GOKA SHOES by Alessandra Gold
Private and
Alessandra Gold Introductory Comment “I started the GOKA design house in 2006 with a dream to develop a successful brand of exquisite and more affordable luxury footwear for women. Since GOKA’s very first shoe collection, fashion industry press, influential stylists and high-end boutique buyers have recognized GOKA as a desirable and unique brand. The business is now poised to accept investment capital in order to convert this rapidly achieved brand equity into rapid expansion and growth.”
cover: Billboard featuring GOKA shoes for the “SLS” hotel in Beverly Hills – June 2009
Index
Executive Summary
4
Who we are
5
Current & Planned Products
6
Market Considerations
7
Use of Funds
8
Why invest in Goka
9
Structure & Terms
10
Financial Highlights
11
Appendix: Financials, Bios & Press
12-16
Executive Summary GOKA,LLC (“GOKA”) is engaged in the business of designing and wholesaling exclusive, high fashion, premium quality women's footwear and accessories. The brand has also added a new feature: special memory insoles for comfort! Alessandra Gold, head designer and founder of GOKA, also works on private label projects and has recently negotiated an outbound licensing deal for the company’s “Scaries” concept and drawings with Alloy Entertainment www.alloyentertaiment.com, producers of the hit show “Gossip Girl” and the “OC”.
GOKA was formed in 2006 and GOKA branded product is currently sold in over 30 high-end boutiques in the US, Canada and Asia (including Anthropologie, Revolve.com, SimplySoles.com, Patricia Field and LF Stores). In 2008, Alessandra decided to “incubate” the brand for a season to focus on increasing brand prestige and to incorporate new comfort technologies. GOKA’s Fall/Winter 2009 Collection is being sold into the US, Asian and Canadian markets.
Building on an existing group of high-end boutiques nation-wide as a launch pad, GOKA intends to expand retail distribution significantly in a period of 24 months from the date sufficient investment capital has been raised for this purpose. This expansion will be rolled out in two phases during the initial 2 seasons (i.e., the first 12-month period following investment) focus will be on brand visibility and design testing for broader retail sales. The following 2 seasons (i.e., the second 12-month period following the investment) will build upon successful sell-through testing and focus heavily on sales and retail distribution expansion.
GOKA also maintains an extensive private clientele, including celebrity stylists and invitation-only trunk shows at store locations and other selected venues that will continue to provide an additional revenue stream for the company (at a retail margin profit).
Picture: SLS Hotel in Beverly Hills - June 2009
Who we are Employees include one full-time director of sales and executive assistant to Alessandra, Beatriz Melicio, and a regular rotation of qualified interns that help to reduce spend on certain services including computer aided design renderings, PR and marketing. GOKA also maintains several strategic relationships with certain industry professionals, including: •Joshua Gold, a corporate and commercial attorney who acts as counsel to the company when needed. *Samir Abo Abdo, GOKA’s full time local agent working out of Novo Hamburgo (Brazil), where the GOKA line is produced. Samir provides expertise in sourcing, factory diligence and inspection of goods as well as in export documentation and shipping. Samir is compensated on a commission only basis. *Ming Wei-Shih, Ming is our sales rep operating in the Asia market stating this FW’09 collection. His services are commission-only basis. Ming is also the VP for Kruzin, a new brand of sneakers that is gaining US market and has been launched in Asia. Goka and Kruzin are in conversations about Goka launching a “fashion” sneaker line for 2010. Ming just opened a showroom in Asia. * Onega Alstatsova is an experienced shoe pattern maker, designer and artist also available on a contract basis. She also provides minor sample corrections after samples have arrived in the United States saving time and money in international shipments.
GOKA is registered as a Rhode Island limited liability company and is owned 100% by Alessandra Gold, founder and head designer.
