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Products and Services
We intend to sell all product categories manufactured by Ami James Ink with an initial focus on the diverse apparel categories.
Denim
We currently offer both a men’s and women’s line of jeans and pants.
T-Shirts and Tops
The T-shirts and Tops represent the most artistic diversity of all our product offerings.
Caps, Beanies and Accessories
Footwear
Ami James Ink has pre-existing collaborative footwear pieces in the market which will provide a springboard for the Company to expand its footwear line with Ami James designed exclusive footwear and new licensing options that exist.
Seasonal and special edition items
Periodically, opportunities exist whereby corporations have retained Mr. James to develop special edition or limited edition products. Such is the case with Hummel for sneakers, Motorola unveiled an Ami James limited edition Razr phone in 2013 and custom designed motorcycles have also been crafted
Consumer Direct Segment
Our Consumer Direct segment sells our products from our e-commerce site, www.amijamesbrands.com. We accept and fill all customer orders received through our website internally. Additionally, we will focus and dedicate resources to expanding brand awareness through both social media and traditional online brand awareness strategies will be implemented. With Ami James work with prominent tattoo portals and an established social media presence the online growth will be a major source of growth. Statista projects US online apparel and accessory revenue to exceed 86 billion by 2018.
Market Overview
In 2012, The Harris Poll did an online poll of 2016 adults and currently one in five U.S. adults has at least one tattoo (21%) which is up from the 16% and 14% who reported having a tattoo when this question was asked in 2003 and 2008, respectively. Tattoos seem to be most prevalent in the West — 26% of adults in that region report having at least one — compared to fewer in the East (21%), Midwest (21%) and South (18%). Adults aged 30-39 are most likely to have a tattoo (38%) compared to both those younger (30% of those 25-29 and 22% of those 18-24) and older (27% of those 40-49, 11% of those 50-64 and just 5% of those 65 and older). Women are slightly more likely than men, for the first time since this question was first asked, to have a tattoo (now 23% versus 19%). IBIS World estimates the tattoo industry to be the 6 th fastest growing retail industry with an estimated 3 billion dollars in revenue and over 147 million Google searches a month. It is the crossover into mainstream fashion and apparel that provides an even greater market opportunity.
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The diversity of product categories within the apparel industry will allow Ami James Brands to follow consumer trends as they pertain to demand.
Retain/Wholesale Segment
Currently our products are sold at all 5 tattoo shops operated by Ami James. Currently, tattoo studios are operated in Manhattan, Miami, North Carolina, Brazil and the UK. This account along with other retail accounts will be managed by the Company. There is a central showroom in the fashion district of Los Angeles, which allows retailers and wholesalers to see seasonal fashions.
Core Services Segment
The Core Services segment provides product design, distribution, marketing, e-commerce and other overhead resources to the Wholesale and Consumer Direct segments.
Design and Product Development
Mr. James is our principal designer and leads the vision of the Company. We do not currently have a formal research and development effort but we intend to continue to develop new merchandise styles for each seasonal collection. The development of our products from concept through manufacturing is engineered to be not only fashionable but durable as well.
Sources and Availability of Raw Materials
The fabrics used in our products are sourced from fabric manufacturers located in throughout the world. Although we do not currently have any long-term agreements in place for the supply of our fabrics, threads or other components, such high quality fabrics are currently readily available from a number of suppliers, including mills located both in the United States and abroad.
Quality Control
Our quality control program ensures that products meet our high quality standards. Random inspections of our products occur when our products are received in our distribution center. We believe that our quality control policy is integral in maintaining the quality, consistency and reputation of our products.
Distribution
We intend to expand globally through new and established distribution channels including wholesale, retail, e-commerce, concessions, and franchise and licensing agreements to further expand global brand exposure and new opportunities to increase sales revenue.
Marketing
We intend to manage and incubate new and innovative products and brands within and outside of the human artistry and apparel markets. With the first portfolio brand having an established name and existing infrastructure the focus of Ami James lies primarily in managing and expanding the brand. Brand expansion and sales are often correlated therefore existing accounts of the licensor will now be managed by the licensee. We market our products to domestic and international wholesale customers by participating in industry trade shows around the world and through our e-commerce website, we also maintain an active social media presence. Our marketing and public relations strategy is designed to communicate the signature design aesthetic and lifestyle of our brand. Mr. James oversees every aspect of our marketing, which allows us to set the tone for integrity, consistency and direction of the brand image worldwide.
Our marketing consists of a variety of channels including: national and international print advertising, strategic outdoor advertising, in-store advertising, digital advertising, guerilla marketing, involvement in the art community and social media. This mix of media and channels is designed to support the brand's growth across diverse consumer groups and markets.
