T x U D e s i g n M a n a g e m e n t 2 0 1 0

The purpose of this document is

to have a general and specific

understanding of the business

opportunities that TxU garments

have in the Market.

State of the Art

“If the fields of electrical engineering and textile science were merged, a whole new range of exciting opportunities could emerge.”

So what is Smart Textile?

Cutting edge innovative textiles – electroluminescent, nanotechnology, wash and wear fabric that can react to changes from mechanical, thermal, chemical, magnetic and other sources.

State of the Art Smart Textile history

  The Need - Late 1990’s as a consequence of people’s dependency on mobile devices and emerging need for flexible electronic, lightweight equipment

  The Result - Smaller and more powerful electronic components - Interactive textile products – partnership between apparel and electronic companies

  The Goal - Develop smart clothing possessing functions of computers: - Ability to store and manipulate data - Display images, text and video - Connect to the Internet

Smart Textile becoming a trend The trends in skiing, golf and extreme sports has created a niche of smart and interactive textiles that can enhance a garment’s performance and it’s wearer’s experience.

What’s Out There?

Philips Techie Tees

• Uniting LED tech with simple tees

• Emit vibrantly colored messages, images and animations

• Batteries and electronics are easily removable and re-attachable for cleaning.

T-shirt

Kerri Wallace Exercise Heat as Body Art

As you heat up, the Thermo chromic ink disappears, and the Thermo chromic Liquid Crystal ink becomes colorful.

The combination reveals a color spectrum—ranging from clear to turquoise to black—based on your body heat and heart rate.

T-shirt

Water-proof and high technology performance

• Resistant to a 20m column of water

• Removable hood lined in coyote fur

Interactive Jacket Paul & Shark Multifunctional with iPod & Bluetooth connection

Jacket

The jacket has specially designed pockets to hold an iPod flatly in place.

• iPod holder disguised as a tailored suit

• Special fabric touchpad that runs vertically along the breast label inside, allowing you to turn the iPod on, control the volume, skip forward or back, and auto-lock the device

Jacket

Celio Club Suit

Leah Buechley Let Your Jacket Speak for You

Button on the right and left wrist that

once pushed the respective side arrow on the back of shirt is activated

Jacket

Know-Where-Jacket (Germany)

• MP3 Player

• Bluetooth headset/hands free profiles

• Active GPS antenna integrated on the shoulder

• Telit GPRS modem GM862 for data transfer

• Textile switches on the sleeve to control the system

• Alarm button for emergency calls

Jacket

Effloresce: Interactive raincoat with embedded weather forecast technology

Created by: Sheila Tse & Ellie Lim

LED lights, weather forecast technology, hydrochromic ink, wire, water resistant fabric, silk screen

Positioning

Low Tech

High Tech

Technical /Sport Lifestyle/Fashion

Market Gap

Sailing Clothing Store

Heavy Duty Workwear & Work Clothes for Construction

Marmot (dry, anti perspiration, light)

Northface (Hydorgen Jacket)

Adidas 1 Shoe (self-adjustable)

Nike + ipod kit (displays info)

Motion Responsive Sportswear

Market Gap

Norwegian Rain

AIQ

Effloresce

Persona

early adaptor understated cool materialistic lifestyle travels works high education environmentally conscious high income healthy function = form sport-looks active

Travel aesthetic place change of climate multifunctional easy to pack (compact)

Moto reflective cooling & warming protective helmet

Sailing water/wind proof tempertrature controlling inflator

Outdoor waterproof sweat odor wind resistant uv protective protective (hardens when hit)

Partying fire proof brand bars culbs festivals house parties stain proof odor proof stylish attraction or repel bullet proof

in the city art/tech party active online blog network car/moto bmw uber-sexual freelancer/owns own business easy going cool dude single extensive social network exclusive shops (black label) intellectual fashion

persona.

