Understanding the investment opportunity
Panapop is a Digital Native Vertical Brand (DNVB) of fashion accessories, which designs and sells watches, handbags and shopper bags for authentic, determined and creative women who have fun and take risks by dressing that way because it helps them spread the word about who they are and how they see life.
Thinking that the conventional aesthetic model is in crisis, Panapop has created a brand that fits very well with the current fashion market in which clothing is used as a tool to express personality.
Using a strategy of products with a message, it designs under its own slogans (such as "you") and with the help of major licenses such as Harry Potter, Warner Bros, Frida Kahlo, Van Gogh or the Little Prince, following the successful strategy of Happy Socks.
The brand, which is in the midst of a growth phase, has a net turnover of more than 2M€ and is already international. In 2020, 60% of sales were outside Spain, mainly in the Mexican, Italian, French, German and English markets. They sell through their own website and, recently, also via Amazon.
They have managed to position themselves as a relevant brand with a large community of followers (65k followers on Instagram and more than 100k on Facebook). Both the story of the startup itself, as well as the story behind each of their products, have made the press interested and they frequently get appearances in the most important media of fashion and the world of entrepreneurship. Some of them are: Forbes, Harper's Bazaar, Cosmopolitan, Yo Dona, Moda.es....
CEO y Fundadora de Panapop
Responsable de Diseño
Big Ban Inversores Privados
Reasons to invest View more data
The brand and the product. Panapop has created a brand and a product that has made a very good fit with the market, achieving a large community of followers (more than 160K), a large customer base (more than 40k) and an accumulated turnover of €2M net.
The business model. Already validated, it has a contribution margin (net of marketing expenses) of more than 20%, which will continue to grow in the coming months thanks to the planned opening of a warehouse in the center of Europe and the opening of new sales channels.
International brand. 60% of 2020 sales and 78% of 2021 sales (YTD) were international. Panapop has demonstrated that it is already an international brand that is well received in the Mexican, Italian, French, German and English markets, and intends to continue replicating its model in the United States, where it will land this year.
Having been a single-product brand until recently, its repetition rate is 20% and will continue to increase with the launch of new categories. The recently launched handbag category already accounts for 16% of sales. They are currently developing 2 new categories that will be launched this year.
- Large companies in the culture and entertainment industry trust them. Despite the youth of the brand, Panapop has won over major brands such as Warner Bros, Peanuts or Frida Kahlo, among others, with whom they have partnered to design products that fit perfectly with their target and that are being a key support for the expansion and recognition of the brand.
- Efficient marketing strategy. With a strong digital character, Panapop has developed a marketing strategy that has made it a relevant and recognized brand, which has 35K subscribers and is frequently echoed by the most important media.
- Team. Panapop has a team that combines the freshness and boldness of youth with solid knowledge and experience in design, internationalization and marketing.
- Resilience to Covid-19. Panapop has successfully overcome the health crisis by improving some very relevant metrics (such as the contribution margin obtained), strengthening its production system and building the foundations to scale its turnover.
- Efficiency in the use of capital. With an initial investment of only €2400 they completed their first year of life and invoiced more than €100K, later in November 2018 they raised an investment round of €260k that has allowed them to get this far and reach great milestones.
- Market. The fashion accessories market is a huge market (150 billion USD in the countries where Panapop sells) stable and growing every year.
Opportunity analysis Last update Jun 28, 2021 3:26:32 PM
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