Abstract Minimalism FEBRUARY *Internal email for TEAM*

Hello!

This post is a bit crazy...

We have been sending an internal email to the team, partners and friends for almost a year summarizing how the month has gone . It is an interesting exercise that helps us stop and analyze our progress. We divide it into "The Numbers" (where we put the most relevant metrics of the business), and in the "General summary" (where we talk about the projects, milestones and plans that we have been achieving during that month).

Well, this month we have decided to make it public so that our entire community knows what is happening in the project, without cheating or cardboard. Here is everything that happened in February 2021:

THE NUMBERS - 115% growth in turnover vs February 2020 -

Billing €26,638.18. 93% of billing this month has been online. All other custom clothing orders.

P&G. Gross Margin: 56.80% / Contribution Margin: 23.72%

Conversion 1% from user to sale .

Number of orders: 425.

Recurring customers: 28%.

The best-selling garment was the Boxer: 480 units.

Average cart online: €58.

Sales/half day €951.

We have sold 1982 garments >> Men 1460 - Women 378 - Accessories 144.

Investment in Marketing: €5,340.

WHAT HAPPENED THIS MONTH?

General. We continue to grow a lot compared to the same month of the previous year, although we also invest a lot more in traffic capture channels.

Right now we are trying to understand ceilings-floors in terms of the evolution of the CAC depending on what we are investing over time. It has been a month with a CAC higher than usual but also with an average shopping cart going up. We continue to balance new vs. recurring clients so that the CAC blended is within the established objective .

This month the cost of FB ads has skyrocketed mainly due to two problems: 1. Facebook is changing its advertising model (affected by cookies) and we have to pay attention to these weeks to see how the optimization of these costs evolves. 2. We have invested more than we should in this channel at a difficult time of year where it usually goes wrong. We learn for next year.

On the other hand, we have had slight stock issues , so we think this also helps that everything is not optimized as we want and the conversion is lower. We have already put a solution to this so that we do not fail in spring-summer. In the end, everything goes through a good cash forecast.

This month we have not been profitable . With the structure of variable and fixed expenses that we have right now, we begin to be profitable from €30k in billing if we have also well optimized MK costs. Quite an assumable objective the truth. In addition, this month we have had an extra cost of €1,600 for the investment in the development of a secret project that we have in hand.

Financing. We have signed a service with a bank to finance large payments to suppliers. With a very low commission we will be able to divide some payments that we now have important stock into up to 3 months. It comes in handy and we have it available from now on.

Shuttle. We have entered the interview process to be part of Lanzadera, Mercadona's business incubator in Valencia (on March 17, at your request, we will meet the Director in Valencia), so we have made the decision to try to enter . We are not going to accept financing (we do not need it right now), we are mainly going for the rest of the things that they offer us: space, relationship with other companies, the part of PR SEO links, etc. The reality is that as a team we want to live that experience, so let's go for it.

Secret Project . ****During this month of March we launched a new project to take another step in our commitment to transparency and the planet . We intend to make a lot of noise these weeks.

Orchard Planet . They have approached us several weeks ago with the idea of ​​selling our products on their website. We have analyzed pros and cons and we are going to see how it works. We are brands with similar audiences, and this can help us bring our purpose and products to more people. Right now we are negotiating prices and logistics with them. We will keep you informed.

New "Paper and Pencil" collection with @Lucreativo . We have been working on a new collection for weeks. This time we want to talk about creativity. We released 3 new designs that will be available for purchase on demand for a limited time . Let's see how the second collection of skins we released performs. We really like this, mixing art with our values ​​and products.

RTCOpen. We have closed an "agreement" with the Recumadrid team and also with the Barcelona team to open the Zero Textile Residue service to any brand that wants (from Madrid and BCN). We are going to set up a website and a lead capture process to help anyone who wants to be able to implement the waste collection and treatment service. We are very excited about this project and that it can be key for other companies. It is purely altruistic , we will not charge anything for it. We just think it makes sense that this service is provided by every brand in the world . We are going to try to launch it in March as a pilot test, see how many projects join and analyze how it works.

New products. Two new colors of shirts are already underway, a men's swimsuit and a women's bikini. We also have a sample of a toiletry bag to launch before summer. The Minimalism jogger is also in the oven.

Thanks for reading this far, let's go for March!

Remember that you can subscribe to the Newsletter. Soon this email will be private ;)