Photo - Connecting offline sales to online from all stores the World
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Connecting offline sales to online from all stores the World

Russia, Moscow region
Market: Internet and IT
Stage of the project: Prototype or product is ready

Date of last change: 07.02.2020
Min investment
$  2.000.000
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Total required
$ 10.000.000
Rating
equalizer из 1000
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Idea

"The MallExpress project is an a Global online trading platform that is ready to provide fast and high-quality search of goods and services, both in the store and in retail outlets and service centres in the cities of the Russian Federation and other countries of the world to customers."

Current Status

At the moment, we are finishing the site's adaptability, and at the same time, we are developing a mobile application for Android in the Kotlin programming language.

Market

According to the forecast, over the past three years, the global market for online Commerce has increased fourfold: from $839.8 billion in 2017 to $3.5 trillion in 2019. Thus, the average annual growth rate was 17-20%. At the conference " Customs for business: Results 2018" these results were announced by Vadim Kozaev, head of the risk analysis and post - control Department of the customs legislation and law enforcement practice of the EEC.
Market segmentation is a term in marketing theory that is used to describe the process of dividing an entire market or industry into homogeneous parts (segments) based on specific characteristics. It is most convenient to section the market by geography since in other different cases, it won't be elementary to estimate the market volume by segment. Therefore, by market size, we can understand the amount of costs that suppliers of goods and services are willing to pay for assistance in finding customers.
If our project succeeds in the segments, as mentioned above, we plan to cover ten new regions in other countries of the World. The approximate market volume at the moment is $300 million per year.
Market prospects.
Statista provided a report stating that by 2021, the global e-Commerce market will increase sales by more than 246%. It only means that the niche of online trading is rapidly developing.

Problem or Opportunity

1. At the moment, one of the biggest problems for buyers is that they cannot always find and buy the goods that they need, quality goods at an affordable price. Because at first glance it is not possible to distinguish a non-quality product fr om a quality one. Our service will solve this problem - non-certified products from manufacturers will not be sold in our service.
2. The buyer can not compare the prices of the goods sought in the shops of the city wh ere he lives.
Our system will allow for a few clicks to compare the desired product in different stores in the city of the buyer.
3. Due to the sale of low-quality and cheap goods, sellers cannot compete and sell their quality goods.

Solution (product or service)

Our one-of-a-kind project will offer customers all over the World products and services that are located in stores, retail outlets, supermarkets, factories and factories. The client on our service in a few clicks will see all the information about the goods or services that he is looking for. He will be able to order through our service or taking the address of the store itself to go for the goods that are sold in this store. Prices for goods and services will be the same as in stores.
Mall Express takes responsibility for the guarantee of the quality of the product/service and all control of the purchase process from the supplier to the buyer.

Competitors

Today on the Russian market at the initial stage, our competitors will be such companies as https://beru.ru and https://www.wildberries.ru. Consider our advantage over them:
1. Our one-of-a-kind project will offer customers all over the World products and services that are located in stores, retail outlets, supermarkets, factories and factories. The client on our service in a few clicks will see all the information about the goods or services that he is looking for. He will be able to order through our service or taking the address of the store itself to go for the goods that are sold in this store. Prices for goods and services will be the same as in stores.
2. Mall Express takes responsibility for the guarantee of the quality of the product/service and all control of the purchase process from the supplier to the buyer.
3. For corporate clients, we will provide prices lower than market prices. The amount of sales which we will provide to producers of goods, a trading platform can't offer, as MallExpress designed for the World market and producers can quickly sell through our service large volumes of products all over the world in which they individually will not be able to go out because the marketing costs are too high and that we will receive the price discounts. The project will offer its corporate clients below-market prices.
4. We have developed many tools thought out to facilitate the search and purchase of goods and services for customers of our service. An example is a search engine with artificial intelligence, and online fitting room for dressing rooms and accessories, a search for products by image and by barcode, a geolocation service by which the buyer can find the location of the goods and services he is looking for.
5. Customers of our service will be the first to know all the beginning discounts in stores in cities all over the world.

