Investment Opportunity

SHORT SUMMARY

Krea Group is a London based fashion holding company, with a growing portfolio of sustainable brands. Signed 4 distributors in the last 3 months, shown @ London Fashion Week, and proven commercial value. We have a great European supply chain.

WHAT WE NEED

We're looking for a partner that believes in the company, and understands the growth potential. Ideally, somebody that ether has previous experience in the industry, or somebody that can bring any other added value, and "take a seat" at the round table. In exchange for the capital injection, we're offering proportional equity. 

HIGHLIGHTS

  • Proven concept, and tested the products with both B2B and B2C
  • Set up great logistic, relationships with suppliers, and manufacturers
  • Assembled a multi-disciplinary team with complementary skills
  • Experience across different areas of the industry
  • We're a trading company with 4 distribution contracts

THE BUSINESS

Founded in January 2018, Krea Group now includes Acurrator and Lou Black - Two London based womenswear brands, with similar USPs, best defined by a Fashion Week aesthetic at High Street prices. 

They share love for the environment, and have had great accomplishments in the last year, but decided to embark on a joint venture, without cannibalizing each other.

Acurrator has a season-less and minimalist with a designer's touch aesthetic, while Lou Black is defined by form flattering and timeless pieces. 

THE MARKET

The company is London based, manufactures in Europe and ships world-wide. 

Both brands started trading on e-commerce platforms, and third party multi brand platforms, but are moving into retail and wholesale. 

Our target demographic is urban professionals and established entrepreneurs, doers and achievers with purse string intelligence, that want to be unique, but stand out in a discrete way, between 25-35 years old.

Fashion is a hyper-competitive industry. Talent is readily available, so having a well-designed and a high-quality product is simply the price of entry. What ultimately separates a successful fashion business from the rest is often how the brand’s story resonates with consumers.

PROGRESS / PROOF

In the attached Business Plan we have an overview of our achievements to date, and our agenda for the current year. 

Since the launch of the brands, we had great feed-back from customers and and manage to prove commercial value of our products by selling online and in pop-ups, even before approaching retailers. 

We start the venture with a great logistic with our suppliers and manufacturers. 
During FW18 London Fashion Week, we gain a lot of marketing value, and used the momentum to close fruitful partnerships with influentials.

According to the Business of Fashion market researches, the independent and sustainable brands are challenging big industry giants, and are taking bigger and bigger market shares world-wide. 

 COMPANY OVERVIEW

Krea Group is a Limited Company that was officially founded in February 2018, and incorporates two womenswear brands: Acurrator and Lou Black. Both brands were trading for less than two years, and have had great accomplishments to date, but decided to embark on a joint venture and share resources for market penetration.

 OBJECTIVES

The long term goal for Krea Group is to incubate other brands that have a similar aesthetic, price point, and sustainable approach, without overlapping too much with the existing portfolio, and that cover different categories. The focus for the next 18 months is on market penetration. We have secured distribution for both brands, in targeted territories: UK, Germany, France, Benelux, as well as finding key partners to bring on board, to cover gaps in expertise. The next steps are to expend the coverage in other EU territories, as well as the US. The retail strategy is to target both independent retailers and bigger accounts (when the time is right), test concessions, and attend pop-ups in great retail spaces in big cities (already sold Acurrator in pop-ups in Meatpacking District in New York, Kensington, Covent Garden and Shoreditch in London, with great response from our customers). Starting June '18 we have launch a massive affiliated marketing campaign, and we're partnering up with high-end influencers, with a combined reach close to 5m. This will push the brand awareness, and help us penetrate the targeted retail outlets. 
Fashion is a hyper-competitive industry. Talent is readily available, so having a well-designed and a high-quality product is simply the price of entry. What ultimately separates a successful fashion business from the rest is often how the brand’s story resonates with consumers. For a lot of new brands "sustainability" and "ethically made" are terms used to describe their brand, and we think that shouldn't be the selling point of a mediocre product, that should be the normal way to do it.

 EXECUTIVE SUMMARY

The core belief of our company is that we’re on our way to do something with a bigger impact on the sustainable consumer goods market, than just another fashion brand. By having formed a team of people and brands, our business has combined forces to make us look established both in the eyes of the retailers, and the end-customers. We’ll be known for our common DNA, and for the quality of our products, that tell the story of what we stand for. We see the growth opportunity for a product based business that has a good cause, covers different product categories and target demographics, is based in a great and pro-active place like London, had a great supply chain, and a team with a hybrid set of skills. 

 PRODUCT OVERVIEW

Our company's DNA is what sets us apart from everybody else, so defining our 4P’s is the starting point.

