Lê Thảo Nhi, the first runner-up of Miss Universe Vietnam 2022, made a stunning appearance on Shark Tank Vietnam Season 7, captivating the panel of sharks with her entrepreneurial spirit and unique business proposition.
A Sensory Experience for the Sharks
Thao Nhi made a bold first impression by blindfolding the five sharks with silk scarves, allowing them to fully immerse themselves in the sensory experience of her fragrance, Nimai.
The sharks were blindfolded to enhance their sensory experience of Nimai fragrance.
Accompanying Thao Nhi on her pitch was Romain Leclef, a seventh-generation heir to a nearly 200-year-old French fragrance business and the co-founder of Nimai.
Established in 2023 with an investment of $300,000, Nimai’s unique fragrance is derived from the Centifolia rose, the most expensive rose in the fragrance industry. The team spent over six months crafting this distinctive scent.
With a projected selling price of $170 (approximately VND 4-5 million), the profit margin is expected to be $70, or 41%. In the first year, the company plans to produce 2,000 bottles, with 1,500 bottles sold through e-commerce. Nimai sought an investment of $100,000 for a 10% stake in the company.
Shark Minh Beta questioned whether individuals with an income of $15-20 million would be willing to splurge on a $170 product.
Thao Nhi, drawing from her experience in the fashion industry, confidently responded that it was reasonable, as consumers, regardless of their income level, are willing to save up and invest in items they desire, especially if it represents something they can aspire to.
Shark Minh Beta expressed concerns about the competitive market and the affordability of the product for average consumers.
Despite these concerns, Thao Nhi emphasized that purchasing decisions are often driven by emotions: “Just like with clothing, I don’t stick to one brand. I constantly change my style and explore new options. In my experience, people buy fragrances because of the scent, their affinity for the brand, or because they feel connected to the community it represents. There are countless reasons why people buy, and as long as they connect with the brand’s story, they will buy.”
Shark Tillman Schulz, intrigued by the potential of Nimai, highlighted the advantages of Thao Nhi’s substantial online following and the Leclef family’s longstanding reputation in the fragrance industry: “Thao Nhi has almost a million followers, and Romain Leclef’s company has a 200-year legacy. In business, 80% of success relies on your network, so leverage that to your advantage.”
However, Founder Thao Nhi Le wanted to first establish herself in the market and demonstrate the product’s viability before seeking further investment. She expressed her desire to test the product and build a solid foundation before expanding.
A Missed Opportunity for the Sharks?
Despite Thao Nhi’s impressive pitch and the intriguing potential of Nimai, the startup’s lack of a concrete product and the sharks’ limited understanding of the fragrance industry led to a challenging investment decision.
Shark Binh acknowledged the founders’ journey but ultimately decided to pass on the investment, stating, “I will be missing out on a great opportunity by declining to invest in this deal.”
Shark Le My Nga echoed similar sentiments, viewing the fragrance industry as a highly competitive red ocean market. She believed that the company was still in its infancy and faced significant challenges in competing with established brands and smaller niche players.
The sharks expressed appreciation for the fragrance but had concerns about the valuation and the lack of a clear vision for the company’s future.
Shark Minh Beta, while appreciative of the fragrance, found it challenging to assess the company’s value without a physical product and a clear future outlook.
After three rejections, Shark Tillman Schulz summed up the sentiment among the sharks: “I think all five of us are a little worried. While there are fragrances that are even more expensive, $170 is still a high price point.” As a result, he also decided against investing.
Shark Phi Van, the final shark, shared her admiration for the fragrance but agreed that the startup needed more time to develop: “I think you can do it, but you came here a bit too early. Nimai is still in the testing phase. Right now, you might need a co-founder more than an investor.” With that, the fifth and final rejection was delivered.
Despite the setbacks, Thao Nhi and her team remain determined to forge ahead and establish their presence in the fragrance industry.
