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4. Leandro Lopes Fashion Business

Leandro Lopes Fashion Business

4.1 Historical Background

Since 1962, the Lopes family has owned several shoe factories in Portugal and therefore has extensive knowledge in the production and distribution of shoes and other fashion items throughout the EU. Leandro Lopes, who was born in early 1987, learned the fashion business at a young age and understood how shoes are designed, produced, and then delivered to the target audience. Today, he uses his extensive family network to produce shoes for his own brand, "Leandro Lopes." Mr. Lopes' knowledge ranges from the selection and purchase of materials to manual and quality manufacturing. In addition, the entire collection of the brand is designed independently.
In continuation of the family legacy, Leandro Lopes started under his name the production of handmade shoes and other apparel in December 2014 and sold the Leandro Lopes premium fashion mainly through online stores and other fashion houses that serve the upscale market segment
The brand's recognition and individuality are considered, as well as the demands of the target customers, to create a sustainable and attractive brand for intergenerational communities.

4.2 Current Status

The Leandro Lopes AG continues the Leandro Lopes Fashion Business since June 2022.
All products have an individual design and are handmade in Portugal. The materials and workmanship are of very high quality. For example, soft calfskin is mainly used to make the shoes comfortable. Complementing the shoes, all clothing is also offered and perceived by customers as a premium brand for a premium audience. The used materials are sourced exclusively from Europe.
Leandro Lopes shoes are made in São João de Madeira (Portugal), where the Leandro Lopes AG has a very extensive network of production contacts in the region. The quality standards in this region and also in the Leandro Lopes factories are exceptionally high. The shoes are handmade with the utmost precision and, once completed, are shipped directly to a warehouse in Stadtlohn, Germany.
To further cultivate the relationship with suppliers, Mr. Lopes, who is the Chief Strategy Officer of the Issuer, can usually be found on location in Portugal, where he deals directly with the purchase of suitable raw materials for a variety of products. These trips will continue to increase in the coming years to intensify the collaboration between the main vision of the brand and the production sites involved.
Since 2015, Leandro Lopes products have been sold through its very own online store. Since 2016, the shoes have also been offered through fashion houses in the upscale market segment.
The total sales of Leandro Lopes product range increased from EUR 1.3 million in 2018 to EUR 10.9 million in 2020, and are currently expected to reach EUR 11.2 million in 2022.
Online Shop
The online store of Leandro Lopes AG is clearly structured and gives a quick overview of the product range. The entire store is mobile as well as highly optimised for conversion. As a part of the online offering, users are also able to subscribe to the LL-Newsletter, which is used to inform subscribers and existing customers about new collections, offers, models as well as for reordering products.
In the future, content marketing will be increasingly expanded in the Leandro Lopes’ Online Store. Visitors will be provided precise and in-depth detail about the design and manufacturing process of the various models.
With the help of the built-in newsletter in the Leandro Lopes Online Store, 31,000 e-mail addresses of customers have been collected so far. These customers form the core and basis of the Leandro Lopes community and are subject to potential repeat purchase behaviour, they can be contacted quickly, inexpensively and are thus regularly encouraged to make purchases related to the latest products on offer.
In addition to the Leandro Lopes Online Shop, Leandro Lopes products are offered on online marketplaces like Farfetch, MyBudapester, mybestbrands, Zalando and Breuninger.
Moreover, the Leandro Lopes footwear collection is also available in retail shops in cities such as Düsseldorf, Cologne, Munich, Berlin, Hamburg, Frankfurt, Stuttgart, Eindhoven, Roermond, Tilburg, Laren, Groningen, Apeldoorn, Milwaukee, Cincinnati, Memphis, Chicago and sold through locally well-known fashion stores like KaDeWe, Alsterhaus, Breuninger, Wormland, Ansons, Engelhorn, Barrows, Vip Diverso, Beau Beerens, Vip Fashion, Solitude, Lee Chough, Vengeance 75, Village Mart, The Vault or Zumnorde. These fashion stores offer the opportunity to introduce the brand to new groups of customers away from the online business and to give customers the chance to see the quality and design of the shoes for themselves in person.
In addition, sales in these fashion stores have a positive impact on the brand's reputation as the products are strategically placed right next to globally established brands such as Gucci, Louis Vuitton, and Givenchy.
Communication with existing and new customers takes place mainly through Leandro Lopes' social media channels. The main channels are Facebook and Instagram, with other channels under development to reach different audiences and ranges. Regular relevant posts such as pictures and videos ensure that attention is drawn to new collections and that the community of Leandro Lopes fashion continues to be excited about the products. Ads on Facebook and Instagram are also used to reach relevant target groups and thus generate potential new customers. The social media posts keep redirecting to the Leandro Lopes online store to get as many website views as possible, generating more sales. Remarketing measures repeatedly refer online visitors to the Leandro Lopes Online Store and to the products they have viewed.
Leandro Lopes is already represented in the higher-priced fashion segment. This can be seen in the price trend for sneakers. The original market entry price per pair of sneakers in 2015 was EUR 170, which increased by up to 20 percent from season to season. In 2019, the price was still EUR 285, and by March 1, 2022, it was EUR 315. These classic models constantly appear in the cyclical fashion collections. The latest collections are also developed based on the latest trends to meet the demands of the fashion world. The core price range of Leandro Lopes shoes is between EUR 315 and 365; however, the entry price is currently EUR 169.
General Marketing Strategy
The marketing strategy of Leandro Lopes AG is a main factor of expanding and achieving business growth. Besides classic marketing channels and strategies like Google Ads, SEO optimization, social media marketing, public relations, the Leandro Lopes has been successful with a strong and focused influencer marketing strategy. The current business growth is built on collaborations with well-known influencers and celebrities. The indirect access to their communities is a strategy that has had tremendous leverage and effect for business growth.