Bruce. . . . . . . . . . . I was born in 1975, I grew up in middle to high class family. Throughout my schooling I attended public

schools until university, where I studied business at Wharton business school at Penn an IVY League

university. I lived abroad in Milan, Italy when I did a

semester on exchange.

I consider myself an entrepreneur, I started my own company after I graduated from Penn. Today

my company and I are based in LA. Partly due to its proximity to Asia and the South Pacific and Europe.

LA is attractive not only for its global positioning but it’s good weather, beaches, diverse range of cultural expressions, social life and general active way of living.

Traveling Light | Isaac Reina Edition de Sacs

Mood boards to visualize persona’s aspirational context, brands of reference, etc

Weekday 7am - noon

morning jog sweat allot

Wakes up shower breakfast/online paper business meeting over coffee and use perfume to cover smell

Noon – 7pm

drives to the office to organize his week and tried to talk with assistant While driving a car

signs an important deal over lunch at a new oriental fusion restaurant.

heads back to the office to have his weekly meeting with his employees

attends the newly opened world press photography exhibition and forget to get the pills in the bag. He has not have enough pockets to put.

meets some friends that are in town for business, meets them at a local organic cheese and wine bar.

drives home, watches the late night news falls asleep around 1am.

Weekday 7pm - midnight

meets his best friend at their favorite breakfast place. arrived in late last night from a European business trip wakes up slowly

Saturday 10am – 1pm

goes for a walk along the strip browsing through stores and galleries but the weather Is so hot, he sweat allot and disturb from sun. He has to change the clothes

goes home to relax and have a ‘siesta’ and take a shower before he goes out

meets the boys at the ‘lo*’ to have a few beers and watch the Lakers game,

1pm…

He is in Purple magazine party , but forgot his invite!.

Persona profile (including attitude towards fashion and needs). Key emotional attributes that characterize those basic garments for him.

comfort

quality

multi purpose

design element

value for money safe

confident

protected

always appropriate

Attitude:

appreciates fashion (high elements of design and innovation)

fashion is not about being flashy or overstated but understated cool.

garments have to have some added value be it a conversation piece or intimate attribute.

Has irregular shopping habits, mainly shops when he has the need for a new garment, but will purchase sporadically.

emotional attributes needs in garments

Design Concepts

Raincoat An#bacterial  

Thermal  regula#on  Stain  proof  Water  proof  Interac#ve  Predict  rain  

Change  color  in  rain  Transform  func#ons  

Extend  to  protect  others  Dark  condi#on  ligh#ng  Community  brand  (NFC)    

Jacket  An#bacterial  Easy  care  Odor  free  

Thermal  regula#on  Secrete  /  safe  pockets  

Stain  proof  Water  proof  Interac#ve  

Do  not  wrinkle  Phone  sensi#ve  

Community  brand  (NFC)

T-shirt An#bacterial  Easy  care  Odor  free  

UV  Protec#on  Perspira#on  protec#on  

Interac#ve  canvas  Air,  oxygen  and  recovery  Community  brand  (NFC)    

Near Field Communication Near Field Communication (NFC) is a new, short-range

wireless connectivity technology that evolved from a combination of existing contactless identification and interconnection technologies. Products with built-in NFC will dramatically simplify the way consumer devices interact with one another, helping people speed connections, receive and share information and even make fast and secure payments.

•  TxU Community Link.

•  Authenticity Imbedded information.

•  Added Value.

•  Copy rights

T-shirt

Antibacterial

Perspiration protection

Interactive canvas

Near field communication

UV Protection

Jacket

Near field communication

Phone sensitive

Secret / safe pockets

Stain proof

Thermal regulation

Near field communication

Transforms functions

Thermal regulation

Dark condition lighting

Raincoat

Key Experience Scenarios

Situations in which our designs will play

a key role and therefore build an

emotional link with our persona i.e. First

date with a very good looking girl on

Friday night, chose those situations

that will make our clothing become

key to our persona.

