15 - SeedQuick

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VERTICAL INTEGRATION MODEL
THE BRUBAKER BRAND
BENCHMARKING
WHY THE BRUBAKER IS DIFFERENT
MILESTONES
HOW WE PLAN TO GROWTH
SENIOR TEAM
FINANCIALS
RADICALLY SIMPLE, NO INTERMEDIARIES
VERTICAL INTEGRATION BUSINESS MODEL
Web-only brands are vertically integrating the retail value chain, including designing,
manufacturing, branding, and distribution:"
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Direct: By eliminating stores from the supply chain, companies bring products directly to
consumers from the factory without the bloat of the traditional retailer who marks up their products
up to three times as it works its way through the supply chain from the factory to the store. • 
Disrupting prices: This translates into high-quality products at significantly lower prices. A key
benefit of being an online niche retailer is the ability to build a distinct, easily recognizable brand
that can grow customer loyalty even as new brands are just a click (or discovery site) away. • 
Incremental Operational Margins & Cash Flow: Economies of scale when reaching
customers critical mass produce incremental margins up to 100% and ability to finance forward
growth rather with new references, new same group brands or geographical expansion. Less
Capex due to efficiency in stock management and needs.
RADICALLY SIMPLE, NO INTERMEDIARIES
THE BRUBAKER BRAND
A new kind of retail experience, that exists 100% on line, acting as an exclusive luxury basic product (male at the
beginning) clothing destination, that bypasses all the middlemen to transfer to the end user the quality that comes
up from relationships with the same EU factories that make expensive designer goods at significantly lower prices.
RADICALLY SIMPLE, NO INTERMEDIARIES
RADICALLY SIMPLE, NO INTERMEDIARIES
BRAND STORY AND CHARACTER
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Transparent price point and fair price point plus higher perceived quality (materials used) in form of a more
valuable and intelligent value proposition for the customer vs actual value chain and incumbents in off line world.
Transfer to end user the savings in value chain and quality products. Transparency creates Authority.
“I buy like no other saving money with the best quality= smart shopping = ego driven to share the experience”
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Made in Europe as opposite to Made in Asia related to higher material quality and production process.
“I buy European made products to help out the country and getting better quality than Asia
products with European style and design”.
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Perception of quality is helped out by the fact that same factories as the ones who work for high street names are
producing your garment for you.
“I buy like no other because of the quality of the product= smart shopping = ego driven to share the experience”
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The exclusivity is driven by taste, style and knowledge as opposed to money sign.
“I buy like no other because I am part of an smart community= smart shopping = ego driven to share the experience”
RADICALLY SIMPLE, NO INTERMEDIARIES
VERTICAL INTEGRATION MODELS U.S. (I)
BONOBOS
Male clothing brand launched in 2007 by Stanford Alumni.
Having raised until the date up to 120$ MM with investors as
Accel and Nordstrom. It´s actually the biggest on line only
brand in the US.
High price positioning, Made in Asia, focused in a 30 to 40´s,
target looking for a perfect fit and energetic spirit a lá JC Crew.
Estimated revenues of approximately $80MM (2013) and
projected of $300MM (2015).
RADICALLY SIMPLE, NO INTERMEDIARIES
VERTICAL INTEGRATION MODELS U.S. (II)
FRANK & OAK
Brand focused in young target <35 years, with a business
model as a combination of open website and subscription
model.
Monthly new product launches. Low price low quality and
made in china positioning.
Total raised to date: 20$ MM. Actually the canadian
ecommerce fast growing start up of all times.
Estimated revenues of approximately 30$ MM (2012)
RADICALLY SIMPLE, NO INTERMEDIARIES
VERTICAL INTEGRATION MODELS U.S. (III)
EVERLANE
Focused in male and female, hipster and urban people.
User base growth from 400k to 2,4MM monthly in 2
years.
Low price medium quality positioning a lá American
Apparel.
Raised a total of 5MM$ lead by known Sillicon Valley
fund Kleiner Perkins CB and other very well known
private investors.
Estimated revenues of approximately 60MM (2013)
RADICALLY SIMPLE, NO INTERMEDIARIES
WHY THE BRUBAKER IS DIFFERENT?
• COMPETITIVE ADVANTAGE: SPANISH CLOTHING
NETWORK
• PRODUCTION TIMELINE
• DEMAND GENERATION PROCESSES
• LOWER QUANTITIES BATCHES
• PRODUCTS ARE SUGGESTED BY THE CUSTOMER
• PRICE POSITIONING
• CUSTOMER EXPERIENCE & CRM
• CUSTOMER SATISFACTION
RADICALLY SIMPLE, NO INTERMEDIARIES
COMPETITIVE ADVANTAGE: SPANISH CLOTHING NETWORK
• Iberian Peninsula is one of the most important industry
clothing Hub of the world.
