There
is
no
stock
le9overs
-‐
only

lasCng
products
that
do
not
change

from
year
to
year
because
tradiConal
gi9s

are
always
fashionable.

26

6th reason One
of
the
biggest
issues
the
franchisee

may
encounter
is
to
seile
the
right

sizes.
In
bebedeparis
we
solve
this

problem
by
selling
just
1
size
of
baby

clothes
(3/6
months),
and
always
use

tradiConal
colors:
blue,
pink,
white
and

grey.

Most
mothers-‐to-‐be
prepare
their
baby

layele
for
0
to
3
months.

Therefore,
we
only
oﬀer
gi9s
for
babies

aged
3/6
months
–
it’s
much
more

pracCcal!.

27

7th reason
The
Franchisor
provides
franchisees
network

with
an
exclusive,
unique
collecZon
with
the

best
quality
products
at
very
reasonable

prices.

The
franchisees
will
order
to
the
franchisor
all

the
products
he
may
need
for
the
next
three

months,
every
three
months.
Nevertheless,

the
ﬁrst
order
will
cover
the
ﬁrst
6
months

and
it
will
be
selled
by
the
franchisor.

28

8th reason
Our
unique
collecZon
can
be
oﬀered
to

babies’
shops
by
wholesales.

Due
to
the
big
margin
in
products,
the

Franchisee
can
also
become
the
exclusive

distributor
of
all
the
bebedeparis
products

not
only
by
retail
but
also
by
wholesaling
to

babies’
shops.

This
allows
them
to
obtain
even
greater

incomes.

29

9th reason
Become
part
of
a
leading
internaZonal
e-‐
commerce
network
and
start
doing
business

immediately
(a
great
deal
of
mulCnaConal

companies
are
already
customers).

For
example,
in
Spain
we
already
have
as

customers
very
big
mulCnaConal
companies

that
could
become
customers
in
other

countries.

We
provide
our
franchisees
with
our
client

contacts
in
other
countries.

30

10th reason
Orders
from
other
franchisees
across
the
world
will

beneﬁt
all
the
franchise
network,
taking advantage of
the digital marketing investment across the entire
network.
Every franchisee invests around 13% of its
turnover in its own digital marketing to get orders
online in his country.
The sum of all franchisees’ investments will benefit
everyone. For example, there will be Spanish
companies with employees in other countries, such
as Mexico. The order is paid in Spain but the
franchisee in Mexico will dispatch it and get paid by
the company in Spain.

31

11th reason
Franchisees do no need to worry about online and
digital marketing as this can be managed by a central
agency in Spain that employs SEM specialists (google
adwords) in several languages.
If the franchisee has experience on digital marketing he can
choose his own agency in his country. Nevertheless he will
have a contractual obligation to spend a 9-15% of his
annual income for his own digital marketing to promote its
own sales.
The Head Office provides each franchisee with its own web
in its own language. e.g.: www.bebedeparis.fr,
www.bebedeparis.de, www.bebedeparis.mx…
The Head Office will adapt the franchisee’s web to local
country legislation and payment methods.
Franchisees should focus on:
.marketing the service amongst big companies (human
resources or purchasing departments)
.logistics, i.e. preparation, personalization and delivery of
the gifts.

32

12th Reason and the most important reason!
A
very
proﬁtable
investment:
the

recommended
retail
price
is
3.10
Cmes
the

purchase
price.

That
is,
franchisees
have
a
70%
margin
on

their
sales,
which
is
one
of
the
greatest

margins
on
sales
in
European
Franchises.

Depending
on
the
country,
franchisees

should
start
making
proﬁt
in
their
second

year.

33

Korea
franchise network

34

Births in Korea
· 405.000
babies were born in 2013.

35

Consumers
•  Emotions & feelings when offering
a gift: we have to impress!
•  Both final clients and consumers
are extremely demanding.
•  23 to 37 presents during 6 first
months of life*.

38

Specialists
in
Korea

39

Specialists
in
Korea

40

Specialists
in
Korea

42

€36.197

€30.100

€0

€5.000

€10.000

€15.000

€20.000

€25.000

€30.000

€35.000

€40.000

Korea
Spain

Purchasing
power
per
capita

Source: The World Bank-GDP per Capita: http://bit.ly/18gtvTm

43

No
CompeZtors
oﬀering
baby
baskets
and
gi9s

•  Few generalists both from the childcare industry and the
generalist gift sector, offering low-end similar products. Their
differentiation usually comes trough price.

44

Specialists
in
Korea

45

Specialists
in
Korea

46

Our
esZmaZons
in
5
years
Zme
for
Korea

. Baby gifts for 5% of all births in the country: 20.250 orders.
. Average order price: €112
. Possible annual franchise income: €2.268.000
Legal Warning: The estimations hereby shown are based on the bebedeparis experience in Spain,
under no circumstance these estimations imply a contractual or legal binding between the franchisor
and the franchisee. Furthermore the franchisee acknowledges and assumes that the success of the
business and objectives herby shown depends entirely on the franchisee performance.

