Investments in working capital
Expansion of the brand’s product range
Increasing brand’s marketing exposure
Development of retail and wholesale channels
Entering Asia and strengthening existing positions
Minimum target: EUR 400 000,00.
Maximum target: EUR 750 000,00.
Loan term: 24 months.
Interest rate: 18% per annum.
Interest payments: paid monthly
Loan repayment: In full at the end of the Loan Term.
Collateral: Guarantee issued by the Borrower and shareholders, as well a commercial pledge on the stocks funded.
Collateral Agent: Crowdestor Security Agent OÜ
Crowdestor BuyBack fund: Yes
Sample repayment for 1'000 EUR investment:
INCH2 is a fast-growing young brand founded in Northern Europe in 2015 now gaining a global recognition.
Driving passion behind the brand’s identity is a blend of refined design of handcrafted footwear with strong charismatic personality.
Unique style, uncompromising comfort and high quality – three fundamental principles the brand stands for.
INCH2 fills the gap between mass-market and exclusive, designer footwear, offering handcrafted highly fashionable footwear for affordable middle range price.
INCH2 manufacturing is extended to the Europe’s best shoemakers. The brand’s footwear is being produced in Portugal at the same facilities as the following well - known brands: KENZO, LANVIN, MAISON MARTIN MARGIELA, BALMAIN, GIVENCHY and others.
INCH2 – a growing footwear brand founded in Northern Europe in 2015 by two dedicated professionals Olga and Edward Peterson who are leading the Company today
Unique brand identity – INCH2 footwear is a debut award winner – handmade, charismatic, AA class quality concept. The brand offers a never-ending play with the old world footwear design traditions, mixing them in a curious, one-of-a-kind, personal and timeless way.
Passionate founders and a dedicated team – the Company and the brand was founded by Olga and Edward Peterson, young entrepreneurs with experience in design and online marketing, who returned from London to build a Company currently employing around 20 professionals
Clear market positioning – INCH2 fills the gap between mass-market and exclusive, designer footwear for affordable price
Highest quality manufacturing – the footwear is manufactured in Portugal using only high-quality leather. The design and shape of the soles, as well as fittings, are created specifically for INCH2.
Growing community – 750,000+ social media followers across Facebook and Instagram
Record-setting sales – the Company generated sales of 4.5m EUR in 2018 up from 1.5m EUR in 2017 achieving a staggering growth of ca. 200% in one year. The Company also set a record for “Black Friday” sales in Latvia for two consecutive years.
Three sales channels – the footwear is sold through online, retail and wholesale channels
Global destinations – footwear is shipped globally and has been sold to more than 130 countries worldwide
he Company sells handcrafted women’s and men’s footwear for affordable middle range price that fills the gap between mass-market and exclusive, designer footwear. The typical retail price range for a pair of shoes is from 200 to 400EUR.
The existing target audience consists of women and men in the ages from 25 to 45, with a monthly income of 1,000 EUR and above.
Using the possibilities offered by internet and e-commerce, and implementing own “know-how” into the sales strategy, the Company has almost unlimited access to its target audience.
•The Company uses a carefully calculated strategy for e-commerce. Potential customers are mainly targeted through advertising on Google, social media platforms Facebook and Instagram. Potential customers are segregated in priority groups allocated a specific marketing budget to effectively convert website visits into purchases.
•Recognized as a footwear brand with one of the strongest online presences in the Northern Europe, INCH2 has gathered over 775’000 loyal followers on social media. The total number of community members is growing fast. In order to engage even larger audience, the brand is constantly developing new approaches and evaluates new communication channels.
•Digital marketing and e-commerce are used as the main tools for new customer engagement, INCH2 brand and product promotion. Therefore, marketing expenses form a significant part of the overall Company’s expenditures comprising close to 1.0m EUR in 2018.
•The Company and brand is further promoted through participation in events such as the Riga Fashion Week, Mercedes-Benz Fashion Week Russia, as well as gaining exposure in publications made by such magazines as Forbes, Bazaar, The Times, Vogue and L’OFFICIEL.
Due to fact-based approach and product high quality and appearance, the brand is expanding its presence worldwide. The Company’s and brand’s flexibility allows to transcend the borders and go viral.
INCH2 footwear has been sold and shipped to more than 130 countries worldwide. The best-selling markets in 2018 have been the following:
●European Union 62%
●North America 19%
●Russia 8%
The brand is currently working on entering Asia, and focusing on developing more recognition and stronger positions in the United States and Russia.
The figures on the right display the Company’s sales results since 2015 and the rapid growth accomplished.
The revenue from online sales, which is the main sales channel for the INCH2 brand footwear, grew from ca. 1.5m EUR in 2017 to 4.5m EUR in 2018– representing a growth of ca. 200%.
The Company expects to generate more than 10m EUR in sales in 2019. The preliminary January 2019 results already indicate that further growth in sales compared to 2018 is under way.
As sales volumes are growing, so do the brand’s opportunities. Growing number of requests from the existing and potential customers urges the Company and the brand to set new and higher goals.
Investments in working capital
•The Company will be making additional investments in the working capital to appropriately address the growing sales volumes. This should in turn decrease product delivery times and increase customer satisfaction and retention. Expansion of the brand’s product range
•INCH2 has recently launched men’s footwear collection and is looking to expand it. In addition, the Company is looking to add bags, new styles of casual clothing and accessories for both ladies and gentlemen to the product range in the near future.
Increasing brand’s marketing exposure
•The Company is continuously exploring and assessing new marketing channels and tools to increase its exposure and attract new customers. Development of retail and wholesale channels
•INCH2 is looking to expand its retail and wholesale channels through developing new partnerships with agents and distributors in Europe and abroad. Entering Asia and strengthening existing positions
•The Company is looking to enter Asia and strengthen its positions in the U.S. and Russia.
INCH2 was founded by Olga and Edward Peterson just after returning home from living for a long time in London.
Olga as promising young architect and Edward with an expertise in online marketing started the brand with only five styles which grew into a wide range of highly desired products with an ever-growing audience of supporters and devoted customers around the globe in just a couple of years.
The brand was inspired by fusion of styles, art and different perceptions of beauty while travelling around the world and absorbing the unique culture of each country visited.
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