Office: +1.757-961-7218

425 W. Wilshire Blvd., Suite 2 F / Oklahoma City, OK 73116

GLOBAL RETAILERS

   The e-commerce store is an outstanding marketing tool for DECORADOR. All three related websites; Special Order Sales, B2B Sales and Design Studio have been implemented on the e-commerce site.  In addition, other value-added services; Deco Club, Bridal & Gift Registry, DECORADOR newsletter and Gift Certificates  have been designed and implemented on the e-commerce site. The ecommerce site builds up demand and produces enormous street chatter for the brick & mortar stores due to the free or low-cost press DECORADOR receives from popular business and home décor publications. From a more forward-looking perspective, the e-commerce store introduces the DECORADOR brand to consumers in its new markets. The e-commerce site is the foundation of the model which allows the Company to be nimble when entering a new market and furnishes the flexibility to ensure prudent strategic and operating decisions once in the market. 

   Prototype P-1 –  flagship stores averaging 10,000 sq. ft. (1,000 m2) and larger:  This store prototype is for the largest premier malls in the major cities (costs $450k to open / budgeted sales of $3 million). 

   Combine the three; think of DECORADOR, a multi-channel game-changing high-tech home décor retailer for the emerging markets. DECORADOR brings to its Clients the ultimate 24/7 ‘time and location’ convenience with its multi-channel business model – a stunning competitive differentiator.   

Business model

2) Savings of the Client’s time and money and 

​   Prototype P-2 - mall-based stores averaging 6000 sq. ft. (600 m2):  This store prototype is for regional malls located in medium-sized cities (costs $300k to open / budgeted sales of $1.5 million). 

   The ‘power of 3ᶾ’ creates an empowered culture capable of delivering 1) a unique Selection of products, 2) a Savings of the Client’s ‘time & money’ and 3) Service, above and beyond for its Clients. This approach builds supplemental revenue streams, drives operational efficiencies and increases Client traffic and loyalty. Rather than following market trends and norms, the brand earned a reputation as an innovative and convenient home décor brand in the Polish home furnishings and home décor market.  The power of 3ᶾ is a proven technique that gives the Company a basis for maintaining strategic control over its market share by building a distinct brand that is challenging, if not impossible, to be replicated by a competitor.  DECORADOR generated a 28% ‘comp store’ sales increase during the global financial crisis while other retailers were closing stores and filing for bankruptcy. The tri-channel model was surely validated.  Although several competitors have tried to copy the model, all have failed.  

​   Prototype P-3 -  neighborhood-centric stores averaging 3,000 sq. ft. (300 m2):  This prototype store is for densely populated neighborhoods in the suburbs and small cities (costs $150k to open / budgeted sales of $500k).

   As in the Warsaw/Poland case, the site effectively enlarges the Company’s initial market size from 1.7 million inhabitants in Warsaw to 38.0 million inhabitants throughout Poland, as 75% of the orders were placed from consumers outside of Warsaw.  Numerous orders come as far away as Chicago, IL and London, England.     

1) Selection of unique products from the global home fashions markets,

   E-commerce is the foundation.  However the ‘silver bullet’ of the business model is the Company’s Internet-based In-home Sales & Services™ (IHSS) channel.  This channel is serviced predominantly by low-cost outside commissioned sales specialist and installation contractors who specialize in window treatments, flooring and other specialty home-décor products as well as home decoration projects.  The Client can schedule an appointment on the Internet or in a store visit.   

- 3. Brick and Mortar stores; Think of the Bed Bath & Beyond of the emerging markets. 

E-Commerce Channel:

   Over the years, the founder has developed a multi-tiered strategic approach to building a low-cost, highly-differentiated and diversified retail business model tagged as ‘power of 3ᶾ’.  This self-nurturing approach makes competition less relevant by focusing on creating and executing strategic ‘value innovations’ which expand the ‘uncontested’ market space ripe for growth in the sector; therefore leading the market, rather than following.   

