Nowadays, people dye and perm their hair in order to change their image, which can cause serious damage to the hair. In order to restore healthy and shiny hair, people hope to repair damaged hair through daily use of shampoo and conditioner. Therefore, BFSU-ICUnited proposed the aminoacidconditioner project to design repairing shampoo and conditioner formulas through research on surfactants, cationic conditioners and pomades.

A.Company Profile

BFSU-ICUnited
aminoacidconditioner
The BFSU-ICUnited project, initiated by the synthetic biology competition "International Genetic Engineering Competition" (iGEM), is the brainchild of a team of students from Beijing Foreign Studies High School who are interested in using synthetic biology to design repairing shampoos and Very interested in the conditioner recipe. The BFSU-ICUnited project will become a core asset of BFSU-ICUnited Biotechnology Company.
BFSU-ICUnited is creating a hair conditioner. This conditioner can help people repair damaged hair.
Developing, producing and marketing this novel conditioner presented a unique challenge. It not only repairs damaged hair and resists oxidation, but also provides users with a healthier and more effective way to dye their hair than existing methods. U

B. Product introduction

The core asset of the BFSU-ICUnited project is biological hair conditioner. The project conducts three system experiments in the laboratory, namely repair system, antioxidant system and hair dyeing system. What we need to do is develop a peptide, which is a short protein that can bind to keratin and change the shape and feel of hair, such as making it straighter and softer. And we want this peptide to contain a lot of an amino acid called cysteine, because cysteine is involved in forming and repairing disulfide bonds. We use microorganisms to produce this peptide because the unique characteristics of microorganisms make them the best way to produce proteins and peptides. The reason here is that they can grow and reproduce quickly, and we can also use genes Engineering technology to engineer and generate the peptides we need.
The first system is the repair system. The important thing in this system is hair straightening and the short peptides that have affinity for hair are a type of peptides that can bind to specific regions of hair keratin. These peptides can interact with α-keratin and keratin of hair proteins, thereby changing the shape, texture and curl of the hair, while improving the hydrophilicity and softness of the hair.
The second system is our antioxidant system. We focus on four points, namely antioxidant protection, maintaining hair color, improving hair elasticity and strength, and protecting hair from environmental damage. In this system we will use glutathione, which has powerful antioxidant capabilities, helps maintain hair health and protects hair from environmental and physiological stress damage. Glutathione can also be consumed through food or used through supplements or hair care products.
The third system is the hair dyeing system. The tyrosinase encoded by the Tyr gene plays an important role in the production of melanin and also plays an important role in hair dyeing. People change the color of their hair by using hair dye products, which contain tyrosinase and other chemicals. The tyrosinase enzyme in these products catalyzes the formation of dopatone, which is further oxidized and polymerized to form melanin particles that give hair the desired color.
In this project, our goal is to use microorganisms to produce the peptides we want to improve the feel and appearance of hair, hoping to provide consumers with better hair care products. After the entire project was completed, we collected a large number of consumers’ opinions on amino acid hair conditioners through street interviews. Through cooperation with brands, we introduce our products to the market.

C. Target market

As a newly established biological company, BFSU-ICU Biotechnology plans to sell in China first as a testing platform for product demand, product price sensitivity, marketing costs, production costs and production capabilities, and then enter larger markets such as the United States and India. market. Following market demand analysis of other markets such as the EU and other parts of Australia, further expansion into these markets will be carried out.
Combining China's cosmetics macro-environment, China's cosmetics market laws and regulations, and China's economic environment, in the analysis of the current situation and competitive environment of China's cosmetics, we found that China is still a very potential cosmetics consumer market. According to the trends of this market, personal customization direction, technological cosmetics, as well as the rapidly developing e-commerce channels and specialty store channels, all have great business opportunities. At the same time, the cosmetics regulatory regulations are summarized. When cosmetics enter China, filing is the first condition. Although China's economic trend is slowing down, the disposable income of urban residents is increasing, and the consumption of cosmetics is an upward trend.

