Write a summary paragraph: In about a paragraph, describe what problem you are solving, how many people are experiencing the problem, and what your solution is.
Elderly population in China will reach 221 million by 2015, and around 90% of them prefer to age at home. However, both the public sector and private sector have not established a trusted brand to serve in the elderly home care space. Wrainbo will address this problem by partnering with established home health care agencies in US and local hospitals in China to provide certified professionals to serve the wealthy elderly market, starting in Shanghai. Our high-quality service will span home custodial care, home health care, and community connections. We are confident that we will be able to provide a sustained solution to this huge opportunity as we are a team that possesses multinational business experiences, government and industry relationship, and in-depth industry knowledge.
Tell us more about the problem you are solving. Why is it a problem and how big of a problem is it?
China is joining the world’s aging bus. From 2011-2015, population aged 60+ is growing from 178 million to 221 million, or 13.3% to 16% of total population. Around 90% of those elderly prefer to stay at home but the traditional way of caring for them (e.g. Children) will not even remotely keep up due to the one-child policy. While the public sector has established city-district-community care net, it is mainly for very basic care and the waiting is long. Further, the private sector is fragmented with no established brand or company people could trust. So if a family wants to recruit a high-quality home care aid to care for its elderly member, it often has to go through a trial-and-test process. The demand-supply gap has widen to an extent that as of October 2011, China government has passed a regulation that exempt any sales tax for “institutionalized home care agencies”.
Who do you think your target customers are and how many are there?
Our initial target customers are the wealthy elderly living in Shanghai. There are three reasons why we choose this segment; the first is that those people could afford a high price service, which is necessary for us to compensate the high-quality care cost and achieve a healthy margin. Secondly, we’ve chosen Shanghai because of our local relationship with the hospital and government there, and an established brand with testimony from Shanghai resident will help us penetrate into other cities. Finally, according to a McKinsey research, by 2015 there will be 1.2 million wealthy families in tier 1 city (Beijing, Shanghai, and Guangzhou), providing a huge economic pie.
Do you think your customers are looking for a solution?
Yes. Accordingly to a survey in one of the largest province in China, about 35% of elderly people have indicated demand for elderly home care service. According to our own focus group survey, elderly also feel that the existing service is either sufficient or of high quality enough.
Tell us about your solution. How does it work and what are the benefits?
Wrainbo’s vision is to bridge home and professional care in a comprehensive manner, bringing smiles to elderly every day. We offer comprehensive and locally customized care spanning home care, home health care, and community connect by taking advantage of our professionalism, government relationship and the industry connections First of all, the comprehensive care would allow us to differentiate ourselves from pure-play companies that merely focus on one or two dimensions, as we could provide seamless services covering all dimensions , which in return would enable us to gain the thorough knowledge about the elderly people we serve. This knowledge will allow us to build the effective database, which could be used to collaborate with the medical device providers to further serve our customers. We also plan to utilize the latest healthcare technology such as telehealth to provide the high-end services. Second, the government relationship and the industry connections we possess ensure the local adaption, which would allow us to gain a competitive advantage over foreign companies by adapting our services toward local customer needs quickly and continuously. Lastly, we are building a partnership with a US organization to co-develop a high-quality certification program, which combines healthcare, hospitality, and six sigma training. The certification and standardization will become our core intellectual property, which would enable us to not only deliver high-quality service, but also expand our business through franchising.
What's your plan for developing your product or service including some dates and milestones?
How much funding to get to a company exit?
Around $0.7 million
Tell us about
People are the key to our success as we are
doing a people business. Our founding team consists of six current Duke MBA
students with diverse background including hospitality and hospital management,
consulting and municipal congress of Shanghai. Further, our advisory board
features Duke University professor, CEO of a Shanghai hospital, and Deputy
Director of Health Bureau in Shanghai.
Use of Funds - if you won $50,000 how would you use it?
If we are able to secure the Duke Startup Challenge $50k award, we will be able to fund the rest of the first milestone financing needs through our team’s savings. The use of funds will be as follows:
· $5,000- Corporate registration and logistics support for key founders to travel and meet partners, key clients, etc.
· $45,000- First two-month marketing expense and office operations
Anything else you would like to share with us?
We have prepared a 30-page business plan that includes more details of what we are offering and how we will be able to differentiate from potential competitors while driving great value for shareholders and the society. Please kindly refer to such document if you have one or contact us if you are interested in reading it. Thank you!!
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