Team:HKUST/Entrepreneurship
Entrepreneurship
When designing our project, aka the potential new materials for the textile industry, we also have an idea of commercializing the hagfish IF we are synthesizing. We believe this is totally feasible provided the biodegradability and flexibility of hagfish IF. We plan to raise potential investors and manufacturers in phase 2 to build up a more concrete plan for our business idea.
Our Business Model
Value Proposition
Synthesise a new fibre source for the textile industries which “ let people wear the nature” and “saves the ecosystem”.
Innovation: Brand our product as a new innovation to change the quality of life in modern society.
Target Customers
Our first-stage target customers are:
1. Fast fashion retail companies e.g. Zara, H&M, Forever 21
Although pushing forward many cycles of fashion clothing annually, these companies usually brand themselves as environmentally-friendly and are willing to embrace more green raw materials to support their fast-changing trend. There are often also green-labelled product lines in these companies in which they use green materials only. They might be interested to adopt hagfish IF as new clothing materials.
2. Sportswear companies/companies that rely on nylon/polyester e.g. Nike, Adidas
These companies often include nylon/polyester in their production due to their high strength and breathability. Hagfish IF can be an alternative to those materials as it poses similar characteristics and functions. What is more, nylon and polyester are sources of microfibres pollution, and the establishment of HagBric is to cope with that problem. Adopting hagfish IF can help these companies build a greener and more innovative brand.
Competitors
We believe in the potential of hagfish IF being a new clothing material, but at the same time we also understand there are quite a number of green materials that are mature in the market. Below are some competitors we have identified:
Lenzing Fibres: They provide natural cellulose fibres for clothing companies
Bam Bamboo Clothing: As suggested by its name, the clothes it is selling are made of bamboo
Wear Organic: One of the highlights of their products is that they use organic cotton to produce their products, instead of the commonly-found synthetic cotton on market
The Hemp store: They rely on hemp as the main material for textile production, and hemp is produced from plants that are highly productive, so they always have stable and high yield of raw materials
Patagonia: They are a famous green fashion retail company which uses recycled polyester to produce clothes, fostering a green circular economy and adding to sustainability
SWOT Analysis
Strengths
- Hagfish IF is biodegradable and environmentally friendly
- IF would expand when it absorbs water, which adds to the breathability of the clothes
- Many colour choices (when we can successful implement our colour mixing model)
- High strength
Weaknesses
- IF is a new material that has not been well- researched, there may be potential hazards (allergy response)
- Our IF is synthesized by taking reference from natural IF, ethical issues exist
- The quality and quantity of IF produced in lab might be less than existing materials on market
- High production cost
Opportunities
- IF is a new material that has not publicly existed on market (apart from US Navy), it has great market potential
- Collaborate with green groups as use that as promotional channel, increase public awareness
Threats
- Big companies/chain stores having great customers base do not have to rely on IF to maintain their financial sustainability
- IF might not be approved to be used as a material
- There are other matter alternatives to IF
Marketing (Promotion Method)
- Green NGO can be a very good source of promotion as they can raise public awareness and have a large impact on society. They would be interested in having free promotion for our product. (E.g. Footprint, Friends of the Earth)
- Our university’s (HKUST) media is also a very good source of promotion. (E.g. emails, scientific journals and posters around the school)
- Our own social platforms (HagBric’s Instagram page, Facebook page, and YouTube Channel)
- Famous KOLs (Key Opinion Leaders) who are environmentally-conscious as they always have green image and would be more influential in attracting public attention
- Sales discount on bulk purchase of hagfish IF
Customer Relationship Management (CRM)
- We hope to construct a good relationship with professionals and merchants in the industries in order to get instant feedback on our products.
- Fashion retailers have strong power in CRM which can provide us info instantaneously.
- We can modify our products according to market trends or concerns
- We want to construct a sustainable B2B business model with our customers eventually.
Other Business Stakeholders to consider
- Factories which can produce our product in massive production line
- Factories that can fabricate the loose threads
- Retail companies
- Our supplier. (e.g R&D donors, lab materials suppliers)
Plan for Phase 2
- Before we successfully synthesize the hagfish IF —> contact stakeholders for consultation and feedback
- When we successfully synthesize IF thread —> contact factories/companies to know their interests, look for area of improvement and search for potential producers
- After colour mixing is successful —> start commercializing our product