Pacoa Eco: U.S. Market Strategy Overview
Pacoa Eco: U.S. Market Strategy Overview
Name Roles
Jenna Folmar Case discussion, designed title page, main contributor section
2, general editing and proofreading
Bianca Menezes Procaccio Case discussion, helped with reminders, searching and wrote
section 1
Maria João Souto Pinto Coelho Case discussion, SWOT analysis, section 1 research
Table of Contents
Executive Summary..................................................................................................................................... 3
Section 1 - Market........................................................................................................................................ 5
Market Industry and Competition Analysis.............................................................................................5
New Market Selection and Analysis....................................................................................................... 8
Section 2 - Marketing.................................................................................................................................10
Promotion Channels.............................................................................................................................. 10
Message................................................................................................................................................. 12
Promotional Materials........................................................................................................................... 13
Section 3 - Management.............................................................................................................................15
Entry Mode............................................................................................................................................ 15
Logistics: Shipping, Trade Regulations, Certification...........................................................................18
Pricing....................................................................................................................................................19
References................................................................................................................................................... 20
2
Executive Summary
1. Industry and Competition Analysis (p. 5)
● Main competitors:
○ Allbirds (large and recognizable, wide product variety)
○ Rothys (popular with women, luxury products, recycling program)
○ TOMS (recognizable, affordable)
○ Veja (strong brand presence in US, similar products to Pacoa Eco)
● Pacoa Eco
○ Strengths: sustainable products at an affordable price.
○ Weaknesses: brand recognition outside of Brazil, reliance on imports in
the supply chain.
○ Opportunities: entering foreign markets, implementing a shoe recycling
program, supporting tariff reduction lobbying initiatives.
○ Threats: rapidly shifting global trade and tariff policies, competition from
established brands, and reduced consumer spending.
● Customer interviews
○ The team interviewed 20 potential buyers in 4 markets.
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● Time-Sensitivity: Introduce limited-time social media promotions to push sales.
4
Section 1 - Market
● Recommended Market: United States of America
Assessing Pacoa Eco Brazil's internal strengths and weaknesses as well as the external
factors influencing the competitive environment are all part of a thorough SWOT analysis. This
assessment provides a realistic perspective on Pacoa Eco's strategic stance within the sustainable
footwear market by drawing on credible industry studies and economic assessments.
Strengths:
The company's capacity to provide environmentally friendly footwear at affordable costs
is one of its main advantages. This is in line with consumer trends that emphasize affordability
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without compromising environmental responsibility - a balance that is best represented by
companies like Allbirds (AllBirds, n.d), (Rothy’s, n.d.), (Nisolo, n.d.).
Pacoa Eco can increase its attractiveness to consumers who are concerned about
sustainability and value by implementing transparent pricing and enhancing operational
efficiency. Furthermore, its dedication to supply chain transparency and environmental integrity
raises the legitimacy of the brand (Seuring & Müller, 2008). Its market position is further
legitimized by initiatives like the use of biodegradable materials and the public disclosure of
sustainability measures, which are modelled after industry best practices.
Another fundamental advantage is material innovation. Incorporating natural fibres and
recycled plastics not only advances environmental objectives but also capitalizes on consumers'
rising curiosity about the origin and lifecycle of products (FDRA, 2023). The commercial
potential of such developments is demonstrated by Rothy's success in transforming plastic
bottles into fashionable shoes. By working with neighbourhood recycling programs, Pacoa Eco
might build on this model and further demonstrate its dedication to circular economy and
community development (Cucuzzella, 2009).
Weaknesses:
Despite these advantages, the brand nevertheless has problems. Its lack of global
awareness puts it at a competitive disadvantage when compared to well-established firms like
Rothy's and Nisolo, who have made large investments in establishing their brands and winning
over customers (Nisolo, 2023; Rothy’s, 2023). Additionally, the company's reliance on imported
commodities exposes it to supply chain interruption and fluctuating tariffs. With U.S. import
taxes averaging more than 12%, the tariff structure of the footwear sector emphasizes the
financial risk associated with non-domestic sourcing (FDRA, 2023). Reevaluating supplier
networks and other local alternatives is necessary to mitigate this.
Opportunities:
Pacoa Eco works in an environment full of opportunities on the outside. The market for
sustainable footwear is expected to reach USD 8.46 billion in 2023 and increase at a compound
annual growth rate (CAGR) of 6.3% until 2030 (Grand View Research, 2023). There could be
substantial profits from entering foreign markets where there is a growing need for sustainable
goods. Success would depend on alliances, targeted marketing, and a strategic entry into
receptive regions.
