For your reference:
Their expectation of Inter contribution is mainly on sales volume but not a raise in price. And the target price is ~399 RMB (sorry this is different from the 500rmb as Guo told me last time) in any way of marketing for this product series.
The target sales volume is multi-100k, up to 1million units, which is actually far more than that of a regular product.
The fees for Inter they are considering is ~1% of sales revenue. The 2.5m Euro is not within their expectation and would be more than the profit margin they can achieve. Their expectation is product partnership, but not sponsorship.
For this case, Philips is not paying any promotion fees. In partnership with Philips, Suning retail team can define the features of certain product series of Philips men’s shaver products and also (Suning) have to pay the marketing costs.
And if we can do an impressive example case, we may use this case to convince Philips and other brands/products to join and pay more.
Follow up:
1/ a commission rate of ~1% with a minimum (say ~1m RMB) is highly recommended, instead of a fixed high amount. Accordingly, we may reduce the rights for them, given that they only need images on the product and packaging as well as very basic promotion image/or other materials.
2/ if you have plan to come to Nanjing, let’s include a meeting for this in your agenda.
Thanks.