Oliver Cabell has secured $1.2 million for its shoe business.
The Minneapolis-based maker of high-end canvas and leather bags is expanding its line of products to include shoes.
The startup raised the additional funding from an investor, which the company did not disclose.
Ambitious Business Model
Along with added capital, Oliver Cabell will be experimenting with a “pretty ambitious business model”, TechCrunch reported.
Oliver Cabell chief executive officer and founder Scott Gabrielson told TechCrunch that the company would be releasing a new pair of shoes each week.
TechCrunch considers the plan as “a big undertaking for a small company with only roughly $1 million in financing.”
However, Gabrielson is optimistic that “that with new manufacturing capabilities the model can definitely work.”
Gabrielson explained that “most shoe companies work with brands that have seasonal shoe releases because they’re re-selling the shoes to retailers.”
Gabrielson said in an email to TechCrunch’s Jonathan Shieber that the company “will go direct to the consumer and cut out the retailer.”
“By creating weekly drops, we are able to provide constant work through traditionally slow periods of the year, which allows us to negotiate better terms and product in this fairly atypical manner.”
By “better terms,” Gabrielson was referring to minimums, turn around times, etc.
According to Gabrielson, the shoes will be made with “full grain leather from the Veneto region of Italy with soles from suppliers Margom and Dila.”
“We seek out companies that focus on making one thing really well, and partner with them for the long term.”
“By doing so, we form unique, long-lasting relationships with these suppliers as well, which allows us to purchase lower quantities, gain first access to unique materials, and have more flexibility with payment terms.”
Gabrielson pointed out that the fast pace of production will allow the company to “be more creative with silhouettes and materials.”
What can you say about the startup’s expansion into shoe line and its ambitious plan to come out with a new pair of shoes weekly? Share your thoughts by commenting below.