Discover Peekaboo Beans Inc.’s (CSE:BEAN) new initiative with For Heroes Only
SmallCapPower | July 8, 2019: Peekaboo Beans Inc. (CSE:BEAN) (OTC Pink: PBBSF) is a children’s clothing brand that prioritizes creating environmentally-sensible clothes that are not only durable but also allow children to play in them. The Company utilizes an omni-channel business model, which allows it to reach customers through social platforms, online retailers, pop-up events and a traditional brick-and-mortar location. The flexibility of which aligns with the needs of its target consumers, Millennial moms.
On November 29, 2018, Peekaboo Beans announced its partnership with For Heroes Only, to create and launch a new subscription-based program that is expected to be released by the end of 2019. For Heroes Only is a Montreal-based company that focuses on creating cross-reality content for growing kids. The cross-reality company uses a multimodal approach that mixes entertainment, cognitive and active-play mode story lines to help children feel like heroes.
Together, the two companies are creating a subscription box that will help extend the Peekaboo Bean’s apparel brand into the childhood adventure play space. In exchange for conceptualizing, designing, implementing and managing the transmedia experience, Peekaboo Beans has given For Heroes Only shares of its company, allowing this initiative to offset initial development costs. The objective of this new subscription is to enhance the Company’s brand and transform a marketing scheme into a revenue opportunity. With two buy-in levels ranging from $19.99 to $24.99 a month, the Company will send a branded package monthly that will allow children to become immersed in a magical storybook world conceived by Emmy-winning child psychologists. The package will come with items that will enhance the child’s real-life experiences, such as a magnify glass, a butterfly catcher or a DIY kite set that will relate to the adventures in the book. Peekaboo Beans CEO Traci Costa says the typical American child spends an average of seven hours a day in front of technology, and as result has chosen to incorporate technology in a way that creates a balance of real-world experiences and cross-reality magic. For Heroes Only will help with the creation of a mobile application that will allow the user to scan the book and have augmented reality creatures interact with them. The application will challenge kids to go on adventures, tasks and scavenger hunts with real people as it helps the children feel like their own hero.
“Our ‘Get Dressed for Adventure’ experience is taking brand engagement to a whole new level. In addition to bringing the brand to life in the eyes of a child, we are attacking the problem of too much screen time by working with AR to tie in real-life exercises, versus trying to work against a child’s addiction to technology. We are working with it to inspire a balanced curiosity. This is a company game changer,” says Ms. Costa.
Peekaboo Beans is taking a similar approach as Spin Master Corp. (TSX:TOY), a company with a yearly revenue of $1.7B, which went from focusing on toys to entertainment with its Paw Patrol TV show. With global family entertainment being valued at $18.91B in 2017 and projected to reach $40.81B by 2025, with a CAGR of 10.2%, Peekaboo Beans has positioned itself to enter this lucrative market (GlobalNewswire, 2019). The Company is forecasting similar success as it starts its transmedia entertainment franchise with a monthly subscription, and potential for new revenue opportunities with Beansies, licensing, TV shows and other initiatives. Within the first year of launching the subscription Traci is predicting about 1,000 + customers to sign up. For reference, a previously-launched initiative called the Bean Club Membership has approximately 2,000 members. Peekaboo is currently raising $1M, of which $100,000 has been committed to further developing its mixed-reality adventure and $300,000 is for marketing to increase apparel sales and promote its club membership. Currently, Peekaboo Beans has about $2M in sales with a 70% re-order rate. This is poised to increase with the addition of its new storybook subscription campaign.
Figure 1: Peekaboo Beans Financial Forecasts for its Transmedia Entertainment Franchise
Source: Company Investor Deck
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