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Business Strategy
Over the next five years, we anticipate that our growth strategy will focus on the following five key areas:
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Increase Global Wholesale Sales
We aim to expand our Wholesale segment by employing three key showrooms at global trade shows that we participate in, with the intention of further penetrating the Asian, European and American markets. The trade show circuit operates in conjunction with the global fashion weeks (Milan, Paris, London and New York). We believe that increased involvement in trade shows will enable us to further expose the brand, explore a larger sales field and develop new relationships with retailers, which will potentially lead to increased revenues and greater brand awareness.
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Invest in Online Development and E-commerce Activity
We currently offer a globally accessible transactional website, www.amijamesbrands.com, which allows anyone with Internet access to purchase our products online. We are currently working with a website developer to make key operational advances to our website such as development of user-friendly operations and layout improvements. Further, we intend to present a greater number of products on our website and expand into further marketing techniques such as affiliate marketing and advertisement opportunities.
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Establish Stores and Seek Partnership Opportunities
We feel that the introduction and expansion of our own stores will allow for stronger brand positioning and increased exposure.
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Diversify and Expand our Product Portfolio
We will continue to expand and strengthen our current product portfolio while exploring opportunities to diversify into new product categories within a ready-to-wear line. We believe that diversification engages new consumer interest and enables the brand to benefit from a proactive and developing brand image while stimulating revenue from increased buyer interest and awareness of the brand. Furthermore, we anticipate that expansion of our collection will enable wholesale activity to flourish as well as increased online sales.
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Expand our Team
Our team will rely on industry specialists with varied skills and backgrounds who engage in overlapping roles and responsibilities for different segments of our business. In the next five years, we aim to increase the number of direct in-house employees to five people. Further, we intend to allocate a specific area(s) of our business strategy to a specific employee or employees and will focus on developing that employee’s skills in that area of responsibility. Such areas of responsibility will include sales, website and social media, design and production, marketing, public relations, administration, finance and product development. The expansion of our team will allow for focused development of all areas of our business.
Intellectual Property
The “Ami James” and “Ami James Ink” brands are trademarked in the United States. Additionally, the company intends to file and prosecute additional trademark applications as may be deemed necessary for the expansion of our business. Generally, our trademarks remain valid and enforceable so long as we continue to use the marks in commerce and the required registration renewals are filed. We consider our trademarks to be valuable assets in the marketing of our products and seek to protect them from infringement worldwide.
Employees
We currently have no employees.
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Competition
The overall tattoo and human artistry market is very fragmented. Very few national, recognizable brands exist within the industry Tattoo artists typically operate small boutiques that rely on foot traffic and word of mouth. While the industry has gained more mainstream acceptance brands such as Ed Hardy have greatly benefited in the apparel and licensing spaces as envisioned by the acquisition of Ed Hardy by powerhouse Iconix Brands (ICON:NASDAQ). With the lack of national brands offering tattoo based lifestyle products the overall completion for Ami James brands is very fragmented and leaves opportunities for growth within mid-tier companies.
However, there can be no assurance that even if we do these things we will be able to compete effectively with the other companies in our industry.
Our competitive strength will depend on our ability to:
• anticipate and respond to changing consumer demands in a timely manner;
• maintain and increase favorable brand recognition;
• develop and produce high quality products that appeal to consumers;
• appropriately price our products;
• maintain the high quality of our products;
• ensure product availability;
• expand our product portfolio;
• add members to our team who possess the skills, know-how and desire to help us succeed;
• maintain an active role in the fashion industry;
Reports to Security Holders
We are required to file annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission and our filings are available to the public over the internet at the Securities and Exchange Commission’s website at http://www.sec.gov. The public may read and copy any materials filed by us with the Securities and Exchange Commission at the Securities and Exchange Commission’s Public Reference Room at 100 F Street N.E. Washington D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the Securities and Exchange Commission at 1-800-732-0330. The Securities and Exchange Commission also maintains an Internet site that contains reports, proxy and formation statements, and other information regarding issuers that file electronically with the Securities and Exchange Commission, at http://www.sec.gov.
Employees
As of June 30, 2013, we did not have any full-time or part-time employees. Our sole director and officer works as a part-time consultant and devotes approximately 20 hours per week to our business. We also retain consultants for the design and construction of our planned website. In the next 12 months, we intend to retain marketing and advertising consultants on a commissioned basis to assist with growing the membership of our planned website. If our financial position permits, as required by our business, we may enlist certain individuals on a full or part-time salaried basis to assist with marketing, advertising, administration and data management for our business. The functions of our website will be primarily automated, and we intend to structure our operations to function with as few full-time employees as possible by outsourcing most job functions. We do not expect our staffing requirements to exceed 24 people within the first three years of operations.
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