Design Intelligence
Business acceleration for Trendsquire 5 months plan. Results.

Oct 2017
Trendsquire 2013-2017
Results & investment
2013
2013
We think about doing something | 0 rub
2014
2014
We start to generate trendbooks | 3 828 000 rub invested
2015/16
2015/16
We sell castomized trendbooks and design (R&D)
| 2 910 000 rub invested | more than 4 000 000 rub income for 2016
First experiences and first results
We sell castomized trendbooks and get our first R&D projects and first legal case. We need to quantify our researches and get more precise data about audience trend sensibility, so we start to develop Design Intelligence with Data Stories. We apply this service to our small kids fashion client: quantify design trends from shopping data. We need more data and have to proof the concept| 2 910 000 rub invested | more than 4 000 000 ru income for 2016
2017
2017
Proof of concept for Design Intelligence
How to plan data driven design launching 1,5 year in advance
We create test and analize results, build strategy in product, based on data: values and design #. We know what the people like today, and we build their value portraits. Based on trends timeline and collected data, we plan designs and launching calendar. "Create what the people will really like.
May 2017
May 2017
It's time to make it fly
It's time to stop trying and start doing
Why now?
Since March 2016 we started a joint project with DataStories to quantify our creative research. The main question was about how to know what will exactly fly for one business taken apart. We created test made of values trigger questions and relevant pictures. In October 2016 using DS platform we made scenarios for particular cluster of audience 2 years in advance. So replying to the questions "what to sell?" and "when to sell?". In April 2017 we sold this service for the fist time to our existing client and get spectacular results.
Trendsquire clear visual communication made possible contacts with bigger Clients – Derufa, for example. Another one is still in negotiation. We sold 10 trendbooks during Intertkan exhibition. Our potential competitor ProFashion (12 000 monthly subscribers magazine) contacted us to join our efforts in trendbooks creation and distribution.
What is the plan?
Get impactful sales tools
Trendsquire today has deep underground of researches and 2 cases (style and home textile) of Design Intelligence. We need to package this cases for efficient promo and going through clients presentation.

Target: presentation (site | pres) of Design Intelligence with clear USP + a list of 10-20 big retailers in Fashion and Home to present the service in Russia and Europe (by DataStories)
Resources: Team workdays (salary) | 5-7 working days |
Deadline: 31st May 2017

Results
Our website and commercial presentation look more impactful (feedback from commercial contacts) As result we attract bigger Clients – Derufa, Парижская Коммуна, Лента, Metro.

Make a coming out
Set a communication plan to attract critic mass of audience – 1 000 000 views in FB | 1 000 000 views in VK | 750 sponsored views on LinkedIn in 5 months. Get 1-3 contact for DI from attracted audience. 3-5 weeks analyzing data and building strategies. 4 weeks to measure impact of DI on KPI (volume, retention, financial results). Continue communication plan after 5 months period with first client's cases publications in top media (HBR, Forbes, RBK).

Target: a clear communication plan up to Feb 2018 and its progressive implementation
Resources: Team workdays (salary) + $ | 5 months + 590 000 rub
Deadline: 31st May 2017 (plan) | 1st October 2017 | 28th Feb 2018

Results
We set the communication tools (calendar, design templates) in the social media:
https://www.facebook.com/trendsquire.bureau/
https://vk.com/trendsquire.bureau
https://www.instagram.com/trendsquire/

Factual audience reach 343 000 views FB (30% of expected) | 31 000 VK (3% of expected) | sponsored views in Linked In are less efficient, more expensive, so we drop it (mostly HR audience)

Design Intelligence got 2 Clients – cases expected by the end of the year (descember 2017)

Fashion & design platform launching
We will be naturally supported by the results of our first 3-5 clients to attract 10 more. In 2018 we upgrade existing DataStories platform with Trendsquire templates to make a "do it by your-self" platform for Fashion and design R&D.