D.Team and management

Founding team

BFSU-ICU Biotech will be separated from the 2023iGEM team, and its research team will be led by the principal investigator of the 2023iGEM team. The board of directors will be composed of investors and the 2023iGEM team.

Management and Operations Plan

Our brand's management team consists of professionals with many years of industry experience. To advance product development, our firm partners with a network of advisors and advisors in the legal, regulatory, business development and commercial areas. These advisors and consultants are industry veterans with extensive experience and expertise in their respective fields. We have also established long-term relationships with factories and supply chain suppliers. These meaningful partnerships provide us with the resources and flexibility we need to rapidly advance assets from research to development and ultimately commercialization.
We will focus on sales through e-commerce channels. In China, e-commerce channels are not only sales channels, but also a very good opportunity to increase brand exposure. Moreover, e-commerce channels require less investment and can be carried out directly by relying on agency operating companies. The plan is for brands to directly find agency operators for operations. As an e-commerce platform, it is not easy to have too many products. It generates traffic with popular products and tests consumer acceptance. At the same time, in its offline expansion, the brand has the characteristics of opening an independent brand franchise store, which has the advantages of a franchise store from brand to product. Although a franchise store means a greater investment due to store rent and decoration, it also has the advantage that it does not require too much Advantages of other channel fees. Therefore, this channel is a key channel for offline development.
Finding the right agency partner is the key to a successful project. At the same time, preliminary market research and the development of e-commerce channels also play a decisive role in the success or failure of the project.

A. Industry trends

BFSU-ICUnited will compete in the cosmetics industry. According to Euromonitor's industry classification, cosmetics belong to a subcategory of the personal care market in the daily chemical market. The cosmetics studied in this article refer to the "Cosmetics Labeling Management Regulations" promulgated by the General Administration of Quality Supervision, Inspection and Quarantine. Cosmetics refer to products that are smeared, sprayed or otherwise Chemical industrial products or products that are dispersed on any part of the human body surface, such as skin, hair, fingernails, lips and teeth, etc., in a similar way, for the purpose of cleaning, maintaining, beautifying, modifying and changing the appearance, or correcting the odor of the human body and maintaining good condition. Fine chemical products (Tao Qian, 2010). Cosmetics are divided into several major categories: skin care, makeup, perfume, and hair. Skin care products dominate sales (Xu Yeli, 2015). Cosmetics do not play a necessary role in the national economy. Although cosmetics do not affect the national economy and people's livelihood, with the rise of economic level, the National Bureau of Statistics has also classified them as social consumption categories. The per capita consumption of cosmetics has a positive correlation with the development of the national economy ( Huang Wenjun, Gao Yang, 2014). In today's China, especially urban residents, it is difficult to imagine a woman's desk without cosmetics. An urban white-collar worker may save a month's salary just to own a set of favorite cosmetics, and the best location in department stores, large shopping malls, and supermarkets. All are given to cosmetics brands, and good brands attract a large number of customers to shopping malls. According to a survey by Nielsen, 53% of consumers surveyed prefer to buy international brand cosmetics, while only 19% choose local brands (Lu Shan, 2017). The use of cosmetics among younger people is on the rise, and college students are beginning to favor cosmetics very much (Ke Jieqiong, 2012).

Cosmetics are generally divided into high-end cosmetics Premium brands such as Lancôme, Estee Lauder, Dior and other international brands based on price, channel, and positioning. Domestic high-end brands are represented by Shanghai Jahwa's Shuangmei, and mass cosmetics such as L'Oreal, Olay, Herborist, and Science and Technology Hall. Most domestic brands are positioned as mass cosmetics. Popular cosmetics market share occupies a major position. According to data from Orui Company, popular brands account for 71.5%.

