Marcus Design Studio "Where Quality Meets Design, Your Vision Shapes Your Dream Space. We Design, We Build."

M DESIGN STUDIO

M Design Studio Sdn Bhd (‘M DESIGN STUDIO’ or the ‘Company’) has been operating as an interior design business for the past three years. Our office is strategically located in Sri Hartamas, Kuala Lumpur. M DESIGN STUDIO specifically serves the T20 community, has performed at least RM1,000,000 in annual revenue & maintained a quality customer service management system certified by the National Action Council (MTPN) and the World Consumer Protection Council (WCPCC). 

M DESIGN STUDIO is also an award-winning member of Malaysia Real Estate Recognition (MREIE), recognized by real estate elites who have achieved excellence in the real estate industry by demonstrating strong business acumen and talent in interior design. We completed an average of 30 – 40 projects per year & are looking to continue our profitable traction, specifically catering to the T20 community.

We are raising funds to accelerate our market penetration, expand our annual revenue by 50% YoY (Year on Year), and enhance our live client support system in the next 12-18 months. 

MARKET CHALLENGES

1. Lack of On-Site Quality Control

• Disappointment due to poor work quality^[1].
• Extra cost for rectification work

2. Inconsistent Craftmanship  

• Visual flaws and design irregularities^[2].
• Poor workmanship quality.

• Repeated revisions of craftsmanship causing delay and frustration^[3].

• Uncertainty and safety concerns^[4].
• Potential legal issues.
• Limited customization options.

M DESIGN STUDIO PROFESSIONAL SOLUTION

1. In-House Carpentry & Joinery Factory 

• Higher quality craftsmanship as the work is crafted in-house.
• Quality Assurance: Clients benefit from better quality control and craftsmanship as the work is conducted in-house.
• Close coordination between designers and in-house carpenters leads to efficient communication, reducing misunderstandings.
• Premium/longer-lasting material utilization.

2. Recognised by Consumer Protection Certification & Malaysia Real Estates Recognition

• A recognition of consumers’ confidence in choosing the most trusted interior designer in Malaysia.
   

3. Comprehensive SOP On Quality Control

• We provide Subcontractors with a Commitment Agreement to ensure quality jobs are delivered according to the project timeline.

Our Master Craftsman Portfolio 

We offer tailor-made designs & masterfully crafted builds to our clientele. Below are the 2 core built categories our M DESIGN STUDIO clientele engaged us for, followed by the results before & after our engagement, showing our commitment to endless aesthetic beauty and master craftsmanship for each client.

Commercial Built: M Design Studio (Before)

Commercial Built: M Design Studio (After)

Residential Build: Lakefield, Sg Besi (Before)

Residential Build: Lakefield, Sg Besi (After)

Financial Performance

Historical Performance
Year 2021 
Revenue: RM1,156,157; Gross Profit: RM21,535. 

Year 2022 
Revenue: RM4,438,328; Gross Profit: RM396,441.

Year 2023
Revenue: RM7,614,546.86; Gross Profit: RM2,665,091.40.

Forecasted Performance
Year 2024 
Revenue: RM10,827,754.38; Gross Profit: RM4,331,101.75.

(Current performed revenue at RM6,233,354.80. Already booked 57.568% of forecasted revenue.)

Year 2025
Revenue: RM21,655,508.76; Gross Profit: RM9,774,978.94.

Brand Reputation 

Press Releases, as featured in:

1. KL China Press^{[5]
   Link: https://kl.chinapress.com.my/?p=1493302}
2. China Press Perak^{[6]
   Link: https://www.facebook.com/JoinCPP/posts/pfbid0CXiRN4g97r7LUQnZiz2rRvPsv2BLoKVJxFhT4teBjS7vcbki5m6tDkttWoJRdr9El}
3. Utusan TV^{[7]
   Link: https://utusantv.com/2023/10/16/mreie-iktiraf-agensi-hartanah-tawar-solusi-mudahkan-pengguna-miliki-rumah-impian/}
4. Malaysia News TV^{[8]
   Link: https://mymntnews.com/2023/10/16/mreie-iktiraf-kecemerlangan-dalam-industri-hartanah/}
5. Edisi 9^{[9]
   Link: https://www.edisi9.com.my/2023/10/mreie-iktiraf-agensi-hartanah-yang-cemerlang/}
6. Shamiera Oasment^{[10]
   Link: https://www.shamieraosment.com/2023/10/mreie-recognition-of-professional-and.html}

Current & Targeted Audience

• Local Malaysian
• Consumers who prioritize quality over price

Geographical Area

• Central Kuala Lumpur & Selangor

Income Capabilities

• Businessman Owners
• High-income individuals & above,
• T20 Bracket Category

Age Range

• 35 years and above

Targeted Cities in The Pipeline

• Expansion Plans outside KL & Selangor.
• Penang, Johor Bahru & Singapore.

