KIN Apparel – Satin Lined Hoodies
DEAL
EPISODE SUMMARY
🕓 Air Date: October 8, 2021
Asking For:
$200,000 for 10%
Investor:
Emma Grede, Lori Greiner (50/50)
Deal:
$200,000 for 30%
PRODUCT SUMMARY
KINApparel offers satin-lined hoodies designed to protect hair, prevent frizz, and promote hair health while offering fashion and inclusivity.
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Background Story
Philomina Kane’s journey to founding KINApparel is a compelling tale of passion, resilience, and innovation. Hailing from the Bronx, New York, Philomina’s path to entrepreneurship was far from conventional. With an academic background in ecological biology and a full scholarship to Princeton University, her initial ambitions leaned towards global health. However, the stress of university life led to hair issues, a problem many can relate to. As her hair began to fall out due to stress, she turned to her family’s expertise in haircare.
Coming from a family of hair stylists in the Bronx, Philomina was no stranger to the world of haircare. She realized that the high cost of hair maintenance, especially outside her hometown, was a significant challenge. Determined to find a solution, she decided to combine her love for fashion and her desire to make hair care more inclusive.
This epiphany gave birth to KINApparel, a brand that merges fashion and haircare with its innovative satin-lined hoodies. These hoodies are designed to protect hair from moisture loss and friction, catering to people of all hair types and sizes. Philomina’s journey, from a background in ecological biology to becoming an entrepreneur in the world of fashion and haircare, showcases her resilience, creativity, and dedication to addressing real-life challenges in the most unexpected ways. KINApparel, with Philomina at its helm, embodies the spirit of innovation and inclusivity.
The Product
KINApparel’s satin-lined hoodies are a innovative solution to a common hair care problem. These hoodies are meticulously designed to combat the hair damage often caused by traditional hoodies. The key feature is the high-quality satin lining that envelops the interior of the hood. This satin lining serves a dual purpose: it retains the hair’s natural moisture and significantly reduces friction between the fabric and the hair.
The benefits of this design are numerous. First and foremost, it prevents hair from becoming dry, frizzy, and prone to breakage, especially for individuals with curly or textured hair. Additionally, the large hoods are crafted to comfortably accommodate all hair sizes, ensuring that everyone can enjoy the protective benefits.
KINApparel’s hoodies not only offer practical advantages but also embrace style and fashion. They come in a variety of styles, catering to different tastes and preferences. The diverse range ensures that customers can find a hoodie that not only cares for their hair but also complements their personal style.
For those interested in acquiring these innovative satin-lined hoodies, they are readily available for purchase online at a reasonable price of $80. This accessibility makes it convenient for customers to invest in hair care without compromising on fashion, making KINApparel a go-to choice for those seeking a blend of functionality and style in their clothing.
How It Went
The company’s position before Shark Tank
KINApparel’s journey has been characterized by remarkable growth since its inception, driven by a commitment to solving a prevalent hair care issue. With an initial investment of just $500 in marketing, the company has achieved impressive results. In its inaugural year, KINApparel achieved sales totaling $246,000, and the current year has seen further growth, with revenues reaching $355,000. A significant factor contributing to KINApparel’s success is Philomina’s substantial online presence.
Her YouTube channel, boasting nearly 200,000 subscribers, serves as a platform for educating and inspiring Black women to embrace their natural hair. This engaged audience has played a pivotal role in the brand’s recognition and rapid expansion. KINApparel has strategically chosen to manufacture its innovative hoodies in China, where production costs per unit amount to $13.75. These hoodies are competitively priced at $80, ensuring a robust profit margin.
The company currently maintains a healthy financial position with $150,000 in its bank account. However, its inventory is valued at approximately $500, highlighting the challenge of meeting the increasing demand for its products. To cope with demand and minimize customer wait times, KINApparel often relies on pre-orders, leveraging the power of social media platforms like Instagram and TikTok, where their products have gone viral. This virality has been instrumental in driving rapid growth and brand recognition. KINApparel’s structure and strategy position it as a promising player in the apparel industry, with a strong focus on hair care and inclusivity.
The Negotiations:
During the negotiations on “Shark Tank,” Philomina Kane presented her vision for KINApparel, seeking a $200,000 investment in exchange for 10% equity in her company. The initial pitch garnered the interest of several Sharks. Lori Greiner and Emma Grede made a joint offer of $200,000 for a 30% equity stake in KINApparel. Their offer reflected their combined expertise in the fashion and apparel industry, as well as their potential to accelerate the company’s growth. Philomina accepted their offer, sealing the deal with these two experienced Sharks.
Other Sharks, including Kevin O’Leary, Barbara Corcoran, and Mark Cuban, expressed reservations during the negotiation. They raised concerns about the company’s valuation and the need for a partner with complementary skills to balance Philomina’s creative approach. Ultimately, Philomina’s decision to partner with Lori and Emma was influenced by their experience, industry knowledge, and their ability to help KINApparel navigate the challenges of scaling the business.
While the equity stake they acquired was higher than initially sought, Philomina saw the value in their partnership and the potential for significant growth in the company. The negotiation highlighted the importance of finding the right partners in the business world and the potential for collaboration to drive a company’s success. Lori and Emma’s offer provided the support and resources needed to address KINApparel’s growth challenges and propel the brand forward.