47

4%
5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Spain
South
Korea

The
%
of
total
amount
of
births
served
in
5
years
Zme
Total
births

per
country


48

112€

112,00€

0€
20€
40€
60€
80€
100€
120€

Spain

South
Korea

Average
order
price
taking
into
account
PPC
and
e-‐commerce

development


49

€1.882.342

€2.268.000

0€

500.000€

1.000.000€

1.500.000€

2.000.000€

2.500.000€

Spain
South
Korea

Possible
income
esZmaZons
in
5
years
Zme


50

Franchise conditions

Exclusivity:
1
franchisee
per
country.
The
entrance
fee
includes:

1.  Business
and
brand
exclusivity
in
the
country
for
10
years.

2.  Transfer
of
know-‐how
from
a
proven
business
in
Spain.

3.  OperaZons
manuals:
a
general
manual,
an
operaZons
management
manual,
a
human

resources
manual,
an
equipment
and
maintenance
manual
and
a
legal
manual.

4.  70%
margin
on
every
sale,
the
most
favourable
condiCons
in
all
the
sectors.

5.  There
is
no
breaking
of
the
stock
as
the
collecCon
is
permanent.

6.  The
central
has
a
disposable
stock
in
the
warehouse
through
out
all
the
season.

6.

System
of
personalised,
conZnuous
and
technical
assessment.

7.

Support
and
conZnuous
communicaZon
amongst
all
the
departments
and
the
central.

8.

IniZal
trainning
(both
theoreZcal
and
pracZcal)
as
well
as
recycling
seminaries.

9.
IntegraCon
of
a
consolidated
company
in
the
childhood
fashion
business.

10.

Ecommerce
planorm.

95,000€
ENTRY
FEE

51

.CustomizaZon
of
IT
pack

€10.000

Website in the native language, back office,
etc…
Franchise conditions

other
investments
and
cash
flow
needed
to
open
a
bebedeparis
franchise
in
a
country

.Digital
markeZng
investment
on
its
website

15%
of
the
total
incomes
per
year..
From 3.000€/month depending on the country.
.IniZal
stock
for
the
first
six
months:
from
€51.000

(depending
on
the
country).

ENTRANCE
FEE

.EsZmated
warehouse
and
office

adjustment
costs
€30.000

Initial investment: civil works, furniture, uniforms…
.3
%
royalZes
off
the
total
invoice
that

will
be
invoiced
every
3
months.

.EsZmated
equipment
€22.000

Office equipment, printing machines, embroidery
machine, company car…Most of them can be leasing

52

Entrance fee levels
• Netherlands,
Belgium

• Austria,
Sweden,
Switzerland

• Finland,
Norway,
Denmark

• Portugal,
Poland,
Chile,

Canada,
Australia

• Rest
of
the
world…

• Italy

• Brazil

• Mexico

• Saudi
Arabia

• Japan

• Russia

• Germany

• France

• UK

• India

• USA

• China

Countries

-‐
A

€400,000

Possible
turnover

€7-‐20M

Countries
-‐
B

€280,000€

Possible
turnover:

€3-‐7M

Countries
-‐
D

€95,000

Possible
turnover:

€0.250-‐1,5M

Countries
–
C

€190,000

Possible
turnover:

€1,5-‐3M

53

Franchisee profiles

Relevant

1.  Economical
capacity.
The
starCng
investment
for
South
Korea
is
around
200.000€

2.  Business
experience
and
a
client
and
contact
network
in
the
entrepreneurship
sector
of
his
country.

3.  Entrepreneurship
character
and
capacity
to
develop
an
economical
acCvity.

4.  CommunicaCon
and
business
skills,
specially

with
clients,
suppliers
and
employees.

5.  Disciplinary
spirit
but
with
capacity
to
be
creaCve
and
innovaCve.

6.  Perseverant.

7.  Working
capacity
and
being
able
to
work
towards
targets.

8.  Demonstrated
abiliCes
in
management
and
an
educaConal
background
on
business,
markeCng
or
similar.

Irrelevant
1.  Knowledge and experience in the e-commerce or digital marketing sector.
2.  Having an operative warehouse.
3.  Sex or age of the candidate are absolutely irrelevant.

54

Franchise selling process
1.

The
Franchisor
receives
an
informaCon
request
by
a
candidate.

2.

IniCal
answer
through
phone
or
by
e-‐mail
by
the
Franchisor,
in
order
to
establish
personal
contact.

3.

Email
with
general
informaCon
of
the
Franchise.

4.

Skype
conversaCon
with
the
candidate
and
if
it
is
posiCve
,
the
Franchisor
sends
the
ConﬁdenCality
Agreement

(
NDA)

5.

Once
the
NDA
is
received
dully
signed,
the
Franchisor
will
send
speciﬁc
details
as
the

Franchise
Agreement
and

precontractual
informaCon.

6.

