Photo - Harmonia Company
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Harmonia Company

THE SKIN PROTECTS YOU, WE PROTECT YOUR SKIN

Venezuela
Market: Pharmacology, Franchising, Chemistry
Stage of the project: Operating business

Date of last change: 15.09.2024
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Also this project:
- is seeking a loan
- sells business
 

Idea

We are an international company dedicated to the research and development of skin care products. We are a company that was conceived with the global market in mind from the beginning, and we work brelessly year aper year to achieve it; today we have a great product range, solid know-how in all areas that concern the business, and the strategic vision necessary to achieve a good performance in different global markets. We have a solid growth and expansion plan and are looking for an investment partner to develop it.

Current Status

We have 18 years of experience in highly competitive markets, in highly competitive categories, where we have managed to be category leaders, which today allows us to create winning brands and products, in addition to the autonomy we have gained in terms of manufacturing, logistics and international distribution, which allows us to offer prices as competitive as those in Asia.

Harmonia Company has all its trademarks registered in Venezuela, Colombia, and the United States, and has priority registration in the Andean Community of Nations.

The manufacturing plant is licensed by the local Ministry of Health and has more than 50 health notifications of SKUs in force. It also has a Good Manufacturing Practices (GMP) certificate, an internationally valid certification that allows for the approval of sanitary registrations in most Latin American countries.

Harmonia Company Colombia is a qualified user of the Free Trade Zone, which allows it to operate in this restricted customs area with tax and foreign trade advantages.

The plant is registered with the US Food and Drug Administration (FDA) for the manufacture of pharmaceutical products and was recently audited and renewed on 7 March 2023. And the products of the non-prescription medicines division are registered for marketing throughout the United States and Puerto Rico, as well as with the health authorities of Mexico and Canada.

Harmonia Company is a registered Amazon.com Private Label Seller, i.e. it is the only one authorized to market the brands and can even authorize and sell to other Amazon sellers.

It is also registered in Amazon.com Global Selling program, which gives it access to Amazon's worldwide logistics and commercial platform. It can publish and ship products to Europe (Spain, UK, Germany, France and Italy), Asia-Pacific (Japan and Australia) and the Middle East, Turkey, Singapore and Brazil.

Market

The United States is the largest market for FMCG in the world, with a market share of 17.1% in 2022. This translates to a value of $1.05 trillion in sales. The next largest markets are China, Japan, and Germany.
Some specific figures for the US FMCG market in 2022: Total sales: $1.05 trillion
Retail sales: $875 billion
Online sales: $175 billion
Grocery sales: $630 billion
Household products sales: $250 billion Personal care products sales: $115 billion

The dermatological products market in the USA and Latin America is a large and growing market. In 2022, the market was valued at $44.3 billion in the USA and $14.2 billion in Latin America. It is expected to grow at a CAGR of 6.5% and 8.2%, respectively, over the next 5 years.

The intimate feminine soap category is growing rapidly in Latin America and the United States. In Latin America, the category is expected to grow by 12% in 2023, while in the United States, it is expected to grow by 9%.

Skin Care Market Growth: The skin care market is growing steadily worldwide and is estimated to grow nearly 5% over the next 5 years, providing a significant expansion opportunity for Harmonia Company.
• International Expansion: Harmonia Company has solid and concrete plans to expand its presence to other markets in the Americas or even other continents.
• Portfolio of new products: Harmonia Company has a portfolio of new products developed and fully adapted to new global consumer trends that will be introduced as the brands are developed in the markets.
• New Business Development: The Company has alternative business opportunities related to its core business, such as franchises and applications, which will steadily increase revenues over the next few years.
• Access to funding sources: The Company has organized its management and finances over the years to access capital market funding sources and prepare for an eventual IPO.
• Exponential Growth: The Company anticipates significant exponential growth in this new phase of international expansion.

Problem or Opportunity

We prevent the major skin diseases by preventing their occurrence, and we treat and cure them once they occur due to lack of prevention. We have a portfolio of well-segmented products under our MINi Care, Seep, Viefem and Dermique brands, dedicated to hand care and disinfection, specialized products for clinical use, feminine intimate care and the prevention and treatment of the main dermatological conditions.

We have made great progress in regulatory matters, trademark registration, market studies and, most importantly, in market tests that have been successful in countries such as the United States, Mexico, Ecuador and Peru. With all this, we have designed an international expansion plan based on introducing our brands in the retail and traditional channels of those countries, with the presence of local marketing and sales offices to support all the management.

