FOLLOW THE SUN, BLUE GLUE
opening concept stores is our first option in terms of market development as well as in regards to exclusivity

the idea
a main focus of our commercial strategy is to establish the spirit of our brand on long term, based on our significant innovative stream; hence, besides the multilabel retail network set-up by our distributors, we have initiated a concept store network.
concept stores join merchandizing atmosphere and product creating mutual enhancement.
another of our goal is to ensure exclusive perimeters to our satellite shops.

our approach
we privilege a smart business strategy based on mutual profits and harmony to legal argumentation.
for BLUE GLUE the legal issues are compelled to the business issues, and not the other way round.

3 significant reasons to choose BLUE GLUE: profitability, pleasure, safety.
• friendly, convivial franchise
• a 77% profit margin for the franchisee
• 1 to 6 months return on investment (R.O.I)
• no monthly fees
• no cancellation fee
• no long term commitment obligation
• no stock mobilization
• a complete and rigorous training
• real and effective network dynamism
• the strength of a young international network which shows exponential growth
• fundament for a powerful visibility and communication
• guaranteed continuous assistance on all issues such as legal, data-processing and commercial, from creation to development of your store.

MEASURE THE VALUE OF OUR NETWORK, OUR POTENTIAL

1) factual information: franchisor’s legal frame
• foreign trading company Youkilele Pte. Ltd.
• direction Mr. Kevin BITAR
• capital 150.000 €
• registered serial number 023960
• brand date registration February 20, 2002
• brand registration number 02 3 149 798 (INPI , Paris)
• bank HongKong and Shanghai Bank, HSBC
central, HongKong.
2) dynamism of our network: progression and potential
zoom franchise
• 5 pilot shops
• 4 flag ship stores
• 3 seasonal shops which will re-locate next summer
• 5 openings under construction, soon finalized
• more projects already programmed
require information regarding availability
FREE! launching offer: the 20 first franchises will be free of affiliation fee.

franchise retrospective
2002 BLUE GLUE is born
2004 first pilot shop opens in bali, double six (wholesale area)
This is the key start date of BLUE GLUE first time visible on the market.
2005 second pilot shop opens, in bali, seminyak (expat. commercial area)
2006
february our first order of a concept store, france, cap d’agde – seasonal status. Ok let’s jump into the story! without any legal frame, only motivation and inspiration…
march second concept store order, france, cavallaire – seasonal status.
april third concept store order, france, st tropez – seasonal status.
may fourth concept store order, thaïland, koh samui – flag ship status.
june third pilot shop opens in bali, kuta beach – status flag ship, touristical area.
July fifth concept store order, in tahiti, papeete – flag ship status.
sept-dec we work out the fanchise frame, documents, policy, contracts, training and assistance
december fourth pilot shop opens in bali, sanur –flag ship status

and story
last february we had no precise idea about franchising, when a client walked in and required his BLUE GLUE shop for immediate delivery on March 5! He was keen on opening for easter – april 16, and yet had to include 5 weeks of shipping to destination! we had a tough time with this demand, but thanks to his determination, the project became reality…
since then, some shops have opened for the summer in france, st tropez and cavallaire have been added on top of cap d’agde making it 3 seasonal signs.
2 flag ship stores have opened more recently; koh samui, thailand in july,; papeete, tahiti last September.
BLUE GLUE’s head office owns 3 pilot shops in bali. another one – number 4 still under construction, will open in sanur in December immediately followed by number 5 in ubud and number 6 in nusa dua. number 7 forecasted march 07, will be a factory outlet to sell stocks. head office also monitors a couple of corners in bali.
as of today we have 5 clients’ concept stores under construction, and a good handful of projects. everyone falls for the project whenever we present it, and we count about 1 to 2 interesting new proposals each week.

selling network
2006, 2 years only after appearing on the market in February 2004, BLUE GLUE is sold in 68 countries already. 350 clients buy direct-factory, and about 20 distributors wholesale BLUE GLUE, 12 of which are very active.