Compared with overseas markets, China's cosmetics market has very good growth potential. From the figure below, we can see that China's cosmetics growth rate reached 6.8%, which is higher than the US market growth rate of 3.7%. Japan, Germany, and the United Kingdom all showed negative growth. Chinese cosmetics are quite different from foreign markets in terms of categories. If we observe the development of category structure, skin care products account for the largest proportion, and the development growth rate will be significantly higher than the industry average. In addition, color cosmetics, which is growing faster than average, has also increased. The Chinese market is still a market with great market potential for cosmetics.

Data source: Euromonitor survey data

B. Target market segmentation

Current status of China’s cosmetics market
With the rapid development of the economy and changes in consumers' work, life and shopping habits, the cosmetics sales market is booming. The main consumers of cosmetics in China are women with an annual income of more than 20,000 yuan. According to Euromonitor's forecast, cosmetics will maintain an average annual growth of 10% in the next five years. Brands are paying great attention to how to continue to grow their cosmetics business. At present, China's cosmetics market is still dominated by foreign brands. Although domestic brands have risen in recent years, overall, foreign brands still monopolize the market, and about 80% of the market is occupied by foreign capital or joint ventures.

Analysis of China's Cosmetic Laws and Regulations Management

China Cosmetics Regulations
After more than 20 years of formulation and revision, the current domestic cosmetics management regulations are the "Cosmetics Hygiene Supervision Regulations", whose detailed rules stipulate the requirements that cosmetics manufacturers and operators must comply with. In addition, the "Technical Specifications for Safety of Cosmetics" stipulates relevant requirements for cosmetics safety technology. Its standards cover requirements for filing licenses, use of raw materials, and product production and after-sales. It is divided into four links: raw materials, products, production and sales. China’s cosmetics legal regulatory framework is shown in the figure

Cosmetics licensing system
Chinese cosmetics adopt management methods such as production license, marketing license and marketing registration. The marketing license includes the first registration license for non-special use cosmetics and the registration license for domestic special use cosmetics. This licensing method uses expert review to avoid the risk of products with potential safety issues entering the market. Cosmetics that want to enter China must be reviewed by experts and comply with the registration system for entering the Chinese market, and the raw materials must also belong to the raw materials library recognized by China. If it is a cosmetic that whitens and lightens spots, you need to apply for special purpose cosmetics registration. In addition to expert opinions, this kind of license also requires more clinical tests to ensure product safety. The regulatory system for cosmetics has formed a relatively sound system, such as the table of cosmetics-related regulatory departments and responsibilities (Yang Qiongli, 2018).

C.Competitive analysis

We conducted an ingredient survey on the conditioner brands that users frequently use, and we found that some brands of conditioner are relatively harmful to hair quality. For example, sodium laureth sulfate in Secret of Water can cause hair loss; cetearyl trimethylammonium chloride in Bee Flower Conditioner, if not cleaned properly, will affect the health of the scalp; Kiehl's Conditioner It contains hydroxypropyl starch phosphate, which can be harmful to hair if used for a long time. At the same time, the quaternary ammonium salt-87 contained in it can cause dermatitis and other diseases; Kérastase Conditioner contains glycerin, which has certain effects on hair growth. Restrictions; the dioctyl carbonate in Fulu Deya contains certain toxins; the quaternary ammonium salt-87 in Schwarzkopf can cause dermatitis and other diseases, and isopropyl myristate can irritate the scalp and breed dandruff. Of course, we also found many good brands during the investigation, such as Pantene, Shiseido, Aekyung, etc.

D. Market demand

The conditioners currently on the market are not perfect and there are still many problems. Solving these problems is the original intention of our project. Current conditioners have the following four problems:

1. Cause dandruff

If the conditioner is applied to the scalp, it will easily adsorb to the scalp. If it is not rinsed cleanly, the scalp will not be able to breathe freely and normally, which will lead to toxins in the scalp pores and dandruff.

2. Cause scalp itchiness

If the quality of the conditioner you buy is not guaranteed, it is easy to find that the conditioner contains silicone oil. Silicone oil is insoluble in water. If it is not rinsed cleanly, it can easily cause scalp itchiness and even hair loss.

