Shoes based on financial and innovation executives with experience on the Brazilian investment platform XP launch Yuool already used by people visiting buildings on Faria Lima Avenue in São Paulo (a famous avenue that brings together major Brazilian companies and startups), and is now expanding its portfolio and preparing to enter the U.S. market.
In 2021, the company’s revenue amounted to about 12 million rubles (70% higher than in the previous year) and wants to double this result in 2022.
According to Edward Rochco-founder of Yuool together Pedro Englert, Matthew Schaumlofeland Eduard GlitzContrary to the warnings of the heads of foreign brands, with whom he spoke at the beginning of the campaign, Brazilians were attracted by the comfort and appearance of shoes made of merino wool, a raw material popular in countries with cold weather.
“We saw a trend from the outside Brazilin the United States and Europe, merino wool shoes and we tried to lead these players who did not accept, saying that the product will not sell in Brazil. We decided to take this challenge for ourselves, cooperated with the footwear industry and spent a year developing the product, ”the head said.
In the four years since the prototype of the first shoe, Yuool says it has already sold 100,000 pairs.
Roche says one of the obstacles to turning merino wool shoes into success for Brazilian consumers has been production costs. The launch managed to reduce costs by eliminating intermediaries in the production chain. The solution was to do everything in-house: from raw material control to product development, and to concentrate 90% of sales in our own e-commerce, where launch stores customer data to improve marketing strategies.
“If we were a traditional retail chain, we would have to sell for 800 rubles Brazil. But we end up selling for 450 rubles, because there are no intermediaries, ”he says. By deciding to develop almost everything on its own, Yuool has been able to address market niches that are difficult to reach for large retailers.
But what started with merino wool now extends to products that also use recycled pet bottles and organic cotton. The Home and Fit lines, developed using these new materials, accounted for 43% and 22% of sales, respectively. The favorite choice of buyers last year was Yuool Fit Nero, which accounted for 13.32% of sales.
Thanks to this business approach, Yuool can communicate with other target audiences that drive this world of innovation, and expand its customer base beyond its counterparts on Faria Lima Avenue. Yuool shoes have become a common gift from some companies to their employees. Wholesale companies such as Uber, XP, GBM, BTG, Interand Manchester Investments accounted for 10% of Yuool’s revenue in 2021.
This year, Yuool plans to launch new fashion and apparel products, moving away from a brand focused only on shoes. The idea is to become a brand that specializes in “providing comfort and quality things related to well-being,” Roche says.
Another project for 2022 is geographical expansion. The brand intends to start selling its products in March Amazon American. “Our goal is to reach consumers in the United States because we believe our products can compete with them,” he said.
To do this, the company plans to invest 4.5 million rubles, which is three times more than originally planned for 2022, and a quarter of this money can be directed to the US market.
У Brazil, the idea is to increase the number of physical stores. Yuool currently has three divisions (in Sao Paulo, Porto Alegre and Hramada) and plans to open three or four more, including the first in Rio de Janeiro.
With the help of new businesses, in addition to doubling revenue, Rocha expects the company to maintain its growth in the international market, which in 2021 was 127% (also due to the devalued Brazilian real), with sales in Italy and Portugal.
The biggest challenge, he said, is to continue to reach new audiences, expand the product range and hinder major players in the sector. “They know about the existence of Yuool, and in some cases they don’t like it. We must continue to defend ourselves and believe that our goal is stronger. “
https://labsnews.com/en/articles/business/yuool-brazilian-sustainable-footwear-brand-grows-and-reaches-the-united-states/ The Brazilian brand of eco-friendly footwear is growing and reaching the US