Wikipedia – A Business Model

1. […]is the method of doing business by which a companycan SUSTAIN itself—that is, generaterevenue. The business model spells out HOW a companymakesmoney by specifying WHERE it is positioned in the valuechain. Wikipedia – A Business Model

2. Value Proposition “products and services that create value for the relevant customer segment”

3. Property Developer Consumer Consumer Value Proposition & Overall Tactic = Commercial DK shopping Edutainment (education + entertainment) Retailer/ Franchise Partner Brand

4. VALUE PROPOSITION 1) Brand • Multi brand (testing) platform • Increase revenues/export share • Go to market without real/true brand awareness (more a label than a brand) • Go to market without developed branded retail model (today mainly wholesale) • Less pressure on revenue performance (m2 turnover) – you never have a second chance for a first impression – and yet: • A second chance for a first impression • Possibility to develop into stand alone concepts if proven to be a strong concept 2) Consumer • Enhanced shopping experience • Denmark as a shopping destination • Danish (Children) Lifestyle Shopping Experience and Values • Cross category shopping experience • Event based

5. VALUE PROPOSITION 3) Property developer • New strong concepts, innovative labels supported by lifestyle shopping experience needed to increase and drive traffic • Looking for new concepts, not just super brands or stand alone mono store concepts • Traffic generator: Increased traffic caused by commercial edutainment lifestyle concept – to the benefit of the entire shopping mall – traffic is a main issue and we can create overall traffic 4) Retailer/Franchise Partner • New concept • Possibility to exchange brands from the platform (more eggs in the basket) • Shopping experience and edutainment is “next practice”

6. The mermaid of Hans Christian Andersen

7. Home of the Vikings

8. Clean living

9. Harmony/family fun

10. Exploring

11. Strong family values

12. Kitchen adventures for kids

13. Edutainment at large Designs displayed in a comfortable and inspiring high-end environment offering the customers a wide product choice, while being served by a friendly and well educated staff. Products, service and the store interior all together offer an educating and entertaining shopping experience, making the super-store an attractive traffic generator to any high end mall operation. A truly unique modern lifestyle experience.

14. Next! LIFESTYLE SHOPPING EXPERIENCE Lego world The Venetian Impact on Retail Operations MULTIBRAND STORES now SUPER BRANDS/ CONCEPT STORES BRANDS PRODUCTS/CONCEPTS 2001 2015 Next practice

15. Products Concepts Lifestyle Edutainment Retail: Clothes Food Interior Toys Healthy lifestyle Green Sustainability Learning Relaxed Harmony in life Super Brands Lifestyle Shopping Experience Country based concept

16. Channels how do we reach the customer segments to deliver the value proposition

17. Brick and MortarOn-line Distribution Shopping malls (tier 1-3 cities) Airports, travel retail On-line shop www.created4kids.com Trade Shows Danish Kids week, etc. Typical distribution model today for the brands Commitment sign on fee 50.000 DKK No cure, no pay TBD Government support Not covered/planned Lifestyle Store Size M,L,XL Shop-in- shops or Pop-up stores Gold wholesaleretailers Silver wholesaleretailers Bronze wholesaleretailers

18. Exclusivity Agreement BARCA and Brand Owner. The brand pays a fee to sign up Fee in case of: a) BARCA secures the right to sell the Master Franchise. b) licence. c) Acquisition BARCA ensures a commission on the transaction , Supply Side Publicly listed Chinese investor OEM Producers Looking for Branded Retail Property Developers Looking for Total Lifestyle Concepts Demand Side Master Franchise BARCA holds the master franchise Licence / Trademarks China BARCA sells the licence Super Lifestyle Store China BARCA holds the Master Franchise Acquisition of brand China BARCA receives fee on transaction Models Master Franchise partner Opens flagship(s) in tier 1 and sells each franchise At x per shop to cover the initial investment Own retail Tier 1 eg. Beijing Franchise Tier 2 China Distribution Franchise Tier 3

19. Segmentation/Brand mix

20. Præsentation II

21. China

22. China From “Factory of the world” To “Shopping mall of the world”

23. THE MARKET YOU CANNOT IGNORE China is the most dynamic, fastest-growing consumer market in the world. While the sales numbers in the U.S. and Europe continue to trend downward, all the numbers in China are trending upward. It’s not a matter of if you should or if you will consider China, it’s when.

24. SIZE OF MARKET Depending on whom you talk to, some people will say China’s population ranges from 1.2 to about 1.5 billion people. To give an idea of the size of the overall market, the margin of error is the entire population of the United States.

25. CHINA – THE LEADER Now leading as the number one apparel and number two accessory market in the world, China’s consumer market explodes as tens of millions of people join the middle class every year. That’s 300 million and counting.

26. GO TO MARKET With a new appetite for affordable luxury among a vibrant group of young, urban consumers, the Chinese market sits in the “late adolescent” stage of growth. China is not a single market; it’s not a single demographic. You don’t just go to China. Different areas developed differently.

27. CONSUMER MARKET With a booming consumer market, it’s the accessory market that drives the growth in addition to a growing appetite for niche brands. Domestic firms show strong performance in the mass market and are quickly becoming more competitive. Foreign brands have a dominant presence in the luxury market with the market now opening to brands in the mid-to-high-end segments.

28. GO TO MARKET • With the downturn in the worldwide economies apparel brands and their investors are establishing their go to market strategies most brands are faced with the complexity of the Chinese market and a need to understand the critical factors and the right approach.​ • 

29. THE MARKET •  • Retail space and the shopping mall space are both booming now. • While the retailer struggles for market share, the shopping mall developer also seeks for way to positioning the shopping mall. • Positioning of the retail brand and the shopping mall is equally important.