• High luxury clothing know-how.
• Base of multiple big clothing industry brands.
• Perfect starting point for a new brand.
• Effective european and worldwide distribution system.
• Great and high number of industry talent available.
• Great speed of respond and agile networks.
RADICALLY SIMPLE, NO INTERMEDIARIES
BEST SPANISH FACTORIES. GREAT EUROPEAN
QUALITY. WORLDWIDE INDUSTRY RECOGNITION.
OUR PRODUCTS ARE PRODUCED IN THE SAME FACTORIES AS THESE HIGH STREET
BRANDS:
RADICALLY SIMPLE, NO INTERMEDIARIES
BEST SPANISH FACTORIES. GREAT EUROPEAN
QUALITY. WORLDWIDE INDUSTRY RECOGNITION
RADICALLY SIMPLE, NO INTERMEDIARIES
HOW CAN THE BRUBAKER AFFORD TO
SELL AT LOWER PRICES?
Some of our competitive advantages are based in the
efficient process of designing, and production apart
from the fact that our factories and partners are quite
close from our offices so the time involved in the whole
process doesn’t reach up to 21 days in total.
Lower inventory costs due to the fact that our brand
produces what the community is asking for using
social and marketing tactics in order to generate such
references as well as inventory turnover focused
management strategies in contrast to standard margin
focused strategies in actual industry = Higher
Inventory Turnover.
RADICALLY SIMPLE, NO INTERMEDIARIES
DEMAND GENERATION. HOW WE LAUNCH A NEW PRODUCT
RADICALLY SIMPLE, NO INTERMEDIARIES
LOWER Q. PRODUCTION CYCLES AND FAST RESPONSE
High production efficiency / Incremental margins / Low inventory need / Engaged customers
RADICALLY SIMPLE, NO INTERMEDIARIES
REAL CASE: PRE SALE WISHLIST
(Real Image of our Backoffice in a pre sales launch)
RADICALLY SIMPLE, NO INTERMEDIARIES
OPERATIONS CASH FLOW IS AN ADVANTAGE
AVERAGE FACTORY PAYMENT: 45 DAYS
FUTURE PRE SALES PAYMENT: 30
DAYS BEFORE FACTORY ORDER
AVERAGE CUSTOMER TIME TO PURCHASE:
15 DAYS
ACTUAL MARKETING C.
PAYMENT: SAME DAY
FUTURE MARKETING C. PAYMENT: 30 DAYS
HIGHER MARKETING INVESTMENT MEANS BETTER PAYMENT CONDITION:
30 DAYS MINIMUM.
NEW OPTION: PRE SALE CUSTOMER PAYMENT IN ADVANCE
RADICALLY SIMPLE, NO INTERMEDIARIES
PRODUCTS ARE VOTED AND SUGGESTED BY THE CUSTOMER
COMING SOON
Actual stage: 1 new product
per month
Future stage: 1 new product,
per 2 weeks, per week etc..
RADICALLY SIMPLE, NO INTERMEDIARIES
REAL CASE: VOTING FOR NEW PRODUCT RELEASE
RADICALLY SIMPLE, NO INTERMEDIARIES
PRICE & QUALITY BENCHMARKING
Quality Level
OPPORTUNITY
Price Point
RADICALLY SIMPLE, NO INTERMEDIARIES
Paul & Sharck"
Brooks Brothers"
Hackett"
Gant"
Man"
Roberto Verino"
Boss"
Lester"
Lacoste"
Faconnable"
Ralph Lauren Polo"
Carolina Herrera"
Boggi"
Purrificación García"
Hilfiger"
Burberrys"
Emidio Tucci"
Other Corte Inglés"
Massimo Dutti"
El ganso"
Lloyds"
Cortefiel"
PdH"
H&M"
Adolfo Dominguez"
Zara
MILESTONES 1 YEAR OF NEW PRODUCTS AND ENTRY TACTICS
Product tactic acquisition:
Oxford shirt or Polo shirt
are the entry products we
use in order to acquire first
time users.
After having tried our
brand experience, and the
customer is captured more
products are offered and
more expensive ones are
showed up, upselling and in
order to increase the
LTVC.
RADICALLY SIMPLE, NO INTERMEDIARIES
MILESTONES KPMG AWARD & FREE MEDIA COVERAGE
RADICALLY SIMPLE, NO INTERMEDIARIES
MILESTONES WHERE OUR CUSTOMER IS
•  Social channels as Facebook, Twitter & Instagram drives traffic and sales and have great potential to
growth our customer base and revenue.
•  Social channels generate high number of word of mouth, viral and referrals registered users and sales.
•  Member get member and Rewards systems tools generates relevant traffic and revenues based on
the exclusivity of our Brand.
•  Facebook & Twitter Ads are scalable targeted acquisiton channels as our customer segment is in there
= more than 2 mill people.
