Concept Book "The Ritual of local Handcraft" by Alice Weber

aliceweber20

This concept book gives you a detailed insight into the background of "The Ritual of local Handcraft".

ZHAOGU

The Ritual of local Handcraft

by Alice Weber


Table of contents...

Brand

Scenario

Customer segment

Change to lead

Concept

Prototype

Customer journey

Reason to believe

Business model

/p.4

/p.6

/p.8

/p.10

/p.12

/p.14

/p.16

/p.18

/p.20

2

Appendix(sources)


Link/QR-code issu:

https://issuu.com/aliceweber/docs/alice.

weber_concept_book_

Please copy and paste this link

or scan the QR-code if you would

like to experience this concept

book as a digital flap book

3


4


Brand...

About

The luxurious lifestyle brand

RITUALS inspires people to

implement “The Art of Soulful

Living” into their everyday

lives. With its skin and

body care, as well as home

products, the brand aims on

achieving this by combining

natural ingredients with inspiration

from ancient Eastern

Asian traditions.

Mission

Making use of the historic

value of Asian culture

--> re-inventing the way how

we perceive care products;

selling well-being not beauty

Vision

“Happiness can be found in

the smallest of things. It is

our passion to turn everyday

routines into more meaningful

moments. We care about you

as much as we care about our

planet”

Values

High quality, natural, enhancing

well-being (relaxation & comfort),

inclusivity (price & product)

The art of soulful living...

5


Scenario...

BEING IN ZEN

WITH TECHNOLOGY AND NATURE

WHAT IF WE FOCUS ON OUR SELF-DEVELOPMENT BY

BALANCING TECHNOLOGY AND NATURE?

In this version of 2031 humans live a simple

and local life. Self-sufficient cities serve

as standard living places.

While social interactions are rare and

of low value, the focus lays on personal

self-development and mental health. Everyone

is going their own life path - alone.

This causes feelings of loneliness and emptiness,

the seeking for meaning is real.

Since the birth humans are taught how important

inner peace and balance is; children

get meditation and yoga classes at school.

In the game of the year 2031, the role of

technology is much more unimportant than it

is nowadays. Meaning that technology is only

being used for the perks of mental health

improvement.

The main reason for this development is the

fact that humans re-connect with nature.

They value nature as their source for freedom

and inner peace and manage to balance

the two forces of nature and technology.

But being in nature remains a luxury.

6

However, the society is driven by over-consumption

- many humans try to combat their

loneliness by consuming excessively.


7


8


Customer segment...

In 2031, Rituals’ target group,

might still be very broad, as

the whole population is focused

on themselves and their own

well-being.

But the focus lays on around

25-40 years olds, the “mindful

change drivers” who are deeply

connected to the activities of

well-being like yoga and meditation

and who value products and

services which connect to those

activities the most. This age

group struggles a lot with mental

health problems like depression

and burnouts.

However, in the chosen scenario

overconsumption is the norm and

the chosen target group wants

to make a change, going against

mass consumption and production.

They are missing transparency

and personalisation in products,

especially skin products.

They want to create something

meaningful for themselves, having

a new ritual that they can

stick to everyday. Being playful,

creative and happy while

creating their own (Rituals)

products.

9


Change to lead...

Rituals wants to focus on diverse trends which are essential for the future

of the brand’s identity and development. The Ritual of local Handcraft manages

to implement various of these trends; technology, personalisation and

deeper experiences.

TECHNOLOGY

The Zhaogu App combines bespoke technology and personalisation in one software:

the future-proof augmented reality 3D face scan analysis provides the

consumer with technology as a very handy, easy and health-benefitting tool.

PERSONALISATION

At the same time the App stands for a very personal experience, as the face

scan and customised DIY-kit meet the consumer’s intense need for individuality

and self-focus.

Regional local ingredients of the DIY-kit bring personalisation to a next,

even more familiar level. Ingredients which are not made in mass production

and in general a kit that has meaning are satisfying the consumer’s

wish for less overproduction and -consumption and more meaningful products.

As the consumer increasingly feels lonely the artificial intelligence of the

Zhaogu App serves as a robotic “friend” which gives daily tips and consults

and sends reminders.

DEEPER EXPERIENCES

Deeper experiences are created through the expanded connection with nature,

as the Ritual of local Handcraft is bringing nature closer to home. A little

piece of the so valuable nature is brought to the house through the

natural ingredients and DIY is already a very raw and real experience by

itself.

