Ep 18. Inkka's Global Footwear

Inkka's Global Footwear is the 18th episode of the third season of the business reality TV show, The Profit. This episode revolves around the story of a unique Peruvian-inspired shoe brand called Inkka. The company is based out of New York City and founded by Danny and Dave Malhame.

When Inkka was first launched, it was an instant hit among the fashion-forward and eco-conscious crowd. The Malhame brothers started their company in 2012 and soon gained a lot of attention because of their fashionable, yet sustainable shoes. The brand sources its materials directly from Peru's indigenous communities, where all the shoes are handmade by skilled artisans.

Marcus Lemonis, the host of the show, visits the Inkka team and soon learns that although the company has a great product, it has run into cash flow issues. Danny and Dave poured all their money into the business, but because they didn't have any experience in the shoe industry, they made some critical errors in their business plan. The Malhame brothers admit that although they were successful at launching their brand on social media platforms, they were struggling to gain a foothold among big-box retailers.

As Lemonis delves deeper into their business, he discovers that Inkka's biggest problem was managing their inventory levels. With too many shoes in stock, the company was unable to free up any cash flow for product development, marketing, and other vital business expenses. Furthermore, their biggest challenge was to reposition the brand from a niche Peruvian-inspired shoe designer to a more accessible footwear brand for everyday consumers.

Lemonis agrees to invest $250,000 into Inkka in exchange for a 50% equity stake. With his investment, Marcus puts several strategies in place to help Inkka grow its business and increase sales. Lemonis' first move is to introduce new designs that will be more commercially available to the general public. This would allow Inkka to make a broader range of shoe sizes to cater to different customers while still staying on brand.

Another issue was production lead times. Inkka's shoes were manufactured exclusively in Peru. Although the company had a close relationship with their artisans, the time it took to get shoes made and shipped to the United States was often too long, with customers often waiting months for their order to arrive. Lemonis suggested a new approach where Inkka would manufacture a portion of their shoes in China, which would dramatically reduce the lead time for U.S. customers.

Finally, with the help of Marcus Lemonis, Inkka was able to land a major retail deal with the national clothing store chain Nordstrom. Marcus worked with Inkka to give their shoes a new, sleeker design while still staying true to their unique Peruvian roots. With the help of Nordstrom, Inkka was able to find a broader audience of customers who appreciated their high-quality shoes and commitment to sustainable and ethical practices.

Overall, season 3 episode 18 of The Profit, in which Marcus Lemonis partners with Inkka to help the company solve its inventory and production issues and expand their customer base, is a great example of what it takes to grow a successful and sustainable business in a highly competitive industry. As always, Lemonis' investments and guidance result in a positive change for both the company's finances and the brand's overall identity.