Dear Eve Family,
This is a big and important post. As you know over the past few years, we have had some major ups and downs with Eve V project. I am writing this post to announce that we are moving to evedevices.com. Let me tell you more!
The Eve V is proof that crowd-development through dough.community can create great products. While the V has been received with great reviews from media and end users alike, there have also been setbacks in the project.
As I have briefly shared in the Spectrum Q&A last week, originally our team in Finland wanted to focus on R&D and design while licensing sales, manufacturing and aftersales to partners around the world. We developed and designed products with community, created all the necessary tools and processes for production and licensed it to partners in various regions. Our Helsinki team and company invested funds into the R&D, design, brand, and marketing. In this business model sales partners are able to use our brand, toolings, motherboard designs, etc for a fraction of the cost by paying us a license fee per unit sold, taking care of manufacturing, shipping, replacements and so on.
This licensing business model is very common. For example, when you buy Marshall headphones, Porsche notebook, Angry Birds toy or Starbucks instant coffee in a supermarket those brands didn’t make it nor did they sell it to you: they just licensed the brand, and in some cases the design etc. The scope of these agreements varies. Hardware licensing business models is great in theory as everyone focuses on their strengths and adds value to the end product.
We decided to start by making a 3 year licensing deal with a few key partners around the world that would license our product and brand. Most of these partners helped to provide a smooth customer experience, whether you ordered from Indiegogo, Taobao, bestware, Drop and others.
Unfortunately, one of our major partners Fortress Tech Distribution LTD, the one operating the web store through www.eve-tech.com ran into issues with the supply chain, funds frozen by payment processors, and untimely deliveries, causing frustration among the community and direct damage to our brand. Now that the licensing contract has expired we are sharing things as they are with you directly. We have not mentioned this publically as we had a very tight NDA clauses with heavy penalties.
From now on, things will be different. As the license agreement with Fortress Tech Distribution has expired, we are walking away from our previous licensing business model. We are now building a structure that allows us to accommodate international sales ourselves, and have put resources from the original Eve team to set everything up.
We are launching a new web store (www.evedevices.com) where the same team that created the V will be handling sales directly, backed by a top tier supply chain partner. As a major supply chain company for top-tier players they offer all kinds of services, starting from overnight shipping from China, sourcing, supply chain financing and all the way to quality management. These services will also be provided to us.
On the manufacturing front we realized that to deliver top-tier products we have to work with top tier vendors directly. Previously it was challenging to convince top tier manufacturers to work with us but after the success of the V and showing that there is a lot of demand for crowd-developed products we are able to work with top-tier manufacturers like LG for Spectrum and Grandsun for Muse.
To summarize, this time around pretty much everything will be different, from the partners all the way to our team.
We are aware of the people affected by the business struggles of the partner that previously operated the eve-tech.com web store. As we are moving to the new structure and launch new projects such as the monitor and headphones, we will make sure that their success will help these people. To maintain our reputation we are now working on the plan how to help out people affected by bad experience with the previous merchant
The situation was recently covered by The Inquirer, Neowin and others, you can read about their interview in the article below:
We are excited with the progress over the past weeks of Project: Spectrum as well as that of Project: Muse, and are looking forward to sharing our first 3D renderings and starting out prototype testing! Here are the latest update topics on both projects:
Can’t wait to build exciting, new future with you!
Information on how to proceed if you are affected by Fortress can be found here.