Bridge33 Capital’s Post

“Tale of A Shoe Company”   Allow me to describe a hypothetical shoe company. After experiencing several years of robust sales growth, the future appeared promising despite thin profit margins. This company identified a gap in the market and offered products with a strong perceived value-to-price ratio among its customers. There was data gleaned from direct customer contact, solid information about how the shoes lived in the real world. Customers were buying multiple pairs. The market they were hitting was fertile and scaling sales seemed to be very possible if not inevitable.   Without the cash from solid margins there was a need to find financing from outside investors to fuel growth. They began expanding their team and believed that building a classic hierarchy would enhance their appeal to potential investors. This worked, money came in and the spending began.   Allocation of money towards the building of compelling new styles was dwarfed by the growing expenses of marketing, finance and administration. Money was lacking to launch surprising innovative product concepts when they arrived from the designers, and growth was stalling. The company's overreliance on their historically successful "core" products, was taking up too much available funds. Sales slowed. Decreased sales led to unmet supplier projections, straining relationships and confidence. There was a spiral happening and it was going in the wrong direction.   What should they do?   In my opinion, they should eliminate extraneous expenses, do some tough cutting. The founders should get back in the saddle they road in the beginning and do the work in product development and marketing themselves as they had done during the early years. More focus should be given to enhancing the quality of their shoes. Raise their prices, thus their margins and enhance cash flow. Improve and expand the product range. Experiment and test new concepts. Put as much cash as possible into design and product development.   Instead of relying on social media and influencer marketing, they should prioritize building real-world connections with potential customers. Invest in brick-and-mortar retail and pop-up shops to help delineate their brand differentiators.   Soothe their manufacturers’ confidence in them with eye-to-eye communications. Pay a fair price and respectfully recognize the significance of their vendors in their business equation. Finally, they have to lose all hubris, gain humility and realize, luck is the largest element in every success and failure.   Agility in business is essential. A good businessperson should be a basketball player rather than a baseball player, more of a farmer than a carpenter. The business world is a rough place to play in but can also prove to be thrillingly rewarding.   Are you looking to launch a shoe business or seeking an external evaluation of your existing one?  Contact us for an honest. objective assessment of your existing or aspiring shoe business.

Controversy: The color of success. Origins In 1965, Giuliana Benetton knit a brightly colored sweater. This sweater sparked the birth a global retail giant. She launched the United Colors of Benetton with her brothers Luciano, Gilberto, and Carlo in Ponzano Veneto. Significant Contributors Luciano, the visionary, dared to be different. Oliviero Toscani, the provocative photographer, captured the brand's essence through shocking ads. Giuliana oversaw 200 designers, crafting instant classics. Brand Strategy Shocking simplicity ignites desire. Bold disruption redefines boundaries. Controversy cements brand iconoclasm. Provocative campaigns transcend product. Technological integration outpaces industry. Differentiating Business Strategies Technological integration streamlined operations. Impulse-driven brand building defied norms. Just-in-time production slashed inventories. Micro-marketing for hyper-local relevance. Outsourcing mastered ahead of its time. Tipping point for unprecedented growth In 1992, Benetton invested £80 million in an advanced factory, harnessing cutting-edge technology. Micro-marketing, just-in-time production, and low inventory costs propelled them to new heights. Conclusion Benetton grew from a sweater to a global fashion force. It has 4000 stores in 120 countries, and is worth $12.9 B. 86% of its revenue comes from overseas franchise stores. The story of United Colors of Benetton is a testimonial to their bold vision, daring creativity, & relentless innovation. ****** Monotony was never an option for daring iconoclasts behind any business. Do you have the courage to shatter conventions? DM me. Let us craft a strategy to build your empire.

For top-notch branding: Craft an unmistakable identity Provoke with purpose Integrate game-changing technology Adopt best-in-class business models Cultivate a culture of disruption

Product Strategy and Financial Frameworks to Prevent Your Apparel Business From Failing (w/ SATISFY® Case Study) This week on my Substack, I'm exploring key lessons I have learned building Torsa, including financial and product strategies which should shape your thinking as a start-up. Topics include; • Drilling down the financial framework 📈 • Why order size is critical to net margin 💰 • How wholesale can ease cash flow and help fulfil inventory orders 🏬 • The keys to product development strategies 👕 • Being product savvy with key lessons from Satisfy 🏃♂️ Please share any thoughts or questions in the comments section. Share, subscribe and enjoy 🙂 https://lnkd.in/eEj6YBn9 #activewear #design #startup #designer #sportswear #startuplife #productdesign #productdevelopment #newsletter #foundersjourney #startuplessons #startupcosts