10

With the Zhaogu App and the connected Ritual of local Handcraft DIY-kit,

Rituals gives the consumer the possibility of improving their mental health

day by day, connecting even more with nature and using technology as a

health enhancing helping tool.


11


12


Concept...

The Ritual of local Handcraft

In a world that is driven

by consumption, spending

time in nature is becoming

a rare luxury. A luxury that

is connected to freedom,

rawness and positive energy.

Nature is the opposite

of mass consumption; it is a

very personal sphere on its

own.

ZHAOGU-The Ritual of local

Handcraft enables you to

create your own natural and

clean skin care. It is handmade

by yourself and customised

according to your skin

and mental health state. You

experience the endless healing

power of nature in your

own home and learn about

your outer and inner beauty

day by day.

When was the last time you created something by yourself, with your own hands?

13


Prototype...

The prototype consists of an

App called “ZHAOGU” which means

“taking care” in Chinese, and

a DIY-kit called “The Ritual of

local Handcraft” that enables

the customer to create their own

Rituals skin care.

ZHAOGU-App

14

Please scan this QR-code to experience

a demo of the ZHAOGU

App on your own smartphone.

In case you have an iPhone, just

open the camera and scan the

code. On an Android phone, a

QR-scanner App is needed.

DIY-kit

“The Ritual of

local Handcraft”


In the ZHAOGU App you can

find six different menues.

These inform you and bring

you one step closer to creating

your skin care.

With the help of AI and AR, a

3D face scan is being created

and your skin state and mental

health state are analysed.

The App includes an online

shop which offers you local

ingredients, natural chemicals

and all the equipment

you need.

After the skin scan you receive

a detailed evaluation of the

analysis. You will receive a

custom DIY-kit.

Typical for Rituals, the DIY-kit

“Ritual of local Handcraft” comes

with a beautiful biodegradable

packaging which is shaped like a

tulip, as the tulip is associated

with (self)care.

The kit itself includes all necessary

items like customised ingredients

and equipment. For a

handy use of the tools and items,

the DIY-kit comes with a wooden

storage “tower” for an optimal

product creation and storage.

Packaging

15


16

AWARENESS

The customer

might see the

Zhaogu App in an

App store or as

an advertising

in the Rituals

store or on the

website and magazine.

They might

most probaly get

aware of the

DIY-kit in the

store or also on

the website.

CONSIDERATION

Now the customer is thinking

about the pro’s and

con’s of buying the product.

Advantages are for instance

that they know what

is insdide the product when

making it by themselves;

transparency; while another

advantage is the personalisation.

Finally there is a

totally unique and customised

product which enables

them to improve their mental

health.

However, a disadvantage

could be that the customer

first needs to really do

something in order to be

able to use the Rituals

skin care product. Meaning

that a little effort needs

to be put in. Furthermore,

the customer might be unsure

about the 3D-scan, as

pretty intimate data is being

collected.

TRANSACTION

The only way to

buy a customised

DIY-kit is via

the Zhaogu App

because this App

implements the

necessary skin

analysis tools

like AR and AI.

The customer

downloads the

Zhaogu App for

free in an App

store and can

then buy their

customised DIYkit,

after finishing

the skin

scan.


Customer journey...

This is a visualisation of a

possible customer journey

which implements the

ZHAOGU App and the

Ritual of local Handcraft

DIY-kit.

ENGAGEMENT

Especially in

terms of engagament

the ZHAOGU

App is a great

tool.Everyday,

the app sends

push notifications

which remind the

customer of the

daily skin scan

and the personal

daily mental

health improvement

tips which

the App displays

after the skin

scan.

So, the ZHAOGU

tool serves as a

“digital friend”

which is checking

on the customer

regulary.

LOYALTY

In order to

convince the customer

even after

the purchase,

it is mandatory

to offer regular

updates of

the ZHAOGU App.

Furthermore, employees

should

be able to consult

the customer

regarding

the App and the

DIY-kit. Another

factor might be

the expansion of

natural ingredients

so that the

assortment stays

interesting. The

customer might

also wish for a

DIY-kit not only

for skin care

but body care,

cosmetics etc.

17


Reason to believe...

The DIY-trend is on the rise, especially

since the COVID-19 pandemic

started. More and more people are

interested in creating something by

themselves – from sewing their own

garments and embroidery to building

their own furniture – or creating

their own skin care. This trend is

the reflection of an individualised

society that is permanently seeking

for ways of becoming more individual

and unique; having something that

not everyone has.