4.3 Planned Fashion Business Development

The mid-term goal of the Issuer is to build a strong community of 350,000 existing customers, each of whom spends an average of USD 1,000 per year on Leandro Lopes fashion products, is an active member of the brands community and is interested to receive information about the Issuer’s future developments. The medium-term economic goal is to achieve a turnover of more than USD 25 million by 2023.
A mid-term goal is to reach a turnover of USD 350 million in 2029. These goals are to be achieved with an investment of USD 25 million which is to be generated by the issuance of the $Lopes token.
LL-Flagship Stores
In order to increase the awareness of the Leandro Lopes as a brand, the LL-Flagship Stores shall be opened in top locations starting in Dusseldorf and Los Angeles. Depending on the success of these, additional flagship stores shall be established in London, Paris, New York and other major cities.
Walking into a LL-Flagship Store will be like entering a new world. The stores will use state-of-the-art technologies such as Virtual Reality (VR) and holograms to exhibit new and exciting Leandro Lopes fashion products and innovations.
At the entrance of the LL-Flagship Stores, customers will be greeted with holograms to inform them how to find the right service or employee within the Leandro Lopes fashion world. A new world of fashion experience will be provided that not only displays shoes and clothes physically, but also integrates the virtual world. By using virtual reality, customers and shoppers have the possibility to meet celebrities wearing Leandro Lopes shoes and clothes, participate in music and other entertainment shows and sports events.
Each LL-Flagship Store offers fashion shows through virtual reality events. Across LL-Flagship Stores, physical and virtual worlds will merge for the purpose of inspiring interested customers and to build a community-based journey across brand products. Therefore, the LL-Flagship Stores will also be a special venue to personally meet celebrities and influencers and to present the brand in an authentic and exclusive way.
Moreover, within a number of the LL-Flagship Stores, there will be dedicated service areas, where individuals of all ages and knowledge-levels can get help services with respect to the LL-Token and its Ecosystem. Although many people nowadays have heard of blockchain and cryptocurrencies, only the fewest individuals have enough knowledge and feel sufficiently confident to purchase cryptocurrencies or even trade in cryptocurrencies. The same is with NFTs. For example: To purchase the $Lopes, one must open the appropriate wallet, complete a Know Your Customer (KYC) process, create an account on an ITO website or an exchange platform etc. These tasks can seem overwhelming to someone who has no experience and can discourage people from actually making the purchase. However, customers seeking assistance can obtain support or useful information at the flagship stores. The LL-Flagship Stores will be visually attractive and fun to visit. Customers will be able to interact with a wide range of technological advancements and innovations and also be served with knowledgeable staff who are able to support users with their journey across the $Lopes LL-Ecosystem. Similar to an apple store, users will be able to interact with the latest products and also get service on products within the brands ecosystem.
LL-Fashion Shows
LL-Fashion Shows are another tool to promote the Leandro Lopes brand. These LL-Fashion Shows shall take place physically, as well as virtually at various places and times. The positive increase in the reputation of the brand Leandro Lopes as well as the perception as a relevant designer brand will expectedly receive good press coverage in the fashion industry.
Furthermore, this strategy will allow the brand to achieve access to new target groups and potential new customers. Appearances are expected to increase the attention of global sales representatives providing growth opportunities and access to international markets as well as luxury fashion houses.