sucsess full bussnies plain. bussniess name. shoes Market Research: Conduct thorough research on the shoe market. Identify trends, consumer preferences, and potential gaps in the market. Understand your target audience and their needs. Niche Selection: Consider specializing in a specific niche or segment of the shoe market. This could be based on style (casual, athletic, formal), material (leather, synthetic), or target demographic (e.g., men's luxury shoes). Design and Innovation: Differentiate your brand through unique and innovative shoe designs. Invest in a skilled design team or collaborate with designers to create distinctive and attractive products. Quality Materials and Manufacturing: Source high-quality materials for your shoes. Establish strong relationships with reliable manufacturers to ensure consistent quality. Consider eco-friendly and sustainable materials if there is a demand in your target market. Production Facility Setup: Set up a well-equipped production facility with a focus on efficiency and quality control. Invest in modern technology and machinery to streamline the manufacturing process. Branding and Marketing: Develop a strong brand identity. Create a compelling brand story, logo, and tagline. Implement effective marketing strategies to promote your brand, such as social media marketing, influencer collaborations, and online advertising. Distribution Channels: Decide on your distribution channels. You may sell directly to consumers through your own retail outlets or website, or you may choose to distribute through third-party retailers. Consider e-commerce platforms for global reach. Customization and Personalization: Offer customization options for customers who want personalized shoes. This could include custom sizing, color choices, or even the option to add personal details. Quality Control: Implement rigorous quality control measures to ensure that every pair of shoes meets your standards. Quality is crucial for building a positive reputation and gaining customer trust. Customer Engagement: Build a strong relationship with your customers. Engage with them through social media, email marketing, and customer feedback. Encourage reviews and testimonials to build credibility. Sustainability Practices: Consider incorporating sustainable practices in your manufacturing process. This can appeal to environmentally conscious consumers and contribute to a positive brand image. Legal Compliance: Ensure that your business complies with all relevant regulations and standards, including safety and environmental regulations. Supply Chain Management: Establish a robust supply chain. Develop relationships with reliable suppliers to ensure a steady flow of materials for production. Diversification: Explore opportunities for product diversification. This could include expanding your product line to include accessories or introducing new styles based on market demand. Continuous Improvement:

HEMANTH LINGAMGUNTA Starting a custom-made clothing business with a low investment strategy and budget-friendly premium pricing is a promising venture. Here’s a brief overview of how to approach this business model effectively: Key Steps to Start Your Custom Clothing Business 1. Identify Your Niche: Focus on a specific market segment, such as sustainable fashion, plus-size clothing, or unique prints. This will help you tailor your offerings and stand out in a competitive market. 2. Utilize Print-on-Demand Services: Consider using print-on-demand platforms that allow you to create custom designs without the need to hold inventory. This reduces upfront costs and minimizes risk. 3. Leverage Online Platforms: Start selling through online marketplaces or social media to save on overhead costs. Platforms like Etsy or Shopify can help you reach a wider audience without significant investment. 4. Source Quality Suppliers: Build relationships with reliable suppliers who can provide quality materials at competitive prices. This will help maintain a premium product while keeping costs low. 5. Effective Marketing: Use social media and influencer marketing to promote your brand. Engaging content showcasing your unique designs can attract potential customers without requiring a large marketing budget. 6. Set Competitive Pricing: Establish a pricing strategy that reflects the quality of your products while remaining accessible to your target market. 7. Monitor Trends and Feedback: Stay updated on fashion trends and customer preferences. Regularly seek feedback to refine your offerings and improve customer satisfaction. Useful Links - [How to Start a Clothing Business with Low Investment](https://lnkd.in/geKpKC_Y) - [7 Profitable Clothing Business Ideas for 2024](https://lnkd.in/gug3KmbK) - [30+ Best Clothing Business Ideas You Can Start in 2024](https://lnkd.in/gVyJBm9f) #CustomClothing #FashionBusiness #LowInvestment #PrintOnDemand #SustainableFashion #Entrepreneurship #SmallBusiness #BudgetFriendly #ClothingLine #FashionStartups Citations: [1] How to Start a Clothing Business with Low Investment https://lnkd.in/geKpKC_Y [2] 7 Profitable Clothing Business Ideas for 2024 - Qikink https://lnkd.in/gug3KmbK [3] 30+ Best Clothing Business Ideas You Can Start in 2024 - Blinkstore https://lnkd.in/grYgxEPu [4] Setting Up A Business With Only Custom Clothing Manufacturer https://lnkd.in/gVyJBm9f [5] 10 Small Business Ideas in Garment Industry - Online Clothing Study https://lnkd.in/g8SMM26t

Brands are having success with virtual showrooms. This write-up from PI Apparel provides useful reasons for how and why brands are adopting the virtual route to visualize, sell, and assort using 3D.