Temperature Self-adjustment

It was a warm sunny day when Bruce went out of his house. He grabbed his TxU jacket because he knew it will keep him cool. Out of nowhere, the weather went bad and the temperatures went down. Bruce had nothing to worry about, he was glad his TxU jacket can also keep him warm.

Downtown L.A.

TxU Community Bruce and his friends want to go out for dinner and drinks but they haven't made reservations anywhere. For them, waiting in queue is not an option. His friends do not now what to do but Bruce knows that by wearing any of his TxU garments he can access the best VIP TxU community places in the world.

NFC

Secret Pocket Bruce has a client meeting right after a lunch date. He has a couple of important documents and checks he needs to take with him. To avoid traffic, he is taking his motorbike and doesn’t want to carry a briefcase. Bruce knows he can trust his special TxU garment with the the safety pockets feature.

Interactive Canvas

Bruce enjoys expressing his moods and style. In summer, and with only one layer of clothing to wear, Bruce finds the TxU t-shirt amusing and stylish at the same time. He can upload any image that suits his mood and style for the moment and can change it to express all that’s on his mind!

After a long day, Bruce enjoys a night jog to disconnect and refuel. Some of the roads around the area are not well lit at night but Bruce feels safe with his TxU garment that has dark-conditions lightning feature so cars can easily spot him from distance.

Dark Conditions lightning

Interactive control panel

Bruce has been having a hectic day and needs to call his assistant as he runs to reach an important meeting. He is already late and needs to multitask! He connects his mobile phone to his TxU garment and makes a call without using his mobile phone as he reaches for his keys to start up the car.

Providers/Suppliers

Thermal regulator

Stain & Water proof

Odor free

Safety Pocket

Material Diagram

Prototypes, pattern & technical information

Location Galicia, Spain

They offer -  Reference -  Adapt to clients concept -  Prototype confection -  Design, patterns, technical info

Location Terrasa, Barcelona

They produce Consultancy company, they add technological value to products

Run Production

Location

Paços de Ferreira, Portugal

They produce Fashion, technology, lingerie, olympic sports

Location

USA / Asia / Dominican Republic

They produce Medical, sporting, safety, military, footwear

Pricing

Assumption: Unit Cost ($): 80 (incl. customization cost) Gross Margin (%): 76% Annual Sales Revenue ($): 1 million

Pricing method: Using gross margin to calculate price Selling Price x (1- required gross margin) = cost

Simulation Result: Unit price ($): 333 (average market price of T-Shirt, raincoat and jacket) Total Unit Sold: 3,000 Annual Total Gross profit ($): 0,76 million

Pricing

Pricing

Visibility of market share in the US:

Estimated US population of 25-64 male with income 75k+ (2005) 18,660,346

Expected market share (%) 0,017%

Expected total unit sold 3,172

Market Analysis

New Markets

Existing Markets

Existing Capabilities New Capabilities

Market Positioning

Penetrate existing market by providing high fashion and smart textile apparels

The market for smart textiles is one of the most dynamic and fast growing sectors and offers huge potential for companies willing to take the plunge.

Opportunity

Organizational Structure TXU

Vision & Mission

Vision To be a leader bringing to the fashion market unique collection of quality and intelligent garment wears that are priced fairly and satisfy people’s needs and desires.

Values Innovation Design Experience

Our mission at TxU is to integrate high fashion design and smart materials into a collection of basics. We aim to redefine the lifecycle of fashion garments, while creating a memorable and positive brand experience and lifestyle community for all TxU customers.

Mission

Channel Distribution

Online or Offline?

Both...

Offline Distribution

Niched concept stores...

Hotels - contemporary campaigns...

Information rich garments... (benefits from a extensive store display)

PR/Media friendly... Awareness (editorials, cool-hunters, bloggers, etc)

Concept Store...

Instant access to valuable client data... (Client trust + the right consumers = Txu Delight)

Positioning the Txu brand...