Another important factor is the rising

awareness and consciousness of

society regarding matters that come

close to their bodies, like nutrition

and also body care. People put

more emphasis on the ingredients of

body care and pay attention to factors

like natural, clean and sustainable

ingredients. The demand for

natural skin care is higher than

ever.

18

However, mental health is a rather

serious factor which is playing a

more and more important role. Due to

the highly digitalised world we live

in, there is an obvious increase of

mental diseases. Concepts and products

which help to cope with these

diseases are highly essential.


19


20


Business model...

Benefits/

Value

proposition

The benefits for the customer are very

broad. Meaning that the “Ritual of local

Handcraft” meets the customer’s

wish for a more transparent, local and

customised skin care, as well as the

longing for a constant inner peace and

therefore good mental health. A meaningful

product can be created by the

customer, a product to really care for

because it is homemade.

Other benefits are the increased selection

of consumers’ data, a stronger

connection to the consumer because

of the personal experience shopping and

the more intense implementation of Rituals

into the consumers’ everyday life

and routines. Bringing the brand to an

even more emotional level which makes

clear that Rituals cares for its consumers.

Estimation

of costs

Production

29,16€ per kit

0,001€ per download

Packaging

1,30€ per kit

0,00€ per download

Distribution

27,00€ per kit

0,00€ per download

Marketing

10,00€ per kit

Implemented in marketing costs of

kit because kit and app are always

being advertised together.

Revenue

streams

Year 1

Year 2

Year 3

2.649.947€

4.794.000€

12.985.000€

(DIY-kit)

-0,001274€

-1,274€

-3,185€

(App)

not profitable but

deficit is very low!

21


Background research

for estimation of costs

Estimation of costs

Production

- Development of App

--> Design

29€ per year when using a non-code App builder/editor

(https://onair-appbuilder.com/en/)

-->Custom development of AR-function (face scan)

652,53€ per month

(https://www.perfectcorp.com/business/plan)

--> Publishing in App Store, Google Play store etc.

Google Play Store: 20,42€ (one time fee)

App store 80,85€ (per year)

(https://www.androidauthority.com/publishing-first-app-play-store-need-know-383572/)

- DIY-Kit

--> local ingredients

Dried flowers

3,50€/100g

(https://www.decofleur.com/de/trockenblumen/trockenblumen/trockenblumen-natur)

(Essential) oils

70€/100g (pure essential oil)

(https://www.aromaeasy.com/de/)

Serums

5,72€/100ml

(https://german.alibaba.com/product-detail/japan-cosmetic-face-serum-acid-hyaluronic-whitening-bulk-for-wholesale-62068663601.

html?spm=a2700.md_de_DE.maylikeexp.5.3f08413blasjjh)

Polyglyceryl 4 oleate (Emulgator)

11,50€/100g

(https://shop.skinchakra.eu/Kosmetik-Lab/Emulgatoren/Polyglyceryl-4-oleate.html)

Squalan

10€/100g

(https://www.manske-shop.com/advanced_search_result.php?categories_id=0&keywords=squalan&inc_subcat=1)

22


Alcohol (spiritus)

0,99€/100ml

(https://german.alibaba.com/product-detail/japan-cosmetic-face-serum-acid-hyaluronic-whitening-bulk-for-wholesale-62068663601.

html?spm=a2700.md_de_DE.maylikeexp.5.3f08413blasjjh)

--> mini scale

0,01€ per piece

(https://german.alibaba.com/product-detail/LCD-Mini-Digital-Portable-Body-Pocket-62232228176.html)

--> beaker

0,02€ per piece

(https://german.alibaba.com/product-detail/factory-direct-sale-10l-big-size-industrial-thickened-wall-industrial-boro3-3-glass-beaker-62543352191.

html)

--> spoon

2,08€ per piece

(https://www.analytics-shop.com/de/bo3202-de.html)

--> petri dish

0,59€ per piece

(https://german.alibaba.com/product-detail/huke-customized-pyrex-lab-different-size-glass-petri-dish-100mm-62140082404.html)

Packaging

--> paper for wrapping of dried flowers

17,60€/package of 12,5kg

(https://www.hoffmann-verpackung.de/polster-fuellmaterial/wellpappe-und-packpapiere/packseidenpapier-06-s5075?c=28)

--> General packaging of whole kit (biodegradable boxes)

0,90€ per piece

(https://www.biobiene.com/naturebox-teleskopverpackung-700x105x950mm.html?c=2054)

--> small glass containers for oils and serums and typical Rituals container for end product