3. Hair becomes dependent

Frequent use of conditioner can easily make your hair dependent on conditioner. Once you stop using conditioner, your hair will easily become tangled, difficult to comb, and other problems. Be careful when using conditioner and avoid using it every day.

4. Affect hair quality

Conditioner is composed of chemical substances. Frequent use of conditioner for a long time will still have an impact on hair quality. Causes hair to become yellow and frizzy. Especially when the quality of the conditioner used is not guaranteed, it contains many chemical ingredients.
In our project, the main track of our conditioner is hair conditioner, because we hope to use a very safe ingredient to repair our damaged hair. The glutathione and glutathione synthase used in our product are the main ingredients that help improve damaged hair. Our product segment is antioxidant conditioner, because glutathione is a very good natural antioxidant, and we want to extend the life of the hair while repairing it, and delay the technological aging process of the hair.

A. Technology and R&D highlights (product features and advantages

In the current market, we find that there are only a handful of biological conditioners, and the ingredients in them can cause varying degrees of damage to the scalp and hair. They will further damage the hair to a certain extent, and they cannot repair it at the same time. , smoothness and safety, and our amino acid conditioner is most different from the conditioners on the market in that it is very safe.
Our amino acid conditioner can improve hair damage, such as hair damage, dryness, brittleness, unevenness, loss of elasticity, discoloration such as redness and yellowness, hair splitting or breakage, loss of hair strength, etc. The characteristic of our conditioner is that all substances are derived from microorganisms without any artificial chemical elements, creating a true biological conditioner. Our conditioner uses microorganisms to create a true amino acid conditioner.
The main function of our conditioner in repairing, antioxidant and hair coloring is to improve the shape, texture and curl of the hair, and improve the hydrophilicity and softness of the hair. In the production process, we use a natural antioxidant, which is glutathione. Glutathione can well protect hair cells (including hair follicle cells) from free radical damage, thereby avoiding problems such as hair quality deterioration and hair loss. And it can also delay the aging process of hair technology, including the appearance of gray hair. This is because it protects your hair's technical color by preventing oxidative damage to melanocytes (the main source of hair color). In addition, it has a positive effect on the cysteine content of the hair, as cysteine is able to form disulfide bonds and increase the elasticity and strength of the hair. And another thing that I think is very special is that it can protect the hair from environmental damage such as ultraviolet rays, heat treatment, chemical treatment, etc. It also neutralizes free radicals produced by these treatments, reducing damage to hair.
In order to solve the problems that existing conditioners on the market cannot solve in our products, we need to use synthetic biology technology. In terms of principle, we secrete peptides through microorganisms, and these peptides combine with keratin to change the shape and feel of our hair. And we will also let microorganisms produce some peptides that can bind to specific regions of hair proteins, and these peptides can change the shape, texture and curl of hair by interacting with proteins such as keratin. And the peptides we found and used are small and can penetrate the cortex. The glutathione we just mentioned is a tripeptide composed of glutamic acid, cysteine and glycine. These small molecules play an important antioxidant role in cells and can protect cells from free base and peroxide damage. In organisms, glutathione synthase and glutathione synthase. And we use a special bifunctional enzyme called glutathione synthase (GshF), which has both GCL and GS activities in a single multifunctional enzyme and can continuously catalyze these two steps of reactions. .
Our innovation lies in the hair dyeing system, one of our three hair conditioner systems. Because most conditioners cannot repair hair damage caused by hair dyeing, but our products can repair hair damage caused by hair dyeing, and if you dye your hair black, you can also apply it before dyeing your hair. Our conditioner can have better results.
After our conditioner passes a series of tests, we will subsequently apply for a provisional patent, mass produce the conditioner and introduce it to the market.

B. Production and supply chain

We did a simple survey and found that everyone is willing to complete sales through online sales.
After we complete mass production through manufacturers, we seek cooperation with agents to complete the sales of our products. After cooperation, we will complete the sales of our products through online and offline linkage.

