Key Points:
- Investment: £70,000
- Investor: No deal was made
- Equity Offered: 15%
- Business: Love Rose Lingerie, a luxury lingerie brand for post-operative breast cancer patients
- Target Audience: Women who have undergone breast surgery
- Challenges: Highly competitive market, high production costs, and a niche market segment
The Pitch
In a recent episode of Dragons' Den, Caroline Kennedy Alexander and Sarah Bell Jones presented their luxury lingerie brand, Love Rose Lingerie. The business aims to provide stylish, high-end lingerie for women who have undergone breast surgery, filling a gap in a market dominated by functional but unattractive medical brands. Named in memory of Caroline's sister, the brand offers bras designed to restore confidence and femininity. The entrepreneurs sought £70,000 for a 15% equity stake.
Financials and Offer
Caroline and Sarah revealed that their bras, which retail between £85 to £90, cost around £29 to manufacture. Since their launch in September 2020, they had achieved modest sales of 7,600 units. Despite the emotional appeal and thoughtful design of their product, the Dragons raised concerns about the financial viability and scale of the business.
Challenges Highlighted by the Dragons
The Dragons expressed several concerns:
- Market Size and Competitiveness: Touker Suleyman pointed out the difficulty of building a brand in the competitive fashion industry, especially with high production costs and a niche target market.
- Product Pricing and Accessibility: Sarah Davies and Debra Meaden were skeptical about the price point, suggesting it might be too high for many potential customers.
- Lack of Intellectual Property: The absence of design patents was seen as a potential vulnerability, reducing the brand's defensibility against competitors.
- Investment Return Potential: Most Dragons felt the market was too small to provide a substantial return on investment.
Conclusion
Despite the emotional resonance and strong personal story behind Love Rose Lingerie, the Dragons were unanimous in their decision not to invest. They acknowledged the brand's potential and the founders' passion but were concerned about the scalability and financial sustainability of the business. Caroline and Sarah left the Den without the desired investment but with valuable feedback and a commitment to continue their mission to support women recovering from breast surgery.