0,39€ per piece

(https://www.glaeserundflaschen.de/gh/Tiegel-120-ml-weiss--365.html)

Distribution

--> only local distribution (within one conutry)

1,81€ per km (by truck)

(https://www.bme.de/bme-preisspiegel-frachten-preisanstieg-setzt-sich-fort-2498/)

Marketing

--> promoting app and DIY-Kit

App:

30.000 to 50.000€

(https://startup-creator.com/blog/app-entwicklung-kosten/)

DIY-Kit:

General marketing budget 1-30%, for start-ups 50%

(https://www.legalzoom.com/articles/cost-of-marketing-what-is-the-average-budget)

23


Calculations

CALCULATIONS ARE FOR THE WHOLE KIT WHICH IMPLEMENTS ALL THE SEPERATE

PRODUCTION COSTS!

VALUE BASED

- value based costs because it is a product with meaning and it goes beyond only the product as it

is customised

INVERTED RAZOR AND BLADES MODEL

- inverted razor & blades business model

--> customer buys expensive DIY-kit first and then keeps on buying rather inexpensive add-ons

and refills

3RD PARTY INVESTMENT

- 1 mio, 5 years patent, 2% of yearly profit

--> need of investment of AR- software development because this is very complex

FIXED COSTS

- 30%; above average personnel (lab-workers, scientists etc.), machines, rent, below average

amount of prototypes are produced

--> not that many

PURPOSE OF PROTOTYPE FOR BRAND

- rather a promotion

VALUE FOR CUSTOMER

- EXCLUSIVITY, ACCESSIBLE LUXURY

24


HOW MANY GOODS ARE SOLD?

- unfortunately, there was no ideal information available. I will estimate this.

HOW MANY APPS ARE DOWNLOADED?

- on average 149.260 k downloads per year BUT as there are being sold 500k DIY-kits, at least 500k App

downloads need to be there

--> I set it as 1 download=1person/customer

(https://www.statista.com/statistics/1119893/average-number-downloads-united-states-app-publishers/)

VARIABLE COSTS PER KIT:

29,16+1,30+27=57,46,-

mark up fixed costs 30%

MARKETING BUDGET

- 5mio (1% of annual revenue of Rituals in 2017 of 500mio)

- 500k DIY-Kits sold within one year

- marketing costs=10€ per kit

COST PER DIY-KIT

(57,46x1,30)+10=84,69

--> set a psychological price: 89,99€

REVENUE STREAM CALCULATIONS

500.000x(89,99-84,69)=2.650.000

3rd party inverstor receives 2%=53.000

Result for Rituals: 2.649.947€

Year 2: 1.000.000 kits sold

1.000.000x(89,99-84,69)=5.300.000 --> -2%(506.000€) -->4.794.000€

Year 3: 2.500.000 kits sold

2.500.000x(89,99-84,69)=13.250.000 --> -2%(265.000) -->12.985.000€

25


VARIABLE COSTS PER APP-DOWNLOAD

Production costs: 728,80€/500.000=0,001€

0,001€+0,00€+0,00€=0,001€

mark up fixed costs 30%

MARKETING BUDGET

- the app will always be advertised together with the DIY-kit, so the marketing costs of both the

kit and app are implemented in the kit calculations

COST PER APP DOWNLOAD

(0,001x1,30)+0,00€=0,0013€

--> The app will be available for free because it mainly serves as an onlineshop

--> so no psychological price is set

APP: 500.000x(0,00-0,0013)= -0,0013€ (less than

one cent minus

3rd party inverstor receives 2%= -0,000026

Result for Rituals: -0,001274€

Year 2: 1.000.000 App downloads

1.000.000x(0,00-0,0013)= -1,30€ --> -2%(-0,026€) --> -1,274€

Year 3: 2.500.000 App downloads

2.500.000x(0,00-0,0013)= --> -3,25 -->-2%(-0,065) --> -3,185€

--> APP IS NOT PROFITABLE REGARDING REVENUE!

-->focus on the DIY-kit

26


Brand

Appendix...

sources

Rituals.com. 2020. RITUALS | Home & Body Cosmetics | Offizieller Online Shop. [online] Available at:

de-de/home> [Accessed 16 October 2020].

Johanna Fagerstedt, C., 2020. The Keys To Success At Rituals Cosmetics. [online] Quinyx.com. Available at:

com/blog/the-keys-to-success-at-rituals-cosmetics> [Accessed 16 October 2020].