+

Surrender control to the retailer...

Question-marks...

Season based cycles...

Low volume...

-

Specific sites:

Avant-garde and design hotels

in Strategically selected cities

Plan:

To place our products in chosen

hotels

- shop inside hotel

- product brochure in each

guest room

- promotion in reception

Expansion:

The channel via design hotel

can be expanded to other

cities in the future

Hotels

Barcelona Hotel Omm Rosello 265 http://www.hotelomm.es/

Hotel Eurostars Angli Angli 60 http://www.eurostarshotels.com

987 Barcelona Hotel Mallorca 288 http://www.987barcelonahotel.com/

Suites Avenue Angli 60 http://www.eurostarshotels.com

Miami Beach

Delano South Beach 1685 Collins Avenue http://www.delano-hotel.com

Setai Hotel 2001 Collins Avenue http://www.setai.com

New York City Rivington Hotel 107 Rivington www.hotelonrivington.com/

Hudson Hotel 356 West 58th Street www.hudsonhotel.com/

London Saint Martin’s Lane 45 St. Martins Lane www.stmartinslane.com/

The Hempel Hotel 31-35 Craven Hill Gardens www.the-hempelhotel.com/

The Reason why

Direct exposure to target clients

Direct exposure to target clients who travel, spend money on luxurious goods

Direct exposure to trend setter

International clientele exposure

Awareness

Challenges

Partnership establishment with hotel

Endanger of brand image

+

-

Design Hotel

Online Distribution

TxU.com Or Multi brand?

Both...

Online Multi brand

Existing client database...

Consumer insights...

Convenience & Growing...

Ease of display and global access

+

Online Multi brand

Less control...

Internet is a “noisy” place...

Mixed with many competitors...

-

ENTER TXU.com

Not season based, (Anti-Collection)

TxU.com

Added value in the written & image content... Design Vs Tech (the story about each garment, story about Txu)

No filter towards the market... (Democratic)

Customization...Pre-order you customized garment

+

Customer Relationship Marketing (customer retention, data & network)

Low awareness of the brand...

Increased responsibility (storage, shipping, logistics)

- TxU.com

Conclusion

Offline Retail

TxU.com

Online Multi Brand

Offline Retail

Combination is KEY

TxU.com

Online Multi Brand

Positioning

Branding

Awareness

Control

Potential Volume

No filter

Market

Convenience

Clients

Advertising and Promotion Campaign

increase brand awareness

Below The Line campaign

EVENTS

ensure usage among early adapters

Recommendations

The Concept

User Experience – experiment TxU garments

Launching party of TxU anti collection

Location: major cities: Miami, London, LA, NY, Barcelona

Cocktail & open bar

Personal invitations to the guests – in the form of TxU recognizable brand fabric

brand placement within big music events/concerts

proposals Rooftop pool party

Downtown LA

Santa Monica, CA

NYC

proposals Yacht party

Create Brand Awareness & Promote Loyalty

The TxU City

“Integrated with garments”

Access the TxU World...

TXU.com Vs Smart Phone

Smart phone Application (the TXU world)

TxU City

Txu’s “favorite places”

Get access

Get the treatment

Works with FourSquare geo-locator

Loyalty reward system

Txu World

Reason Why

Community feel

Creates added value for clients (Feel of accomplishment)

Increase “Virality” (Lets the “network” work)

Customer insights

+

Conclusions

Future Projections  The application of high-tech textile science in high design

garment and increasing partnership between apparel and electronic companies will continue to be the trend in fashion market

 Initial focus on product line for male consumers at start-up stage in order to build TXU community and brand recognition in the market

 Opportunistic expansion into women market

 Expansion into main stream clothing when the production cost is reduced by improved technology

 TxU becomes a lifestyle offering memorable experiences

T x U

T x U RECOMMENDATIONS

 Anticipate trends and users’ desires

 Develop more extreme clothes to special customers

 Provide options for product customization

Thank you

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