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

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
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Appendix(sources)

Link/QR-code issu:
https://issuu.com/aliceweber/docs/alice.
weber_concept_book_
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or scan the QR-code if you would
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book as a digital flap book
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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...
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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.

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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.
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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.

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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?
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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
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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
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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.
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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.
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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.

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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!
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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)
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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)
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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
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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€
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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
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Brand
Appendix...
sources
Rituals.com. 2020. RITUALS | Home & Body Cosmetics | Offizieller Online Shop. [online] Available at: <https://www.rituals.com/
de-de/home> [Accessed 16 October 2020].
Johanna Fagerstedt, C., 2020. The Keys To Success At Rituals Cosmetics. [online] Quinyx.com. Available at: <https://www.quinyx.
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: <https://www.rituals.com/de-de/
mag-rituality-interview-ceo-rituals-raymond-cloosterman.html> [Accessed 16 October 2020].
Handelsjournal.de. 2020. Die Storytelling-Marke. [online] Available at: <https://handelsjournal.de/unternehmen/marketing/
die-storytelling-marke.html> [Accessed 16 October 2020].
Salesforce.com. 2020. Rituals Cosmetics Erobert Den Weltmarkt – Mit Salesforce. [online] Available at: <https://www.salesforce.
com/de/customer-success-stories/rituals-cosmetics/> [Accessed 16 October 2020].
2020. [online] Available at: <https://www.glassdoor.co.nz/Interview/Rituals-Interview-Questions-E963744_P2.htm> [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: <https://
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: <https://www.odat.nl/training_icw_en/demo/pagina.php?pa=13> [Accessed 21 October 2020].
Association for Psychological Science - APS. 2020. Individualistic Practices And Values Increasing Around The World. [online]
Available at: <https://www.psychologicalscience.org/news/releases/individualistic-practices-and-values-increasing-around-the-world.html>
[Accessed 20 October 2020].

2020. [online] Available at: <https://www.verywellmind.com/what-are-individualistic-cultures-2795273 https://www.futuresplatform.com/blog/end-globalisation-post-covid-19-and-rise-self-sufficient-cities>
[Accessed 23 October 2020].
Customer segment
Davidforsberg.yolasite.com. 2020. [online] Available at: <http://davidforsberg.yolasite.com/resources/David%20Forsberg%20Portfolio%20-%20Outcome%203.pdf>
[Accessed 3 November 2020].
Orange Banana Digital. 2020. Digital Marketing Casestudy - Rituals Cosmetics — Orange Banana Digital. [online] Available at:
<https://www.orangebananadigital.com/rituals-cosmetics> [Accessed 4 November 2020].
Change to lead
Best Health Magazine Canada. 2020. How DIY Can Make You Happy. [online] Available at: <https://www.besthealthmag.ca/bestyou/life-and-work/how-diy-can-make-you-happy/>
[Accessed 9 December 2020].
Concept
NKM Naturkosmetik Muenchen. 2020. Unsere NKM-Startseite - NKM Naturkosmetik Muenchen. [online] Available at: <https://
nkm-atelier.de> [Accessed 30 November 2020].
Deciem.com. 2020. DECIEM | THE ABNORMAL BEAUTY COMPANY. [online] Available at: <https://deciem.com/company> [Accessed
30 November 2020].
chemistry, G., 2020. Green Chemistry - Spotlight. [online] Spotlight. Available at: <https://weblog.wur.eu/spotlight/green-chemistry/?_gl=1*6sje4l*_ga*MjEyODU3NDQ5Ny4xNjA2NzI2MzY4*_>
[Accessed 12 December 2020].
Best Health Magazine Canada. 2020. How DIY Can Make You Happy. [online] Available at: <https://www.besthealthmag.ca/bestyou/life-and-work/how-diy-can-make-you-happy/>
[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: <https://www.everydayhealth.com/skin-beauty/what-are-natural-skin-care-productsare-they-better-you/>
[Accessed 8 December 2020].
2020. [online] Available at: <https://www.theskincareclinic.com.au/mental-health-affects-your-skin/> [Accessed 11 December
2020].
Chinadaily.com.cn. 2020. How Cosmetics Were Created In Ancient China. [online] Available at: <https://www.chinadaily.com.
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: <https://lovelygreens.com/plants-flowers-herbs-for-skincare/>
[Accessed 15 December 2020].
Designer-eu01.onair-appbuilder.com. 2020. ON AIR | Appbuilder. [online] Available at: <https://designer-eu01.onair-appbuilder.

Perfectcorp.com. 2020. Beauty AR Company And Makeup AR Technology Platform. [online] Available at: <https://www.perfectcorp.com/business/products/ai-skin-diagnostic>
[Accessed 11 December 2020].
Bellus 3D App
Customer journey
Meltwater. 2020. Die Customer Journey | Der Ultimative Guide. [online] Available at: <https://www.meltwater.com/de/blog/
b2b-customer-journey-mapping> [Accessed 19 December 2020].
Reason to believe
2020. [online] Available at: <https://www.theskincareclinic.com.au/mental-health-affects-your-skin/> [Accessed 11 December
2020].
2020. [online] Available at: <https://www.theskincareclinic.com.au/mental-health-affects-your-skin/> [Accessed 11 December
2020].
Business model
Reasonstreet.co. 2020. Business Model: Razorblade | Reason Street. [online] Available at: <https://reasonstreet.co/business-model-razorblade/>
[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