a brief look into time, BLUE GLUE’s evolution phases – who are we, what have we accomplished
february 2002
• registration of the brand
• factory: building, layout, equipments
may 2002:
factory opens in a brand new space, 1200 m2 especially built for BLUE GLUE.
for the first 2 years we have set the organizational bases of production.
• building additionnal premises: technical space next to main factory, housing for the workers.
• buying high tech additionnal equipments
• hiring staff
• training leaders
• conceiving and implementing the operating structures & routines, setting control system
• outsourcing suppliers and raw materials
• creating style and design departments
• mamzelle, brand image enters on stage, lights on!
february 2004:
almost 2 years of BLUE GLUE existence, and yet not 1 bikini on the market! this is a turn of our strategy; we are now ready to start marketing.
• BLUE GLUE’s first outlet opens in bali – pilot1
• we create promotional items with our image mamzelle.
• creation of the consignment network in bali to increase brand recognition – 44 selling points.
february 2005:
• new premises built for sales department; 1000 m2 stock and offices. it is a clear wide space fully organised and showing impeccable presentation of our permanent 50,000 pcs in stock.
• sales office opening, structure and organization of the team
• website launch
• result’s analyse of consignment for a year; reducing to 21 spots amongst 44, keeping only the best
march 2005
• opening a second pilot shop in bali – retail
july 2005
• setting a press agency in paris
• our genious « event organizers » pop in
• connexion with Fashion TV
september 2005
• website upgrade
• continuous selection of agents and distributors all the way through 2005
• promotional environment is being developped – packaging, posters, P.O.S., tops, mouse pads, booklets and more.
february 2006
• online store is now available
• another year to analyse consignment results, and compare a concept store and a retail spot ; we decide to close the consignments (retails). They have given us exposure for the start, they have helped raise brand recognition, but 1 concept store is more income than 21 retail shops, and stock immobilization is 1000 pcs i/o 2500.
• client orders the first BLUE GLUE franchise
• elaboration of decoration elements and fixtures for the corners and franchises.
• creation of the working team which will build the franchises; organize premises for building.
• many concept stores opening from february to september.
may 2006
• opening a third pilot shop in bali – retail flag ship, best location in bali, high touristical area.
september 2006 – January 2007
• franchise strategy elaboration: business and legal issues; project presentation, legal frame, BLUE GLUE franchise policy.

• training and assistance on video:
- product presentation, specificity, details,
- how to build your concept store –video.
- initiation to selling bikinis retail.
december 2006
• creation of another pilot shop, number 4, in sanur, bali; this shop is created for purpose of video assistance on “how to set up your concept store”. we film in direct the shop while being built and mounted.

to summarize
while studying figures over 2 years BLUE GLUE corroborated that a concept store in bali was more income than 21 multilabel consignment stores, while stock immobilization was 2,5 times less. Another study in france showed these numbers became: 1 concept store is more income than 10 multilabel retailers during a peak summer season of 4 months.
subsequently we were seduced by the project; we wish to create a concept store network which will combine the perfect shop settings to reach sales quantities while raising image, and control distribution.
but we keep in mind that multilabel stores are essential to increase a new brand’s exposure and recognition.

evolution of our marketing strategy
2004 we prospected retailers from our wholesale shop in bali,
2005 we seeked distributors to enlarge the network.
2006 after analysing figures, we have re-oriented our marketing strategy towards concept stores. We had made evidence that strong presence of a brand’s image, full stock of complete product ranges and experienced staff are the key elements to success.

3) market information

position on the market
bikinis are not a first necessity commodity. It may be described as a “niche”.
we are not aiming towards globalization; our vision is to create a small and stable elite network of a good handful of home-made concept stores.

concept’s pertinence and originality
BLUE GLUE benefits from an impacting graphic & merchandizing concept.
our concept stores will not be a simple copy/paste of a single model from a place to another. We will adapt decoration to each location and integrate culturally while keeping identical norms and universally drawing attention towards catchy mamzelle blue glue.

who are our competitors? what are their weak points and advantages?
Glad to say that there aren’t any!
brands that create absolute fashion bikinis such as BLUE GLUE have only the product – for example PIN-UP – italy or SALINAS - brazil…etc.
those who have a concept and go franchising such as ROXY, BILABONG, KIWI or BANANA MOON…etc. do not have the product – in terms of innovation, creativity, fashion, technology, and sophistication of details.
fewer that have a nice product and some franchised stores such as ERES and PAIN DE SUCRE feature narrowed lines with very little choice, furthermore lack innovation and fun!

BLUE GLUE has it all!
innovation in fashion and hyper creative product, image, promotional environnement, displays, communication, shops, fashion shows, TV shows, VIP nights, stars… fun …and…most seducing profits and mark-ups!