•  PPRR , Media & Bloggers coverage generates high traffic and revenue peaks.
•  Marketing Ttal CPA Average: 9€ = positive ROI without campaign optimization
•  Conversion rates up to 3% over traffic.
RADICALLY SIMPLE, NO INTERMEDIARIES
MILESTONES KPI´S 13 PRODUCT REFERENCES
•  2 digits revenue growth quarter over quarter with very limited marketing budget.
First and only operational year.
•  Monthly recurrency to purchase:
15%
•  Customer Same Day Register & Purchase:
12%
•  New customer / 2 purchases same month:
7%
•  Average Cart:
•  Products per Cart:
• Repeat purchase:
RADICALLY SIMPLE, NO INTERMEDIARIES
65€ to 75€
1,2 a 1,4
45 to 60 days after 1st purchase
MILESTONES THE BRUBAKER: REAL CUSTOMER RECURRENCY
Monthly customer recurrency
5,27 estimated purchases per customer in 5 years
RADICALLY SIMPLE, NO INTERMEDIARIES
15 %
= LFTV 5 years of 105€ in Gross Margin (not Sales)
MILESTONES WHO IS OUR CUSTOMER
Target A):
•  From 25 to 35 years. Middle class. Interested in clothing brands and fashion. Needs an affordable option to wear
high quality medium price products and look for european differentiated brands with modern fittings on them. He
works in big companies, banking, etc, liberal professionals, freelances and entrepreneurs and business man. Smart
shopper & fashionista.
Target B)
•  From 35 to +45 years. Middle and middle to upper class. Interested in european quality products. Needs a better
balance between quality and price looking for a classic and modern products and looking brands. He works in big
companies, banking, etc, liberal professionals and business man. Smart shopper.
• Volume of Target only in Spanish Market: + 3,5 million people.
RADICALLY SIMPLE, NO INTERMEDIARIES
REAL CUSTOMER
SATISFACTION
RADICALLY SIMPLE, NO INTERMEDIARIES
HOW WE PLAN TO GROWTH IN ORDER TO REACH OBJECTIVES
Organic, Scalable and non Scalable Growth Channels:
•  Social channels as Facebook, Twitter & Instagram.
•  Member get member and Rewards systems tools.
•  PPRR, Media & Bloggers.
•  Content Marketing
Paid, Scalable and non Scalable Growth Channels:
•  Facebook & Twitter Ads.
•  Retargeting Ads.
•  Media for equity.
RADICALLY SIMPLE, NO INTERMEDIARIES
HOW WE PLAN TO GROWTH IN ORDER TO REACH OBJECTIVES
MORE CATALOG. I.E. PRODUCTS: SMALL GROW TEAM
• Operations & Sourcing Manager with experience in the field and able to expand the catalog 10x
times.
• Art Director in order to expand and manage the values of the company
• Marketing Manager
MORE ECONOMIES OF SCALE AND GROSS MARGINS:
• Incremental gross margins as a higher level of batches demanded to factories.
• Break Even in 1st country
RADICALLY SIMPLE, NO INTERMEDIARIES
FUTURE: TODAY MADE IN SPAIN. TOMORROW MADE IN EUROPE
TODAY: MADE IN SPAIN, Key Market: Spain.
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Spain as the initial base to growth stage.
Know how & industries facilities
Rapid & Agile deployment
Fashion market levers
Male brand
Value proposition and customer validation market
Tomorrow: MADE IN EUROPE, Markets: EU / America / Asia.
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EU: Easy expanding deployment.
America: European Brand
Asia: European Brand
Higher final prices
New Female brand
RADICALLY SIMPLE, NO INTERMEDIARIES
SENIOR TEAM
Manuel de Timoteo Comas, Founder & CEO.
Managing Director and serial entrepreneur with more than 15 years of experience in growing companies in ecommerce, tech and
retail industries. Leading the process of identifying high growth ideas and business models (specialty with network effects needs)
and concepts, bringing resources, teams and investors / advisors to them and deploying such business to markets.
Previously, Manuel founded and managed doctortrade, an e-Commerce company, the only Spanish fixed price guaranteed c2c+b2c
marketplace with a YOY growth rate of more than 145%, in 2011. Doctortrade was funded by DAD (one of Spain´s leading earlystage investors, Gustavo García Brusilovsky, founder of BuyVip (acquired by Amazon), Mikel Urizabarrena founder of Panda
(acquired by McAfee), apart from other very well known spanish investor and family offices. Named one of the "100 best business
ideas of 2010" prize by spanish business magazine "Actualidad Economica”
Manuel has also served as CEO of Cash Converters Spain, and held senior roles in Jazztel and Kelkoo.
Manuel holds a BBA from EU University, an MBA from IE Business School and a PDD from IESE Business School.
