1. Sale estimation of WDIRC (iCooger^®)

What is the revenue if we sell them in markets? That’s an interesting question due to this products that never been sold in markets and even them never been used or made before. Generally, the estimation is according to the demand of traditional appliances, the trend of technologies (EC, IOT, smart kitchen appliance, cloud operation, logistics system, wireless environment), the demand of users (Automation, Customization, Facilitation, Value-added), and the prediction of economic growth. However by this proposal, we make an estimation with considered on the factors of user demands if we make WDIRCs sold into markets. As the calculation based on the demand of users, it bases on the equation (1-3), here factors of target population, pricing, buying rate, and sharing ratio etc. will be included in this calculation.

• Eq. 1 Revenue = Market size x Sharing ratio
• Eq. 2 Market size =Target x YearBuyingRate x Price
• Eq. 3 Revenue = Target x YearBuyingRate x Price x Sharing ratio

According to the equations 3, the estimation of WDIRC sales from markets could be calculated as following, here the demographic data of markets is listed in Table 1.

• Eq. 4 Revenue = 1,081,647,795 x 0.1% x $250 x 30% = $81,123,585 per year

A preliminary estimation to annual revenue from markets that we interested is $81,123,585, the market is huge and continued up, and that would be interested for investors to put money in this investment.

2 Market analysis on selling WDIRC

2.1 Revenue of WDIRC sales in market A

The market prediction by selling WDIRC products is described in this section. First we collected the data of GDP for each patented country listed in Table 2. For example the market in China (A1), the estimated population is about 1.38 billion, the households is 455.9 million, and GDP is $8,239 per capital from Table 2. Here we assumed the parameters of buying rate per year, market sharing ratio, and selling price that are one ten thousandth, 80%, $250, respectively. The calculation is listed in Table 3 with detail. We calculate the revenue by equation (3); the selling revenue (included WDIRC or WDIRC+G) in China is predicted as $9,118,750 per year approximately. Other countries also are calculated by equation (3) and their revenues are listed in this Table 3. Regarding the sharing ratio of market, two types of market we assumed, the first one is in patented countries such as China, US, Japan, South Korea and Taiwan …etc., and the other are in non-patented countries such as Africa, Euro-Union countries or Russia. In patented zone, if we don’t consider other interfered factors (e.g. infringement, pirated, or counterfeit) that we can assume the market of WDIRC is exclusive and the sharing ratio could be set as 80%. Due to WDIRC is a newest cooking product with IOT function, so no similar product with patented to be sold in markets despite of knock-off products? Second, why we assume the buying rate to be set as one ten-thousandth, here we think that the ratio is obviously underestimated and we like to do a conservative estimation; the reason is that on the beginning, consumers maybe need more time to know this and the selling channels (platforms) also need to be built up by time, so on the initial step the buying per year it is set as a lower ratio, that we think this will be risen gradually. If we can rise up 0.01% on buying rate, the revenue in China will be double to $9.118 million approximately. Moreover, the pricing strategy we hope this product can be extensive to each house, so we refer the country’s GDP as being the reference of pricing, for example in China we set the selling price as $250 that is lower than current cooking appliance obviously, that’s affordable for peoples to buy this. Therefore we think the conditions to be owned this product WDIRC isn’t difficult and expensive. The similar condition used in other countries also to be estimated in this table; a lower pricing on the beginning of listed for attracting the spotlight of consumers, everyone have the chance to have this produce. Therefore, the revenues of patented countries are sum up $30.356 million. Due to this is a high value market to be operated with lower manufacture cost, so we think to achieve this value of market isn’t difficult to the company.

2.2 Revenue of WDIRC sales in market B

In market B, also there are six countries that had submitted a patent application; they were under examined till now, the country list is shown in Table 4. Analyzing the population, the ratio of population is about 25.8% in the world. Here U.S., Canada and Australia are developed countries, their GDP are more than $40k, and the purchasing ability is stronger than other countries (India, Thailand and Malaysia). We accord to their GDP adjusting the price for selling in their country. Table 5 is the prediction of annual revenue from pending countries on WDIRC patent. For example, United State they have 0.324 billion population, we assume that have 0.01% buying rate per year and 60% sharing ratio in WDIRC market, when a selling price is to be $350, the revenue and profit will be $2.812 million and $1.205 million, respectively. In general, we think these parameters (YearBuyingRate, SharingRatio, and price) that are obviously under estimated due to the necessary of food cooking in houses. The market of India, Malaysia and Thailand is also big, if we can down the cost to an affordable price that we think the sharing ratio will raise more than default (0.01%).

2.3 Revenue of WDIRC sales in market C

Moreover that we can sell this product (WDIRC) to the global market that we hadn’t grant a patent right. Table 6 is the list of unpatented countries GDP; here we focus on the south east country that due to their dietary behaviors. Macao and Singapore have the highest GDP, but the population in them is small, so as we think the revenue from them is lower. Table 7 shows the revenue from un-patented countries. Because this is an open market that exist a lot of competitors to us, however we still set the sharing ratio to be 40%, that based on this product have had other markets (patented and pending) to support its pricing with lower than other competitors, so we think a 40% market share is a reasonable ratio. Also in these countries the GDP is very low; the peoples can’t spend a lot of money on the purchase of consuming products, so a lower price ($250) for selling for these people is better for promoting this product. Regarding to the strategy of selling, we will be based on the characteristics of market to make a different price and promotion. The total revenue and profit in these countries are estimated as $1,205,200 and $247,600, respectively.