Business Model Development

Custom Built & Masterfully Crafted Projects

The illustration above is the actual framework that M DESIGN STUDIO utilizes as our bread-and-butter business model. We collect at least 30% cash upfront of whichever project we endeavor to ensure the initial operational funds are secured & mitigate non-performance risk early on in the commercial engagement, which is the core challenge of our design industry peers. This way, we qualify our preferred customers right at the beginning of our commercial relationship. 

This explains our specific targeted clientele of T20 customers who are capable & willing to commit to our cash-up front's average ticket value upwards of RM50,000.00. This is what usually goes down in our typical deal:

• 50% upon confirmation.
• 30% upon material on site.
• 15% upon 80% completion of works on site.
• 5% upon completion/handover.

The reason why our company can secure initial payment is because of our ability to deliver tailor-made masterpieces at cost-efficient prices, delivered by our in-house carpentry & joinery capabilities as shown below.

Interior design/Construction Market Size
With a market share of over 50%, Asia-Pacific is the largest, followed by North America and Europe, each with a share of over 35%.

ASEAN Region Market
The Interior Design market in Malaysia has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances (Statista, 2024)^[11]. 

• Customer Preferences
  • In Malaysia, customers have shown a growing interest in interior design that reflects their style and personality. 
  • There is a rising demand for unique and personalized items that can make a statement in their homes. Customers are also increasingly conscious of sustainability and eco-friendly options, seeking products made from recycled materials or those that promote ethical manufacturing practices.
• Market Trends
  • One of the key trends in the interior design market in Malaysia is the shift towards minimalist and contemporary designs. 
  • Another emerging trend is the integration of technology into interior design products. Smart home devices, such as voice-controlled lighting systems and automated window coverings, are becoming more popular among Malaysian consumers. 
  • This trend reflects the increasing reliance on technology in everyday life and the desire for convenience and efficiency.
• Minimalist Trend
  • Malaysia's rich cultural heritage and diverse ethnic communities significantly influence the interior design market. Additionally, the growing urbanization in Malaysia has led to smaller living spaces, especially in cities like Kuala Lumpur. 
  • This has resulted in a demand for space-saving furniture and multifunctional home décor items that maximize limited space use.
• Underlying Macroeconomic Factors
  • The strong economic growth in Malaysia has contributed to the development of the interior design market. As disposable incomes rise, consumers have more purchasing power to invest in home improvement and decoration. 
  • Furthermore, the increasing urbanization and growing middle-class population in Malaysia have fuelled the demand for interior design. In conclusion, the interior design market in Malaysia is experiencing growth due to changing customer preferences, emerging trends, and local special circumstances. 
  • The strong macroeconomic factors, including economic growth and urbanization, have also contributed to the market's development.

We’re also planning to expand our business into the smart home project industry, creating a new unique value proposition & increasing our operational profitability. 

Our Unique Proposition:
1. In-house carpentry & joinery factory for better quality control and craftmanship as the work is conducted in-house
2. Transparent on-time project completion commitment.
3. Subcontractors Commitment Agreement to ensure quality job delivery.
4. Comprehensive SOP for quality control
5. CIDB Certified Construction.

In order to to expand & enhance our current performance, M DESIGN STUDIO is developing:

1. Construction Team

• We target to establish our construction team for cost-efficiency purposes as opposed to outsourcing which increases the final cost to our clients (supported by our steady increase in Orderbook, surpassing RM10million by FY2025) capable of monitoring and controlling all the construction work, and quality, and ensuring reasonable pricing to improve M DESIGN STUDIO's market competitiveness.

