We provide educational toy subscription rental business to consumer market in Japan. It is based on 2 months cycle and we make personalized toy plan and ship to customer. Customer enjoys it and back to us with rating data. We make next plan based on ratings and this will be utilized for the other customers. Toy industry does not have data oriented concept but we will make this industry as data oriented, more happier parents and children.
Active users : 4,500 Users in Japan market MoM revenue : 110K USD
Problem or Opportunity
We will raise series B round in the end of 2020. Looking for next investors. We will do below in next phase - make more traction in Japan market, invest more for marketing - make more original toy products based on our stored rating data - try more Opex downsizing by direct contracting with transport company - develop toy planning pattern matching system to make customer more happier and make Opex down - do trial to develop our own IP content with original toy product (e.g Fisher price Laugh and learn series)
We will expand to China or other potential market after series C round
Solution (product or service)
Parents problems :
Key ask : Are parents buying right toys for their children?
Problems Buying toy sometimes gets failed Children gets growing fast, then more toys and more spaces required Children gets tired soon after buying toys
Our solution :
-Our toy planner creates plan of toys which will be the best for child based on -age in month -what toys are in a home -what toys have good rating in the past for the child / other child parents requests
Customer can return and get new box Monthly subscription / personalized planning
In Japan, there are small competitors who does the same business. Alternatives are - to buy toys in Amazon, Rakuten, Toysarus - to buy second used toys in Mercari, Yahoo - bring children to child care center - Kodomo challenge (for infant and kids monthly subscription educational video and toys provided by benesse corporation. This is very old content and this does not fit current family life style but they have huge market occupation ratio)
Advantages or differentiators
Advantage : Data - - We tested over 1600 toys and know very well what toy fits what type of children - We have over 90000 rating data
Cleaning process and cleaning staff- - There is below 0.1 % complains about our cleaning toys - We develop training / educating new staff process to eliminate toy cleaning complains customer voice. It is very hard to copy to the other company.
Money will be spent on
After series B round, we will spend money to :
- Team 1M USD We will hire Software engineers, Original toy product engineers, operations and back office operation staffs to make more scalable company. - Marketing 1.5M USD We will invest TV commercials, Digital marketing, offline channels to make our growth higher - Fulfilment process R&D 0.5M USD This will be used for method development for cleaning process. We will invest cleaning center with modernized equipments.