Drangon's Den Earth Lab Cosmestics

by pitou22 on April 22, 2013 - 1:41pm

Dragon's Den team :
Camille Bleau, Camille Berardelli, Andréane Deschênes, Noémie Parent-Laperle
Business Plan for our company Earth Lab Cosmetics
Business/Concept Summary Introduction :
Earth Lab Cosmetics sells beauty, but more specifically natural beauty. We propose a new approach in the cosmetics industry. There is an important market for ethical cosmetics because women are tired of dealing with clogging pores or irritated skin from wearing their makeup. As well, in our society, people tend to care about animal rights and ecology. We propose cosmetics that are animal friendly, people friendly, and friendly to our environment. Most of our products are 100% vegan, in more than 140 stores in Canada and two distributors, one in Australia and another one in United States. Our lipstick base is made of beeswax and rice like many of our products. We use ingredients like white clay, extracts of dried fruits, such as bananas powder, pineapple, orange and raspberries. Our products are made of shea butter, cocoa butter, mango butter and tucuma butter to get the greasy aspect. 
Current situation :
Our company value (estimation): $ 460 500. As we said, we are already selling in more than 140 stores in Canada. We made $ 80 000 in the first quarter of this year. The first quarter of the year is generally the lowest of the year for Earth Lab Cosmetics
Objectives :
We need $90 000 for working capital. This year we are projecting to make a profit of $400 000. In the next four years we would like to be one of the top companies of natural  cosmetics. Also, one of our goals is to have more volume by getting a lot of distribution and some big retailers. To insure our growth we want to stay animal friendly, people friendly, and friendly to our environment. We want to make packaching in French to go to Quebec and to France.
Legal Structure : 
Our business structure is a partnership. This means we are all partners, we all own 25% of our company.  If there is a financial problem with the company, it will be easier to manage because we are associated. Each one of us can bring something different and beneficial to the company. Also the partnership can foster interesting innovation.  
If you ask yourself why you have to choose our ecologic make-up, that’s simple, we are a company that really cares about animal’s rights and ecology.  We propose cosmetics that are animal friendly, people friendly, and friendly to our environment. Our company is unique and people who want to have good natural products should come and buy their products here.We are a company that wishes to expand internationally as L'Oreal, because we need to start paying attention to the world and it is by consuming natural products that we should start. It’s with some products like ours that the environment will improve because each of our products are made with natural ingredients.
Visual support:
In our presentation to the Dragons, we will involve their senses to show our products. By handing them our cosmetics, they will have the opportunity to make their own opinion. This technique is better than only showing them pictures of our products. The pictures can not prove how good our cosmetics really are. Statistics Canada explains that society is buying more if they can try the product first. Also, another study showed that in 2013, people care about ecology and environment. In addition, if our company sells beyond our goals, we would have a spokesperson to represent our company. It would be a known person who cares about environment and beauty. It would be a great way for the company to be known.

Comments

Great idea! You found a product that responds to many of society’s concerns, by being both environment and animal friendly.  Furthermore, you have created a product that is in a big market, where there is a lot of demand. I believe you will have a lot of success with your product. However, I have a small concern. What about allergies? Will people with food allergies be able to wear your make-up? Are the ingredients in your make-up well indicated on the package and on the product? Usually, when buying make-up, I do not pay attention to the ingredients it contains, not doubting that it may contain food ingredients.  Therefore, I think that it would be important for you to make it evident that this product is unsafe for people with allergies. Also, maybe you could maybe use ingredients to which people are less often allergic to. Therefore, more women could use them, because these days, a lot of people have allergies, which cancel out many as potential buyers to your product. An article published in Marie-Claire in March 2010 by Fiorella Valdesolo discusses how nearly 50% of women are allergic to their make-up, and some do not even know it. Therefore, I think you must be careful while using uncommon products in your make-up. Nevertheless, your product seems to me to be very innovative. Good luck!

Great idea! You found a product that responds to many of society’s concerns, by being both environment and animal friendly.  Furthermore, you have created a product that is in a big market, where there is a lot of demand. I believe you will have a lot of success with your product. However, I have a small concern. What about allergies? Will people with food allergies be able to wear your make-up? Are the ingredients in your make-up well indicated on the package and on the product? Usually, when buying make-up, I do not pay attention to the ingredients it contains, not doubting that it may contain food ingredients.  Therefore, I think that it would be important for you to make it evident that this product is unsafe for people with allergies. Also, maybe you could maybe use ingredients to which people are less often allergic to. Therefore, more women could use them, because these days, a lot of people have allergies, which cancel out many as potential buyers to your product. An article published in Marie-Claire in March 2010 by Fiorella Valdesolo discusses how nearly 50% of women are allergic to their make-up, and some do not even know it. Therefore, I think you must be careful while using uncommon products in your make-up. Nevertheless, your product seems to me to be very innovative. Good luck!

