It's really good idea that we start to think about this financial objective.
Anyway, I believe that we may not always get profit for the first year on every NPD projects.
The GO/No Go decision should not be judged by only 6month forecast otherwise there won't be any company invest on R&D.
I believe that the most important thing when considering launching NPD is that we must ensure to launch successful new products.
Or other words, we should try best to reduce the risk of selling fail new products.
We need to put more efforts on delivering great value/good benefits/and more delightful.
Next year will be even harder as Japan market is very very competitive.
There are so many great products in the market that we must compete with.
So, the focus should be on " how to deliver great value products " to make sustainable business growth.
In terms of financial objective, it would be good to set the break even point of each NPD.
So that we have clear expectation on each one of them.
Some NPD might give faster " Return on Investment " than some projects.
But every project should at least reach the break even point.
It doesn't matter if products are sell exclusively to export market, as long as they meet the financial goal.
Even we sell exclusively to Japan, it is still worthwhile if they are sellable in long-term.
As our growth strategy is to opening retail shop, then we need to have many many more products to fill-in the store.
The rental & sales lady cost is the high fix cost for each store.
So the variety of the products is the main factor to increase value of sales transaction.
FYI, MIK is seriously aim to open at least to have total 5 stores in phase one.
I guess they aware that the ROI of the project will be positive only after the 5th store onward.
Lastly, I think it's smart way to use financial info to help guide some decision BUT we should not use only financial to lead the decision.
I wholeheartedly believe that most great successful brands are driven by their passions to deliver what they believe/value.
And after they put whole effort to deliver the value, profit will follow.