Kawaii Lighting
DEAL
EPISODE SUMMARY
🕓 Air Date: May 6, 2022
Asking For:
$88,000 for 22%
Investor:
Barbara Corcoran
Deal:
$100,000 for 22% + $5/unit royalty until funds are recouped
PRODUCT SUMMARY
Kawaii Lighting offers professional and aesthetically appealing ring lights with unique designs, such as hearts, stars, and cats, to enhance users' appearance during online content creation and video calls.
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Background Story
Chloe and Lan, the founders of Kawaii Lighting, are based in Chicago, United States. Chloe has a deep-rooted passion for technology, which began in her childhood and developed into a strong interest in innovative solutions for modern challenges. Meanwhile, Lan’s background lies in the manufacturing of licensed toys, providing her with valuable insights into the dynamics of product design and consumer preferences.
Their journey into the creation of Kawaii Lighting began during a serendipitous encounter in Shenzhen, China, known for its tech innovation. Chloe’s fascination with technology and Lan’s keen eye for market trends led them to explore various markets, including Hong Kong and the bustling tech hub of Shenzhen. It was during these explorations that they identified a significant gap in the market for aesthetically pleasing and functional lighting solutions tailored to the needs of content creators and individuals engaging in video calls.
Inspired by their observations and the growing reliance on technology for communication and content creation, Chloe and Lan set out to develop a product that not only provided professional-grade lighting but also added a touch of whimsy and charm to the user’s visual presentation. Drawing from their combined expertise and their shared vision for enhancing the online presence of individuals, they conceptualized and brought to life the unique line of Kawaii Lighting, incorporating designs such as hearts, stars, and cats to cater to a diverse range of aesthetic preferences.
The Product
Kawaii Lighting specializes in a range of professional-grade ring lights designed to elevate users’ visual appearance during online content creation and video calls. Their product line features various shapes, including hearts, stars, and cats, each equipped with specialized lighting mechanisms to create visually appealing effects.
These ring lights are user-friendly, requiring a simple plug-and-play setup with users’ smartphones to instantly enhance their lighting conditions. The incorporation of unique designs such as hearts, stars, and cats creates delightful reflections in users’ eyes, adding a charming and whimsical touch to their online presence.
The benefits of Kawaii Lighting’s products lie in their ability to provide users with a professional and aesthetically pleasing lighting solution that enhances their visual presentation, making them look their best in various online settings. These ring lights are versatile and can be utilized by content creators, video bloggers, influencers, professionals engaging in video calls, and anyone seeking to improve their online appearance.
Customers can purchase Kawaii Lighting products directly from the company’s website, where they can explore the different designs and sizes available. The flagship heart ring light, priced at $305, reflects the company’s commitment to offering high-quality and visually appealing lighting solutions to its customer base. With a focus on user satisfaction and product excellence, Kawaii Lighting aims to provide a seamless and delightful experience for customers looking to enhance their online presence.
How It Went
The company’s position before Shark Tank
Kawaii Lighting has demonstrated a strong and promising performance within its first year of operation, achieving impressive sales figures of $261,000. The company has primarily focused on direct-to-consumer sales through its website, prioritizing the establishment of strong customer relationships and ensuring exceptional customer service. With an intentional emphasis on brand building and visibility within the online content creation and video call industries, Kawaii Lighting has successfully positioned itself as a notable player in the market for professional and aesthetically appealing lighting solutions.
While the company currently operates without a design patent, its focus has been on proving the market’s interest in its unique ring lights, which feature charming designs such as hearts, stars, and cats. By actively engaging with consumers through their direct-to-consumer model, Kawaii Lighting has been able to establish a solid foundation for future growth and expansion. The company has strategically avoided the Amazon marketplace, aiming to mitigate potential competition concerns and instead prioritizing the development of relationships with prominent influencers and celebrities.
By fostering these partnerships, Kawaii Lighting has further strengthened its brand presence and visibility within its target market, solidifying its position as a trusted and preferred choice for individuals seeking to enhance their online visual presence. In terms of funding, the company’s current capital is supported by the sales revenue generated through its direct-to-consumer model. This approach has allowed the company to maintain financial autonomy and control over its operations, enabling it to prioritize customer satisfaction and product quality. The company’s current structure revolves around a customer-centric approach, ensuring that its operations are streamlined to deliver exceptional products and services that cater to the unique needs of its customer base.
The Negotiations:
During the negotiations on Shark Tank, the founders of Kawaii Lighting, Chloe and Lan, captivated the Sharks with their unique product and compelling backstory. Mark Cuban expressed concerns about the company’s scalability, leading him to opt out of the deal. Barbara Corcoran offered the requested $88,000 for 22% equity, proposing a $5 royalty until her investment was recouped, which was later dropped to $5 to align with other offers.
Kevin O’Leary also expressed interest, offering a similar deal to Corcoran’s. However, the negotiation took a dramatic turn when Lori Greiner and Robert Herjavec both opted out, citing concerns about market saturation and competition. In the midst of the negotiation, Kevin O’Leary attempted to interject, leading to a brief confrontation with Barbara Corcoran. Despite the heated exchange, O’Leary made an offer of $88,000 for 22% equity, with a $5 royalty until recouping his investment.
In the end, the founders opted to accept Barbara Corcoran’s offer, expressing excitement about the prospects of working together and the growth potential for Kawaii Lighting. The negotiation process showcased the Sharks’ recognition of the company’s unique value proposition, as well as their differing perspectives on the market viability and scalability of the product.
