LOOQ

LOOQ offers interactive home renovation projects with kits of finishing materials and décor. LOOQ users can choose from large number of design projects in the online project library, adapt the desired project to fit the specific space and change design elements. LOOQ application allows users to use the mask of the project for any space. Everything is done online. The user receives a complete design project for his room or entire apartment, a detailed list of materials with instructions and can order the complete materials kit to be delivered to his door.

First sales are planned on May 2021

1. Product market fit / Idea validation – a test service was launched and client’s requests collected. In total tens of clients have been interviewed. The overall result has been very positive.
2. Customer Acquisition Cost – based on the test service marketing campaign CAC has been determined.
3. Customer Survey – a detailed survey has been conducted both online and offline. In total more than 200 respondents have completed the survey.
4. Design library under development – new apartment designs are being developed by the team.
5. Materials selection – a detailed review of materials on the market is being conducted. Negotiations with suppliers / producers initiated.
6. Back-end development – a web service for design altering / adaptation is being developed

A detailed market review has been conducted for a single city – Moscow, Russia. Key takeaways are the following:

1. The market size (finishing & construction materials) in Moscow totals approximately $2Bln. The market size figure includes only materials used by small businesses or individual contractors.
2. Each year, approximately 17% of apartments (~4 mln in total) in Moscow are being renovated (partially or fully). This amounts to roughly 140K potential users (TAM).
3. The market is highly fragmented without a clear leader. There is hardly any technological solution as the industry is very conservative.
4. According to research conducted by Analytical Center NAFI (nafi.ru) 86% of respondents in Moscow are prepared to spend less than $6K for renovation materials, 6% prepared to pay $10k, 8% - more than $10K.
5. The average expected commission from each order in Moscow is $700.

A real-life test of the service conducted by the team has revealed that most of the customers (63%) are women. The target age group is between 25 and 45 y.o.

Based on the marketing campaign during the service test CAC totaled approximately $200.

The problem:

1. High time and monetary costs related to search and selection of designer and finishing materials / décor for home renovation.
2. The process of home renovation for most is complicated and confusing.
3. No simple and technological solution for home renovation, allowing single point access to key services.

The solution:
A service of interactive design projects - Looks - which will allow users to choose the new look of his apartments and tailor it to his taste in minutes. The user will be able to order the finishing materials and décor he needs to make a renovation.

Currently, there is no direct competition on the Russian market, where the service will be launched first. The closest competition comes from small design bureaus and small general contractors, that offer a complete renovation with a design project for a fixed price.

Most of the renovations are done without any technological platform. Property owners are either trying to draw the designs themselves and buy finishing materials in DIY shops, or look for a professional designer and expect him to find all the materials for them. Both options have significant drawbacks: they are time consuming, they involve unnecessary communications with designer, the outcome and the budget are not known in advance, the process is very confusing and complicated.

1. LOOQ users don’t waste time. Everything is done online and in real-time.
2. LOOQ users are confident in the final budget as it is estimated in the application immediately after finalizing the design.
3. LOOQ users can receive mood board with all the materials selected for renovation delivered to their home.
4. LOOQ users receive a competitive price for the finishing materials
5. LOOQ users enjoy the process of creating their own designs in the application
6. LOOQ users receive professional recommendations on contractor, furniture.

There are 3 key revenue streams: commission charged for materials (>95% from total Revenue), partner programs (3%), renovation supervision services (2%). Commission charged for materials expected to rise from 15% in first year to 22% in the third year.

Expected Revenue (years of operation) 1: $180K; 2: $2,1M; 3: 4,0M

EBITDA Margin (years of operation): 1: -101%; 2: 31%; 3: 53%

Customer Acquisition is planned exclusively through internet marketing and direct sales to consumers (residential development). Primary channels for internet marketing: Google Adds, Instagram, Yandex. Anticipated Customer Acquisition Cost is approximately $200 due to fragmented market and a large number of small players.

A knowledge base will be introduced through short videos on YouTube, that will address different topics of space renovation.

At a later stage (18 months after start of the service), a separate smartphone application will be added, which will allow to use a different sales tactics.

1. Design library development
2. Application development
3. Materials and suppliers selection
4. Start of marketing campaign and sales throug Instagram

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