“Two Brands, Two Websites, You’re in for a Disaster” | Dragons’ Den

next up a Londoners Sarris light home and Beth Chilton the pair are pitching their fledgling fashion business and have designs on one dragon in particular global clothing tycoon touka Suleiman I think we're a bit of to time and just because of his great manufacturing contacts I think you'll really get our products and understand our products and pretty the dragon that can identify with our business the best [Music] [Music] hello dragons my name is Sarah and smoke business partner Beth we're here today to pitch for seventy eight thousand in return fifteen percent of our company Ivarsson and sage with a combined 13 years of experience between Sarah and I in the fashion industry we really noticed to emerging gaps within the high street market one being that there's no brand or retailer solely focusing on fashionable yet affordable work wear so we created Ulta and also as a range of kind of trend pieces ranging from like shirts the Blazers to trousers to jumpsuits or that little fashion edge to it to bring it to life and the other that no occasion wear brown is really focusing on beautifully embroidered pieces hope naívi is brand I've always dreamed of creating especially my passion for printer and embroidery we stashed our business in October of last year and within four weeks we had our first order 130,000 pounds with online retailer a sauce that was swiftly followed by a second order over 120,000 pounds again with a sauce it's been five months since our first orders went in and it's been a complete whirlwind and since then we've grows five hundred and thirty thousand pounds worth of sales and we're currently about a twenty eight percent profit margin with that and to top off next and Lipsy and now really interested in taking on alter for the autumn winter season so that's a little snapshot of us and our brands and we welcome you to come and have a look at the product if you want a model pitch from saris light home and Beth Chilton who are seeking 78,000 pounds for a 15% stake in their profitable fashion range dipper and Sarah I know that a positive early reaction to the product from Deborah Medan and Sarah Willingham but will the business be on trend for Peter Jones when they first came in and I saw this I have to say I thought they were quite dour colors as my first impression and then you started taking through the figures of the business and its outstanding the success you've had so quickly thank you okay half a million pounds in just five months can I firstly know a little bit more about your backgrounds well I studied fashion at uni and then I worked at a source actually for three years my degree was in fashion management and then from there I went to Topshop went to a kind of start at brand and then that's where we met we just went you know what if we don't do it now we'll never do it and if they're going to do it we're gonna go as fast as possible and get it and achieve as high as we can the figures are a fit for Peter Jones now Sarah Willingham wants to get to grips with how they plan to spend their investment [Music] why 78 it's quite a specific number it's basically it's helped put bit more money into the cash flow and then just help with our overheads and then we want to start a bit marketing if we could spend about 28,000 pounds on marketing but when we say marketing in our industry it's all about bloggers you know bloggers are bigger than celebrities and if you get the right bloggers you know Instagram that girls love to follow when you just kind of capture the bloggers at the girls like okay so that's the idea of growing the brand you become known for who you are and people come direct to your website to do it so far the entrepreneurs haven't put a foot wrong impressive turnover and those all-important industry credentials but the fashion forward talk has left greetings card guru Nick Jenkins feeling out on a limb no actually I have to say it looks like it looks like you've done a great job of setting up a really good business but I just I just have no knowledge of this sector whatsoever so I'm afraid I I know what is what you want is experience and I can't really offer that in this case but wish you all the best luck bye now okay thank you that was quick wasn't it very quick to the point a swift exit from Nick Jenkins citing lack of industry insight but it's the dragon with global fashion form who Sarah and Beth set out to impress I'm a retailer I'm a manufacturer mm-hmm we fabric source will you everything so I know all the pitfalls you've got lots of energy you're very credible you've got one customer you've got a sauce as your main customer mm-hmm so your biggest risk and then the moment is your relationship that you've got at the moment is with particular buyer yeah and if for instance that buyer gets moved on to another department yep they're in trouble the retail is very tough at the moment you know it's very tough out there it is the worst retail period the industry's known for 40 years this is not unique I think you've been lucky after now [Music] a shock reaction from the textile tycoon who is underwhelmed by their designs and critical of their customer base has it left Pizza Jones questioning his earlier optimism Luke has been in this game for a long time probably most of his adult life what I heard him saying was that you haven't done very well and actually anybody could do this mm-hmm but I didn't hear you defend yourself and you're almost accepting of it it's just kind of we do we wouldn't have come to you guys if we feel that we're selling a product that's not worthy of being sellable we know that it's selling well people want it they want it now I don't think it was lucky if anybody's gonna make this business work you've got all the stuff inside you can do it so I you know I don't think it's luck so I'm gonna ask you a different question what's your you know who who do you want to roll out to I always say I always want the top you know the top six people we're going for next I want that list on that wall because we should be working our way through it so what's