In the world of wine, advance sales are common, that is, paying today for bottles that will still take many months or years to leave the winery. Large brands and high-quality wines with very limited production can afford this. Applying this model to the sneaker sector is something totally unique, and even more so if the one trying to sell in advance is an incipient startup with no brand and no product proven in the market.
This is how Tropicfeel was born, a Barcelona-based company founded by entrepreneur Alberto Espinós, who in 2018 managed to sell 35,000 pairs of sneakers in advance in 50 days. The orders, 100% online, were placed by 26,284 buyers from 140 countries who fell in love with a very functional sneaker prototype, specifically designed for backpacker travelers, and who connected with a company philosophy committed to the environment and sustainable tourism.
With this sale, made through the Kickstarter platform, 2.1 million euros were raised, an amount that was used to manufacture the ordered shoes and to launch the company. This pre-sale system through Kickstarter was repeated up to five times, allowing Tropicfeel to gain enough strength to adopt a conventional sales model through its own online store with which it has already managed to sell more than 500,000 pairs of sneakers. Tropicfeel has also diversified its catalog to become a global brand of sustainable travel items and now also sells backpacks ---characterized by having a thousand and one pockets and compartments---, t-shirts, vests, and technical jackets. "We don't want to be just a footwear brand, we want to dress the traveler from head to toe," says Alberto Espinós (Barcelona, 1993), founder and CEO of Tropicfeel.
"It was during a trip to Southeast Asia when I felt the need to create a company that sold products specifically designed for travel, very functional. In addition, being in Thailand I realized the strong impact that mass tourism generates and how idyllic ecosystems are destroyed, that's why I decided to create Tropicfeel with the firm purpose of promoting a global movement that contributes to all of us traveling in a more sustainable and responsible way". This is how Espinós explains the genesis of the company, which he founded in 2017 after the experience he had acquired working on the microfinance platform Crowdcube, where he realized "the power of the community to carry out projects". His entrepreneurial bug had already awakened much earlier: when he was studying Business Administration and Management at IQS, he was already one of the promoters of an entrepreneurs' club that emerged at this university.
Four years after that successful first sale through Kickstarter, Tropicfeel has become a company that in 2021 invoiced 12 million euros and that this year has set the goal of reaching 22 million, a figure that will represent a growth of more than 80%, according to Espinós. He highlights that 23% of the sales of the startup based in 22@ are generated in the United States. The second main market is the United Kingdom (12%), followed by Germany (12%) and Spain (10%), although orders are regularly received from about sixty countries.
In a conversation with The New Barcelona Post, the entrepreneur advances Tropicfeel's intention to boost brand awareness and explore new channels with the opening of physical stores. The goal is to open the first Tropicfeel Store in Barcelona in 2023 and inaugurate a second establishment in a city in northern Europe at the end of next year. These will be two pilot points of sale that will allow the company to analyze a future growth plan based on the offline channel. The brand is also studying making the leap to the segment of third-party multi-brand stores, something it currently already does online by being present in some marketplaces. "We will open new channels that will allow us to grow at an annual rate of between 80% and 100%," says Espinós. More and more native digital brands are taking this step and deciding to open physical stores; the also Catalan Freshly Cosmetics is a good example.
Currently, 95% of Tropicfeel's sales come from its own website and 5% from third-party online stores. The brand now sells eight models of sneakers ---priced at around one hundred euros--- which generate approximately 65% of revenues. Before the end of the year, it will launch two new models and its plans also include expanding the technical clothing and luggage division with the launch of pants and wheeled suitcases, respectively. "We want to consolidate footwear and gain depth in the assortment of technical clothing, but we still have a long way to go with backpack sales: we expect to quadruple the number of units sold by 2024," emphasizes the CEO.
Tropicfeel has its own design team at its Poblenou headquarters, where a team of 43 people currently works, which is expected to grow in parallel with the increase in turnover. "Our philosophy is based on co-creation with our customers, to whom we give the opportunity to design new models with us," explains Espinós, who adds that behind a launch there are almost 500 days of development and interaction with its users.
Albert Espinós: "Our philosophy is based on co-creation with our customers, to whom we give the opportunity to design new models with us"The company does not have its own factories and externalizes 100% of production to manufacturers located in China and Vietnam ---for footwear and backpacks--- and in Portugal, in the case of clothing. "We have total traceability of the production process; our suppliers must comply with our code of conduct and pass audits," assures the founder. According to Espinós, in production they seek "a perfect balance" between the functionality of the garment and the lowest environmental impact, opting for the use of sustainable materials such as organic cotton and recycled nylon.
New funding round in sight
Until 2020, Tropicfeel grew by financing itself with the resources advanced by its customers through the pre-sale model, which allowed it to raise more than eight million. In 2020, to accelerate its development, invest in marketing, and enter new product categories, the startup launched its first round of financing in the form of capital, securing one million euros from private investors and Crowdcube. In 2021, a second round of two million was opened, led by the Madrid-based social impact fund Bolsa Social. Now, according to Espinós, to finance this 80% annual growth and lead the company to profitability, a new round is being prepared to be executed at the end of the year, with which they want to raise a similar amount.
The sustainable travel goods brand has just launched Nothing Included, an advertising campaign on social media with the support of several influencers to accelerate its purpose of changing the way we travel. "I am convinced that travel is a force for change that makes us better people. In this 2022, when travel is making a strong comeback, we must explain that the way we travel matters and that mass tourism and the all-inclusive culture generate a very negative impact on ecosystems and local communities. That is why we want to contribute to raising society's awareness with Nothing Included," explains Alberto Espinós. The campaign was created by the Barcelona agency FCK (formerly Full Circle Karma), belonging to the Jungle21 group.
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