Solution (product or service)

Brand: MINI Care
Alcohol-free sanitizers that do not dry or irritate the skin, ideal for sensitive skin, in pocket size presentations.
Products:
Hand Sanitizer Moisturizer Lotion (4 fruity scents)
Alcohol-free Hand Sanitizer Gel for Kids (4 fruity scents)

Brand: Viefem
The only soap-free feminine intimate cleansing solution, gynecologically recommended and accompanied by a wide range of products that cover the main needs of feminine hygiene.
Products:
Femenine Intimate Wash
Feminine Intimate Wipes
Feminine intimate pad (different sizes)
Menstrual Period Cup
Vaginal Antifungal Cream

Brand: Seep
Formula fortified with a powerful germicide that eliminates 99.99% of viruses and bacteria. Soap-free cleanser for sensitive skins. The biggest toilet soap on the market at the lowest price, for the economy of the family.
Products:
Antibacterial Liquid Hand Soap
Antibacterial Bar Soap
Bar Soap Super Fruit
(4 fragrances and active ingredients)
Sulfate-free mild cleansing solution
Gentle Cleansing Bar soap
Family size bar soap

Brand: Seep Advance
Complete line of specialty clinical products in consumer and institutional presentations.
Products:
Neutral liquid soap
Alcohol-based Hand Sanitizer Gel
Alcohol Antiseptic
Distilled Water Laboratory Grade
Neutral Disinfectant Cleaner
Conductive Ultrasound Gel

Brand: Dermique Laboratories
Oncological care:
This sub-brand has been carefully designed to address the key needs of oncology patients undergoing chemotherapy and radiotherapy.
Products:
Ultra-gentle daily body cleanser pH5.5
Ultra Light Moisturizing Body Lotion
Moisturizing cream for extra dry skin repair.
Sulfate-free shampoo for sensitive scalp.
Anti-Itch Cream

Brand: Dermique Laboratories
A complete line of dermatological products to meet the main needs of different skin types; promoted through visits to specialists, distributed through independent and chain pharmacies and Skin Stores, a franchise project of stores specialized in dermo-cosmetic products; and its online store application, where consumers can also scan their skin and receive a preliminary diagnostic guide to their dermatological needs.
Products:
Ultra gentle daily face cleanser
Face Moisturizer Gel-Cream
Ultra-gentle daily body cleanser
Ultra Light Moisturizing Body Lotion
Cleansing gel for oily face skin
Gentle exfoliating scrub for oily skin
Moisturizing fluid lotion for oily skins
Soothing gel for inflammatory lesions
Water gel sunscreen SPF 50
Fluid lotion sunscreen SPF 50
Ultra Sheer Dry-Touch Non-Greasy Sun Lotion SPF 70.

Competitors

Purell, Germ-X, Babyganics, Vagisil, Summers Eve, Lactacyd, Always, Nosotras,Tena, Kotex, Poise, Dove, Palmolive, Protex, Nivea, Dial, Suave, Olay, Safeguard, Softsoap, Zep, Clorox, Lysol, Neutrogena, Cetaphil, Cerave, Eucerin, Bioderma, La Roche Posay, Vichy, Isdin, Aveeno, elf, Medihealth, and local competitors in each country.

Advantages or differentiators

About MINi Care: The only moisturizing hand lotion with germicidal power, in pocket size presentations.

About Viefem: The only soap-free feminine intimate cleansing solution, gynecologically recommended and accompanied by a wide range of products that cover the main needs of feminine hygiene.

About Seep: The biggest toilet soap on the market at the lowest price, for the economy of the family.

About Seep Advance: Complete line of specialty clinical products in consumer and institutional presentations.

About Dermique: (Oncological) This sub-brand has been carefully designed to address the key needs of oncology patients undergoing chemotherapy and radiotherapy.

About Dermique: A complete line of dermatological products to meet the main needs of different skin types; promoted through visits to specialists, distributed through independent and chain pharmacies and Skin Stores, a franchise project of stores specialized in dermo-cosmetic products; and its online store application, where consumers can also scan their skin and receive a preliminary diagnostic guide to their dermatological needs.

Finance

We have a business plan focused on international expansion with which we seek to exponentially increase current revenues, this business plan provides for the following:
1. Expand presence and increase sales in e-commerce channels.
2. Gradual entry into national retail chains in the United States.
3. Accelerate brand penetration and positioning in the Latin American market.
4. Resume the start-up of the manufacturing facilities in the Río Negro Free Trade Zone, Antioquia, Colombia, for Increase production capacity to maximize product availability and the logistical and customs advantages associated with international expansion.
In addition, we plan to expand the Seep soap line by adding to the portfolio the large family soaps of 160 grs, the antibacterial soap, the toilet soap with "Super Fruits" active ingredients, and the soap for sensitive skin.
The addition of Viefem wet wipes, sanitary pads, menstrual cup and intimate fungicide.
And finally, the launch and introduction to the markets of the Dermique Laboratories line, which includes a broad portfolio of dermatological products that meet the main needs of every type of skin, with special emphasis on oncological dermocosmetics, oriented to the specific needs of the skin of patients treated with radiotherapy and chemotherapy, the creation of a new marketing channel that are the skin stores, a new franchise option and with very good acceptance in global markets, accompanied by a dermatological diagnosis app by skin type, consultations, recommendations and online store.