Current & Planned Product Lines •GOKA (current) High end women’s footwear with retail price of $250-$700 for the Fall Winter Season and $100 -$450 for the Spring Summer Season (wholesale and retail). •GOKA ACCESSORIES (2010) upper-end line of accessories and bags with retail prices ranging from $15-$250 for jewelry and $100-$350 for bags. •GOKA MEN (2010-2011) Upper-end marke at retail prices between $200-$450. •SCARIES (2010-2011) In collaboration with Alloy Entertainment and based on drawings produced by Alessandra’s son and licensed to Alloy for a book series, Scaries will consist of shoes and accessories for the low-end, high volume teenager’s and children’s market.
Picture: magazine WasabiFashionKult, Miami, August 2009
Market Considerations The fashion footwear industry is currently pulverized with hundreds of brands and retailers. However, there are no players so large that one could say they control a dominant portion of the market. Therefore, GOKA is in a good position to capitalize on market needs and capture market share.
The current US Dollar to Brazil Real exchange rate remains favorable enough to insure competitive prices to consumers and higher margins through the retail chain versus European highend shoes that compete in quality of materials and artisanship, but that are over-priced due to the weak Dollar to Euro exchange. Brazil is a respected and known country for shoe manufacturing. As an example, Vince Camuto (prior owner and founder of Nine West – see: www.camuto.com) still has his high end labels manufactured in Brazil (such as BGBG Max Azria) and the lower-tier labels in China (such as Jessica Simpson, INC, etc.).
Once GOKA’s brick and mortar retails sales have met budgeted milestones, GOKA plans to expand retail sales to direct mail catalogs, internet shoe retailers, GOKA branded stores in markets such as New York and L.A., and also to establish private label branding relationships with large retail accounts.
8
Use of Funds GOKA intends to use investment funds primarily for the following: •Production finance •Inside and outside sales force development •Marketing materials including samples, travel to merchandise review meetings, photo shoots, key editor and buyer entertainment and gifting, trade shows, POP display and other product seeding activities •Establishment of NY and LA showrooms •Establishment of NY store •E-commerce •EDI & UPC services for majors such as Nordstrom, Neiman, Bloomingdales, etc •General working capital •Marketing, PR •Development of new samples upcoming Season •Debt service (very small)
Why invest in GOKA •Recognizable Name. ”GOKA“ = Has a strong name and face, comprised of the designer’s last name Gold = GO, and the first initials of her two children Kevin = K and Angelina = A. It tells a true story that connects with the consumer. •Brazilian Chic. GOKA uses Alessandra Gold’s eclectic, sexy Brazilian influenced designs, mixing colors and patterns, re-interpreting them to communicate to a distinct chic and feminine style. GOKA shoes will create interest and shelf-appeal by their uniqueness and craftsmanship. •Sexy Comfort. We all know that you can’t be your best when your feet hurt! GOKA has addressed this consumer pain point head on by reshaping all its lasts in order to add EPDM, special memory foam insoles, for maximum comfort. Available for the new FW’09 Collection. •Handmade in Brazil. 100% handmade craftsmanship. Shoes are not made on a production line, but rather are manufactured in exclusive “cells” inside of the factory to control quality and perfection in execution of the design. GOKA can therefore offer the couture level styling of a master designer, the highest quality of materials available and superior comfort to comparable luxury brands, with significantly less cost to the consumer. •Power of the shoe. Apparel is no longer the highest priority in women’s wardrobes. Instead, footwear has become the item used to project personal taste, wealth and style. American women spend over $17 billion in fashion footwear annually.
