Basico is all geared up to replicate the success story of Everlane in Brazil with the support of the funding of $500,000 that they have raised recently. The Israeli/Brazilian VC fund Initial Capital led the funding along with Brazilian angel investor Guilherme Soarez. Brazil has one of the fastest growing economies in the world. The emerging market has substantially enlarged the middle class that is driving the demand across sectors. The e-commerce sector is right at the fore front of this growth story. Basico wants to take advantage of this conducive environment and become Brazil’s first online-only premium basic apparel brand.
All the Apparels Will be Made in Peru With Best Pima Cotton
Everlane has tasted great success by moving on the same lines. They are already putting in place plans to expand outside US. It is the right time for Basico to start operations before international players move in. Alexandre Veiga, CEO of Basico said that they are ready for a public launch this summer itself. They have a full time staff strength of seven and this new funding will be used to create the necessary infrastructure. The first line of products that Basico will introduce will include t-shirts, polos, tank tops, and underwear for both men and women. They will get all the apparels made in Peru as the best high end Pima cotton is found there. They will be pricing the t-shirts at $25 which is half of what a Pima cotton t-shirt sells for in Brazil.
Basico is Well Placed to Become Leader in the Brazilian Market
Basico will be sourcing their products from the same factories that manufacture apparel for global brands like Abercrombie, Polo Ralph Lauren, Lacoste, and many others. Veiga assured that same materials will be used for their production and a higher quality control will be put in place. The idea is get the best product in terms of material and manufacturing. This model of business popularized by Everlane focuses on cutting out the middleman to reduce the cost and still maintains the premium quality which is comparable to the best brands and products in the category. Basico is well placed to make a success of this business model. It has the necessary manufacturing know-how and the advantage of strong local connections. They have the potential to be the leader in the field in the growing Brazilian market.