Business model

PREMISE:
Distribution is what we consider our core business, in fact I define our business as: A distribution and brand development company that manufactures everything it sells to make it more efficient. Generally, those who manufacture a product think that manufacturing is their core business, nothing could be further from the truth, in the FMCG business, distribution and brand development is everything.
Under this premise, we have been optimizing our distribution systems year after year, reaching the maximum level of standardization recently in 2023, when we finally managed to turn it into a franchise.

THE MODEL:
The Exclusive Distribution Franchise (FED) is the result of all the good distribution practices implemented in the company over the years and consists of a geo-localized numerical distribution model, fully adapted to the specific needs of each market in terms of packaging, presentation, packaging, frequency of visits, frequency of deliveries, payment terms, brand marketing strategy and even delivery vehicles, In the recent case of Venezuela, due to the constant problems with fuel and the contraction of the market, we replaced the lorries and panel loaders with 800 kg motorcycles, which allowed us to serve more customers with smaller volumes, increase the frequency of deliveries, reduce fuel consumption and dependence by more than 79%, reduce the percentage of late payments and deliver all orders on time.

We focused on being present in as many low-volume outlets as possible, which we then developed in volume and coverage by brand and SKU, allowing us to grow on a solid, stable, sustainable, and scalable customer base.

The wide range of products allows us to serve the various marketing channels, which, together with a robust pricing strategy, means that the franchisee can serve distributors, wholesalers, retailers and even end users.

We rely on key performance indicators (KPIs) thanks to a modern Business Intelligence (BI) system based on Big Data, which, together with the use of mobility analytics, geolocation, and an appropriate marketing plan, gives no respite to the competition.

The exclusive distribution franchise by city has allowed us to reduce our payroll costs, reduce our logistics costs and optimize our HR structure, as the franchises are operated by third parties and run with their own lean and light HR structure.

Money will be spent on

Our goal is to raise five million dollars (USD 5,000,000.00) to implement international expansion plans and increase the company's annual revenue.

1. Expand presence and increase sales in e-commerce channels. USD 625,000.00
2. Gradual entry into national retail chains in the United States. USD 1,869,000.00
3. Accelerate the penetration and positioning of the brands in the Latin American market through the opening of our own offices and commercialization of distribution franchises. USD 1,360,000.00
4. Resume the start-up of the manufacturing facilities in the Río Negro Free Trade Zone, Antioquia, Colombia for Increase production capacity to maximize product availability and the logistical and customs advantages associated with international expansion. USD 662,100.00
5. Refinancing of the company's debts with financial institutions. USD 483,900.00

Offer for investor

I would agree to sell 65% of my company for $4,000,000 based on the accounting valuation. I will work through the planned expansion period and 100% development of the business plan to take the company to the next level of revenue for the next 5 years and then, if my results are satisfactory and the new board agrees and is happy with my performance, to a KPI based performance measurement for a further period of 5 years. Initially I am targeting a salary of $5,000 usd/month for the first and second year, and once the turnover has increased and we have achieved the expected exponential growth during this period, a new amount will be set according to the size of the operation we will have by that time, which according to plan will be consolidated operations in Ecuador, Peru, Mexico, the United States and we will have the new production facility in Colombia up and running.

We have also structured several associative schemes that allow investors of different sizes to enter the business, such as the sale of exclusive franchises for small cities, master franchises by country, brand concessions, exclusive distribution agreements, shares, bonds, brand partnerships and an endless number of interesting schemes with great potential that allow any investor, regardless of size, to have a profitable participation.

Team or Management

Risks

- Entry of new compeAtors: Entry of new compebtors into the skin care market could threaten the market share of the company's brands.
• Economic slowdown: The world experienced a slowdown in economic acbvity during the pandemic, which impacted inflabon rates, manufacturing, logisbcs and labor costs, which are only beginning to stabilize four years later. A similar event could pose a threat to the company in the future.
• Changes in consumer preferences: Changes in consumer preferences could affect demand for the Company's products.
• Increased producAon costs: Rising producbon costs could reduce the company's profit margins.
• Regulatory changes: Changes in skin care regulabons could adversely affect the company.

Won the competition and other awards

MINi Care, Hand Sanitizer Moisturizer.
Best Seller in Amazon US in 2020
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Idea
Current Status
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Finance
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Business model
Money will be spent on
Offer for investor
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