Footshop ranks among the largest online retailers of streetwear and lifestyle footwear and clothing in Central and Eastern Europe and is planning further growth. To that end, it has entered into a partnership with the Czech-Slovak platform Crowdberry and intends to raise capital for expansion via its investment campaign. Last week, the two companies signed a contract for the first CZK 53 million. The fashion-tech platform, which is popular particularly among Generation Z, brings global trends and digital innovations to the premium segment, pushing the customer experience in the region to the next level. The growth potential of the billion-dollar streetwear fashion market represents a unique opportunity for Crowdberry investors to become part of the future of online retail in Central Europe.
During its eight years in existence, the popular fashion-tech platform Footshop has risen to a position of leadership in Central Europe. Last year, the company achieved turnover in the amount of nearly CZK 800 million, which is a two-fold increase in comparison with the previous two years. The company's effective business model and ability to respond to the rapid shift of customers to the online environment have helped it maintain stability even in a critical period, thanks especially to strong online sales, which account for up to 85% of Footshop's revenues. In the coming years, the company plans to multiply its revenues and expand its operations to 20 markets. Footshop intends to achieve this goal with the aid of growth capital. The company received CZK 53 million in the first phase of the investment campaign, while the target amount is CZK 106 million. Investors from the Crowdberry platform joined with the Enern investment fund, which previously used its capital to assist with the company's expansion in Central Europe.
Footshop intends to use the investment for acquisitions, or rather for opening new flagship (brick-and-mortar) stores and for digital innovations, which have added significant value for the customers and subcultures that the company appeals to. This is evidenced by its more than 1.5 million followers on social networks. In addition to that, the company plans to expand its operations in the luxury and limited-edition product ranges, primarily by means of technological innovations.
"We have a clear vision. We have combined a passion for sneakers with innovative technologies. We are considered to be a key fashion-tech platform in Central Europe and we are pleased that we have become the natural number-one choice for major lifestyle brands. We have ambitions to continue growing and we believe that, thanks to our partnership with Crowdberry, we will bring to our region additional modern shopping opportunities in the streetwear segment, where trends are currently set by the market in the United States and Western Europe," said Peter Hajduček, founder and CEO of Footshop.
"Footshop has already become a leader in fashion and lifestyle e-commerce in Central Europe. It has succeeded in building up its position on a market with numerous local young retailers without a significant player, mainly by connecting subcultures and art with the shopping experience. It has thorough knowledge of its customers and is creating a community that combines passion for fashion with technology. Footshop is bringing forth innovations that represent the future of online shopping. Behind its success there is a strong team with international experience led by a founder with a clear vision, which gives investors from Crowdberry a firm foundation for value creation," says Daniel Gašpar, partner at Crowdberry.
In the retail industry, Footshop is a so-called lovebrand with more than one million customers. It is connected to subcultures and actively supports them. It benefits from the wave of the emerging Generation Z, which lives for premium products. Streetwear is no longer just street fashion. It is also becoming attractive for luxury brands, which have found in it a new marketing channel and source of income, mainly due to the popularity of this lifestyle among celebrities and influencers. It is estimated that the value of this market will reach USD 700 million in America in 2022, and growth at the level of USD 133 million is expected in Europe. Managed from the heart of Europe, Prague, the company makes use of the opportunities presented by its location (geographically advantageous locality, lower costs, better supply of specialists and professionals on the labour market, etc.), as well as the rising purchasing power in the region.