your plan we wanted Lipsy and we're going to lipsi annex that's next and then I think very and then maybe even looking at the higher end of the market maybe like net port a and then even looking like internationally retailers like solando Loa like nasty girl would love all the embroidered kind of pieces we try to create - amazing amazing brands the fashion industry duo deftly deal with Deborah Medan but it appears they have a long way to go before touka Suleyman is satisfied you're not focus you've got two brands that you're gonna double your costs of marketing you're gonna double your costs of website you got a double all your costs you're a startup and already you're you're you're stretching yourselves very wide you but you're better off focusing on one brand I don't know how we can stop something that's doing so well that's why we really want most and they're both succeeding so what I've seen it before and to me to brides to websites you're in for disaster the blows just keep on coming as touka suleiman makes another damning assessment of Beth and Sarah's business will the retail tycoons criticism exert any influence over fellow high street magnate peter jones uh this is very very difficult to has made some really good points hasn't he yeah he knows the industry really well so that those sort of points have a major influence on me um I was waiting to see whether he's being cleverly tactical by just talking and it's just noise and putting it off and then but regardless we are clearly all individuals and we make our own decisions I have a business that if you've heard of Farrell or come across Farrell with Robin Williams I own half of that company we sell millions and millions of pounds worth of product and it's the most successful brand in Primark even with what tucker is saying if I invest could I make a difference and could I do almost what Tudor is describing is potentially impossible and help you turn this into a great business [Music] I think I can Wow thank you so I'm gonna make you an offer because I think you have done a great job so I'm gonna offer you all of the money for 25% of the business Peter Jones revelation of a stake in a profitable high street clothing range wrong-foot touka Suleiman he's offering all of the money but for 10 percent more equity than the entrepreneurs wanted to give away his Sarah Willingham poised to up the ante similarly to hasn't completely put me off I mean I've heard everything he said and thought but look at the last five months please it's really really good so I am also going to make you an offer and I'd be very happy to split it with another dragon I'll make you an offer for all of the money for 25% uh-huh but as soon as you can pay that money back I'm very happy to drop back down to 15% that you originally came in and asked for Wow Sarah Willingham joins Peter Jones in dismissing touka Suleiman steer offering the entrepreneurs a buyback deal that matches their preferred 15 percent stake Deborah Medan has yet to declare her hand will she raise the stakes even higher I do not pretend to compete with the knowledge to my right or even Peters more recent knowledge I can bring in the fashion expertise but I won't pretend to have the same set up that these guys have got so for that I'm going to offer you all of the money for 20% of the business okay thank you okay oh and I'm happy to share a collection of deals to choose from but it's the dragon with over 40 years experience in global retail Beth and Sarah came to bag so far he's lambasted their labels and bashed their business model time to find out if he's been playing the den all along okay I know what's involved I know what you need and it's gonna take a lot of time a lot of energy to make this into a proper business yeah I think the 78 Grammys not going to go very far I'll make you an offer for all the money but I want 40% strategic play from Tuco Suleiman finally the entrepreneurs get an offer from the dragon they came for but his expertise comes at a cost 40% of the business will this ultimately be too high a price to pay for the design doer it's a tough call for dragons at Sarah and Beth's disposal Sarah Willingham's offering 78,000 for a 25% stake and a buyback deal Debra Medan wants 20 percent of the business for the same cash and Peter Jones offers his own fashion expertise in exchange for 25% of the business considerably less than the 40% that High Street clothing magnate Tuco Suleiman is seeking so like to see Peter you go in with Debra that's all on the offer and that is that my 25 percent to 12 and a half percent each yeah and then if we hit our targets would you lower that to then 20% and when we repay you back to your original investment so I'd end up with 10% yeah to be clear though that would mean that I would give you half of the money for twelve and a half percent and when I'd received that money back I would drop down to ten percent and likewise over Deborah I would accept that offer if Deb really happy I'd be happy to be delighted to actually we got a deal [Applause] we do this now we're in business together Sara and Beth exit the den having deftly negotiated a competitive deal with not one but two dragons - I knew you were up to something I knew you were gonna make an offer when tip was kind of really questioning it maybe doesn't believe in where we are today well done however there's a lot of work to be done sorry I stopped up by however where's Peter and Deborah's reaction was just great do you drag them to Jack ins yeah you you

Channel: Dragons' Den

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Keywords: dragons den, dragons den best pitch, dragons den worst pitches, dragons den fight, dragons den argument, dragons den biggest investment, dragons den 2021, dragons den rejects success stories, dragons den pitches to riches, dragons den sara davies, dragons den biggest deals, dissection, surgery pitch deborah meaden, dragons den bbc full episodes, itae group dragons den, dragons den fashion designer, dragons den fashion pitch, touker suleyman, asos dragons den

Id: 1_DxfippezM

Length: 15min 53sec (953 seconds)

Published: Fri Jun 04 2021