Rituals. 2020. Hautnah Mit Dem CEO Von Rituals Raymond Cloosterman. [online] Available at:

mag-rituality-interview-ceo-rituals-raymond-cloosterman.html> [Accessed 16 October 2020].

Handelsjournal.de. 2020. Die Storytelling-Marke. [online] Available at:

die-storytelling-marke.html> [Accessed 16 October 2020].

Salesforce.com. 2020. Rituals Cosmetics Erobert Den Weltmarkt – Mit Salesforce. [online] Available at:

com/de/customer-success-stories/rituals-cosmetics/> [Accessed 16 October 2020].

2020. [online] Available at: [Accessed 16

October 2020].

brand analysis model, developed in class

Scenario

City, A., 2020. Smarthood: The Self-Sufficient Neighborhood Of The Future. [online] Amsterdam Smart City. Available at:

amsterdamsmartcity.com/posts/smart-hood-de-zelfvoorzienende-wijk-van-de-toekoms> [Accessed 21 October 2020].

Odat.nl. 2020. School, Workplace And ICT + Country Examples - Course Intercultural Communication For World Citizens. [online]

Available at: [Accessed 21 October 2020].

Association for Psychological Science - APS. 2020. Individualistic Practices And Values Increasing Around The World. [online]

Available at:

[Accessed 20 October 2020].


2020. [online] Available at:

[Accessed 23 October 2020].

Customer segment

Davidforsberg.yolasite.com. 2020. [online] Available at:

[Accessed 3 November 2020].

Orange Banana Digital. 2020. Digital Marketing Casestudy - Rituals Cosmetics — Orange Banana Digital. [online] Available at:

[Accessed 4 November 2020].

Change to lead

Best Health Magazine Canada. 2020. How DIY Can Make You Happy. [online] Available at:

[Accessed 9 December 2020].

Concept

NKM Naturkosmetik Muenchen. 2020. Unsere NKM-Startseite - NKM Naturkosmetik Muenchen. [online] Available at:

nkm-atelier.de> [Accessed 30 November 2020].

Deciem.com. 2020. DECIEM | THE ABNORMAL BEAUTY COMPANY. [online] Available at: [Accessed

30 November 2020].

chemistry, G., 2020. Green Chemistry - Spotlight. [online] Spotlight. Available at:

[Accessed 12 December 2020].

Best Health Magazine Canada. 2020. How DIY Can Make You Happy. [online] Available at:

[Accessed 9 December 2020].

Migala, J. and Ross Radusky, M., 2020. What Are ‘Natural’ Skin-Care Products, And Are They Better For You? | Everyday Health.

[online] EverydayHealth.com. Available at:

[Accessed 8 December 2020].

2020. [online] Available at: [Accessed 11 December

2020].

Chinadaily.com.cn. 2020. How Cosmetics Were Created In Ancient China. [online] Available at:

cn/a/201804/21/WS5ada295aa3105cdcf6519a30.html> [Accessed 19 December 2020].

Prototype

Book, M., Privacy, T., Garden, A., Soapmaking, L., Ebook, C., Gardening, I., Gardening, K., Gardening, S., tips, G., Projects, G.,

Making, S., Making, I., Recipes, S., Series, S., Videos, S., Videos, I., videos, B., YouTube, S., topics, M., Man, T., Skincare, P., making,

C., Recipes, F., Home, D., Ideas, D., Popular, M., Foraging, W. and Season, B., 2020. Growing Plants, Flowers, And Herbs For

Skincare • Lovely Greens. [online] Lovely Greens. Available at:

[Accessed 15 December 2020].

Designer-eu01.onair-appbuilder.com. 2020. ON AIR | Appbuilder. [online] Available at:


Perfectcorp.com. 2020. Beauty AR Company And Makeup AR Technology Platform. [online] Available at:

[Accessed 11 December 2020].

Bellus 3D App

Customer journey

Meltwater. 2020. Die Customer Journey | Der Ultimative Guide. [online] Available at:

b2b-customer-journey-mapping> [Accessed 19 December 2020].

Reason to believe

2020. [online] Available at: [Accessed 11 December

2020].

2020. [online] Available at: [Accessed 11 December

2020].

Business model

Reasonstreet.co. 2020. Business Model: Razorblade | Reason Street. [online] Available at:

[Accessed 20 December 2020].

Please find all business sources separately in the business plan part


Whatever you create,

take care of your body and soul.

The Ritual of local Handcraft

More magazines by this user
Similar magazines