This investment carries considerable risks and may lead to a loss of the entire assets invested. Projected returns cannot be guaranteed and may be lower than expected.
HORANDO is an internationally established online shop in the luxury watch segment. It offers luxury watches, both new and pre-owned, tested by watchmakers, and at highly competitive prices. In its first full business year 2014, HORANDO already achieved a seven-digit turnover and, since its foundation in 2013, marks a speedy and continuous growth.
The Venture Loan by HORANDO
HORANDO is an online portal for luxury wristwatches and has, during the last years, achieved a constantly growing turnover. Last year, the annual turnover amounted to around EUR 2 million. Now we want to grow further with our successful business model. We want to expand into other European markets, and we now are about to create the necessary structures to do so.
In order to raise capital for such growth, we offer a Venture Loan. This is a subordinate loan at a fixed interest rate. The Venture Loan will carry interest at a fixed rate of 8% annually, and has a term of 4 years. Interest will be paid every six months. The loan itself will be repaid at the end of its term in one sum (repayment at maturity or “bullet payment”).
HORANDO, as an online portal for luxury wristwatches, offers special products. For many of our customers, such watches are not just an ornament, but equally a safe way of investing money.
Since its foundation in 2013, HORANDO has built up an international network consisting of approx. 450 contracted suppliers. With the support of these partners we are currently able to offer over 40 luxury brands and around 3,500 different watch models.
The cooperation with the premium manufacturers also functions very well. In a very short time, HORANDO received concessions, i.e. the exclusive rights of distribution, for certain brands such as Alpina and Frédérique Constant, Usually, to get such a concession, retailers have to wait sometimes for years, because, in order to get a concession, retailers must show a high turnover and must have built a trustful relationship with these premium manufacturers.
With 4.9 points out of 5 (Trusted Shops), HORANDO also boasts a high degree of customer satisfaction.
In the Google Rankings and under the relevant search terms, such as “Luxury Watch” or “Buy Luxury Watch”, HORANDO achieves Top 3 positions.
The annual turnover in 2016 was around EUR 2 million. From January to June 2017, HORANDO already achieved 74% of last year’s turnover, namely 1.4 million EUR. The festive season is still to come, which has the strongest sales figures.
Why equity-based crowdfunding?
During the last years, HORANDO used its own cash flow to fund its growth.
Now, in order to accelerate that growth, HORANDO wants to use the support of Companisto. With that additional capital we want to hire new coworkers in the areas of customer service and after sales. In addition, we plan to invest in online marketing and to expand our brand concessions.
HORANDO distributes new luxury wristwatches and carefully selected vintage models, tested, revised and, where necessary, refurbished by our HORANDO partner watchmakers.
This business is divided into three sectors. We have diversified distribution channels and so, address different target groups of watch lovers: Top Brands, Vintage Watches, Watch Finder
The TOP BRANDS are new watches which are listed in the HORANDO online shop. These watches are delivered with complete accessories such as box, warranty card, description, carton, etc.
In the area of VINTAGE WATCHES, we mostly offer pre-owned wristwatches. HORANDO receives these watches from private individuals or established watch dealers / jewelers, and sells them on a commission basis. All such watches are tested, revised and restored to their full splendor by our expert partner watchmakers, and then prepared for sale.
The WATCH FINDER offers HORANDO customers the possibility to query certain special watch models. These may be, for example, limited series, end-of-production models or special boutique editions. Because we have a large international network, HORANDO is capable of covering an additional niche sector here.
The business model of HORANDO is designed for the sale of exclusive, high-value wristwatches.
A customer orders a new wristwatch. This wristwatch is either already in stock - we maintain stocks with our trade partners - or else, it will be ordered from the supplier. For every watch sold, a trade margin is figured in. This margin varies according to brand, model and price.
In addition, HORANDO offers a standardized commission based sale and takes care of the complete end-to-end sales process for private persons and smaller jewelers. In this variant, a provision is deducted from the achieved sales price, plus the cost of repairs (if any), cleaning and polishing, and paid to HORANDO.
The main source of income is the sale of wristwatches to private persons or other end customers (B2C). Especially at the beginning of the year (1st quarter) and at the end of it (4th quarter), we usually achieve the strongest sales figures.
Sales can be divided as follows, sorted according to quarter, region and customer type:
In 2016 we also concluded important partnerships with colleagues from the trade (B2B), whom we supply on a constant basis.
HORANDO, as a team of 2, has already been successful in the market since 2013. We work closely with brands and dealerships and we expand our business continuously. Furthermore, we are able to provide rare, extravagant and limited models, and this creates a lasting bond between HORANDO and the customers.
In addition, HORANDO is approved as an auction house. We supply wholesale businesses both domestic and foreign. We process the entire sale for our customers in the B2C and B2B sectors on a commission basis, from the making of the offer, refurbishment (if needed) until the payment of the proceeds. HORANDO has its own newsletter and informs monthly about news, useful hints and trends in the international watch trade.
Our competitors, are, on the one hand, the established brick-and-mortar watch shops. In the luxury segment, the most well-known jewellery retail companies are arguably Wempe (approx. EUR 530 million turnover) and Bucherer (approx. CHF 1.5 billion turnover), among others. On the other hand, HORANDO, alongside the retailers Chronext (which has a shop in London), Montredo and Watchmaster, distinguishes itself from the brick-and-mortar trade and positions itself as an online portal in the luxury segment.
