Key Points:
Investment: No deal was made.
Investor: N/A
Equity Offered: 7.5%
Business: ChicSport - Activewear for figure skaters
Target Audience: Figure skaters, primarily in North America and the UK
Challenges:
- Limited market knowledge
- Need for fabric quality improvement
- Market size concerns
The Pitch, Financials, and Offer
Jenna McCorkle, a former Olympic figure skater, entered the Dragons' Den seeking a £100,000 investment for 7.5% equity in her company, ChicSport. Leveraging her 20 years of experience in the figure skating industry, Jenna identified a gap in the market for high-quality, figure skating-specific activewear. Her unique selling point is the incorporation of cut-resistant panels in leggings, designed to withstand the sharp blades of skates.
ChicSport launched at the 2017 World Championships in Helsinki, Finland, and has since sold over 30,000 products, achieving a gross profit of £889,000 and a net profit of £305,000. For the current year, the turnover is £540,000 with a net profit of £123,000.
Jenna's pitch included showcasing products modeled by Natasha Mackay, the current British champion, emphasizing the brand's practicality and innovation.
Challenges Highlighted by the Dragons
Several Dragons expressed concerns during the pitch:
- Market Size and Reach: Touker Suleiman and Peter Jones questioned the scalability of the business, pointing out that if ChicSport is the leading brand with a turnover of only £540,000, the market might be too small. Jenna admitted that the UK has fewer ice rinks compared to North America, indicating potential growth opportunities there.
- Product Quality: Touker Suleiman also critiqued the fabric choice, suggesting that higher quality materials, like nylon, would be necessary to succeed in the US market.
- Market Knowledge: Deborah Meaden noted Jenna's lack of detailed knowledge about her competitors and the overall market size in North America, which raised concerns about her preparedness to expand internationally.
- Trademark Limitations: Peter Jones pointed out a significant issue with trademark restrictions, limiting ChicSport to the figure skating niche and preventing expansion into other activewear markets.
Conclusion
Despite receiving praise for her entrepreneurial instincts and the solid foundation she has built, Jenna McCorkle left the Den without securing the £100,000 investment. The Dragons collectively advised her to enhance her market knowledge, improve product quality, and explore strategic partnerships or ambassadors to penetrate the North American market.
Jenna remains optimistic, buoyed by the Dragons' feedback and support. She believes in her vision and is determined to grow ChicSport into a global brand for figure skaters.