C.SWOT analysis

S: The safety of our products is very high, and compared with other products on the market, our repair and smoothing effects will be better. During use, compared with other brands of conditioners, the smoothness will last longer and the repair effect will be longer. It will be more obvious and the effect will be better after comparison.
W: However, because our products are only products within the project and do not have great influence, they are not well-known, so the future market will not be very broad.
O: We will use cooperation with other teams and big brands to promote our products, and use every opportunity to let more people know and use our products. We will also give corresponding usage experience and feedback later to let everyone more intuitively See the results of our projects.
T: In the future, we need to apply for a provisional patent and pass a series of national tests. Only after all are qualified can we enter the market. After the products become famous, we will also open online purchase channels, improve our products and brand official websites, and carry out comprehensive Directional online sales.

A.Enter mode

Contractual entry is when an enterprise transfers brand trademarks, technology, intellectual property rights, etc. through a contract or authorizes other enterprises to use them, and obtains royalties from them. Contractual entry is characterized by relatively small risks and can quickly increase the company's sales in the target market. It also includes two types: license operation and franchise operation. One of the main benefits of franchising is that investment is rare. Using franchising, an extremely efficient business expansion method, the brand can quickly occupy the market in a short period of time, which is very suitable for the BFSU-ICU brand to enter the Chinese market.
When the BFSU-ICU brand entered the Chinese market, it first set up a project team in China and selected a Chinese general agent. The general agent in China needs to have channel advantages. According to BFSU-ICU's strategy of entering China, the company needs to set up the following departments: marketing department, sales department, training department, store opening department, administration department and other departments to meet development needs.

B.Marketing strategy

The BFSU-ICU brand has entered the Chinese market. As analyzed above, in this competitive market, marketing positioning is very critical for such a relatively niche brand with limited investment to gain a place. The focus is on highlighting differentiated product characteristics, including three points: 1. Highlighting high cost performance and closeness to the market; 2. Synthetic biology technology products; 3. Distinctive product packaging and formulas.

C. Product strategy pricing strategy

Plan product categories according to the needs of Chinese consumers and our target customers. At the same time, it cooperates with special shampoo and hair care products to make comprehensive differentiation.
Cost-effectiveness is a major advantage. In a fiercely competitive market, high cost-effectiveness is the core competitive advantage of a brand.

A. Sales and Distribution Strategy

The channel strategy for entering the Chinese market has three steps: 1. E-commerce channel; 2. Specialty store channel; 3. Omni channel.

B. Marketing plan

Based on the failure experience of many competing products in China's hair care products market, we see that they have flaws in entry models, channel selection, product structure, pricing, and store opening cities. Drawing lessons from competitors, from the perspective of project strategy, BFSU-ICU needs to choose a more appropriate entry mode, focus on promoting the cooperation model with agents, and maintain sufficient control over the development of the Chinese market; if at the same time Comprehensively rolling out online and offline projects is a big challenge, which will add a lot of extra costs and make it impossible to grasp consumers' preferences for brand products. When choosing e-commerce, you don't need to go through cumbersome filings. You can first identify the needs of consumers and find out Popular products will be of great help to the project if they enter traditional channels; product structure, Chinese consumers must improve the product line and satisfy Chinese consumers based on their own skin characteristics and usage habits. One; product pricing determines the positioning of the brand. The advantage of BFSU-ICU is its high cost performance and cheap price image. Therefore, it should abandon those very expensive product lines with too large price spans. The main price should be clearly positioned and it is not suitable for the price span to be too large. ; The choice of the city to open a store is also very critical. The cost of opening a store in first- and second-tier cities is extremely high, and consumers in big cities have very strong brand awareness. However, in China's rapidly developing third-, fourth- and fifth-tier cities, it is very good. Not only is the cost controllable, but the cost of cultivating and educating consumers about brand awareness is also relatively low.

