Distribution Program in Development

June 4, 2020

Program Overview

Purpose

The distribution program is designed as a pillar of our Creator Ecosystem™ Suite. By seamlessly transitioning creators from product developers into licensors, our distribution services will unburden them from sourcing, holding inventory, selling, and fulfillment. 

In turn, we help further enhance the reach and profitability of an intellectual property, by freeing up the creator’s time to focus on creating and finessing their content.

Scope

At the current time, our program will focus on Merchandise Licenses. This means we will work with the development and sale of products of an intellectual property.

A few key elements in our program include:

  • Onboarding with Zero Upfront Costs
    Signing a license with us does not require any upfront fees.
  • Dynamic Market Analysis
    A preliminary analysis will be conducted to determine market viability, which is where we will begin when finding buyers. Afterwards, as we accrue market data from sales and buyer purchases, we will be able to offer a clearer picture of market impact in our reporting system.
  • Sales Portal and Direct to Consumer Fulfillment Services
    We will create a direct sales page for your products, including holding inventory, managing deliveries directly to customers.
  • Retail Market Distribution
    We will reach out to buyers within our network and actively try to get products on retailer shelves. Services include sourcing, development, purchase contract negotiation, routing, and large order wholesale fulfillment. This service is a key component to the discovery and verbosity of an intellectual property.
  • Granular Reporting
    Information is a vital part of any business. We plan to create a robust reporting system that focuses on the quality of our data including quantity, location, and frequency of sales. Royalty payments will be calculated as we finalize buyer payments, and will be displayed and itemized for easy analysis.

Timeline

Our primary objective is to begin rolling out sales and have retail buyers stock inventory by the USA Christmas holiday season (November 26 – December 25). We do not anticipate large quantities for the 2020 holiday season, though we will prepare for it.


License Preparation

Definition

Generally, an Intellectual Property License is a written agreement that You (the Licensor) grants permission to Us (the Licensee) to own/use your work/invention of creativity (Intellectual Property) for some purpose.

We are currently focusing on Merchandise Licenses. Therefore, in our case, it’s to sell products (Merchandise) derived from your Intellectual Property.

Current Status

We are working diligently on ensuring our licensing terms are fair to all parties involved. We anticipate we will be able to begin license negotiations with creators by or before June 20. Further updates will define specific topics that may be of interest.


Strategy & Planning

COVID-19 (Coronavirus) Situation

Since February 2020, the entire world has been battling Covid-19. Responses vary by nation, and the overall procedure has been to shut down and self-isolate clusters where large populations exist.

United States

On April 21, the CDC announced that there will be a second wave of Covid-19 cases that will occur during the winter.

Recent events in areas of the United States from May 15, have witnessed a re-emergence by allowing gatherings and the re-opening of specific businesses.

Since March 2020, The United States alone has issued 3 stimulus relief packages totalling $8,000,000,000,000 (trillion) in the span of 3 months in order to stave an economic collapse.

Europe

Select countries are participating in reopening sectors in education, entertainment, and commerce.  

Since March 2020, European Union (EU) finance ministers have issued €3,200,000,000,000 (trillion) in financial aid packages to assist embattled economies within the EU.


Market Approach

Our strategy is a two pronged approach on two separate economies. This will leverage an unstable market with a foothold in a more stabilized economy.

United States

Observing recent events, we have determined that the overall population of the United States may not have the financial need to purchase luxury products during a time of crisis. Because we anticipate low levels of consumer revenue, retail buyers in the United States may not have the financial capability to purchase inventory until a later date.

Therefore, we have decided to focus on the following:

  • Direct to Consumer Fulfillment
    We will sell and fulfill individual orders directly from our company website. This service will focus on maintaining quality and inventory, along with shipping and routing orders from each sale. Licensors will no longer need to maintain inventory, and all necessary activities involved with listing, sales and shipping will be handled by us.
  • Market Recognition
    We will focus on maintaining an online presence, and cooperatively introduce the brands of our creators with our name. Our focus will be reinforcing to the market that any of our licensed brands has quality products.
  • Consumer Loyalty
    In time, it is our goal to have consumers automatically check our website if a product a creator’s fan likes is offered by us. 

European Union

It is our understanding that member nations within the European Union have a more economically stable infrastructure. To date, we do not see a situation where consumers will refrain from purchasing luxury goods. Therefore, we have decided to build a retail distribution pipeline in the EU.

Our current focuses include the following:

  • Build Infrastructure
    We will build a robust pipeline necessary for wholesaling goods from our catalog to EU member nations. This will include creating groundwork in legal, financial, logistical, and technological services in order to facilitate incoming orders, demands and requests. Due to the nature of strict regulations, we will try to streamline each requirement as we see fit.
  • Understand and Working with National Markets
    Each member nation in the EU has their own chains, business methodology and cultural traditions. Therefore, specific products may be tailored to the needs of each nation’s market. All general products in our catalog may require changes in order to be acceptably sold. Therefore, we will try to accurately identify, inform and alter products only when necessary. 
  • Solidify Relationships with Retailers
    As our catalog is more welcomed by the nations we do business with in the EU, we will try to solidify our relationships with each retailer, whether large or small, in order to maximize the visibility and profitability of each product line, licensed in our catalog.