Havaianas brochure 1 25 16

Alpargatas USA 33 East 33rd Street, Suite 501 New York, NY 10016 Phone: 800.236.5167

LICENSED STORE PROGRAM

Email: license@havaianas.com Website: us.havaianas.com/licensing

The Original Flip Flop. Made in Brazil since 1962.

A BRAND WITH A SOLID HISTORY

AND A BRIGHT OUTLOOK FOR THE FUTURE Havaianas are the original rubber flip flops, made in Brazil since 1962. Since then, we have been bringing the Brazilian spirit all around the world, with high quality footwear products featuring super-soft rubber soles.

It all began when the São Paulo-based parent company of the Havaianas brand, Alpargatas, started producing flip flops based on the design of the Japanese sandal, called the zori.

However, instead of being made of straw, Havaianas sandals were made with rubber, which made for a very comfortable, durable, and affordable sandal.

It wasn’t long before Havaianas were soon selling at an incredible clip. By the mid-1990s, Havaianas solidified its leadership position and became a hit all across Brazil; foreign tourists began buying the brand, as well. Product selections evolved into what are now some of our core signature designs: the monochromatic “Top” sandals or our iconic “Brasil” featuring a Brazilian flag on the strap.

IMAGINE OPERATING AN EXCLUSIVE LICENSED RETAIL STORE

featuring one of the world’s favorite rubber flip flops.

Havaianas are already on the feet of millions of happy people: this is your chance to bring happiness to customers in your local area.

By the early 2000s, the brand became a hit with celebrities and models, and Havaianas began exporting flip flops worldwide. Now wildly popular from the U.S. to Australia, Havaianas have been featured in important retail stores, high end fashion shows, and even at the Oscar® awards. There are now more

than 350 different styles and bold designs for men, women, children and babies, and an estimated 200 million flip flops are sold every year.

Today, in order to further strengthen the Havaianas brand presence, we have set our sights on opening licensed stores in key markets throughout the United States.

This is where YOU join the story.

The Havaianas licensed store program allows savvy investors and business professionals to take advantage of the strength and reputation of the Havaianas brand – while operating an unmatched retail concept built on exceptional products and unbeatable brand awareness and loyalty.

WE INVITE YOU TO READ ON, AND DISCOVER THE MANY BENEFITS OF THE HAVAIANAS LICENSED STORE PROGRAM ... AND LEARN HOW YOU CAN BRING THE HAVAIANAS BRAND AND EXPERIENCE TO YOUR MARKET.

PUT YOUR

BEST FOOT FORWARD U.S. consumers spend $20 Billion on footwear annually.1 Flip flops account for nearly 25 percent of the $7.5 billion sandal niche – and their increasing popularity is supported by the projected double-digit growth of the flip flop market!2 More than entering a growing niche in a huge market, operating a licensed Havaianas store means becoming part of a company with decades of history, solid international operations, and a storied brand that enjoys global awareness and strong customer loyalty.

Millions of customers’ feet around the world already love Havaianas.

This is your chance to bring the love to even more...

As a licensed store operator, you’ll enjoy exceptional benefits:

I LOVE HAVAIANAS!

Durable, comfortable, stylish.

They are so comfortable and last for a few years. …my ‘go to’ sandals, they go with everything!

•U se of the Havaianas brand and trademark in your location, plus access to branded retail items available through Havaianas corporate and licensed stores •A protected area; we will not grant a third party the right to locate another Havaianas store inside your territory •M ultiple lines of Havaianas branded footwear for all ages, plus accessories, embellishments, and more We invite you to find out how you, as a Havaianas licensed store operator, can instantly benefit from all that Havaianas can bring to your local community.

1. http://www.statisticbrain.com/footwear-industry-statistics/ 2. http://abcnews.go.com/Business/story?id=89735&page=1 3. http://us.havaianas.com/slim.html* *Initially obtained as part of Ratings & Reviews online service. Quotes may no longer be viewable online but company maintains historical data for review.

- ALI3

OPERATE A FUN & REWARDING BUSINESS THAT MAKES PEOPLE HAPPY Our licensed store opportunity provides qualified entrepreneurs what they need to operate a fully branded, authorized, licensed store – stocked with a range of Havaianas products that appeal to customers of all types.

Stores will feature approved selections, straight from Havaianas collections.

They will display the highly recognizable Havaianas brand – through consistent branded product merchandising, topquality point-of-purchase promotional materials, and more.

Licensees will be required to maintain a representative product selection and the inventory levels required to provide Havaianas loyal customers an excellent retail experience. But don’t worry: we’ll provide guidance on inventory purchase

amounts specific to your licensing contract, based on territory, location size, and other factors.

Part of the beauty of the Havaianas licensing program is its simplicity: we do not charge fees above and beyond the wholesale purchase price of Havaianas exclusive products. You’ll have access to exclusive branded products: flip flops, sandals, footwear, and accessories. Plus, additional support items, such as point-of-sale literature and other marketing materials, will be shipped to you to aid in your local, seasonal and other promotional efforts.