A. Project revenue forecast

First, forecast sales revenue and corresponding annual costs in the next three years, and prepare relevant profit and cash flow statements based on the forecasts to provide a data basis for various financial analyses. According to the average level of Internet toiletries brands, if there is no other market investment, a monthly store promotion investment of 50,000 yuan, a Tmall store can achieve a monthly turnover of 100,000-200,000 yuan. Based on the current estimate of e-commerce customer acquisition costs, in the first year, with Tmall International as the core, five stores including JD International, Jumei International, and Vipshop International will be developed. The demand for toiletries in the overall Chinese market is growing. It is estimated that a single store will produce 100,000 yuan. Depending on the order of store opening, the average operating cycle is expected to be 6 months. Total sales: 100,000 yuan * 5 stores * 6 months = 3 million yuan. , it is calculated that the total sales in the first year of 2024 will be 3 million yuan. It is expected to be fully developed in January 2025. The number of e-commerce agent stores will reach 6. The sales of 5 opened stores are 100,000/month and the annual sales are 6 million. The traditional e-commerce channels will open 5 stores with monthly sales. It is expected to be 200,000 yuan/month and annual sales will be 12 million yuan. In the third year, it is estimated that the output of a single e-commerce store is 125,000 yuan, and that of a traditional e-commerce store is 250,000 yuan. By developing offline physical stores, the output of a single store is 80,000 yuan, and the calculated turnover is 37.8 million yuan.

B. Cost forecast

The company's main goal is marketing and sales, and the cost is mainly composed of product costs, marketing expenses, logistics costs, sales expenses, employee wages, headquarters operating expenses, travel expenses, etc. E-commerce promotion expenses are mainly used for the promotion of e-commerce channels, such as Tmall’s advertising investment to obtain traffic, through trains, diamond exhibitions, etc., and are estimated based on 7 to 10% of sales; office expenses refer to the cost of leasing office space, The average monthly calculation is based on RMB 20,000. E-commerce-oriented companies do not need to use CBD office buildings in CBD office buildings in some entrepreneurial parks and warehouses to save costs; logistics expenditure refers to the total cost of warehouse leasing, logistics and transportation, etc.; travel expenses It is divided into expenses for meeting at the brand headquarters; product-related costs include payment, and the registration fee for domestic products is approximately calculated based on 100,000 yuan per single product. It is expected that there will be 5 single products in the first year, increasing year by year. The registration fee can be obtained within the validity period Continuous trial, no annual filing is required, and label fees are included in product-related expenses; the cost of opening a physical store, which involves store decoration, water, electricity and rent during store operation; labor costs are divided into headquarters labor costs and store sales staff labor Cost; marketing expenses are divided into marketing related expenses and trial installation expenses. Marketing expenses are mainly targeted promotion, such as removing advertisements to obtain traffic on Tmall, store promotion expenses, and distribution of brand-related materials. Because the focus is on experience, the trial packs are small samples of the product, which are distributed for free or for promotional support. For example, if you purchase 500 yuan or more, you will receive a 3-piece set of trial packs. The trial packs are purchased from the BFSU-ICU brand, and the cost is similar to the products. Lower, but can generate and drive higher sales

C.Profit forecast

Based on the above sales and costs, predict the company's sales revenue and gross profit in the next three years. Overall, the project was loss-making in the first year, and entered the profit period in the second and third years. Overall, the cost of cosmetic products is very low, mainly in terms of promotion costs and labor costs, which BFSU-ICU does not consider Advertising, word-of-mouth marketing, and online promotion require relatively low investment. Calculate the profit according to the formula: annual average total profit = average product revenue - average total cost - average sales tax and surcharges.