  1. Product: A great product is not all, but it’s a must for a great business.With a clear idea of what we’re looking for, we have a solid foundation to experiment with fabrics, prints and techniques. Bottom line: all of our products, both the Acurrator and Lou Black pieces must be made with respect for the environment, to have a timeless look, to be transitional from day to night, sneakers to pumps, season-less, and to have a clean aesthetic with great designer's details.  
  2. Place: Why limit ourselves to geographic ties?Sure, we have to have a postcode, but producing in factories in Europe means we don’t have limitations in shipping. The right buyer/ online platform can assure we access our target audience, and vice versa. If our target customers have a lot of stamps in their passports, why wouldn’t our products have some?  
  3. Price: The value equation that the brand puts in the consumer’s mind.Catch 22: does a small price tag mean a low quality product? Is that how much we value it? When focusing on the brand’s direction, we were considering different price points categories, but really wanted to cater to a wider audience, and bring our style in front of people of different age groups and interests. Because we don’t work with agents and negotiate with the factories directly, we managed to keep our prices lower than others in the category. But our goal is to be able to appeal to customers that don’t want to spend big bucks on trying to be something they’re not. Buy a piece of clothing that you appreciate, and that makes you feel great about yourself - and associate that item with that feeling, but get your dopamine from experiences, not things.  
  4. Promotion: “Advertising is the tax you pay for being unremarkable” - or is it?As a fashion start-up we have to utilise the resources we have in order to compensate for the lack of cash flow, so we don't shy from pulling favours and bartering or products to capitalise marketing value. At this stage, our short-term goal is to be present and create awareness around the brand. As a start-up who is bootstrapping the business we are focusing on: ● partner with online platforms and multi brand boutiques ● allow stylists and publications to pull items for editorials and photo-shoots ● submit lookbooks on different platforms used by stylists ● ask our customers to recommend us ● attend niche pop up stores events and designer market-places ● create a buyers database and email them upcoming capsule collections ● barter with influential and stylists to use our products   

SOURCING AND SUPPLY CHAIN

Some of the big risks of fashion start-ups are (lack of) stock, manufacturing capacity, problems with unknown suppliers, QA (quality assurance), QC (quality control), lack of know how when it comes to labeling, delivery policies, CSV use, lines of credit of financial coverage for supplying orders, and so on. Fortunately for us, we managed to cover these (less than creative) aspects, and made sure we are ready to venture in the big retail world. To make sure the quality or our garments stays consistent we have an in-house production manager in Romania. Our ateliers and factories can deliver any size orders and are working for some of the biggest fashion high street retailers, who want to manufacture in an European country, where the factories are regularly checked for work ethic, legality, and employees rights. The logistic we have in build allows us to place orders, and to have everything dispatch to our warehouse in London within days. And then, to dispatch the orders to customers, usually within 72h.

SALES STRUCTURE AND COMMISSION

Working directly with the manufacturers, and redirecting other UK accounts to them, we manage to keep great margins and offer a competitive portfolio of products for retailers. 

We operated both B2C and B2B.

MARKETING OVERVIEW

Forming the company and putting the first two brands under the umbrella, gives us a chance to utilise the same resources to tackle different channels for each brand, and to be able to have a more diverse range.  
 
Of course, the size of the order has an impact on the manufacturing cost, but by ordering small quantities, we were able to do product testing, to understand our strengths and keep developing our best-sellers. All of this, allows us to be market-ready, and have a constant restocking capacity, without having to commit to dead stock, or jeopardise the cash flow. Another strength of the company is that it can access funds and cover any size POs.  

WEAKNESSES

While trying to find the "better mousetrap", fashion is not proprietary. So our USP and our beliefs are our recommendation letter. Even though we’re a new company, our previous experience in the fashion industry gives us a great understanding of the operational side of the business. Some of the big risks of fashion start-ups are (lack of) stock, manufacturing capacity, problems with unknown suppliers, QA (quality assurance), QC (quality control), lack of know how when it comes to labeling, delivery policies, CSV use, lines of credit of financial coverage for supplying orders, and so on. Fortunately for us, we managed to cover these (less than creative) aspects, and have an upper hand on some small businesses. 

OPPORTUNITIES

We think that ethical and sustainable manufacturing will become the new normal, much like organic food has become mainstream. We don’t claim to be “sustainable brands” made only from recycled fabrics, in a solar panel powered shed, but what we can tell you is that we know the names of every person that ever worked on one of our garments. We know about their families, and what they plan to do once the working day is over. These are core beliefs of the company, and we know that the fashion industry is starting to move in that direction. The customers want more from the products that they buy than just the aesthetic and a friendly price tag - they Krea Group Limited - Business Plan 2018 want to hear the story, support the cause, and buy a product that makes them feel good about themselves. According to the Business of Fashion market research, the independent brands are challenging big industry giants, and are taking bigger and bigger market shares. A brand with a good story, a reliable supply chain, and commercial awareness is in a good place to tackle the market, and be on the radar of relevant retailers.  

THREATS

Like every start-up, our small team currently needs to cover a hybrid set of tasks to get things done. We are at a stage where we have a proven concept, and it’s really important to sit down and evaluate what we have done, and where we want to go, and then find the capital, partners, resources, and personnel to grow in a faster pace. Putting the right team together is one of our priorities for the next months.  

DOCUMENTS

Business plan, financials, and additional documents will become available upon request, after initial introduction, and fit assessment. 

If you feel like this is an opportunity for you, please get in touch via email at the addresses listed in "Contact".