PreparaCon
of
the
orientaCve
Business
Plan
for

the
country
of
the
candidate.

7.

Discovery
day
by
the
possible
Franchisee.

8.

NegoCaCon
and
signature
of
the
franchise
agreement.
Payment.

9.
Franchisor
visits
the
possible
headquartes
of
the
Franchisee.

10.The
Franchisee
will
receive
further
informaCon
and
will
receive
his
training
for
a
week
in
Madrid.

55

Executive Summary
1.
BebeDeParis,
is
a
first
mover
company
in
the
layeles
and
baby
gi9s
sector,
which
was
created
in
1994
as
La
Cigüeña
del
Bebé,
SL.

2.
BebeDeParis
is
the
1st
global
online
network
in
baby
gi9s
and
offers
one
of
the
greater
margins
to
their
franchisee
by
offering
up
to
70%
over
every

sale.

3.
There
is
no
need
for
retail
shops,
just
a
warehouse
where
deliveries
are
processed.

4.
Bebedeparis
is
looking
for
internaConal
franchisees
in
order
to
offer
them
an
exclusive
franchise
for
each
country.

5.
The
central
offices
where
the
logisCc
centre
is
set
are
located
at
the
Polígono
industrial
Európolis
de
Las
Rozas,
Madrid.

5.
BebeDeParis
accounts
a
completely
automated
system
for
the
communicaCons
between
franchises
and
central
offices.

6.
Furthermore,
every
franchisee
will
have
its
own
and
exclusive
e-‐commerce
web
from
which
he
can
make
its
retail
and
wholesale
selling.

7.
The
strategy
used
by
the
firm
for
the
expansion
is
done
through
its
own
webpage
in
Spain
and
through
its
franchisees’
webs.

8.
Its
biggest
asset
is
the
centralizaZon
of
all
the
processes
through
its
logisZc
centre
in
Madrid:
Design,
patronage,
buying's,
logisCcs,
commercials,

expansion
and
administraCon.

9.
BebeDeParis
has
a
permanent
collecZon
of
classic
gi9s
for
babies,
whose
design
is
internally
elaborated
by
a
professional
team.

10.
Great
advantage:
baby
gi9s
never
go
out
of
fashion
and
we
only
work
with
one
measure:
3
to
6
months.

11.
We
always
work
with
the
best
fabrics.
Our
designs
are
recognized
by
their
tradiConal
colouring
in
the
babies
world:
blue,
pink,
white
or
light
grey.

12.
BebeDeParis
accounts
as
well
with
a
collecCon
of
stuffed
items,
cosmeZc
products
and
a
wide
range
of
complements.

56

Business’ keys
.70%
margin
on
every
sale.
Right
now,
the
most
favourable
condiCons
in
all
the
sectors.

.Almost
70%
of
the
sales
are
done
by
companies
that
gi9
their
employees
or
business
associates
whenever
they
give
birth
and
a
30%
of
the
sales
are

done
by
individuals
to
gi9
their
family
and
friends.

·∙There
is
no
breaking
of
the
stock
as
the
collecCon
is
permanent
and
the
central
has
a
disposable
stock
in
the
warehouse
through
out
all
the
season.

.System
of
personalised,
conZnuous
and
technical
assessment
thanks
to
a
follow
up
of
the
sales.

.Support
and
conZnuous
communicaZon
amongst
all
the
departments
and
the
central.

.IniZal
training
(both
theoreZcal
and
pracZcal)
as
well
as
recycling
seminaries.

.IntegraCon
of
a
consolidated
company
in
the
childhood
fashion
business,
with
more
than
20
years
of
experience
and
a
conCnuous
growth.

The
franchisees
in
each
country
can
have
up
to
3
ways
of
income.

Income
of
retail
selling
(70%
margin)

.Income
of
sales
to
companies
and
individuals
in
the
Bebedeparis
web
page
of
their
country.
This
are
automaCc
e-‐commerce
sales.

.Income
of
sales
to
companies
with
an
annual
agreement
for
the
delivery
of
baby
gi9s
to
their
employees
and
business
associates.

Income
of
wholesale
selling
(33%
margin):

.Income
for
the
sales
to
baby
fashion
related
shops
at
their
countries.
Each
franchise
is
also
the
exclusive
distributor
in
his
country
for
all
the
products

and
collecCons
of
Bebedeparis
being
able
to
sale
both
to
retail
shops
and
online
shops.

57

Elena
Gómez
del
Pozuelo

egomez@bebedeparis.com

Sara
Fernández
de
la
Aldea

sarafaldea@bebedeparis.com

TEAM

Founding
partners

InternaConal
Team

Ecommerce/digital
markeCng:
Rocío
Carreras

rcarreras@bebedeparis.com

InternaConal
expansion:

Juan
Carlos
Agulló

jcagullo@bebedeparis.com

Finance/AdministraCon:

Rosa
Muñoz

atencion_clientes@bebedeparis.com

58

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market study Korea. Bebedeparis

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