Periodic Reporting for period 1 - MM (Mister Maginky The new product which solves men’s incontinency problem)
Reporting period: 2018-05-01 to 2018-10-31
International Consultation on Incontinence report reveals that incontinence problem affects 400 million people worldwide with the tendency to reach 2.3 billion people by the 2018. 34 % of that population belongs to men, which would mean that in general 728 million men around the world would need this solution to be able to function and lead their normal life within the society, and feel completely comfortable about it. The solution made for the urinary incontinence will bring men more confidence while doing regular everyday activities. Below are some advantages in comparison to competitor’s solutions: a)There is no risk of urine leaking outside the diaper pad (competitor’s pads are not 100% secure against urine leaking); b)Leaking is happening only inside pad and there is no direct contact with skin; c)Pad stays in fixed position inside underwear which provides comfort ability for customers (competitors pads are slightly moving all the time); d)Pad is not visible at any point (even in situation when customers is half naked and wearing only incontinence underwear) because pad is hidden in the separate compartment for penis, this provides confidence to customers and avoid any feel of shame related to their incontinence problem; e)Exchanging disposable pad can easily be done by using front compartment opening and without taking off underwear, basically customer can do it very conveniently few times per day (e.g. very important for users in big cities with crowded public facilities). There is a vast market for this product. The company has identified the specific markets, which is worth € 11.2 billion worldwide, and is growing stable. Growing disposable income, preference for branded underwear that offer better fit and comfort are major factors fuelling demand for premium underwear, there by driving the growth of the men's underwear market. Using Phase-1 market research, the company wants to assess possible risks in those countries and estimate next steps for reallocation of the business model.
During the 6 months period, the company has found a new strategic partners (NTT - NEW TEXTILE TECHNOLOGIES GMBH from Germany and Hartmann Group from Germany) who have recognized the project as valuable for the healthcare, economic growth as well as giving society new perspective of using smart solution for incontinence problems. Recognition made by European Commission providing this funds helped to make the project be more desirable for the joint ventures. This action has resulted in the increase of partnerships, new hirings, increased international sales and revenues. The number of products ordered in the first half of 2018., followed by revenues has increased by 100% in relation to previous year 2017., and it's expected to be 200 % by the end of the year. The biggest challenge was to conduct the primary research oriented to 3 countries placed in the USA, and 3 across the Europe. The results from the researched markets are positive and will present the first expansion wave through the distributors and foreign partners. The final analysis will show is it worth to open representative offices there or the company will keep the strategy of inquiries with similar companies and present them as dealers. Still, some first results of this analysis show it would be valuable to start with the dealerships and then, if needed to open representative offices, as it could be easier to give the dealers the appropriate know how, as well as set standards which would provide better business and financial control. Another improvement has been made from the technological part for the countries which encounter different underwear sizes, and as such used the new material adoptable to any size. The visual identity improvement of the company and the product brand has brought better market positioning among textile companies. Different inbuilt financial models, using the assumptions which came from market research, showed the positive results. It also helped to identify the values of the next investment cycles.
The Hartmann Group's strategic partnership and NTT will raise placement of incontinence pads to a higher level using Mister Maginsky underwear. It has been agreed to use and purchase Hartmann's existing incontinence pads that will be modified and adapted to Mister Maginsky underwear by partnering with NTT, which has sewing machines without seams. NTT capacity is sufficient for serial and stand-alone production of modified incontinence pads that will perfectly match the Mister Maginsky products.
Foxy Ltd. has NDA signed with Hartmann (also Ontex before that), Hartmann's management showed interest for our solution but we can not depend on their innovation center, they are a bit conservative and slow in the cooperation process, so it is on us to develop solution, production, get on market and then we can expect Hartmann to jump in with their distribution channels and production experience. In present time, we hope to agree with Hartmann on supplying us with regular inlays, adjusted in size so we can apply them for our two compartment underwear. That is not perfect solution regarding costs but it is the only one in this situation, for example, we get the adjusted inlays from Hartmann and then stich to them our solution for inner side of the inlays (as seen on pictures above) and basically we are ready for testing the market and entering one after we get approval from test-users. Regarding the market testing, we already had some discussion with Hartmann management, they are very interested to make one on their own, they have a big user-base and in order to prove that our patented solution is commercial and that the users (patients) are willing to buy it and continue to use it constantly. Besides above mentioned, Hartmann is potential partner in entering some markets such as EU, it's because they are a well-known brand and users are willing to accept names which are they familiar with. Hartmann is much present on whole EU market and possible licencing is also one of cooperation solutions. This will insure export strategy to 6 new markets, briefly estimated through the primary research mentioned in the final report.
Foxy Ltd. has NDA signed with Hartmann (also Ontex before that), Hartmann's management showed interest for our solution but we can not depend on their innovation center, they are a bit conservative and slow in the cooperation process, so it is on us to develop solution, production, get on market and then we can expect Hartmann to jump in with their distribution channels and production experience. In present time, we hope to agree with Hartmann on supplying us with regular inlays, adjusted in size so we can apply them for our two compartment underwear. That is not perfect solution regarding costs but it is the only one in this situation, for example, we get the adjusted inlays from Hartmann and then stich to them our solution for inner side of the inlays (as seen on pictures above) and basically we are ready for testing the market and entering one after we get approval from test-users. Regarding the market testing, we already had some discussion with Hartmann management, they are very interested to make one on their own, they have a big user-base and in order to prove that our patented solution is commercial and that the users (patients) are willing to buy it and continue to use it constantly. Besides above mentioned, Hartmann is potential partner in entering some markets such as EU, it's because they are a well-known brand and users are willing to accept names which are they familiar with. Hartmann is much present on whole EU market and possible licencing is also one of cooperation solutions. This will insure export strategy to 6 new markets, briefly estimated through the primary research mentioned in the final report.