Target: A ROI of this tranche (if all milestones results reached in time) before 28th Feb 2018. A complete ROI before 1st Sep 2018.
Resources: Team workdays + $ | 5 moths + 1 900 000 rub
Deadline: 1st May 2018

Results: in progress

We have to solve the machine based picture # atribution for optimization of existing (manual) process. We are working on Soeasy pilot project with Data Stories to make it faster and cheaper.

Today there are 2 products and R&D service that we are promoting:
Trendbook for exhibitions (salons) visitors – co-promotion with Expocenter / Crocus expocenter and web magazins Be in / Archdialog. New partner – ProFashion holding (magazins and retail consulting).
Platfom – TrendPro (regular trend information on trends and audience demand based on monitoring and metadata retrieved form our ad hoc researches) Starts in November 2017 in Woman and Kids fashion.
10 000 r per month / min 6 months. Target is 30 subscriptions in 12 months. Gross audience of our exhibition partners – 20 000 visitors in fashion (3 salons) and 125 000 visitors in interior design and furniture (3 new partners salons – Мебель (old one), Stylish home, Dacha and outdoor, Batimat).

Fashion TrendPro target – 1% of global visitors volume – 200 subscriptions – 2 000 000 per month in 12-16 months (2-3 releases).
Home TrendPro target – 1% of global visitors volume – 1 250 subscriptions – 12 500 000 per month in 12-16 months (2-3 releases).

Design Intelligence – data based predictive in fashion and design. Co-production and co-promotion with DataStories.
Platform – DataStories Design – 7 000$ per project and 3 000$ from one yearly subscription per company (TQ – 50% of profit from project, 20% of profit from regular subscription). Target – ? (I would say – 10 projects in 12-16 months and 1-2 subscriptions (after projects clients) – Data Stories are about raising 2 000 000$ to develop the Platform with TQ as enriched data partner)

Here is the factual income comparing to the forecasts (min and target). The main difference is made from Design Intelligence – no commercial projects.
Our financial result is in the lower range of prediction. The period of sale for big project (more than 400k rub). However we launched 6 home textile collections with our client Vassilissa to be sold in Lenta and Metro.

R&D service
The income expected starting from January 2018 about 50k-300k rouble per month. So the question of sustainability of Trendsquire is not actual for the while. We will raise the question of profitability in April 2018. See the plan of royalty incomes here.

If we look at royalty / expenses and incomes from 2016 and 2017 – the picture is a bit messy. We really need to stabilize it by selling more regular products and services: Trendbooks and TrendPro. March and July are the lowest points. We will target to sell trainings in this periods.
If we add royalty to our incomes in 2016 or 2017 Trendsquire's balance is positive. So we target to increase incomes from regular services in 2018. No question of closing TQ anymore.
What's the deal?
Get references
1st Oct 2017
1 900 000 rub
reached
Productize
28th Feb 2018
Design Intelligence Platform
in progress
Set all processes
1st Oct 2018
ROI
in progress
Make it grow
Expected annual
operating cost 10 480 000 rub
raw income 46 600 000 rub*
at the end of 2019
in progress

*target | per year in 2019
30 subscribers for Design Intelligence Platform – 400 000 rub per trimestrial sub
7 - 10 projects of design R&D per year – averaged 800 000 rub
5 - 6 new clients (one shot Design Intelligence + training) – 1 200 000 rub
+ 250 000 rub
Target margin for 2019 is 80% – in progress

Upgrade Oct 2017 (target per year in 2018):
Fashion TrendPro 2 000 000 rub (x 2 per year) = 4 000 000
+ Home TrendPro 12 500 000 rub (x 2 per year) = 25 000 000
+ Design Intelligence Platform 8 000 000 rub (30 subscribers in 2019 at 400 000 rub per trimestrial sub | 5-10 subscribers in 2018)
+ Consulting 350 000 rub | 4 200 000 rub per year
= 41 200 000 rub income
10 480 000 rub expenses
Target margin for 2018 is 75% – in progress
This income is realistic. We have to continue our PR activities and Exhibition Projects (TrendZones + Trendbooks) to cover the TA maximum volume un the way to convert 1% of TA in our subscribers, then 1-3% of them in Design Intelligence Clients.