She earns BRL 12 million promoting make-up at BRL 10 and launches home-based e-commerce franchise
It’s been almost two years since the Ex-PM Kelly Nogueira launched the make-up sales franchise Espaço Make. The network proposes to sell products from brands such as Max Love, Ruby Rose, Luk, Playboy, Fenzza and Dalla for BRL 10 in shopping malls and currently has twenty points installed, with an annual turnover of BRL 12 million. Now, the entrepreneur has decided to launch a second business model for the brand, home based e-commerce franchise. The news was revealed exclusively to PEGNand the model will be presented in the Entrepreneur’s Fairwhich starts on 10/7, in São Paulo.
Nogueira, who also owns Espaço Nails by Kelly Nogueira, says that the inspiration for the new model came from two fronts: the demand from investors with potential, but with little available capital, and the customer’s desire to purchase the products online. Until then, Espaço Make only worked with sales at physical points.
To understand the potential of this market, Nogueira had the support of a consultancy that helped her map the demand of Espaço Make’s own customers, the performance of the competition and the makeup market on the internet. “We develop for those who want a extra income, housewives or people who have an affinity with the internet and the world of makeup, and cannot afford to have a physical store”, he explains. The first e-commerces have already been launched and are under the management of the brand’s kiosk franchisees.
It works like this: the franchisee receives a virtual domain and can choose from six layouts made available by the brand. Each virtual store will have a personalized name, and the reference to Espaço Make will be made within the site – this strategy aims to protect paid traffic from kiosk franchisees.
With e-commerce on the air, the franchisee of this model starts to advertise to friends, acquaintances and on their social networks, as in a direct sale. The difference is that he will have access to a Franchise Offering Circular (COF), sales know-how and support from the franchisor, according to the entrepreneur.
The expected remuneration is 25% to 45% of the sales value, and is paid on the fifth business day of the following month. “I don’t call it a commission, I call it profit”, says the entrepreneur. The products are sent to the customer directly from the Espaço Make distributor, located in the north of São Paulo. In this way, the microfranchisee does not need to deal with physical stock, and can formalize itself as an Individual Microentrepreneur (MEI).
The initial investment to become a franchisee of the new modality is from BRL 6,999 – the value is promotional for the first 100 franchisees, which the chain intends to reach within six months. Afterwards, it becomes R$ 8,999. For comparison, the brand’s kiosk costs from R$ 95 thousand.
Source: PEGN Magazine