Picture: celebrity host for BET television “Rocsi” wearing Goka’s for a photo shoot, New York, April 2009
Structure & Terms
Structure and Terms
Funds Needed
1Million
Purpose of Funds
GOKA Brand Expansion
Equity Interest Return on Investment
Term of Investment
TBD
Company
Goka,LLC
Domicile
Rhode Island Corporation
Headquarters
Florida
# of staff members
2
Factory Location
Brazil
Financials Highlights GOKA, LLC
Year 2011
Year 2012
Year 2013
Sales Total Sales (Wholesale & Retail)
2,700,000.00
3,624,500.00
3,986,950.00
Total Cost of Sales (Wholesale & Retail)
1,270,000.00
1,724,250.00
1,896,675.00
Gross Margin
1,430,000.00
1,900,250.00
2,090,275.00
Total Operating Expenses
689,194.32
830,552.19
1,025,519.27
Income from Operations
740,805.69
1,069,697.81
1,064,755.73
11,250.00
11,250.00
11,250.00
729,555.69
1,058,447.81
2,468,380.73
Cost of Sales
Operating Expenses:
Other Charges (Income) Total Net Other Charges (Income)
Net Income
Appendix: Financials (Detailed)
GOKA,LLC Sales
Year 2011
Year 2012
Year 2013
Sales - wholesale
2,380,000.00
3,272,500.00
3,599,750.00
Sales - Retail
320,000.00
352,000.00
387,200.00
TOTAL SALES
2,700,000.00
3,624,500.00
3,986,950.00
COST OF SALES
COST of Wholesale
1,190,000.00
1,636,250.00
1,799,875.00
Cost of Retail
80,000.00
88,000.00
96,800.00
TOTAL COST OF SALES
1,270,000.00
1,724,250.00
1,896,675.00
GROSS MARGIN
1,430,000.00
1,900,250.00
2,090,275.00 * continued next slide
Appendix: Financials (Detailed) GOKA, LLC
Year 2011
Year 2012
Year 2013
OPERATING EXPENSES:
-
Advertising
92,624.00
97,255.20
102,117.96
Duty and Related Fees
107,524.80
143,007.98
190,200.62
Trade Shows and Showroom
127,890.00
134,284.50
140,998.73
Staff Wages
87,360.00
116,188.80
154,531.10
Officer compensation
50,400.00
84,168.00
140,560.56
Sales Commissions
50,025.52
61,531.39
75,683.61
Office Expenses
35,280.00
37,044.00
38,896.20
Payroll taxes and Employee benefits
34,229.04
44,497.76
57,847.08
Insurances
11,320.96
12,863.76
14,712.71
Professional Fees
16,800.00
17,640.00
18,522.00
Vehicle Expenses
8,400.00
8,820.00
9,261.00
Travel Expenses
18,536.00
19,462.80
20,435.94
Warehousing
13,524.00
16,744.00
22,855.56
Other Operating Expenses
35,280.00
37,044.00
38,896.20
TOTAL OPERATING EXPENSES
689,194.32
830,552.19
1,025,519.27
-
INCOME FROM OPERATIONS
740,805.69
1,069,697.81
1,064,755.73
-
OTHER CHARGES (Income)
-
INTEREST Expense
11,250.00
11,250.00
11,250.00
Depreciation
-
-
-
OTHER
-
-
-
Total Net OTHER CHARGES (Income)
11,250.00
11,250.00
11,250.00
-
NET INCOME
729,555.69
1,058,447.81
1,053,505.73
Appendix : Bios
Alessandra Gold Alessandra is the head designer and founder of GOKA, LLC. With over 10 years experience in the fashion industry, Mrs. Gold has managed, run and designed retail stores in Brazil and the US. Moving from retail to wholesale, Alessandra started GOKA in 2006 until now. Prior to her career in fashion, Alessandra managed the US branch of the private banking division of HSBC Brazil in New York City. Alessandra has designed children’s shoes under private label for known brands including Osh Kosh, Khombu and Stride Rite. She has collaborated with several Brazilian couture designers, acted as a business and creative consultant for various high-end boutiques in the US, and designed and produced unique custom shoes for bridal and special occasions. Alessandra was commissioned to design the official uniforms for top-shelf Brazilian sugar cane rum brand, “Leblon” , with US head offices located in New York. Alessandra also consulted and researched product development of shoes and accessories with agents in Brazil and China for various clients. Alessandra is fluent in English and Portuguese and conversant in Spanish, with a working knowledge of French.
