Sunday, November 26, 2017

How This Bootstrapped Czech Entrepreneur Sold $500,000 Of Hemp-Based Shoes In Just One Year

By Esha Chhabra
Source: forbes.com


Prague-based brand Bohempia makes shoes with hemp.


Prague based eco-friendly footwear brand Bohempia makes shoes out of hemp.  Hemp in the US is a contentious topic, often misunderstood because of the plant's association with marijuana. However, with brands such as Patagonia trying to revive the hemp industry, there is growing interest in this alternative material-- even though, the machinery to process the tough fibers is hard to come by in the US.  The sustainability of hemp, though, has long been celebrated by environmentalists.
Bohempia
Bohempia founder, Tomas Rohal, bootstrapped the company with his savings of $70,000.
Bohempia founder Tomas Rohal started his hemp-based shoe company in 2015 for the European market. Now he’s bringing the shoes to the US. The company recently launched their first Kickstarter campaign to see how American and global consumers respond to the hemp shoe. I spoke with Rohal to learn more about his startup story.

Esha Chhabra: What exactly are the shoes made of?
Tomas Rohal:  The canvas upper is made from 100% hemp fabric. The outsole is made from rubber. Our shoes are made in the Czech Republic, in city of Zlín where Tomas Bat'a founded his eponymous shoe brand, Bata. Except for the rubber, all components are sourced from the EU.
Why hemp?
Hemp is one of the world's strongest natural fibers with outstanding tear and tensile strengths. It is also breathable, moisture-wicking and has antimicrobial and antifungal properties. Before starting Bohempia in 2015, I spent 18 months researching the hemp industry, textile and footwear production in the Czech Republic and how to start a new business and brand.
Where did you get the startup capital?
Initially, I self-funded the start-up costs of $70K with my savings and some small loans from family and friends.
What is the hardest part of using hemp?  How does it compare to other materials in shoes in terms of manufacturing and performance?
The most difficult part of working with hemp is simply getting the material. There are limited options to source hemp fiber, yarn or finished fabric. That's why we start with industrial grade hemp which is relatively easy to obtain and then make the yarn and weave the canvas ourselves in the Czech Republic. China is a major supplier of hemp fabric but we want to keep our supply chain as local as possible.
Bohempia
How did you land up making shoes specifically?
My background is in textile machine design which I studied at the Technical University of Liberec. As so often happens, I never actually worked in my field of study due to lack of job openings. The Czech textile and footwear industries were hard hit by the global economic meltdown of 2008.
So you started your own company.  Who inspired you?
Patagonia inspires me with how committed they are to minimizing the environmental impact their product makes. We like how TOMS gives back to underprivileged youth in the developing world. We're working on our B Corp application, because all companies that have received B Corp status are held in high esteem.
Is the Czech market interested in sustainable brands?
Sustainable fashion and brands is a growing market in the Czech Republic. There are several local, mainly apparel, brands that focus on sustainable and ethical fashion. During Prague fashion week there is a trade event dedicated to this niche. We operate a retail shop in Prague and I see the changing tastes of our customers. Many only want to buy from brands that live in the vegan, sustainable, ethical and made in the EU space.
Where are your customers beyond the Czech Republic?
We have customers mainly in Europe, including Finland, Germany, Belgium, UK and Italy. Through our crowdfunding campaign, we are reaching consumers in the US, Canada, Singapore, Japan and beyond.
How many shoes have you sold?
We will finish 2017 with over $500K in sales. Our projections for 2018 are $1,000,000 as we sell to more retail accounts in Europe and also expand our direct-to-consumer model to reach customers across the EU.
What's the been the hardest part of the entrepreneurial journey? 
Bohempia is my first startup. It's been a huge challenge, but I've enjoyed the ride. The hardest part was to leave an uninspiring industry that paid well, but left me unfulfilled. Dipping into the nest egg and hoping for the best was daunting.
So why a Kickstarter campaign now -- three years into your startup journey?
We look at Kickstarter as an excellent proof of concept for the Bohempia brand. We know we have a customer in Europe and wanted to confirm if consumers with the same brand checklist in North America and around the world would embrace the Bohempia brand. We're happy to say they have.

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