First vertically integrated online-only fast fashion brand in Brazil

2013.12.17 15:39

Brief Company Description	First vertically integrated online-only fast fashion brand in Brazil
What problem do you solve?	Still the ever increasing demand from fashion-hungry Brazilian females for the latest international fashion trends at accessible prices. In Brazil there is a strong correlation between high-end branding and high-prices unseen in other countries. We deliver a premium brand experience at an unprecedentedly accessible price point.
Industry:	Fashion, eCommerce
Date of incorporation:	2012
City and Country:	São Paulo, Brazil
Stage of the company:	Start Up (Company with some traction in the market, with or without revenues)
Product
Who are your competitors	We are the first online-only brand in Brazil, direct competition is therefore very limited and unorganized. Largest competitors are on one hand big multi-brand online resellers (Dafiti, Netshoes) and on the other hand local brick-and-mortar fast fashion brands (C&A, Riachuelo, Zara).
Why are you different/better option than the rest?	We are an online-only brand and not a multi-brand reseller, like most online retailers. We represents a new way of retail. We set out to reorganize the entire value chain by vertically integrating and cutting everyone else out of the supply chain. This business model allows for the creation of a sustainable business with high margins and unparalleled economies of scale. Shopping at our website is an emotional experience, delivered through exceptional customer service, outstanding packaging, fast shipping and a beautiful website. This results in high and rapid repeat purchases.
Barriers to Entry / Intellectual Property	The brand’s equity is the main barrier to entry, unlike multi-brand resellers that don’t have much brand equity and over time will face even stiffer competition as they are selling identical products as their competitors.
Risk Factors	New entrants with considerable advertising budget, slower than planned shift from offline to online retail, lack of talents to rapidly scale the company, technology and marketing.
Monetizing Strategies	Selling your product / service
Financials
Some Numbers		2012	2013	2014	2015
	Gross Revenue	-	BRL 2.0m	BRL 25m	BRL 40m
	Expenses	-	BRL 3.2m	BRL 25.5m	BRL 35m
	EBITDA	-	BRL -1.2m	BRL -0.5m	BRL 5m
Monthly Burn Rate	BRL 175,000
How much capital do you need for this round?	USD 750’000
Use of new Funds (indicate percentage for every case)	60%_ Marketing & Sales 20%_ Hiring team 20%_ Supply chain
Marketing & Sales
How many clients or users do you have to date?	From 5,000 to 10,000 clients/users
Who is your client?	Woman
Sales Channels	Own website – Online only
Market Size (what is your market? How big is it?)	Target Countries: Brazil Size of the market: 14.8m 18-39 year old upper to middle class Brazilian females. Women fashion eCommerce market is expected to grow by 47% per year, reaching BRL 6.2bn by 2016

DELEGATION

First vertically integrated online-only fast fashion brand in Brazil

Zhongguancun Private Equity & Venture Capital Association