50% of Net Profits to the Cause of Your Choice
Giving Corporate Apparel
A Greater Purpose
Welcome! With the team at Vicinity Capital, we are collecting indications of interest for a planned capital raise through Reg CF (Rule 206). Please review offering information and important disclosures below.
- $1.1M in revenue for 2023
- Successfully proven profit-based philanthropic model
- Apparel industry's only charity profit-sharing retailer
- America’s only MBE certified, e-commerce professional apparel retailer
The Opportunity
Corporations represent $60B* in annual apparel purchases. Just Cause is harnessing this massive purchasing power to support charitable organizations through a unique profit-sharing business model.
Business Model
Just Cause Apparel sells into large corporations like health systems, restaurant groups, and retailers that leverage our platform to make their apparel purchases.
Large groups typically generate between $80-$100 per employee annually and may employ hundreds and even thousands of uniform-wearing personnel. Revenue annually through replenishment of apparel for existing employees and meeting the apparel needs of new employees as each group makes their purchases via apparel stipends.
To make these repeat purchases seamless, each customer group receives a branded microsite that acts as the foundation for that account. Additionally, for each of our large groups, we generate a novel, custom invoicing platform, aimed at decreasing customer payment burdens, improving our cash to cash cycle, and increasing customer satisfaction.
How We Do It
We partner with top professional apparel wholesalers and manufacturers to offer common-label and private-label apparel with an added twist. We tie our profits to philanthropy through our industry leading profit share. We donate 50% of the net profits generated by our customer groups’ purchases to charity and work with that customer to identify their favored “Just Cause”. Our customer groups are therefore given an unmatched level of philanthropic engagement through the course of their normal business activity.
This means when our customers buy their polos, vests, fleeces, and other work or marketing-related apparel, through our profit share, they are also helping to fund their beloved charity of choice.
Employer
- Enterprise-wide platform for purchasing industry-specific uniforms and “swag”
- Custom embroidery and logo options
- Online platform with a unified shopping experience for all employees
- Multiple invoicing options including point of sale and monthly
Employee
- Standardized appearance of customer-facing uniforms
- Employee stipend programs
- Employee ordering, order batching, and bulk delivery options
- Payroll deduction options
Engagement
- Platform allows for easy 50% net profit sharing
- Profit sharing acts as an engagement and retention tool for employees and customers, supporting the favorite charity of:
- A leader whose sister is a Type I diabetic
- An employee battling breast cancer
- A valued customer whose son has autism
- Personalized donations build loyalty and promote ownership among employees and customers
Why Customers Love Us
Just Cause starts by partnering with brand-name manufacturers to source the high-quality apparel customers have come to expect.
These apparel lines span multiple industry use cases including healthcare, hospitality, and education, allowing enterprise-wide solutions for companies across industries. The common thread is that customers can buy the same high-quality products they’re already purchasing for their teams through our unique private label arrangements. But with Just Cause, they also give to their favorite charities simply by purchasing their normal apparel.
In addition to doing good, our partnerships result in a “one-link” supply chain and an unrivaled ability to pass cost savings to our large group customers. With Just Cause, top brands gain a values-aligned channel to sell their products and access to loyal, large customers.
Competitive Landscape
While there is no shortage of apparel providers, Just Cause represents the opportunity for corporations to do good while making everyday apparel purchases.
Although some apparel brands like Patagonia and Cotopaxi are known for being charitable, Just Cause stands alone as the only platform that puts the customer in control of the giving.
Growth Strategy
Our go-to-market strategy centers around a relationally-driven enterprise sales motion. We have already identified a set of top-tier talent who are deeply connected within their industries and will leverage these leaders to accelerate our growth. This team represents a combined 80 years of Sales and Healthcare experience, wielding both the insight and know-how to quickly win market share.
Just Cause Apparel is infusing philanthropy into an otherwise undifferentiated commodity market. We feel that this gives us a marketing advantage and anchors a relational sales strategy to an integrated marketing plan built on storytelling about the differences our philanthropy has supported . Marketing and philanthropy will work together to tell the stories of impact assisting the sales team by giving emotional points of difference. In addition to storytelling, our philanthropic partnerships will double as lead generators, connecting us with the corporate supporters of our charity partners.
More than warm fuzzy feelings
Altruism has been proven to do good AND do well.
TOMS sustained an annual growth rate of 300% in their first five years, gaining traction through their organic social media channels. Their focus on impact resonated with consumers allowing them to spend very on traditional advertising.