BLUE GLUE’s priorities in market implementation
in geographical terms, our priorities follow the decreasing order below:
• « hype » places of the Planet, glamour, yes, but surf also: st tropez, ibiza, noosa, byron bay, venice beach & south beach, forte di marme, porto redondo, copa cabana, north shore, st barth…etc.
• city shops in fashion capitals: paris, milan, new york, barcelona, singapour
• island and resort destinations throughout intertropical zone: carabbean, maldives, sri Langka, as well as seasonal areas: south of France, italy, spain, greece, mediterranean islands…etc.
in terms of image priority:
• our first goal is unseen, unconventional, « wow » ideas. we’ll be focusing on shops of exception. BLUE GLUE inspires unlimited ideas, here are some: a catamaran « boutique » opening its immense sails picturing mamzelle blue glue from an island to another in the carribbean sea…a singular shop in the underwater hotel of dubai…another in the highest towers in the world in malaysia. BLUE GLUE welcomes your dreams into the game!

notoriety
BLUE GLUE is a new brand on the start. even though the scoop is very inspiring, and real facts are emerging, figures aren’t yet very representative.
the bet is up to you! take it while best places still are available!

exclusivity terms
concept stores are our absolute priority in terms of exclusivity.
in any case, head office decision will apply in regards to exclusivity, but generally the below seems quite applicable:
• concept stores are prioritized in regards to pre-existing network such as multilabel retailers and/or corners.
• we prioritize corners or shops-in-a-shop to multilabel store
• opening a corner will not provide you exclusivity if there will be a proposition for a concept store later..
• exclusive perimeters are studied case for each new case. in general we will consider exclusivity by name of city, except for bigger cities, as long as the selling points will act as complementary, not as competitors. BLUE GLUE’s head office will be the only entitled to decision in this field.
• we cannot reserve a location; first offers received, first treated.
• Exclusivity will be validated as long as the sales will remain satisfying, BLUE GLUE’s franchise policy respected, and the brand valued up to our cryteria.

4) financial information
specific investments and expenses you will face before operating
• franchise fee 10,000 €
this fee is dedicated to finance training and control of franchisees and network. it will also be allocated to reinforce our exposure towards press, TV and events.
go ahead and benefit from our launching offer: the first 20 franchises come Fee Free!
• investment for stock 6,000€ to10,000€ - you may choose to order more to minimize shipping cost on reorder.
• investment for shop setting and fixtures 4000€ to 6000€ (average 200€/m2)
• total investment : mini : 10,000 € + Fee; maxi : 16,000 € + Fee
for reference, the average buying price of a franchise in fashion segment is 71.000€

5) potential: our strong points
profit & mark-up
you will benefit from a very attractive profit and mark-up buying directly from the factory!
77% from income is profit for the franchisee
• X 8 wholesale in the usa – and some hype places of the planet such as st. tropez, ibiza, nikki beach, etc.
buy a set bikini at 10.00 € (average), which is 12.50 US$
sell at 12.50 US$ x 8 = 100.00 US$ – average recommended price.
net profit / pc : 82.31 €
net mark-up : X 5.65

• X 6 wholesale in europe – including singapore, japan, hong kong, south korea and taiwan.
buy a set bikini at 10.00 € (average)
sell at 10.00 € x 6 = 60.00 € – average recommended price.
net profit / pc : 47.40 €
net mark-up : X 4.76

• X 4 wholesale for the rest of the world – asia, africa, south america, east europe.
buy a set bikini at 10.00 € (average)
sell at 10.00 € x 4 = 40.00 € – average recommended price, and convert into your local currency.
net profit / pc : 25.74 €
net mark-up : X 2.81

some figures
first franchise opened in: france, cap d’agde,
period: from april 16 to august 16
pcs bought: 2000 pcs
landed cost: 28000 €
pcs. sold: 1600 pcs,
income: 75200 €
profit during this period: 47200 €
monthly profit: 11800 €
stock left: 400 pcs
Which represents a value of: 21600 € (for summer 2007 re-opening in March 2007)

quantity pieces figures
in seasonal shops - in france for example.
• any small shop, or a shop trying to sell bikinis for the first time, will buy our minimum of 100 pieces. Some, about 1/10th reorder through email during the season.
• any average shop orders about 200-250 pieces. (west of france, st jean)
• good shops buy over 400-500 pieces per season. (south of france, marseillan plage)
• the first franchise has sold 1900 pieces in 4 months!

worldwide
• an excellent shop orders 500 pieces, 3 to 4 times a year (maldives, sri lanka)
• our pilot shops in bali sell an average of: 120 pieces/month (double six shop), 200 pieces/months(seminyak shop) and 250 ++ pieces/month (kuta beach shop)

supplying the franchises
established on 2000 m2 premises we manufacture and master a system that allows us to deliver our clients in ideal conditions of quality and quantity, from ready stock, in no time at all.
order and delivery process 24/6: please require the document ”wholesale information”.
our factory: please see complete brochure on: www.blue-glue.com/allaboutblueglue/factory.pdf
• delivery/shipping
your orders are delivered in 24 h, 6/7. we take care of shipping.
• stocks
we keep stock at all times, about 50,000 Pcs to ensure a fast delivery of reorders. you will not have to invest in heavy stocks, we take care of it.
• new styles
as we are fully production integrated, we can guarabtee new styles permanently.
• collectors
exclusively for concept stores!
• complémentary products
new lingerie and men underwear lines coming up to complement BLUE GLUE!

