Future Equity + Revenue Share
As many of you know, Elusion Clothing was created with the last $250 to my name in 2006. Originally an idea way back in 2001, I had tons of ideas but couldn’t afford to print anything. So we sat back, looked at our options, that formulated a plan of attack. There we built a drop-shipping sales cycle and the rest is history. Elusion was made through adversity, so we dedicated that brand to us being bold enough to take those first steps. No years later, and full of knowledge and confidence, we era in a new brand built with fearlessness in mind, EC77. Becoming the WXLVES we were born to be. The ones not afraid to venture off the beaten path and be the harbinger of their own stories. We don't follow trends, we do our own thing. We Stay Patient, knowing our time is coming.
So today, I'm happy to share with everyone how we are taking EC77 to its newest phase, you could say it's 2.0. EC77 aims to become a household name, among travelers and fashion aficionados for its clean design, accessibility, and community. In this Phase II approach, we will begin with the explanation and development of the following:Clean Design:EC77 has tested the use case of a go-to-market essentials line of apparel. Simple design, affordable cost, and above-market quality material increases our market adoption from an audience just looking for the bare essentials. Accessibility:
For accessibility, we've adopted a new sales approach. To date, we've operated as an e-commerce platform focusing on direct-to-consumer sales via our website vs wholesale our other distributors. We understand that this method is what we've built the brand on for so many years, and some might see this change as unorthodox, but in order for us to grow, we must adapt. The EC77 team and its advisors have decided to adopt a new point of sale strategy. We've looked at organizations like Uniqlo, Lululemon, and Adidas Live Interaction who've undergone enormous growth over the past few years and have seen the following changes that created the path to do so.
Unconventional Expansion Strategy | New Market Expansion | Community+
At EC77 we've studied their approaches to growth in great detail and have a plan of action to build our brand utilizing key strategies each of these household names has used to become industry-leading organizations. So what are these plans and how will we execute them you ask? Well, let us explain. EC77 will be increasing its physical presence over the coming months by adopting the proven strategy of Uniqlo. We will be utilizing branded vending machines that will be placed in key locations where our current sales demographics are based. We will be working with third-party fulfillment firms to manage on-the-ground technical and logistics fulfillment at these sites and have brought on an industry advisor to help in the execution of said strategy. We will also incorporate Same Day Delivery options through Postmates & Shipt, two companies that allow brands like ours to have drivers deliver orders in an hour or less. Jasmin Smith, has a successful Vending Machine organization that has been featured on Vending Times, Black Enterprise, CNBC, The Points Guy, Shoppe Black, and more. She not only has hit such milestones but has grown BabyVend from a 1 person operation to 6 employees, and 25 franchise operators and has 3x the parent companies' yearly revenue since 2020 to $400k in yearly recurring revenue. Her machines are located in Airports, National malls and soon to be on cruises and theme parks.
In regards to new market adoption, we are looking to test out "interest" outside of the US. Markets like Hong Kong, South Africa, Germany, and West Africa are prime for such adoption and would lead to easier access for expansion with minimum cost. Utilizing a Popup approach like Supreme and Daily Paper Clothing would lead to cult-like followings in regard to our non-essential line. We've seen this drive revenue and awareness for global expansion at a minimum upfront cost. This leads to the last tactic, Community+. Our Community+ involves EC77 developing engagement initiatives for customers within our network. How we do this, through the following...
WXLF PACK is a membership program that provides our community engagement initiative for EC77. Here we provide access to our events like popups, lunches, dinners, meetups, collab drops between partner brands and so much more for our members. Members join our clothing subscription or must purchase a minimum of $500 per year in order to have access to events held by EC77.
In regards to our subscription program, we aim to start a subscription box model that offers customers monthly essentials at such as shirts, shorts, and hats on a monthly basis. This solidifies our base revenue assumptions, cashflow projections, and increase in upselling of our non-essential programs.
We look to build our ambassador program that is geared towards alternative influencers. These influencers will focus on TikTok and Instagram, which in turn will deliver better conversions and build our influencer affiliate program.
We are looking to raise $100k on a revenue share agreement, example here. What this means is that EC77 is taking a promissory note that is paid back from a share of the revenues of the business. This is the percentage of revenue that is shared, it's typically more exciting for investors than a standard loan. Since the payments vary based on revenues, it can also be safer for a company with less predictable cash flows.
EC77 will take on a $100k revenue share agreement from our investors. We will provide 10% of our Net Revenue for the foreseeable future to pay back the principal, plus a 25% interest on a quarterly basis. By default, we are allowed to miss one payment without being in default
Funds will go to the following:
Vending Machines: Each machine will cost a few thousand dollars to produce and have delivered to the location. To start, we will go with 3, in major locations. Los Angeles, Chicago & Atlanta(may change, depending on approval). Our plan is to place these in the airports, where foot traffic is heavy and essentials are needed.
The next plan will be to place machines outdoors, as micro stores.
If you're indeed interested in this possibility, please feel free to ask questions on the platform or join us during our upcoming town hall.