D. Personnel and salary incentives

The company's compensation incentive plan should be considered to motivate the team and individuals, and allow the team to work hard to achieve organizational goals. And a salary incentive system is formulated for each position. It should follow the following principles:
The first is the goal-oriented principle. A common goal orientation is very helpful for the company team to unify their thinking, clarify the direction, and be result-oriented.
Second, distinguish the nature of the positions. For sales development-oriented positions, bonuses should be the main incentive, while for stable civilian positions, basic salary should be the main incentive and bonus incentives should be supplemented.
Third, taking both costs and expenses into account, the incentive must be competitive in the market, but there are also costs to consider, so a balance is very much needed, otherwise it will not be sustainable. In the early stage of the project, the reward principle was mainly based on expansion goals. In the later stage, a reward mechanism was mainly established based on the achievement of sales targets. The project began to assess profits in the fourth year.

Risks are factors that may affect the achievement of project implementation goals and results. Risk management reduces uncertainties in the project implementation process by classifying, analyzing, and controlling risk types in advance, and ultimately achieves the project goals. The focus of risk management is to plan ahead, avoid, reduce, and control risks to ensure that the ultimate goal of the project is achieved and expected benefits are achieved.

Policy Risk and Management

The risk before the product is launched mainly comes from the cosmetics filing system. Another big risk during the filing is that China has relevant regulations on the raw materials used in cosmetics. Generally speaking, only the ingredients included in the China Cosmetic Raw Materials Database can be used. If the ingredients are not in the China Raw Materials Database, The included ingredients need to be applied for separately as new raw materials, and such a special application is very risky and difficult to apply for. Therefore, from the perspective of risk control, product formulas need to be adjusted according to the ingredients in the Chinese raw material library to ensure smooth filing and avoid the use of new raw materials.

Management risk analysis and countermeasures

New teams and companies may have certain challenges and uncertainties in sales management. For example, managers lack experience in brand operations or lack a deep understanding of the market. Management policies and decisions may not be suitable for the Chinese market. This risk could result in projects progressing slowly or failing to meet expectations.
Therefore, top managers must be people with a deep understanding of the Chinese cosmetics market and rich experience. To facilitate decision-making, senior managers, especially the general manager, need to represent the interests of both the brand and the dealers. Therefore, their incentives need to be set according to the overall goals, with clear KPIs that can provide incentives and supervision. effect. Management needs to fully discuss, analyze, investigate, and make decisions in the early stages of the company's establishment, and formulate reasonable policies and decision-making processes to support company operations, especially marketing and sales work, to minimize delays and other risks.

Market risk management strategies

Market risk is caused by relevant factors that affect the market and prevent the project from achieving the set goals. It mainly comes from two aspects. First, it leads to a reduction in sales revenue in an incentivized competitive market environment. Second, due to market changes, consumers have different opinions on the product. The decline in demand will lead to a reduction in the overall market share and a reduction in sales. In either case, market sales will not meet expectations.
From the previous analysis of the Chinese cosmetics market, it can be seen that the demand for high-tech skin care products in the Chinese cosmetics market continues to increase, and the overall demand is less likely to decline. However, future market trend changes are not ruled out. Therefore, the brand positioning of BFSU-ICUnited In addition to repair and antioxidant, other brand claims should also assist in publicity. For example, the product has the ability to dye hair. If hair repair is no longer popular, there may also be opportunities to transform. One of the key points to avoid this risk is to provide sufficient word-of-mouth publicity and product effectiveness promotion, while attaching great importance to product safety issues and avoiding negative information. Really good products will be accepted by the market in the long run.

Because the increase in market investment of competing brands has become a major risk for the project, in order to cope with the risk of intensified market competition, the core is to increase the market value of the brand or the value perceived by consumers. They feel that the product is worth the money and are willing to accept it. The company will enhance the competitiveness of the BFSU-ICU brand from two directions. First, it will focus on promoting the scientific and technological capabilities of synthetic biology. Biotechnology is a major advantage of BFSU-ICUnited and is also recognized and accepted by Chinese consumers. Therefore, The focus of communication with the market should be on product quality; the second is reasonable pricing, highlighting the credit-price ratio of high-quality products, so that our product prices are quite competitive. A two-pronged approach will highlight the advantages of technological advantages and high-quality and cheap products to enhance market competitiveness. At the same time, after entering the Chinese market, it is necessary to observe the dynamics of competing products in a timely manner, adapt to the market and quickly launch market activities to respond to market changes, improve the ability to cope with the risks of intensified market competition, and make timely adjustments to market layout and marketing strategies.