Hello,

As a female who enjoys wearing makeup, I found your product very interesting, as I am also concerned about being environmentally friendly and animal rights. I greatly enjoyed the fact that you believe in providing 100% vegan products and it is great that your products are made from extracts of dried fruit. However, I would like to bring to your attention that even though your products are made from many fruits and vegetables, have you looked into using organic fruits and vegetables? Have you looked into the side effects of using non-organic products? Here is a link to an article that describes the risk of buying makeup that is organic versus some that are not:

 

http://www.mnn.com/lifestyle/natural-beauty-fashion/stories/organic-makeup-what-makes-up-your-makeup

 

The article brings up the fact that non-organic makeup can harm the skin and how non-organic makeup can contain pesticides and ingredients such as parabens, phthalates and talc which are liked to breast cancer, ovarian cancer and are potentially harmful to the reproductive system. All to say, your product is definitely doing well as you are providing makeup to more and more people around the world, but I do feel you should take this under consideration as your company seems to be a strong believer in being environmentally friendly and in animal rights. I think the last step at making your product close to perfect is to become organic in order to ensure safety for your client’s health.

Very nice product Earth Lab Cosmetics! I can see that you have put a lot of thought into coming up with an innovative product that can affect a lot of people who care about environmental and animal-abuse issues. However, I have a couple of suggestions or ideas you might want to think about as a company before presenting your idea to the Dragon’s Den.

First off, you claim that your makeup is vegan but you use beeswax in your products. Technically for a product to be fully vegan it should not harm animals and that is why most people who identify themselves as vegans do not eat honey or use products that contain beeswax.

Also, it is important to note that I don’t really see how your product impacts the environment that much. Most of your products contain different plants that come from all over the globe such as shea butter, pineapples and raspberries. I suggest you use plants that are local to the makeup factory to diminish green house gas emissions due to the transportation of materials.

Over all the idea is very good because I do not think it has been done before as a commercial brand. I found an article by Gillian Deacon, an award-winning author of There’s Lead in Your Lipstick: Toxins in Our Everyday Body Care and How to Avoid Them, on David Suzuki’s website. She helps people find different natural products that are good alternatives to normal makeup. I noticed that there are many other natural products in demand such as hair die and nail polish so you might want to expand your idea to include these things. Also, a lot of the natural makeup companies had online stores but did not sell in retailed stores so it is a good idea that you are making it available to people who do not shop online.

http://www.davidsuzuki.org/blogs/queen-of-green/2011/04/safe-cosmetic-brands-uncovered/

I really like your idea for the product because makeup is very important to me.  If a particular makeup brand made an effort to be environmentally conscious, I would buy that particular brand for sure.  I think you have a really good chance at making an excellent profit because most women do want to take care of the environment and care a lot about their makeup.

However, organic makeup products already exist, so it is important for you to set yourself apart.  I have already bought an organic mascara by the brand “Physician’s Formula” in their line “Organic Wear.”  Luckily for you, it is a terrible mascara.  I have only used it a few times and would not buy it again because it did not make my lashes longer and every time I touched my lashes, all the mascara would go on my hands.  Your product must be good or women will not buy it even if it is environmentally friendly.  Having your makeup on hand to let the dragon’s try it is necessary.

Lastly, I like your product and presentation from what I have read, however, please take care of your spelling.  If the dragon’s saw the two spelling mistakes in the title of this article only, I doubt they would have any confidence in you.

A)    I found your company to be very interesting; environment and animal friendly is the newest trend in terms of cosmetics since more people are aware of the toxic chemicals placed in cosmetics line such as parabens, sulfates, propylene glycol, and so on. These chemicals are not only bad for our health (as it can develop future cancer) and the animals’ health, but when trashed, these chemicals can change the seas and ocean pH level and pollute our environment. I think that giving samples is a great first step in developing your company, but you should take the example of Burt’s Bees: they are an organic line of skincare sold in drugstores that got their name in the business through their lip balm products. They are one of the most known line of environmentally and animal friendly cosmetics. Looking at their historic can probably give you inspiration.

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