2. Showroom/Studio

• We are upgrading our current showroom to be a more comprehensive & comfortable environment to serve our clients better.
• The showroom upgrade is imperative as M DESIGN STUDIO's unique selling point is to continuously challenge the design limits, which at most times require a proven & working concept, and our preferred mechanism is to present such value via a showroom.
• An example of such a cutting-edge concept is using light refraction & reflection in design to present a lighting environment without the lighting source & equipment visible at all from any angle. To present such a concept, a showroom is necessary to showcase its aesthetic value to our clientele before they commit to a financial purchase. We have found that most, if not, all of our upsells originated from a successful showcase, which contributes an additional 20-30% in gross margin.
• We are exploring setting up more showrooms/branch opportunities, targeting Johor & Penang cities.
• This enables M DESIGN STUDIO to conduct pre-sales. Thus, enabling us to secure operational funds & mitigate cash flow risks.

3. In-House Carpentry & Joinery Equipments

• To upgrade/replace the current machinery used by our In-House Carpentry & Joinery Factory.
• To increase and enhance our factory productivity and efficiency.
• To potentially have a spin-off of a Carpentry & Joinery entity under M DESIGN STUDIO to cater to other design studios without our in-house capabilities.

4. Market & Branding
Increase Digital Presence on

• Billboard Advertisement
  • To advertise our branding and services at a specific conventional billboard and digital billboard areas with high traffic.
• Website Analytics
  • To use tools like Google Analytics to track website traffic, including the number of visitors, pages viewed, and average session duration. Monitor user interactions, such as form submissions or inquiries.
• Social Media Metrics
  • To analyze the performance of our social media channels, including follower growth, engagement (likes, comments, shares), and click-through rates (CTRs) on posts.

5. Hiring Talents
Increase Quality Talent Acquisition by

• Collaborating with Design Schools
  • Build relationships with design schools and universities to tap into fresh talent.
• Networking in Industry Circles
  • Attend industry events, conferences, and design-related gatherings to connect with potential candidates.
• Offering Competitive Compensation
  • Research industry standards and provide competitive compensation packages to attract top talent.

6. Software System
Technological Integration via

• 3D Perspective Library
  • To set up a cloud server to store and display all our design masterpieces which our clientele can review as reference.
• Digital Tools
  • Invest in technology that enhances our design and project management processes which can record all the construction progress starting from the design draft, and 3D concepts. Construction drawing, construction status, and progress site photos. This also includes the procurement record covering Quotation and payment records. Hence, our clientele can monitor their house status.
• Automation
  • Explore opportunities for automation in repetitive tasks, such as accounting, invoicing, and administrative processes, to free up time for more creative and strategic activities.

Our vision is to be the top 5 most popular and influential interior design brand.

In order to achieve this vision, our proposed fund utilization is to focus on business expansion:

1. Showroom / Studio 

• To upgrade our current showroom to be a more comprehensive, more comfortable environment to serve our clients better. Explore the option of setting up more showroom and Branch opportunities, especially in Johor & Penang.

2. Construction 

• We target to establish our own construction team which can monitor and control all the construction work, quality, and reasonable pricing to improve market competitiveness

3. To upgrade current In-House Carpentry & Joinery Factory 

To increase efficiency and improve the quality of carpentry production. As an added advantage in the market by offering higher quality products, faster delivery times, and better customer service.

Lou Chang Kai
Director

Nationality : Malaysia
Age : 37 years
Qualification : Diploma of Interior Design
Past experiences : Hexa6 Design Sdn Bhd
 

Track Record Since Incorporation
Nov 2021-Jun 30 2022: Sales record of RM1.8 mil (audited)
July 2022-Jun 2023: Sales record of RM4.4 mil (audited)

 

• Awards & Accolades
  • Best Service Award and Best Commercial Year 2020 by ATAP.CO
  • Winning Award of Malaysia Real Estate Integrity Elites 2022-2023

Management Team

Chia Wai Hoong
Operation Manager

• 8 years experience in the interior design and construction industry. Skilled in project management. Completed over RM15,000,000.00 in project value.
   
• Secured an RM2 million project contract in the first quarter, achieving a 10% cost saving on materials. Resulted in zero staff turnover & achieved zero customer complaints.
   
• Fostered strong relationships with new suppliers and subcontractors, expanding the company workforce by 20% without cost. Cost-savings transferred to premium material quality utility & on-time delivery.

Ng Jiun Siong
Sales Executive

• 5 years experience in the sales & interior design industry. Completed over RM5,000,000.00 in project value.
   
• Developed and maintained relationships with customers, and a 17% increase in customer retention rates. Led and motivated a sales team of 4 to achieve sales targets of, a 25% increase in sales revenue over one year. Cold-called 20+ potential clients daily, with a closing rate of 10% to 20%.
   