Similar to Chronext, HORANDO has a showroom in what used to be the premises of a ROLEX retailer. With this, alongside the online trade, which remains our mainstay, we cover a part of the brick-and-mortar trade, too.
HORANDO offers to its customers and trade partners a wide range of services and wants to bind these buyers in the long term.
HORANDO caters to the needs of its customers during all stages of the watch purchase. From entry level up to the creation and expansion of your own watch collection.
We have an international supplier network to manufacturers, distributors and 450 international trade partners, and with this, HORANDO can guarantee a fast, hassle-free and dependable procurement of watches.
Not to be neglected here, is the fact that Christopher and Stefan entertain strong personal relationships with key actors and decision makers in the trade.
Furthermore, HORANDO supplies watches to some of the soccer players of famous Bundesliga clubs as well as to VIPs in business and media.
In addition, HORANDO maintains intensive contact with B2B trade partners, with companies (employee discounts, premiums and suchlike) and with the research sector.
The typical HORANDO customers query exclusive watches, jewellery and luxury accessories in a targeted manner and do not have any qualms when buying such luxury objects on the internet. 80% of our customers are male and between 30 and 50 years of age.
The average HORANDO shopping cart stands at about EUR 5,400 (as of August 2017).
Luxury watches are representative of long-term, value-oriented, sustainable investment. They are thus considered by many as one of the most secure forms of capital investment, and this according to experts is mainly so because of the volatility of the financial markets.
Consider, for example, how the value of a Rolex GMT Master II watch from 2004 developed. It cost EUR 3,850 back then, today it has a value of EUR 7,650.
A wristwatch can have several other meanings, too, besides being an object of investment. It is a status symbol, a lifestyle object. It is a precious gift capable of a lot of symbolic value, and thus is given at occasions such as graduation, promotion and much more.
The market volume for watches and jewellery in Germany totaled EUR 4.73 billion in 2016 and offers enormous market and growth potential. By 2018 the online share in Germany should be over 16%.
It is expected that the ever-growing online business will enable us to grow further in the coming years, to increase our turnover and to generate new customers and new markets.
The proportion of personal luxury products (including luxury wristwatches) in the entire luxury article market is about 25%. We expect that by 2025 the online market volume for luxury articles worldwide will have reached EUR 70 billion.
Ever since its foundation in 2013, HORANDO boasts a continuous growth.
With the funds forthcoming from the Companisto campaign, HORANDO will be able to grow on an accelerated scale, to expand its business and to reinforce its market position.
With its several years of experience in the market, HORANDO now has a treasure of knowledge and knows in which sectors to invest in the future, in order to enhance work processes, to increase public brand knowledge and, most of all, to support its transactions and to increase sales and cash flow.
For this, HORANDO plans to expand its team and to reinforce its structures in after sales, customer management and administration. In parallel, we will start some processes with the aim to make HORANDO known as a brand to a wider clientele and we aim to conclude further international partnerships.
Investment in online marketing, expansion of our distribution system and in product development can be implemented in stages. It is planned to implement the following steps:
Investment Step I: From EUR 100,000
As we reach this stage, we plan to further expand, most of all, our marketing activities (retargeting, search engine optimization etc.), so that we will become more widely known, increase our sales, and gain a large number of new customers.
Investment Step II: From EUR 250,000
Alongside the measures in Step I, we plan to strengthen our team in the Customer Relationships (CRM), Administration and Product Management sectors. The team will support the management and take over some of their tasks, so that new resources will be free for partner and cooperation management.
Investment Step III: From EUR 400,000
Alongside the measures already seen in Step I and Step II, we plan to further strengthen both Marketing and Sales.
Through this support, we can accelerate the planned expansion into other EU countries which we already supply now in the B2B sector.
But we also mean to achieve a better negotiating position with suppliers and partners, which we want to use in order to obtain better terms and more sought-after models.
Dr. Silvio Doering supports HORANDO as Business Angel.
Dr. Silvio Doering is managing shareholder at quattron management consulting as well as director of other companies in the quattron group. Dr. Silvio Doering has many years of experience in mergers, acquisitions and post merger integration, business and investment planning, integrated communication and supplier management. Before quattron group was founded, this top management advisor and licensed lawyer worked with Arthur D. Little International for several years. He was also active in the steering committee of the Treuhandanstalt, the authority that managed East German assets after reunification.
With his network, his experience and his know-how, Dr. Silvio Doering has already been supporting us since 2015 as a company associate. In October 2017 he will become shareholder of HORANDO with a six-digit figure.
Increase our level of brand awareness together - carry the name HORANDO out into the world.
The very existence of HORANDO is based its reputation and the effects of “Viral Marketing”.
We appreciate every positive comment and Like on Facebook and Instagram. Do share our Crowd Investing Campaign in your own private networks, visit our online shop and recommend HORANDO to others.
Together with you, we can make HORANDO even more successful.
Founder and Managing Directors:
Christopher Fischer ( Purchasing / Product Management) and Stefan Sebök (Sales / Marketing / Partner Management)
Horando Deutschland GmbH
Lange Str. 37
96047 Bamberg
Phone. +49 (0) 951 / 519 579 410
Email: contact@horando.de
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