new collections delivery schedule
BLUE GLUE
• northern hemisphere: delivery end of january each year; reorder possible 24/6
• intertropical zone: we have scheduled a delivery calendar, which will guarantee display of new ranges and styles periodically.
• southern hemisphere: deliveries star tend of june; reorder possible 24/6
MAMZELLE and SHIFT
• MAMZELLE, lingerie for girlz and SHIFT, underwear for boyz are on their way and feature 2 collections per year for each brand, delivered respectively end of January (winter for northern hemisphere) and end of june (summer for northern hemisphere). Available stock on reorder 24/6.

exchange & return policy
• we will repair, exchange, or emit a debit note for rejects if they occur from a problem due to production, and reserve the choice of replacement terms.
• shipping costs involved if any will be charged to client.
• if a defect is due to a careless use, or occurred due to non following the care instructions as stated on care label, we will not exchange it.
• we recommend that you read carefully the Care instruction Tag attached to each style, and take special care of Blue Glue swimwear as their aesthetic finishing makes them more sensitive. Remember to rinse your bikinis as oil corrupts elastic, (oil and rubber are compatible at molecule state) and chlorine dissolves colors.
• more information on: www.blue-glue.com/faq.html

branding!
blue glue is fully dedicated to advertising and promoting and season 2006’ budget has exceeded 120.000 €.
• launch of the brand at man ray, paris, on november 18th, 2005.
• 100 pages of editorial and pictures in the french press for summer 2006, (equivalent to a 293.000 € budget).
• partnership with fashion tv BLUE GLUE showcast during swimwear editions
• partnership with Don’t Tell My Booker event organizer.
• BLUE GLUE on the catwalk at the music winter conference, in miami, in march 2006 (worldwide media coverage for this event)
• fashion show in festival de cannes, in may 2006,
• reality TV show, TEMPTATION ISLAND has selected BILLABONG for all the boys and BLUE GLUE for all the girls,
• presented on the cat walks of the most beautiful parties in monaco (karément), and cannes (baoli)
• nikki beach fashion show in saint tropez, on july 28, with “don’t tell my booker”
• biggest event of the season! BLUE GLUE exclusively selected for the contest « models new generation », held in quito, capital city of ecuador, on july 29.
organized by karin models (paris), MC2 (new york) models new generation (miami), with the presence of pablo montero and top model naomi campbell, this great event reached an audience of over 1,500 million viewers in 201 countries…BINGO!
• from the sky in st tropez… top models wearing BLUE GLUE on st tropez’s best yachts, with helicopters filming from the sky,
• V.I.P. night at kudeta!
in the deep heart of the summer, kudeta, the hippest club in asia dedicated its hottest night to BLUE GLUE! we created an amazing mix of ethnic con tempora show followed by an astounding bikini catwalk melting together rhythms and cultures into passionate hope!
see it on fashion TV!
• jet ski world cup in bali sponsored by BLUE GLUE! (sept 2 & 3)
our heart beat rhythm suddenly increased while the 2 world champions were looping and flipping a bit too high in the sky!
thanks to the BLUE GLUE girls who cheered them up back on the beach! see the blue glue girls in all the sport Press, and on sport TV channels (ESPN).
pictures, videos and more on www.blue-glue.com
our promotional budget 2006 has exceeded 120.000 €

6) information on contracts
types of contracts
we establish 3 types of contracts:
• option/reservation contract
it will be established to enable a franchisee to prepare the negociation for his implementation, and reserve his exclusive perimeter, against the payment of a specified amount
• pilot contract
any start will be monitored by BLUE GLUE head office for a duration of 1 year. we will establish a « pilot contract ».
• franchise contract
it will be established for a period of 5 years.

OUR WORDS
VISION AND TARGET
• development of concept stores is our first option for market development and in regards to exclusivity.
• our strategy bases on creating strong brand awareness, visible in our concept stores, in shops-in-a-shop, and in high end boutiques.
• a line of trendy feminine intimates and underwear for men will soon complement the swimwear, allowing franchisees to sell all year around.

OUR INTENTION
…is to create a win-win situation for all in the relaxed and enthusiastic typical BLUE GLUE ambiance, to share this accomplished concept and lovely product, all the way from our factory in bali to the beaches around the world.

BLUE GLUE…FOLLOW THE SUN