• Hit and exceeded sales KPIs by 30% in the second quarter, 30% in the third quarter, and 40% in the fourth quarter.
  
  
  
  
   

Lou Jia Sheng
Site Supervisor

• 3 years experience in Construction, Project Management, and Interior Design.
• Observed safety regulations on job sites, minimizing 95% of accidents.
• Oversaw a team of 12 men in the construction team on an RM1.2 million project renovation by scheduling shifts and delegating responsibility.
• Experience in the Smart Home industry and managed to set up in a months
• Handles and monitors on-site project progress.

Nurulhuda Abu Bakar
Account Executive

• Bachelor's Degree (Hons) in Finance UITM.
• 4 years experience in conducting company finance, tax, and business management
• Enhanced financial reporting systems, allowing for real-time P&L analysis and better strategic decision-making.
• Responsible for admin, accounts, and HR
• Provided financial guidance to management, resulting in informal decision-making and a 20% increase in profitability.

Technical Consultant Team

1. pitchIN and its officers and staff may also be investing in this campaign
2. Under ECF Guidelines, valuation is determined and set by the Issuer. Investors are advised to carefully peruse all investment offers and documents before making investment decisions.

[References]

1. My Metro (2023), “Kontraktor Cap Ayam.” Retrieved on 20th December 2023, Link: https://www.hmetro.com.my/utama/2023/07/983405/kontraktor-cap-ayam
2. Sinar Plus (2023), “Bayar RM240,000 Renovation Tak Siap, Amyra Rosli Kena ‘Scam’ Dengan Interior Design”. Retrieved on 20th December 2023, Link: https://sinarplus.sinarharian.com.my/hiburan/bayar-rm240000-renovation-tak-siap-amyra-rosli-kena-scam-dengan-interior-designer/
3. My Metro (2023), “Suami Isteri Rugi RM290,000, Ubah Suai Rumah 4 Tahun Tak Siap-Siap”. Retrieved on 20th December 2023, Link: https://www.hmetro.com.my/mutakhir/2023/07/988698/suami-isteri-rugi-rm290000-ubah-suai-rumah-4-tahun-tak-siap-siap
4. Astro Awani (2023), CIDB Diarah Anjur Program Khas Tangani Isu Reka Bentuk Dalaman Tidak Memuaskan". Retrieved on 20th December 2023, Link: https://www.astroawani.com/berita-malaysia/cidb-diarah-anjur-program-khas-tangani-isu-reka-bentuk-dalaman-tidak-memuaskan-438081
5. KL China Press (2023), “MREIE暨MIREBA颁奖典礼圆满落幕 38中介 8房产公司获颁殊荣”. Retrieved on 4th April 2024, Link: https://kl.chinapress.com.my/?p=1493302
6. China Press Perak (2023), “38+8大马房产界精英接受表扬几获奖”. Retrieved on 4th April 2024, Link: https://www.facebook.com/JoinCPP/posts/pfbid0CXiRN4g97r7LUQnZiz2rRvPsv2BLoKVJxFhT4teBjS7vcbki5m6tDkttWoJRdr9El
7. UtusanTV (2023), “MREIE iktiraf agensi hartanah, tawar solusi mudahkan pengguna miliki rumah impian”. Retrieved on 8th April 2024, Link: https://utusantv.com/2023/10/16/mreie-iktiraf-agensi-hartanah-tawar-solusi-mudahkan-pengguna-miliki-rumah-impian/
8. Malaysianews TV (2023), “MREIE iktiraf kecemerlangan dalam industri hartanah”. Retrieved on 8th April 2024, Link: https://mymntnews.com/2023/10/16/mreie-iktiraf-kecemerlangan-dalam-industri-hartanah/
9. Edisi 9 (2023), “MREIE iktiraf ejen dan syarikat hartanah yang cemerlang”. Retrieved on 8th Apirl 2024, Link: https://www.edisi9.com.my/2023/10/mreie-iktiraf-agensi-hartanah-yang-cemerlang/
10. Shamiera Oasment (2023), “MREIE: Recognition of Professional and Trusted Real Estate Services”. Retrieved on 8th April 2024, Link: https://www.shamieraosment.com/2023/10/mreie-recognition-of-professional-and.html
11. Statista (2024), “Home Décor - Malaysia”. Retrieved on 8th April 2024, Link: https://www.statista.com/outlook/cmo/furniture/home-decor/malaysia.