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Porque seus filhos crescem muito mais rápido que suas roupinhas
INSTITUTIONAL PRESENTATION
MARCH 2014
STRICTLY CONFIDENTIAL
AGENDA
1. WHY WE DECIDED TO CREATE RETROCA
2. HOW RETROCA WORKS
3. COMPETITIVE LANDSCAPE
4. WHERE RETROCA STANDS TODAY
5. THE TEAM BEHIND RETROCA
6. WHERE WE AIM TO BE
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STRICTLY CONFIDENTIAL
Children’s clothing is very expensive in Brazil – can cost 2x more compared to the U.S. and represents
~10% of the annual budget of a family with their children
Families’ decision: accumulate clothes – storing clothes for the next child or to relatives does not
guarantee a sustainable future and occupies a lot of space
Big waste of energy and resources – each Brazilian consumes on average 15 kilos a year in
textiles and only a small fraction is reused/recycled
WHY WE DECIDED TO CREATE RETROCA
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Kids grow much faster than their clothes – by the age of 15 a child will have outgrown around
1,000 pieces of clothing
PROBLEM OPPORTUNITY
Business model is replicable to larger second hand markets such as teens and adults – estimated market size of approximately R$7 billion
Business model allows high profitability – gross margin of 50% + in the long term
– ability to control purchase prices and margins
– proven business model in other countries
Increase the life cycle of second hand apparel and contribute to a better environment – ensure that other families reuse clothes still in good quality
reducing excessive consumption and waste
The kids (0-12 years) second hand apparel market size is at least around R$3 billion – market is very disorganized, fragmented and informal
– apparel is the largest e-commerce category in Brazil
Sources: Invent, Abit, IBGE and Retroca Estimates
STRICTLY CONFIDENTIAL
BUY
HOW RETROCA WORKS
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Retroca is a website in which parents can buy and sell like-new kids clothing of national and international brands at affordable prices with ensured quality and easiness, since all the pieces are bought by Retroca and sold in its website
REMOTE
COSTLESS
EFFORTLESS
QUALITY
PRICE
EASINESS
SELL
Guaranteed quality through a rigorous inspection process, as
all pieces are acquired by Retroca
Retroca offers the complete kids clothing solution for modern parents with a sustainable conscience
Recognized brands with an average discount of 70%¹, with
selected clothes up to 85%
Easy to use filters, detailed information of all pieces and
complete customer support offer
Order a Retroca Bag online and sell from any city in Brazil², knowing how much you’ll receive
Retroca pays for the transportation and packaging, and client is paid without any deductions or fees
Customer only has to fill the Bag with like-new clothes and take it to the nearest post office
Notes: (1) discount calculated based on estimated new clothes market price; (2) currently only available in the South and Southeast regions of Brazil
STRICTLY CONFIDENTIAL
HOW RETROCA WORKS – BUYING CUSTOMER
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Home Page Size Chart
Product Page
Need Help Board
Clear home page with recently added products on top
Buy/Sell/How It Works sections on top menu
Detailed, but easy to use filter selection
List of top international and national brands
Customer support through live chat/message system
Need help board detailing product information
Product page with high def. images and related items
Retroca’s size chart simplifies different sizing from all brands
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STRICTLY CONFIDENTIAL
HOW RETROCA WORKS – SELLING CUSTOMER
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Navigation bar Moves along with scroll and contains the “Order a Bag” button
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How to Sell Section Explains how easy it is to sell to Retroca and details the process step by step
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What We Accept Section Clearly states what we accept and what we don’t accept
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Calculator Section Easily calculate how much you’ll earn for each piece and the whole bag
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Why Retroca is the Best Option Compares Retroca with other selling options
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Frequently Asked Questions Exhibits common sale-related Q&A
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Step 1: Client orders a Retroca Bag in the Sell Section of the website
Step 2: Client receives Retroca
Bag with a step-by-step guide and fills it
up with like-new used clothing
Step 3: Client takes the bag to the nearest post office with a pre-generated authorization code
Step 4: Retroca inspects the Bag in
up to 7 days from arrival and pays
the client for the accepted items
STRICTLY CONFIDENTIAL
COMPETITIVE LANDSCAPE
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Second-Hand Shops
Online Second-Hand Shops
Peer-to- Peer
Conventional E-Commerce
Buy and sell kids clothing easily, quickly and securely
Buy kids clothing with discounts up to 85%
Sell online from any city without negotiations
Earn cash immediately, you don’t need to wait for someone
to purchase your items
Guaranteed quality through a rigorous inspection process
Help the environment through collaborative consumption
We believe Retroca is the number one client-focused solution for second-hand kids clothing
STRICTLY CONFIDENTIAL
More than 5,000 subscribers in the Newsletter
More than 29,000 fans in Facebook
WHERE RETROCA STANDS TODAY
WE’VE BEEN RUNNING OUR SERVICE FOR THE PAST 6 MONTHS
Moms blogs
We were selected to participate in the largest European tech conference
We were mentioned in several media press vehicles (news portals and blogs)
Retroca’s business model has been proven to be profitable in a smaller scale
– gross LTV 3x higher than CPA
– average billed conversion of 0,9%
– monthly increasing gross margin
The average ticket per order is ~R$100, with ~3,5 pieces per order
Main sources of traffic: Google Ads (34%), Organic Search (33%) and Newsletter (12%)
High customer satisfaction, with more than 30% of the orders being recurring
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Retroca can be profitable in a larger scale
– gross LTV expected to be 2,5x higher than CPA
– room for conversion improvement
– gross margin expected to continue increasing
More than 4,000 products acquired and/or sold through Retroca’s website
STRICTLY CONFIDENTIAL
Pedro Romi Founder, CEO
• More than 4 years of experience with valuation, cash flow management and investment analysis
• Experiencing the entrepreneurial environment since he was born
Caio Sagae Founder, COO
• More than 4 years of experience in the financial market and in operating areas of large companies
• Involved in the creation of 2 other companies focused on sustainability
André Teves Founder, CTO
• Started programming when he was 15 years old, created other internet tech startups and worked on several independent projects
• Top-1% of his engineering class
Andréia C. Founder, CMO
• More than 3 years of experience with digital marketing, business intelligence and communication, working on kids focused e-commerce websites
TEAM WITH COMPLEMENTARY EXPERIENCE
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STRICTLY CONFIDENTIAL
WHERE WE AIM TO BE IN THE NEXT 6 – 9 MONTHS
HOW WE WILL ACHIEVE THIS USE OF PROCEEDS
Financing from angel investors
– Long term investment opportunity
– Capital injection
– Experience and network
2,000 visitors/day and 20 paid orders/day
Gross revenues of ~R$1,800/day
More than 60 pieces sold/day Prepared for a second larger
investment round
WE WANT TO BE THE PREFERRED DESTINATION FOR PARENTS SEEKING TO BUY AND/OR SELL SECOND HAND KIDS APPAREL
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40%
35%
10%
15%
Marketing
Working Capital
HR
Infrastructure & Others
STRICTLY CONFIDENTIAL
CONTACT INFORMATION
Retroca Comércio Eletrônico Ltda
R. Dona Ana, 107 – São Paulo, SP – Brazil
Phone: +55 11 2339 8746
Email: [email protected]
Pedro Romi
Co-Founder & CEO
Mobile: +55 11 97028 4256
Email: [email protected]
Caio Sagae
Co-Founder & COO
Mobile: +55 11 99622 2646
Email: [email protected]
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