Estonia
Art, Design and Fashion
Closes Sep 14, 2016 23:59
Share project

Arro Keraamika

Three generations of art from one family on porcelain tableware

90 902 € (246%)

of 36 995 - 92 412 € goal funded

19,67 % of total equity offered
151 € minimum investment
Invest

Quick Pitch

Lind Keraamika produces high-quality porcelain dishes in Portugal, created by applied artist Liisu Arro under the brand name ARRO KERAAMIKA. We have the means to use art work by three generations of artists from the same family, which we can turn into many different series of porcelain dishes. The first batch is based on artwork by Liisu Arro. Epp Maria Kokamägi, Jaak Arro, Imbi Lind and Luulik Kokamägi will follow.

Lind Keraamika OÜ, which is an affiliate company of Arro Keraamika OÜ with 100% of shares, has been created as a new company for factory manufactured tableware. All necessary licences for the use of artwork and brand name will be provided by Arro Keraamika OÜ. Liisu Arro is the sole owner of Arro Keraamika OÜ.

 

Problem & Solution

There is an empty space in Estonia in the area of tableware production. Porcelain export in Finland in 2014 was ca 9 million euros and in Estonia only 1,5 million euros.

Lind Keraamika puts together three generations of artists of Arro/Kokamägi family, which makes it special also in the global context and produces its tableware in a factory in Portugal that was established in 1824 - Vista Alegre - and sells its products worldwide.  We make art available for a wider audience just like Langebraun did during the first Republic of Estonia. 

Traction & Accomplishments

We have prepared this project for more than two years by selecting the best factory for our needs, which is Vista Alegre in Portugal, prepared the work and design for the first batch based on the work by Liisu Arro, ordered and received examples, prepared a business plan, market research etc. and have agreements with other members of the family to use their artworks on the future series. We have reached the state where we need to give in the first order for the factory. In order to visit fares and to market the tableware and the brand we need actual products.

At the same time Liisu Arro is constantly working on new pieces and has grown local and international client base, which enables us to immediatley start marketing the new products. Liisu Arro in media  http://liisuarro.eu/meedia

How We’re Different

At the moment there are still no producers similar to us. Our competitors in the world are Royal Copenhagen, Iittala, Villeroy&Boch. We have the advantage of being more flexible in our production, we have the story of three generations (almost four now) and our prices are lower. We don't have the burden of production, big quantities and big costs to keep a factory running. We can offer so called white-lable products in smaller quantities, which opens up a whole new market segment .

Uses of Funds & Timeline

With the money raised we will order the first patch, will prepare and execute marketing and PR strategies for the first 1,5-2 years and will visit various fares to sell the products. 

* May - July  2016 creation and partial excecuting of PR plans; 
* August - September 2016 ordering of the first patch;
* August 2016 visiting fares in  Stockholm and Frankfurt (not yet participating with our own productst);
* September - October 2016 arrival of the first patch in Estonia and start of local sales (in shops and over the internet) and global sales over the internet;  
* October - December 2016 the comapny starts work full speed.  

In 2017 we will participate at the biggest design fair in Europe in Frankfurt, also in Stockholm and Helsinki.  The aim is to achieve at least two contarcts with retail sellers and to create at least one new product series. 

The maximum sales of shares helps us to accelerate the creation and production of the next series. 

More information in the business plan and in the cashflow plan (in Estonian).

 

 

 

Obligations to Investors, Profit Distribution

Investing in Lind Keraamika is a good chance to be part in the growth of creative industries' export in Estonia.

Our product segment is rather safe, touchable/tangible, consumer knows the product and it does not have an expiry date.

By 2020 we wish to have created an individual brandname, flexible and in a good way a conservative comapny image. A stable company with a good credit rating with overall sales of more than 40 000 pieces a year that makes more than 500.000,00 € turnover a year.

The investor will have a complete overview of the company (at first through google docs, later Erply) and informative letters. Besides material input we hope for moral support and know-how sharing. 

Our aim is that with at least  20.000,00 € EBITDA  dividends will be paid at least 30% from the whole volume. 

When an investor wants to sell their share, then other investors have the first right to buy them, the company itself can also buy their share. The main shareholder of today is interested in buying back all the shares in the next 5 years.

NB! All investors will receive a dinner plate as a gift from the very first patch! (Can be used as platter as well.)

All investors who have invested 250,00 €, will get a 10% discount for factory products at Arro Keraamika webshop for one time purchase. 

All investors who have invested at least 500,00 €, will get a 10% discount for factory products at Arro Keraamika webshop for the whole time when being a shareholder.

All investors who have invested at least 1000,00 €, will get a 15% discount for factory products at Arro Keraamika webshop for the whole time when being a shareholder.

All investors who have invested at least 5000,00 €, will get a 20% discount for factory products at Arro Keraamika webshop for the whole time when being a shareholder.

Two shareholders who invest at least 10.000,00 € can be part of the creative team working on one of the future series and also become "godparent" regarding the name of the new series (the name should match the whole image of the brand).  They also have a 20% discount for all factory products at Arro Keraamika webshop for the time of being shareholders . 

A shareholder who invests  35.000,00 € gets their own personalisded exclusive tableware set and a 20% discount for all factory products at Arro Keraamika webshop for the time of being shareholders .

COME AND VISIT US!
You are very welcome for a cup of tea at Epp Maria Gallery or Liisu Arro studio in Haapsau. To make an appointment please call Liisu +372 50 44 581 or write her an e-mail: liisu@eppmaria.ee.

We can get to know each other and answer questions regarding the project. You can hold examples in your hands to see the quality of the work:)

Risks and Mitigation

Risk, that selling channels will be limited. 
Comment: This is a risk that every company has and it is something that has to be taken into account. Through our current sales channels we have felt that there is a need for our product but not enough cost resource, in other words, there is a wish to purchase the product but the cost of a handmade product is too high. Estonian market is not a priority, we will cover the available channels, but will focus on fares and finding retail sellers. We will work with retail sellers also outside the fares. 

Risk, that we have predicted our sales too idealistically. 
Comment: That risk is also typical especially for new projects. We have tried to be very conservative in all of our predictions and plans. Export has an important place in our predictions, which is a difficult process to reach actual sales, but once achieved allows us to re-check all numbers in a new light.  Even if our sales double, then globally in the same sector we will make no difference, but to us it will be a very noticeable achievement. 

Risk, that nobody will want to buy our products at the price we have predicted.
Comment: Our work results in a concrete tangible product, that reflects on a balance sheet and that has value. That supply can always be sold if necessary in order to pay back a bank loan ect. If it happens that our current hypothesis - high-quality products sold at a lower end price of high-quality product segment and our three generations' story - does not work as planned, then we can sell our products successfully in the medium price segment with a satisfactory marginal.  

Risk, that a retail seller will not pay for the order for some reason.
Comment: That is a real risk and to avoid this we will use factoring. And, of course, an old-fashioned background check-up might prove to be useful.

Risk, that a product or the whole supply is destroyed. 
Comment: Whether held in a garage or a warehouse our supply is always insured. Insurance expenses are under operating costs.