Advantages or differentiators

We will try to maximize the maximum number of functions that will be on our service in each country where we will open a branch of our company.

Finance

Accounting policies and financial controls:
The following sequence of work defines the basic principles of financial accounting of the company:
1) Constant collection of information to the financial department and the unified information system;
2) An account of any monetary and other transactions having material expression;
3) Daily compilation and provision of information to management for accounting, planning, control, and management of the company.
4) If certain information is important to an investor or lender using the financial statements, that information should be disclosed within the statement or in the notes to the statement.
5) company will continue to exist long enough to carry out its objectives and commitments and will not liquidate in the foreseeable future. If the company's financial situation is such that the accountant believes the company will not be able to continue on, the accountant is required to disclose this assessment.
6) To use the accrual basis of accounting. The matching principle requires that expenses be matched with revenues.
7) Under the accrual basis of accounting (as opposed to the cash basis of accounting), revenues are recognized as soon as a product has been sold or a service has been performed, regardless of when the money is actually received.
8) If a situation arises where there are two acceptable alternatives for reporting an item, conservatism directs the accountant to choose the alternative that will result in less net income and/or less asset amount. Conservatism helps the accountant to "break a tie." It does not direct accountants to be conservative. Accountants are expected to be unbiased and objective.
Dividend policy:
The board of directors is entitled to recommend the size of dividends to the general meeting of shareholders. However, only the general meeting can approve the number of dividends.
Dividends are distributed after the enterprise reaches production capacity. The company’s dividend policy allows the needs of industrial development and increases the market value of shares at a faster pace. And so, the distribution of dividends will be as follows: 40% of the total net profit will be allocated each quarter.
The final distribution of dividends between the shareholders of the company is discussed and approved at a meeting

Business model

Since the beginning of our Internet service, it is planned to provide essential services to our users free of charge for three months. Fundamental functions of our Internet service will also be provided free of charge for suppliers, but only during the first week. Starting from the second week, suppliers will be charged from 3.5% to 6% of the amount for each transaction, both from sales and from the services rendered to them. Various tariff plans will also be provided to suppliers.
To start working with our service, the supplier only needs to register on our website. For the registration of legal entities, it may be necessary to issue documents, in this case, the application will be submitted, and the courier will be called to sign all agreements and transfer documents for payment. After authorisation on our site, our managers make an appointment to confirm the accuracy of information about his store.

Money will be spent on

Currently, the Mail Express project considers its initial goal to release an MVP in early 2020, as well as raise $10,000,000 of which $2,000,000 will be spent for development in the Russian market and processing of the marketing strategy. Also, we are going to gain at least 10 million users for the first six months. The final objective for the first year will be localization in four markets: Russia, Germany, Turkey and China.

Offer for investor

The Mail Express project now requires funding of $10,000,000 to scale the project across four markets around the world. An investor who is ready to finance the project at an early stage is offered a 20% stake in the company.

Team or Management

Risks

The task is to think about possible measures, either to reduce the probability of risks or to reduce the degree of criticality. The following risks can be identified:
Political risk
Business is practically not subject to political risks. The likely occurrence of risk and the composite coefficient is CR = 0.5 (low)
Strategic risk.
Choice of development strategy and market niche. Effectiveness of the chosen strategy. The possibility of obtaining the legal status of the activity, certification.
Marketing risk.
The risk of inadequate marketing and pricing policy, Market risks. Responsibility for the quality of the product. The dangers of competition.
Operational risk.
This hazardous area of the project includes the launch of the enterprise – equipment room, equipment purchase, transportation, storage, delivery to consumer cyber services system service maintenance and sales services.
Remarkable is the effectiveness of quality control measures (subscribers, customers, viewers, parents, children), the efficiency of the legal service for the organization of contractual relations with suppliers of products, working staff. It is crucial to organise adequate measures to protect the hall, illegal actions, fire, information, anti-raider To bring this risk to a minimum. An explicit calculation of the revenue component based on market analysis, marketing and market conditions is necessary to confirm the economic viability of the project. Cash flow settlement confirmation is required.

Incubation/Acceleration programs accomplishment

did not have

Won the competition and other awards

did not have

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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