Days to go
From: South Africa, Johannesburg
I am currently a co-founder and managing partner at Picadoo and hold a BSc in Chemistry and Physics but transitioned into technology and entrepreneurship. Currently looking into cryptocurrencies, fintech and robotics. I enjoy being in an environment that allows me to express my skills and capabiliti … Read more
Picadoo is an online marketplace where women between the ages of 18 -45 can discover top professional mobile stylists near them, book an appointment and even purchase their respective hairproducts. Size of the Market – the African haircare business has become a multi-billion-dollar industry that stretches to China and India and has drawn global giants such as L’Oreal, P&G and Unilever. While reliable Africa-wide figures are hard to come by, market research firm Euromonitor International estimates $1.1 billion of shampoos, relaxers and hair lotions were sold in South Africa, Nigeria and Cameroon in 2014 alone. Some estimates put Africa's dry hair industry at as much as $6.1 billion a year. Haircare is a vital source of jobs for women, who make up a large slice of the informal economy on the poorest continent. "I get bored if I have one style for too long," said Buli Dhlomo, a 20-year-old South African student who sports long red and blonde braids. Her next plan is to cut her hair short and dye it "copper gold". "It looks really cool. My mom had it and I also had it at the beginning of the year and it looked really good," said Dhlomo, who can spend up to 4,000 rand (£220) on a weave. (Taken from http://uk.reuters.com/article/ukafricahairidUKKBN0G60A620140806) Africans are spending around US$7billion a year on hair extensions and growers, the majority of which come from Asia. This has led to big companies targeting the continent. While South Africans change their hairstyle often, West Africans do so even more, said Bertrand de Laleu, managing director of L’Oréal South Africa. “African women are probably the most daring when it comes to hair styles”, he said. Today there are more than 100 brands of hair in South Africa, making the market worth about $600 million, he said, roughly four times more than in 2005. In one clue to the potential for Africa, market research firm Mintel put the size of the black haircare market in the United States at $684 million in 2013, estimating that it could be closer to $500 billion if weaves, extensions and sales from independent beauty stores or distributors are included. (Taken from http://www.enca.com/africashairindustryrise1) Market Share Our goal with this online hair market place platforms, is to dominate the market with an 80% market share across Africa. We are currently aiming for a 90% Market share in South Africa. Our estimate stems from the factors stated above, that the market is just right for our product. We aim to grow within the market by bringing the best product and aggressive marketing across all sectors related to hair and visible to young females in South Africa. Trends in target market The black female population comprises of 70% of the youth female population of South Africa. South Africa has 23 Million Smartphone users. A population penetration of 47% of South Africa. South Africa is currently part of the top 10 countries with the highest smartphone penetration currently ranking at number 10. Growth potential and opportunity 57% of South Africa’s traffic comes from mobile devices. This is the (3rd) third highest percentage after Nigeria at number 1 and India at number 2. It can be estimated that 70% of these are young black females. 70% of 23 million Smartphone users is 9 660 000 young black females. Expansion South Africa will be our first base of operations; however, we have identified other African countries with similar market trends and customer behaviour that we will expand to by year 4 of our operations namely: Nigeria, Cameroon, Kenya and Tanzania. After the planned expansion, we will move to phase 2 by increasing our market penetration, and improving our market share. Facts about your industry The Black haircare industry is grossly underestimated. Market research firm Mintel estimated the size of the 2012 market at $684 million, with a projection of $761 million by 2017. But Mintel also wisely notes, what’s missing from these figures are general market brands, weaves, extensions, wigs, independent beauty supply stores, distributors, ecommerce, styling tools and appliances. If all of those things were to be taken into consideration, the $684 million in expenditures could be high. Growth in the African middle class has also led to increased spending money, as hair brands seek to target households with growing disposable incomes. A digital market place in particular will grow due to the convenience it creates for consumers who come from affluent households. Why should investors invest in your product? Picadoo’s philosophy in business is growth and scalability. We go into markets where the growth curve is high and yields are great. This is done in order to become a major player in the South African economy. We create great products for our customers as well as rendering the best possible service. Our customer orientated philosophy allows us to create a product best suited to our consumers. The structure of our targeted marketing allows us to be able to reach all our target market and brand our company.
Step Goal 100%
What will be done:We conducted over 1320 customer interviews and user testing of our MVP with our target audience: The three things they wanted most were: • An easy and simple booking process • The ability to know if the hairstyle they are booking suits them • The confidence of knowing that the stylist doing their hair is the best at that style They said that at most times choosing their styles is a guessing game and asking opinions is sometimes impractical as no one can give them the best advice. They stated that when they have chosen their favourite style, finding the right hairpiece and the right price is their next problem. Many people sell hair individually and salons charge huge prices. Our customer’s biggest fears were • Choosing the wrong hairstyle • Buying a low-quality hairpiece • Getting a bad mannered and unskilled stylist The primary use of funds is as follows Product development - 72 % Procurement - 8% Key hires - 20%