Beatriz Melicio Beatriz is the direct executive assistant for designer Alessandra Gold and National Sales Manager of GOKA, LLC. Since she started working for Alessandra as a manager in 2004 at the Red Boutique store in Providence, RI, Beatriz has grown from a retail store manager to understand fashion wholesale and has contributed greatly to the development of the GOKA company and brand. Being part of GOKA since its inception and being responsible for many operational roles, Beatriz has full knowledge of the company, its direction, buyers, private customers, public relations and marketing activities. A professional model since 1998, Beatriz, who has worked for the prestigious Wilhelmina modeling agency in New York City, has also acted as the face of GOKA in all photo shoots. Beatriz is fluent in Portuguese, native Creole and conversant in Spanish, with a working knowledge of French.
Appendix : Bios Joshua Gold, Esquire (on retainer, as needed ) Mr. Gold is an attorney with 10 years of experience representing domestic and foreign companies in a broad range of commercial and financial transactions, including corporate formation and structuring, angel and venture financings, private placements, public offerings, mergers and acquisitions, licensing and strategic alliances and general commercial contract negotiation. Prior to his career as an attorney, Mr. Gold was the co-founder and top executive of a successful importer and distributor of solid state laser marking equipment for industrial manufacturing applications in the automotive, aerospace, medical and firearms sectors. Mr. Gold has also acted as an independent legal and business consultant to international emerging growth companies in high technology sectors such as web analytics, security compliance, software as a service, digital content licensing and distribution, secure ID card manufacturing and issuance and industrial solid state laser integration. Mr. Gold is fluent in French and conversant in Spanish, with a working knowledge of Portuguese and Italian. Samir Abo Abdo Samir entered the shoe business in 1974 working at Artrube Shoes as a Production Assistant. Stayed at Artrube in Novo Hamburgo, Brazil, until 1979 when he came to the US to learn English and to attend College to learn the Import/Export business. Returning to Brazil in 1982, Samir worked for Sanic Export Shoes as an account manager to high demand and volume clients such as Hallmark (US) and Palmark (Canda) amongst others. In 1986, he started his own shoe industry consultancy and agency, Yorks Shoes, located in Novo Hamburgo, Brazil, where he represents several major Brazilian shoe brands in matters ranging from sourcing to production to quality control. Samir also designs a very high end line of exotic skin shoes, Sam Abdo Couture, sold in many highend stores around the world. Samir has been working with GOKA since 2007, first overseeing production of GOKA’s Classic line, then getting more involved in sourcing of materials, lasts and sample development. Samir now works closely with Alessandra to manage GOKA production in Brazil. Currently manages production in 5 different factories in order to guarantee production, quality and timelines of orders. Ming Wei-Shih Ming has worked at the International Sales Department, as the Sales director (Asia Pacifc) for Global Brand Marketing Inc. (“GBMI�) from 2002-2006. GBMI was licensed to sell Diesel Footwear, XOXO Footwear, Nautica Footwear, Mecca Footwear and owned Pony Footwear. Between 2002-2006 Pony Footwear was the biggest wholesaler of shoes in Asia Pacific, selling only in 2006 over 500,000 pairs of shoes not counting all the other licensed brands. After 2006, Ming started working as an agent for Bikkembergs (shoe brand from Belgium, manufactured in Italy) and True Religion. Has opened several branded stores in Asia for both. In 2008, Ming started its own venture, being the co-founder of Kruzin Footwear, a new line of trendy and special feature comfort sneakers, which has been licensed last year 2008 to the US company Klas Shoes located in Massachusetts, to be distributed all over the US, Canada and South America. Kruzin currently sells in the US, Taiwan, Hong Kong and Shanghai.
Appendix : Press Please see press book attached Impressive media attention
Not to be missed
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