Warby Parker reached unicorn status at a $1.2 Billion valuation in just 5 years. Their early focus on PR and customer retention aided in disrupting the eyeglasses industry with a DTC business model.
Bombas, a premium sock company followed a similar model to TOMS, giving away a pair for every one it sells. Bombas exceeded $100M in revenue in 2018 and saw 50% YOY growth since the beginning of the year in 2020. Similar to TOMS and Warby Parker, 98% of their sales are DTC.
As these examples show, charitable giving and success go hand in hand. Building on this altruistic foundation, we’ve pulled from our decades of industry knowledge to build a value-creation machine. We’ve dubbed this process “E3,” thanks to its three supporting components that maximize impact together: Employer, Employee, and Engagement.
Market Breakdown
The United States apparel market generated $350B in 2023 and is expected to grow annually by 2.11% (CAGR 2023-2028).
- Largest segment is Women’s Apparel with a market volume of $187B 2023
- Per person revenues are $1.03K
- Per piece volume is expected to amount to 32.2B pieces by 2028
- Roughly 94% of sales in the apparel market is attributable to non-luxury goods.
- Online revenue shares were 33% in 2022 and expected to increase to nearly 40% by 2027 with greater than 60% of those sales occurring by mobile phone
- Although there are historically recognizable brands, no brand captures even 10% of the market (very little brand loyalty in the market as a whole)
- Nike (3%), Lululemon (2%), Under Armor (2%), Wrangler (1%)
- Market advantage to sales channels that offer multiple brands.
What does all this mean for Just Cause Apparel?
The fragmented market indicates an opportunity for us to establish Just Cause Apparel as a brand-neutral, enterprise-wide apparel provider, focusing on our unique angle of charitable contributions. This angle provides a defensible point of differentiation in an otherwise undifferentiated, commodity market. This scenario allows for Just Cause Apparel to be an alternative to a company’s current apparel suppliers providing an easy, one-stop solution to the uniform and apparel needs of any sized company.
Our People
Scott Porter, CEO
Scott is an orthopedic surgical oncologist who has over 20 years of clinical experience and a national reputation in medicine. He is also an ardent philanthropist with a passion for entrepreneurialism and has led JCA from its founding. Scott has an MD from Yale University and an MBA from Northwestern University’s Kellogg School of Management.
Karla Bakersmith, COO
Karla Bakersmith is the retired Founder, CEO, and President of Scrubs & Beyond, LLC. She started the company in 2000 and grew it into the largest retailer of medical apparel and accessories in the country with a customer-facing, online presence and 125 retail stores. Karla is passionate about mentoring and has spent numerous hours as a coach, a mentor, and a strong advocate of young entrepreneurs helping to grow their careers. She has her degree in Business Administration from Southeast Missouri State University.
Alicia Keely, Director of Operations
Alicia is an operational expert that has worked in healthcare for the past 18 years in various operational capacities. She has served as a program administrator for multiple successful surgical training programs. She has a degree in Business Administration from Lander University with an emphasis in healthcare management.
Kristi Dockery, Customer Relations
With several years of customer relations experience, she has come to love taking care of customers and making sure they are satisfied with their experiences. She has an Early Childhood Education degree and a masters in Reading both from Clemson Univesity.
Jason Pleakis, Technology Consultant
Jason has over 15 years of experience in web design, development, and systems administration. He develops applications tailored to JCA’s business needs translating business rules and programming into custom user interfaces which gives the customer a unique experience specialized to their needs. Jason has a degree in computer information systems from Lander University.
Chelsea Kirschman, Supply Chain Manager
Chelsea has over 5 years of experience as a serial entrepreneur, bringing a wealth of experience driving success across various industries. Committed to innovation and efficiency with an expertise that spans manufacturing, warehousing, and supply chain management, she has a proven track record in implementing impactful process improvements. She has a degree from Union College and an MBA from Clemson University.
Risks
Investing carries general risks, such as losing all the money you invest. Some key risks will be listed below. Additional general and project-specific risks may be detailed here if the Regulation Crowdfunding securities offering goes live.
You can learn more about the risks of investing through Vicinity here.
Disclosures
This is not currently a live securities offering
- No money or other consideration is being solicited, and if sent in response, will not be accepted.
- No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is filed and only through an intermediary’s platform.
- A person’s indication of interest involves no obligation or commitment of any kind.
Vicinity offers accessible, highly-vetted investment opportunities that broaden your portfolio and benefit your community. You can learn more about the risks of investing through Vicinity here.
