Dear Kickfurther / Banjo & Matilda backers:
First of all, thank you for your participation in our last successful co-op, and for your interest in our second co-op. We were very pleased to be able to pay our first co-op out 1.5 months early due to exceeding our sales forecasts and generally increasing sales. We were also encouraged by the take up of our second co-op offer which raised over half of the co-op amount within the first 24 hours before we pulled the co-op down.
As you may know the launch of our second Co-op coincided with the launch of new Kickfurther features and improvements including an updated on-boarding process and the adjustment of the repayment schedules to bi-weekly. Because of this a number of technical issues arose with our particular co-op which affected the information displayed to buyers. We took the precaution of closing the co-op and re-launching once these technical issues were resolved.
As a result of our first co-op the additional inventory enabled us to fulfill some of our existing demand. Approximately 25% of this inventory was pre-sold to our US customers, a further approximate 35% were sold within the first two weeks, and we have been moving through the balance of inventory swiftly over the past few months. We are already sold out on several styles, and almost completely through on other styles.
We want to maintain and build on this momentum by raising another larger co-op to meet the increased demand and ensure we have enough inventory over our upcoming busy period. We will raise $115,000 in the current co-op to fund core best-selling inventory in time for our peak late December, January and February seasons.
For those of you who aren’t familiar with our brand and company, Banjo & Matilda was born in Australia in 2009, and relocated to Los Angeles in 2014. The original vision was to create a more relevant contemporary luxury cashmere brand, at a much more accessible price point than the traditional European luxury brands. Banjo & Matilda’s products are manufactured in small family run factories with deep knitting experience where many of the luxury brands also produce their knitwear. The yarns are sourced from sustainable farms in Inner Mongolia where 98% of the world’s cashmere raw material is sourced. The yarn quality is the highest grade available in Mongolia.
By selling directly to our customers via our e-commerce business model, we are able to offer our customers the same or similar quality cashmere knitwear at ½ to 1/3rd of the price of the comparable luxury brands. Our core customer is the power spending Generation X customer who represent 20% of the population and 30% of the income and wealth base in the US. This customer spends more, is more brand loyal, and is less expensive to acquire than the younger “millennial” customer. This formula has worked extremely well for us and as such we have achieved exceptional KPI’s and milestones.
Since 2014 sales have increased 40%+ YOY
Our data-base and community has increased to120k+ email subscribers, Instagram and Facebook followers.
We have been featured in all major fashion publications.
We have worked with major celebrities including Gwyneth Paltrow, Elle Macpherson (my sister!!), Nicole Ritchie, Bryan Adams, and many more.
Partnered with major retailers to promote the brand including Nordstrom, Net-a-porter, Neiman Marcus, ShopBop among others.
Other KPI’s include:
$1.2k Average lifetime value of our customers (LTV)
$340 Average order value (AOV)
92% customer satisfaction / Net promoter score (NPS)
$47 customer acquisition cost (CAC).
There are all exceptional KPI’s for an e-commerce vertical brand such as ours. We invite you to view a short video (https://vimeo.com/177312106) to tell you a little more about us. Also please find a short corporate overview of our company (https://www.dropbox.com/s/r8tmwfazfjotq35/B%26M%2030_06_16.pdf?dl=0).
Please feel free to ask any questions regarding the company or the co-op.
Ben Macpherson // CEO
David Whitcroft // SVP Finance & Operations