Financial risk management and countermeasures

Financial risk is an important part of project management. Generally speaking, financial risk is mainly the financial risk of the project itself, which may be financing failure, project delay or suspension due to funding gaps, etc. According to the previous analysis, the return on investment of this project is objective and the investment is limited. Among all investments, the cost of product purchase is still given to the BFSU-ICUnited brand. The overall project is independently invested and the risk is low.

A. Product launch plan

time planning

The overall project plan has a duration of three years, with clear dates for Phase 1 and Phase 2. The project plan is as follows. Preliminary preparation schedule for the first and second phases of the project 2-2 The project schedule is as follows. Although only e-commerce business will be carried out in the first year, product registration and licensing, offline physical store location selection, design and other work need to be carried out in advance, so the overall project planning includes the preparation work in the first three years.
The project investors are jointly completed by the brand and agents. The brand and agents jointly established a company to operate the BFSU-ICU project in China. The BFSU-ICU brand holds 51% and the agents hold 49%.

Project planning

The project is planned to be carried out in five phases. The first phase is the preliminary preparation stage. At this stage, the product needs to be registered in accordance with national regulations, and research on the Chinese market must be conducted, including on-site inspections and consumer research. Understand the Chinese market and form a Chinese brand management team. Looking for cooperative agents.
The second phase is to open cosmetics flagship stores or enter product specialty stores on Taobao and other platforms. Selling products on e-commerce does not need to wait for product registration. You can start selling products immediately. At the same time, you can understand consumers' acceptance of brands and products and make timely adjustments. future directions. The e-commerce platform is operated by the brand owner, and subsequent agents mainly target products that have been registered. In addition to platform development.
The third phase is to fully roll out branded products on China's e-commerce channels after completing the registration process, and simultaneously adjust and test the products sold on the e-commerce platform into new products to be officially entered into China.
The fourth phase is to build on the success of e-commerce channels and simultaneously develop offline channels to establish direct-sale models of brand franchise stores. Based on the channel resource advantages of shopping malls, first-tier cities will establish model franchise stores of brands, focusing on third- and fourth-tier cities. , rapid layout and rapid expansion.
In the fifth phase, omni-channel expansion focuses on high-quality personal care product stores and e-commerce channels that are growing rapidly. One brand, omni-channel expansion, and rapid expansion of scale.

B. Marketing activity plan

Promotion is a powerful weapon to attract transactions and is very important for new brands. Promotion needs to consider how to generate second purchases through promotion. Creating a trial system and "try before you buy" for holiday promotions are the overall strategy. There is a huge demand for consumer gifts during various festivals, such as New Year and Valentine's Day.
For other promotion strategies, with limited funds, BFSU-ICU does not consider direct advertising on TV, new media, magazines, and online. The core of the promotion strategy focuses on word-of-mouth marketing, influencing more people through the word-of-mouth of the product from various dimensions such as KOL "social experts" and customers with different attributes. It is good at using "opinion leaders" to provide services to opinion leaders to operate special rooms that are "closer than ordinary customers" to them. In addition to product usage consultation and tailor-made toiletries, opinion leaders can also try out BFSU- New products not yet on the market in ICU. Social sharing platforms like Xiaohongshu and Douyin are very important. Xiaohongshu and Taobao cooperate. Xiaohongshu represents word-of-mouth, and Taobao represents a transaction platform. At present, many brands use this path. Xiaohong Book Master shared that placing an order on Taobao, this promotion and sales path is also an important path for BFSU-ICU.
The overall goal of BFSU-ICUnited’s marketing strategy is to make people aware of the benefits of synthetic biology and sell them the innovative idea of BFSU-ICUnited’s “Bio Conditioner”.