Pandaloon – Pet Costumes
DEAL
EPISODE SUMMARY
🕓 Air Date: January 14, 2018
Asking For:
$60,000 for 20%
Investor:
Daymond John
Deal:
$60,000 for 35%, 10% of which goes to animal charities
PRODUCT SUMMARY
Pandaloon offers a charming Panda Puppy costume that allows pet owners to transform their dogs into adorable walking teddy bears, blending cuteness with comfort.
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Background Story
Eugenia, a resident of the picturesque San Clemente, California, holds a rich academic background with a master’s degree in computational science. Her journey into entrepreneurship started with a viral hit – a video featuring her panda-themed store that gained popularity unexpectedly. With parents who immigrated from Taiwan, Eugenia inherited a strong work ethic.
During the recession, facing the challenges of part-time jobs, she embarked on the entrepreneurial path, eventually giving birth to Pandaloon. Her initial focus on pandas expanded into the creation of the Panda Puppy costume, marking a unique niche in the pet apparel market.
The Product
The Panda Puppy costume is ingeniously designed for a perfect fit, transforming pets into walking teddy bears. Unlike conventional Velcro costumes, Pandaloon’s creation ensures comfort by allowing pets to wear it like a hoodie with their front legs through the lower bear legs. Notably, the back of the costume adjusts to the pet’s neck and chest girth, providing a tailored and snug fit. Pandaloon’s accidental viral success prompted the development of Panda Puppy Friends, adding more whimsical options for pet owners.
Eugenia’s background in computational science manifests in the meticulous design and quality of the product. The costume is available in various sizes to accommodate different dog shapes, ensuring inclusivity for a wide range of pet owners. Priced at $39.99, the costume positions itself as a premium offering in the market. Eugenia’s dedication to quality and her unique approach to pet apparel contributes to the product’s appeal.
How It Went
The company’s position before Shark Tank
Pandaloon has been in operation for three successful years, boasting an annual revenue of $100,000. Eugenia’s online store caters not only to pet lovers but also to those who appreciate themed apparel and gifts. Despite limited sales figures for costumes, Eugenia emphasizes her ability to sell $300,000 worth of inventory over the lifetime of her business.
The company has been consistently profitable since its inaugural year, a testament to Eugenia’s entrepreneurial acumen. Pandaloon primarily operates as an online store, and Eugenia has managed the entire business independently. The company’s profitability from the early stages reflects Eugenia’s financial acuity and dedication to building a sustainable venture.
The Negotiations:
The Shark Tank negotiation unfolded with initial interest from three Sharks. However, Lori Greiner and Mark Cuban opted out, expressing reservations about the market size and personal preferences. Sara Blakely and Daymond John emerged as keen investors, both making offers for $60,000 in exchange for a 35% equity stake.
Daymond’s offer included a charitable component, with a commitment to donating 10% of her equity to animal charities. Sara, a seasoned entrepreneur in the pet market, also proposed a similar deal without the charitable aspect. Faced with two compelling offers, Eugenia had to make a critical decision. Despite Sara’s commendable offer and her belief in the market potential, Eugenia ultimately chose to partner with Daymond.
Daymond’s expertise in the pet industry and proven success with similar ventures made him an attractive choice for Eugenia. The negotiation showcased Eugenia’s commitment to her business and the Sharks’ recognition of Pandaloon’s potential in the pet apparel market. The deal was successfully sealed, marking a significant milestone for Pandaloon and its founder, Eugenia.
