Photo - Beston
39756

Beston

Intelligent clothing. Heated Jackets

Spain
Market: Another
Stage of the project: Operating business

Date of last change: 04.07.2019
Min investment
$  20.000
Total required
$ 120.000
Rating
equalizer 225 из 1000
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Idea

Our company was created to ​​lead the transition towards technological fashion. From Beston, our first step has been focusing on changing the way people live the cold, applying our philosophy: design fashion you love with technology you need. We leave behind the idea of ​​fashion as a way of dressing and take a step forward towards technological fashion as a way of life.

Current Status

Round closing: August

Market

We are facing a new sector, combining the presence of two sectors. In the first place, we find the textile sector, established but with annual growth at all levels (source: texfor) (i) Worldwide: $1,456BB, +4.4% annual growth and (ii) European: $393MM, +1.7% annual growth. Secondly, we have the tegnological-textile sextor, in full initial phase, with market validators (mentioning the main ones) as: (i) Ralph Lauren (from the textile sector) with his first heatable jacket developed for the US national team for the winter Olympics and (ii) Xiaomi (from the technology sector) with his first heatable jacket. In addition, we find validators such as (i) Kickstarter and Indiegogo (collective financing and selling platforms) with $2.8MM of financing in two months by the Ravean brand and (ii) Amazon: Ororo has been able to opt for +1000 opinions in its heated jacket.

Problem or Opportunity

Founded in April 2018 and launched in December 2018, Beston was created to ​​lead the transition towards technological fashion.
 
 Thanks to the technological environment transformation in the last years, multiple industries around the globe have needed to find a way to reinvent and adapt their business model into a completely new landscape.
We spotted a blue ocean in the textile industry, where the latest technologies are still undeveloped and unapplied in the business dynamics.

From Beston, our first step has been focusing on changing the way people live the cold, applying our philosophy: design fashion you love with technology you need.

We leave behind the idea of ​​fashion as a way of dressing and take a step forward towards technological fashion as a way of life.
Beston is a team of proactive, passionate and committed entrepreneurs. We believe in change, we have courage to lead it and confidence to achieve it.

Solution (product or service)

We have started with heated jackets, where we saw a quick implementation vs other technological clothing possibilities. We want to simplify people's life, making people’s life better by wearing our clothes.

The jacket offers 3 heating levels thorugh 5 heated zones, powered by the battery 7,4V. Battery can last up to 7 hours and also can charge your phone.
The product is really lightweight and also water and wind repelant.

Competitors

The main characteristics of our competitors are the following: (i) High product price, (ii) Our competitors are more focused on orienting the sale of the product to purely outdoor activity and specific sports or niche markets - such as motor, etc...

Advantages or differentiators

On our side, we want to cover the day-to-day use, the fashionable one - both indoors and outdoors and focused on multi-sports), (iii) Web interface (most of them bet on an interface little oriented to conversion and the client), (iv) variety of colors (many of them do not widen the range of colors, giving less options to the client).
Also we currently have a more competitive price

Finance

Our jackets prive is 149€.
We expect to sell: 69K €, 600k€ and 1,8MM in 2019, 2020 and 2021.

Business model

Beston's business model is the retailing of physical products. Obtaining the benefit of the difference between the production costs (purchase of goods, shipments, etc.) and the final selling price. This current margin is 210%.
In the first few months since its launch, Beston's sales have focused on the sale of physical products to end customers (B2C), on the online channel (its own website) and offline channel (multi-brand stores). In the coming months, we will expand our business model through sales to companies (B2B) and the expansion of channels (third party platforms).
Our current business model goes through an initial phase of market validation with a single product: a heated jacket (differentiated for women and men, 4 colors). After collecting and analysing the results of this phase (collecting sales data, marketing and customer feedback), we begin with the production phase of the following models (heated vests and jackets), applying all the improvements and learning during the first phase.
In parallel (mentioned above), after the great interest that the product has generated in the market, we are in talks for the distribution and sale of the following products with: (i) Fashion and sports retailers (El Corté Inglés, Castellana Golf), (ii) multi-brand shops (1001 atmosphera, pop up chic, etc), (ii) national distribution companies (Rod Artwin), and (iii) Amazon martketplace B2C. At the same time, we have also aroused interest in B2B companies such as (i) Deliveroo, (ii) Amazon marketplace B2B, (iii) Grupo Aramón and (iv) Spanish Army.
In relation to tools to optimize online sales, we have sales through (i) Facebook (during 2019 we will activate the purchase option in Instagram), (ii) Google, (iii) own emailing (subscriber base), (iv) Magazines (Ticbeat, Koax magazine, etc), (v) Instagrammers (Mariafrubies@, mariapombo@, alexandrafederica@, pablocastellano@, among the most outstanding) and (vi) Television (in initial conversations with El Hormiguero).

Money will be spent on

In order to fully understand the following comments, it should be borne in mind that the percentages shown are given taking into account the months of May to April 2019-2020.
The investment objective would focus on the following objectives:
Purchase of goods (40% Investment): Purchase of goods in order to (i) promote and supply sales in various geographical areas and distribution channels and (ii) expand the portfolio of products offered to our customers, both at the level of variety of colors and at the level of product range. The current goods to supply the campaign 19-20 already works in 30% paid, and 40% of the investment would be used to supply a greater number of them.
Marketing (20%): Investment in media and advertising campaigns in different channels aimed at (i) maximizing visibility and brand awareness and (ii) maximizing conversion and reach to our target audience.
Team (17%): Investment in technical staff that allows us to (i) improve existing products and (ii) develop new products to give a quick and efficient exit to the market.
R&D (3%): Investment in (i) testing tests, (ii) new materials and (iii) new products, in line with the previously mentioned business verticals, in order to guarantee a novel and competitive product in each of our launches.
The remaining 20% would be used to grant a patent for the heating system, administrative expenses, attendance at a textile fair, rental of a warehouse and IT purchases for new employees.

Offer for investor

7-10%

Team or Management

Risks

Customer awareness
Seasonality
Entry barriers
Negotiation power
Big players
Textile competitiveness


Incubation/Acceleration programs accomplishment

None by the moment, but we want to participate in an accelerator program.

Won the competition and other awards

None by the moment

Photos

Photo 1 - Beston

Product Video

Website address

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video
Website address