Lorea Ikutza Aguirre, COO
COO. More than 7 years of know how and experience in launching and consolidation of start ups, she focus her work in the
area of the business intelligence, CRM process optimization and customer recurrency.
She held senior operational roles in companies as Ventura24 and doctortrade.
Lorea holds a BA in Sociology Market Research specialization.
RADICALLY SIMPLE, NO INTERMEDIARIES
SENIOR TEAM
Antonio Robert, CoFounder & Advisor.
Antonio is the founder and the CEO at Incuentra and COO at Plenunmedia (Incuentra was recently acquired by
Plenunmedia). He has occupied General Management positions at Tuenti (sold to Telefonica), where he was also board
member. Antonio has held senior-level Marketgin and Business development postions at Xplane (sold to a consultancy
Firm), eBay and Netjuice.
Antonio holds a BA in Physics and an MBA from IESE Business School.
Allan Majotra, Advisor
Allan is a VC and PE investor and investment banker. Most recently, he founded and led the fund finance practice for the EMEA
region for Silicon Valley Bank in London, working with some of the most prominent VC and PE firms, across all major investment
strategies. He also advised SVB Capital, a Fund of Fund, on EMEA-based investors and funds. Allan has also co-authored the British
Private Equity Association´s (BVCA) Guide to Fund Finance.
Previously, he was Vice President at Union Bank/MUFG in Los Angeles, working on deals in the renewables and infrastructure
sectors, as well as, TMT, after completing the bank´s credit training program. He went on to start a luxury online retailer in Spain
and the US and worked as the Head of Business Development and Marketing at eBay Spain. He then worked as a partner at
Axon Partners, a Spain-based VC and growth capital firm, where he invested in Spain, LatAm and India and helped raise two funds.
Amongst his investments were Wauki.tv (acquired by Rakuten) with an IRR of 400%+.
Allan holds an MBA, as a Sloan Fellow, from London Business School. He is trilingual in English, Spanish and Hindi.
RADICALLY SIMPLE, NO INTERMEDIARIES
SENIOR TEAM TO JOIN THE COMPANY
David Fuentenebro, CPO.
With more than 20 year of experience in the selling, buying, design and production areas of El Corte Inglés, he has one of
the persons in charge of launching the new young fashion brand of this company called Green Coast aimed at a younger
target with a different approach in terms of managing the stock.
In fact this has been one of the fastest growing brands in the whole group in terms of revenue and retention.
David holds an BA in Business Administration as well as a Cum Laude Diploma of production and design of clothing by the
Ramon Areces Foundation.
David is actually working with The Brubaker advising the company in the production, design and competence and market
benchmarking areas of the company.
Apart from this position The Brubaker is in conversations with very well known clothing industry marketing profesional to
join the company after closing the round, actually advising us as well in such areas of on line marketing acquisitons
strategies.
RADICALLY SIMPLE, NO INTERMEDIARIES
FINANCIALS ONLY SPANISH MARKET
YEAR 1
COUNTRIES
1
1
1
1
NUMBER OF PRODUCTS LAUNCHED
23
35
53
71
REGISTERED CUSTOMERS
62.060
170.672
407.031
774.466
% MONTHLY CUSTOMER REPEAT PURCHASE
15%
15%
15%
15%
PURCHASES REPEAT CUSTOMER
7.629
27.193
70.997
153.225
PURCHASES NEW CUSTOMER
7.708
15.856
35.408
58.504
TOTAL PURCHASES PER YEAR 15.337
43.049
106.405
211.728
PURCHASE AVERAGE PRICE
70,00 €
70,00 €
70,00 €
70,00 €
AVERAGE GROSS MARGINS
40%
45%
50%
55%
NET SALES
887.269 €
2.490.452 €
6.155.658 €
12.248.738 €
GROSS MARGINS
321.058 € 1.025.693 € 2.842.990 €
6.269.517 €
ADVERTISING & MARKETING
-156.029 €
-262.452 €
-430.778 €
-561.244 €
PERSONNEL COSTS
-213.072 €
-332,672 €
-493,872 €
-743,797 €
OPERATING COSTS
-34.200 €
-49.200 €
-73.500 €
-111.050 €
EBITDA
13.486 €
504.321 €
2.043.318 €
5.170.770 €
% EBITDA
2%
20%
33%
42%
NET CASH FLOW
-159.394 €
240.141 €
1.482.072 €
4.028.562 €
RADICALLY SIMPLE, NO INTERMEDIARIES
YEAR 2
YEAR 3
YEAR 4
Financial needs for
these objectives:
300.000€
Break even point
for spanish
market:
End year 1.
THE BRUBAKER WAY
Radically simple, no intermediaries
Contact:
Manuel de Timoteo Comas
Managing Director & Founder
+34 606 926 325
[email protected]