30. THE MARKET • As a consequence, innovative Chinese production units and other investors divert their business to brand focus and forward integration (retail), mostly in but not limited to China. • ​ • ​ • The market is consolidating for the first time in 10 years resulting in a shakeup both for weak brands, concepts and shopping malls. Property developers and retailers are searching for strong concepts and innovative labels and brands.

31. Copenhagen gateway to Scandinavia ”哥本哈根风景很好，是购物的天堂” Copenhagen has very beautiful scenery, and is a shopping heaven ”人们友善和谐” Friendly and harmonious people ”环境优美，居民和善，城市清洁，回忆美好” Beautiful environment, friendly people, clean city, good memories. ”买东西相对便宜” Relatively cheap to buy things ”购物便捷” Shopping is easy and convenient ”人们善良，风景优美，吸引人” Kind-hearted people, beautiful scenery, intriguing ”a. 历史，古迹保持完好 / b. 城市整洁，干净 / c. 民风友善，纯朴” a. history, historical sites are well preserved, b. tidy and clean city, c. friendly and honest people Survey by Wonderful Copenhagen 2012

32. Best of Scandinavia: A harmonious experience ”人与自然很和谐，干净” Humans and nature in harmonious coexistence, clean ”有秩序，较干净，人都很热情” Good social order, quite clean, everyone is very friendly ”空气好，治安好，当地人有礼” Fresh air, good public order, courteous locals ”绿色，生态，休闲，干净，和谐” Green, way of life, relaxed, clean, harmonious ”干净，整洁，文明” Clean, tidy, civilized ”清洁，安全，舒适，历史，诚信，礼仪” Clean, safe, comfortable, historical, sincere, etiquette ”绿色，生态，休闲，干净，和谐” Green, the environment, relaxed, clean, harmonious ”人们友善和谐，环境优美，绿色” Friendly and harmonious people, beautiful environment, green ”空气清新，安静，和谐” Clean and refreshing air, peaceful, harmonious ”社会和谐，环境优美，与人友善” Harmonious society, beautiful environment, friendly people Q: What was your best experience while in Copenhagen? Above are quotes of Chinese visitors’ responses Survey by Wonderful Copenhagen 2012

33. Next! LIFESTYLE SHOPPING EXPERIENCE Lego world The Venetian Impact on Retail Operations MULTIBRAND STORES now SUPER BRANDS/ CONCEPT STORES BRANDS PRODUCTS/CONCEPTS 2001 2015

34. Nowadays, the Shopping Mall operators, realize it takes more than a label or a super brand to drive retail and traffic. In addition to mono concept stores multi brand shopping experience evolves as the market matures. New strong concepts, innovative labels supported by lifestyle shopping experience are needed to increase and drive traffic.

35. Products Concepts Lifestyle Edutainment Retail: Clothes Food Interior Toys Healthy lifestyle Green Sustainability Learning Relaxed Harmony in life Super Brands Lifestyle Shopping Experience Country based concept

36. Edutainment (education + entertainment)

37. The Operation

38. The lifestyle super store

39. Business cases upon request

40. Example Villa

41. The Execution

42. Segmentation/Brand mix

43. Category mix, establishment of the right brand portfolio in an inspiring high-end shopping environment. Campaigns and events to increase the overall traffic to the mall and to make the consumers stay longer and increase spending. Delivery a range of ongoing and initial services.

44. THANK YOU Kim Chan E-mail: kim@barcagroupconsulting.com Mobile: +86 147 157 828 11 Mobile: +852 5600 0881​ ​ Henrik Spandet-Møller E-mail: henrik@barcagroupconsulting.com E-mail: henrik@spandet.com Phone: +45 22 66 09 11 ​​ ​Allan Kruse E-mail: allan@spandet.com Phone: +45 40 18 12 64

45. Overskydende slides

46. WHO WE ARE BARCA creates, enables, and develops profitable business relations between European and Asian businesses. With a strong network in China and Europe BARCA enables a profitable business diversion for European brands and Chinese investors, retailers and production units.  BARCA helps to identify, map and segment potential brands for acquisition, licensing or retailing in China. BARCA supports the brand control avoiding pitfalls and wrong “go to market” entry strategies. BARCA is not only offering to establish the relation between two parties; BARCA is expanding the relation within brand building and profiling, systems, retail optimization and cross-cultural communication to ensure successful, continued business relationships.

47. BARCA holds the distribution rights in China for a number of Scandinavian fashion and lifestyle brands and upcoming labels. BARCAhas developed a super-store offering the best of Scandinavian design, fashion and furniture in the world. In line with the evolvement of the Chinese retail market the super-store creates lifestyle shopping experience and serves as the ultimate traffic generator for the property developers. BARCA´s tactic is edutainment (education + entertainment). The super-store serves as a platform for Scandinavian brands to enter into the fastest growing retail market. Some of the strongest performing brands hold potential for additional distribution in own concept stores or shop in shops.

48. THE WAY WE WORK In China we target innovative Chinese production units and other investors diverting their business to brand focus and forward integration (retail), mostly in but not limited to China.  BARCA specializes in mapping, segmenting and identifying potential brands for acquisition or licensing in China. ​ BARCA supports the brand control avoiding pitfalls and wrong “go to market” entry strategies. The deliverable is typically franchise, license/trade marks or brand acquisitions.