   Each store has a ‘design studio’ section whereby trained product sales specialists assist the Client in the product selection required for a ‘home décor’ project. The cadre of ‘in-home’ stylists and store sales specialists are capable of generating huge project sales. IHSS Associates can design and oversee the installation of a complete home décor project; from wall to wall, floor to ceiling and room to room. The IHSS strategy often leverages a Client’s store visit from a $10 ‘take-with’ gift purchase to an ‘in-home’ visit generating ‘thousands’ of dollars in ‘home décor’ project sales.  Furthermore the IHSS sales are produced without the high costs associated with ‘brick & mortar’ stores and inventory investment. These high-ticket and high-profit sales dramatically increase the store sales per sq. ft. while leveling out the monthly sales peaks and valleys of retail; thereby optimizing store profitability and providing a predictable career path with a higher compensation for the Associates. An 

3) Service above & beyond, ‘1 Client @ a time’.  

   All prototypes fit into the “betweener size” category of stores which are more affordable for the Company to open than the big-box stores. A betweener-sized store affords DECORADOR the opportunity to create a footprint large enough for the premier malls and small enough for the densely-populated suburban neighborhoods.  It also serves as a viable and beneficial method of clustering stores in each major city, i.e., Warsaw and Katowice will have twenty plus stores of various prototypes rather than a couple of big-box stores.   

   Each prototype store has six major departments: Living & Accessories, Bed & Accessories, Bath & Accessories, Kitchen & Eating, Accents & Decorations and a Design Studio. The selection will consist of a focused assortment of approximately 3,000 color-coordinated SKUs of unique and value-priced merchandise arranged in inspiring collections. The assortment of the smaller stores will be supplemented with InfoKiosks whereas the Client has the ability to browse and shop the e-commerce store from their brick and mortar store. The Client can shop and buy from the e-commerce store and pick up her order at her favorite DECORADOR store. 

   DECORADOR’S first big-box prototype store was 3,800 m2 (38,000 sq. ft.) and similar in format and size to the Bed Bath & Beyond store in the USA.  This prototype was too large and costly for the emerging markets, lacking diversity, flexibility and resiliency.  The Company adjusted its real estate strategy to offer three new prototype stores depending upon the market demographics and size.  The Brand has a store for any size market as follows: 

- 2. In-home Sales & Services; Think of Extreme Makeover – Home Edition coming to your home. 

   The ultimate objective of the business model is to position the brand to capture market share by first launching and marketing e-commerce and In-home Sales & Services country-wide – then open stores quickly and cheaply in small groups until profitability is reached.  DECORADOR continues to build market share quickly and cheaply with additional Client ‘touch points’ and ‘word of mouth’ advertising.  Through its multi-channel nature, the model builds and enhances the brand by stressing constant market differentiation from its competition in three spectrums of retail:

   The e-commerce site yields many current and forward-looking advantages to the DECORADOR business strategy.  First and foremost, the e-commerce website serves as a low-cost revenue generator which can significantly minimize the ‘cash burn’ rate during the early days of the startup.  While waiting to secure the optimal brick & mortar store locations and opening conditions, the e-commerce store identifies the cities which have the most potential and the bestselling categories and items by city which can prevent inventory investment mishaps.  As the varied sizes of brick and mortar stores are rolled out, the e-commerce platform allows each store to offer the full selection of product from the smallest store.     

Brick and Mortar Stores:

individual ‘store contribution’ performance can exceed 20% of sales with an effective IHSS program. 

In-home Sales and Service™ Channel (IHSS):

   Welcome to the DECORADOR,  your gateway to the emerging markets.  DECORADOR captured market share overnight in Warsaw, Poland. How?  How? Three compelling channels and profit generators; E-commerce, In-home Sales & Services™ & Brick & Mortar Stores. 

- 1. E-commerce; Think of the Amazon.com of home décor. 

The 'Power of 3ᶾ'