“ THERE ISN’T A MORE ICONIC FLIP FLOP....

YOU WON’T FIND A LONGER LASTING PAIR OF FLIP FLOPS.”

- DAVID4

4. http://us.havaianas.com/men-sandals/top.html* *Initially obtained as part of Ratings & Reviews online service. Quotes may no longer be viewable online but company maintains historical data for review.

PICTURE YOUR

HAVAIANAS LICENSED STORE Your Havaianas branded stores will follow our unique brand specifications, feature approved products, and create a consistent, controlled retail experience for your customers.

Following the most current global retail merchandising standards, adaptable to a wide range of location types – from enclosed malls, to inline stores, to non-traditional locations including airport, school campuses, and more –

Havaianas stores work best within about 750 square feet of prime retail space (which, of course, we’ll help you identify!).

Most important, we will be there at every stage as you open and operate your licensed stores. From helping you identify appropriate locations, to inventory selection, and more – we have you covered. Read on for more about how we support you…

TOP LEVEL SUPPORT As a Havaianas licensed store operator, you have the confidence of knowing you are backed by a robust organization, an immensely popular brand, and a retail support team that is committed to continuously developing and improving our business model.

HERE IS HOW WE HELP: • SITE SELECTION GUIDELINES, criteria, and other assistance, including existing relationships with real estate brokers who are actively working with Havaianas to help identify optimal locations nationwide.

• STORE START UP ASSISTANCE, including template designs and layout plans and specifications, plus review and approval of your final store design plans to ensure they’re up to standards. We’ll also provide guidance on required store planograms and other documentation regarding product assortment and display.

• BRANDED PRODUCT ACCESS, truly the heart of the licensed store program.

You’ll be able to offer for sale a range of Havaianas branded products, shipped directly to your store. You’ll also have access to our core systems (e.g., POS, inventory replenishment, etc.), plus other vendors and suppliers (e.g., supplies/consumables, maintenance service), as needed.

•C OMPLETE TRAINING, with both initial and ongoing programs so you feel confident in operating a Havaianas licensed store – and so that your trained store employees exemplify the Havaianas brand and culture.

We’ll be there onsite right before your Grand Opening, and we’re available when you need us during your ongoing operations.

• A COPY OF OUR CONFIDENTIAL OPERATIONS MANUAL, which contains fully documented procedures, policies, and operating standards for Havaianas stores. It will serve as a daily guide for you and your store staff, with details on everything from daily operations, to job descriptions, store management, reporting functions, and much more.

• PROFESSIONAL MARKETING SUPPORT, starting with all the necessary interior signs, advertising and promotional materials, and other sales aids. We’ll also provide guidance and review all advertising or marketing items you’ll use in-store and in-territory.

• BUSINESS MONITORING SERVICES, including the use of standardized financial reporting, and access to shared performance data across licensed stores for benchmarking purposes and to facilitate ongoing improvement efforts. We will also periodically meet with you to establish your required inventory levels, product mix, annual sales goals, and other operational and business objectives.

“WE ARE EXCITED TO LEVERAGE OUR EXPERIENCE AND CAPABILITIES IN SUPPORT OF LICENSED STORE OPERATING PARTNERS TO BRING THE BRANDED RETAIL EXPERIENCE TO NEW AND EXISTING HAVAIANAS FANS IN THE U.S.”

– RAFAEL RODAS, DIRECTOR OF RETAIL

THE NEXT STEP TOWARD AN EXCITING

FUTURE WITH HAVAIANAS We are seeking qualified licensee candidates who have the necessary capital, skills, and attributes to join our system and faithfully represent the Havaianas brand.

Licensed store operators do not need to have prior experience in the retail footwear industry; we look for candidates who have solid business acumen, management, team building, and supervisory skills, and who will commit to upholding the Havaianas brand standards in their locations.

Investors should have the means to invest in and support one or multiple stores clustered in targeted territories.

If you are an enthusiastic, skilled business professional looking for an opportunity in an exciting segment of a growing industry, and the chance to operate a business that’s fun for everyone, take the next step with Havaianas.

Contact us today to find out more about how

HAVAIANAS COULD BE THE PERFECT FIT for your local customers and your business future.

“BEST FLIP FLOPS! ... VERY GOOD QUALITY. THEY LAST FOREVER AND THEY ARE MADE OUT OF VERY DURABLE MATERIALS. GREAT FOR THE POOL AND JUST FOR WALKING AROUND. I LOVE THEM…AND VERY CUTE COLORS.”

- NORI5

5. http://us.havaianas.com/women-sandals/slim.html* *Initially obtained as part of Ratings & Reviews online service. Quotes may no longer be viewable online but company maintains historical data for review.

THE ORIGINAL FLIP FLOP. MADE IN BRAZIL SINCE 1962.