New York-based global jewelry cross-border e-commerce platform, Hidden News, has successfully secured seed round investments from Korea Omega Investment & Finance, Bigbang Angels, Woori Finance Capital, and Shinhan Venture Investment. The exact amount of the investment remains undisclosed. Established in 2015 by founder Kim Tae-hyung, Hidden News has been operating jewelry stores in New York, California, and London, aiming to pioneer global jewelry trends. With a vision to collaborate with over 150 local designer brands worldwide, Hidden News has positioned itself as an innovative force in the industry. Identifying the challenges faced by competitive foreign jewelry brands entering the US market, Kim Taehyung recognized the opportunity to address the lack of comprehensive jewelry editing shops catering to the diverse design demands of American consumers. Hidden News specializes in demi-fine jewelry, a category bridging the gap between high-end and fashion jewelry, strategically partnering with 150+ designer brands from Europe and Korea while also retailing its in-house designed products at the Miliemoon store in New York's Soho district and online. The US jewelry market is poised for growth, driven by the rising popularity of demi-fine jewelry, and the online market segment. Hidden News's success in achieving high revenue and profit margins during a year-long market test underscores its potential for sustainable growth, leading to the successful acquisition of seed investments. CEO Kim Taehyung expressed confidence in Hidden News's ability to expand market share and enhance brand awareness through innovative technological advancements that resonate with evolving consumer trends. Shinhan Venture Investment Team Leader Lee Jung-soo commended Hidden News's market penetration capabilities in the US and industry expertise accumulated since 2015, highlighting the strategic value of their offline/online jewelry editing shop. Hidden News's recent accomplishments solidifies its position as a trailblazer in the industry. Source: Platum #SeedFunding #JewelryEcommerce #USMarket #DemiFineJewelry #GlobalFashion t #StartupInvestment

Brand Concepts Q4 and FY24 Business Update: The company is a premier resource for licensed fashion and lifestyle brands in travel gear, small leather goods and women's handbags. Brand Concepts is a well known fashion house for travel and accessories. Brand Concepts works with brands like Tommy Hilfiger, UCB and Aeropostale. Over 80% of sales come from selling Tommy products. The company is adding new bridge-to-luxury brands in its portfolio. Sales grew 41% YOY in Q4 and grew 56% YOY in FY24. The company has no control over its cost with PAT falling 50% YOY in Q4 and staying almost flat YOY in FY24. This is coupled with negative cash flows from operations that the company reported in FY24. Brand Concepts is opening stores at a fast pace and has no control over its cost. I can understand it considering they are a very small company trying to grow at a fast pace but then again the company must reward shareholders in terms of growing EPS for the stock to do well.

DaMENSCH, a Bengaluru-based D2C menswear brand, has recently secured INR 21.62 Cr (approximately $2.5 Mn) in an extended Series B funding round. The investment comes from existing investors including Matrix Partners, Saama Capital, Whiteboard Capital, and A91 Emerging Fund. The startup’s board passed a resolution to raise funds by issuing compulsorily convertible preference shares to these investors. The post-money valuation after this round stands at approximately $66 Mn. This funding milestone arrived nearly two years after DaMENSCH’s previous funding round, where they raised $16.4 Mn led by A91 Partners. With this latest infusion, DaMENSCH’s total funding now exceeds $25 Mn. Founded in 2018 by Anurag Saboo and Gaurav Pushkar, DaMENSCH operates as a D2C men’s lifestyle brand, specializing in innerwear and casual wear. Their product range is available both on their own website and through popular ecommerce platforms such as Amazon, Flipkart, and Myntra. In terms of financial performance, DaMENSCH witnessed a 22.5% increase in operating revenue during the financial year 2022-23 (FY23), reaching INR 72.3 Cr compared to INR 59.3 Cr in the previous fiscal year. However, their net loss more than doubled, rising to INR 62.34 Cr from INR 26.89 Cr in FY22. DaMENSCH faces competition in the men’s innerwear segment from brands like Bummer, XYXX, Freecultr, and Dollar Industries. Notably, several D2C brands have emerged in India across various sectors, including apparel, beauty, personal care, and snacks. These young brands, fueled by investor capital, are challenging established players and aiming to disrupt traditional markets. Recently, another D2C innerwear brand, Bummer, secured INR 9.25 Cr from the Gruhas Collective Consumer Fund. As India’s overall ecommerce market continues to grow, projections indicate that it could reach a staggering $400 Bn by 2030, with the fashion apparel and accessories segment contributing around $112 Bn, up from $23 Bn in 2023. Ready to take the next step? 🌟 Contact us today and let’s fuel your success story! Our primary focus at Convanto is to assist companies of all sizes—small, medium, and large—with their fundraising efforts. We support them by creating essential documents like pitch texts, financial models, valuations, and business plans. Additionally, we design sales decks and prepare term sheets. Moreover, we assist high-net-worth individuals (HNIs) in investing their money wisely into suitable startup ventures. 📩 Email: vt@convanto 🌐 Website: www.convanto.com Vandana Tolani