2.4 Revenue of WDIRC sales from market A, B and C

If we estimate the revenues from market A, B and C, the result is showing in Table 8. The company shows the prediction of sales of WDIRC in market A, B and C, and the calculation condition is the same as the above. Totally there are twenty countries in this list, the households are 1,081,647,795, and if the company sells 119,723 sets in the first year, the revenue will arrive to $36,940,850. It’s a huge income by selling this novel product, and the ratio of average gross profit is 35.18%, totally the company will have the profit $12,996,250 from market A, B and C. Due to the data of ownership (Table 8) is lower, this is an under-estimation revenue still, the company to trust that can achieve this goal of revenue with easy.

3. Revenue from WFR sales in global markets

By our IOT-EC model, the foods of rice, wheat and grain can be sold through EC system when our device detects the shortage of inventory. To cook foods is a routine work for people; therefore how to supply the consumed food is a critical problem in an IOT system. That’s a reason why we like to combine EC and IOT system. The IOT system can issue a supplying signal of foods to EC system for processing the information, money and logistics. Therefore when we sold more WDIRCs that we can know more inventory of foods in houses, on the other hands, we can govern more online transactions of food via IOT system. This is an important key to occupy the market of rice liked foods by the detection of sensors in a WDIRC device.

3.1 Revenue from WFR sales in market A

Table 9 is the prediction of revenue for selling rice liked foods in patented countries. Here we refer the data of rice consumption published in a dataset of Helgi-library, and accord to the behaviors of local selling to set the ratio of Wash Free Rice (WFR), online buying, market sharing and pricing. For example to China, there are about 455,940,000 households in China market, we assume its WFR ratio, online buying rate, market sharing ratio, and selling price of rice as 82.1 kg/capital (for one person, not for one house), 0.01%, 10%, 30%, and $1, respectively. By this assumption, the revenue can be estimated as $112,298 by selling WFR. The other countries also can be estimated by this model and be listed in this table. The annual revenue can reach up to $261,563 in these countries; it is an additional income for developing this product. However, this is an initial step; with the sale of WDIRC the consumption of WFR will rapid grow up. Despite of rice selling, the company also sells the other food materials such as bean, wheat, grain and water, even to kitchen ware, the revenue will increase with the growth of WDIRC occupation. So the estimation of revenue and profit will be over our expectation at the moment.

3.2 Revenue from WFR sales in market B

Table 10 is the estimation of revenue for selling WFR in pending countries. Till we proposed this, we still have six countries with patent pending (USA excepted). The revenue to be calculated is the same as patented countries. We listed them in this table, and the totally revenue is about $37,395. It doesn’t be estimated too much due to the WFR ratio and online buying rate, because we think the purchase of users, they need to spend more time to adapt the change of market. However, this purchase is not only to buy rice liked foods but also to buy other kitchen wares or food supplements. So if we have a good Wi-Fi infrastructure and IOT-EC integrated system, these additional online transactions will fast grow up following with the sales of WDIRC, and also the demand of cooking automation and intelligence is raised with time and IOT development gradually. Therefore we think the coming, the buying rate of online EC system on rice or food supplements will be more than this time we made, and because these materials belong to consumables, they will be supplied frequently. Based on this, a frequent transaction will be made regular and this income will keep the system operation (IOT-EC) with good management.

3.3 Revenue from WFR sales in market C

For unpatented countries, we choose south east countries which are shown in Table 11 to estimate the revenue. In these countries, Indonesia has the most households ( ~61.157 millions), the prediction of revenue accorded to our equation there are $11,276 per year. Vietnam is the second reached to $25,382 per year in revenue, and then Singapore, Myanmar, Philippines …etc. Totally we estimate the food supplement of purchasing that would be up to $27,327 and it had about 10% profit on this kind of selling.

3.4 Revenue from WFR sales in market A, B and C

The prediction of revenue from WFR sales in market A, B and C is showing in Table 12. The target population in this area is 3,943,703,632, the company calculates the consumption of WFR that is based on the rice consumption, WFR ratio, online buying ratio, and market sharing ratio. According to our estimation, the buying of WFR in the first year, it will be 1,352,801 kg ; therefore the revenue will approach to be $1,058,779 from these markets, and it will be with the time to increase. If the profit is 10% from the revenue, by this prediction, the profit it will be $105,878. It looks not a big income at the beginning, but we think with the market share rising, it will grow up quickly.

4. Revenue from WDIRC and WFR sales

Whatever if we start to sell this product and supplement of foods among these countries, the revenue in first year there includes the both incomes of WDIRCs and supplement of foods and they will be estimated as in Table 13. For these three markets, market A shares 49.16% households, therefore it has the most revenues from WDIRC and foods supplement selling, the ratio is 82.2% and 80.2%, respectively. In market A, it expects to have $30.617 million revenue per year (with 10% profit), and the ratio of revenue among markets is about 82.2%. Market B its revenue shares 14.5%, and that is about $5.416 million dollar, this estimation will depend on the change of IOT environment, EC development, and buying behavior of users. However as we think this change will be an exponential growth in the first decade especially in Market C (under-development countries), even the estimation of income ($1.232 million, 3.3%) is lower than other two markets, but with the time the operation environment of IOT-EC system and consumer behavior will be better than the present. The total estimation on selling WDIRC liked products is about $37.267 million, the initial step (the first three years) the income is almost earning from WDIRC devices, after this the sales of food on revenue will gradually rise up.