Long-term strategic advantages can come from taking part in industry lobbying,
especially about tariff reduction. A more advantageous trading environment and less cost
pressure could be created by supporting the Footwear Distributors and Retailers of America's
(FDRA) activities. Implementing recycling or product return programs, which would follow
Nisolo's reclamation model, would also strengthen the brand's sustainability story and increase
consumer participation.
Threats:
But there are still outside dangers. Cost structures can be quickly changed by changes in
trade policy, such as tariffs imposed by past U.S. administrations (New York Times, 2019),
which emphasizes the importance of having a robust and diverse supply chain. Additionally, the
market for sustainable footwear is becoming more and more saturated, which makes competition
more fierce. Pacoa Eco must constantly hone and convey its value proposition because
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companies like Allbirds have increased consumer expectations about innovation and
environmental effects (Allbirds, 2023; Rothy’s, 2023).
Finally, demand is in danger due to economic uncertainty. Discretionary expenditure
frequently decreases during economic downturns, and goods deemed luxury or unnecessary may
lose priority (FDRA, 2023). This dynamic, which is made worse by inflationary pressures and
tensions in international commerce, may influence consumer behaviour and necessitate flexible
pricing or product strategies.
In conclusion, even though Pacoa Eco Brazil is ideally situated in a promising market
segment, it will take smart scaling, strong branding, a resilient supply chain, and ongoing
innovation to reach its full potential. These elements must all be supported by clear and
quantifiable sustainability standards.
Competition Analysis
Brand Overview:
Pacoa Eco is a Brazilian sustainable footwear brand founded with a strong
socio-environmental mission. Its products are handcrafted using eco-conscious materials such as
banana fiber and recycled cotton, and it engages directly with artisan communities — especially
women-led groups — to promote ethical and circular production models. Its core differentiators
include the use of natural fibers and renewable resources and Handcrafted, small-scale
production.
Market Segmentation:
The target audience is basically environmentally conscious consumers, mostly
millennials and generation Z and ethical fashion buyers. Also, it calls attention from consumers
interested in handmade and artisanal products. The market segment is the sustainable lifestyle
footwear and slow fashion and eco niche.
Key Competitors:
In Brazil, Pacoa Eco competes with a mix of established and emerging brands that have
embraced sustainability to varying degrees. Among the major players, Havaianas has ventured
into eco-friendly lines while maintaining its accessible pricing and broad appeal while Osklen
represents the luxury end of the sustainable fashion spectrum, known for its fashion-forward
approach and environmental consciousness. In the United States, Pacoa Eco would enter a
sophisticated yet opportunity-rich market for sustainable footwear. Key competitors include
Allbirds and Rothy’s. Veja also holds a solid position in the U.S. as a premium sustainable
sneaker brand, sharing similarities in mission and aesthetic with Pacoa Eco. Pacoa Eco’s
opportunity lies in bridging the gap between these performance- or fashion-driven sustainability
brands and a more emotionally rich, culturally grounded proposition rooted in Brazilian artisan
heritage and natural materials like banana fiber.
Price Positioning:
Pacoa Eco aligns closely with mid-to-premium brands like Veja and Reserva, but its
unique use of banana fiber and handcrafted quality sets it apart.
Strategic Opportunities:
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Includes expanding into international markets, particularly the U.S, where demand for
sustainable and ethically crafted products is on the rise. Collaborating with eco-conscious
influencers, designers, and sustainability-focused platforms could significantly enhance brand
visibility and attract a broader consumer base. Additionally, diversifying the product range to
include accessories or other apparel could strengthen the brand's presence and appeal to a wider
audience. These opportunities align with the growing global trend of consumers prioritizing
environmental impact and social responsibility in their purchasing decisions.
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Reserva, Insects Shoes and Urban Flowers offer options more similar to Pacoa Eco, with a
reasonable price and with a focus on sustainability, generally between R$ 200 and R$ 400.
In the American market, the demand for sustainable and ethically-made footwear has
grown significantly in recent years, creating space for brands with purpose-driven narratives.
Pacoa Eco would enter a highly competitive yet opportunity-rich segment, especially among
consumers seeking authenticity, slow fashion, and environmental impact reduction. Some key
U.S. competitors include:
● Allbirds: Known for its minimalist design and materials like merino wool and sugarcane
EVA. Positioned in the mid-to-premium range (USD 100–160), it appeals to
environmentally conscious millennials and Gen Z.(Allbirds, 2025)
● Rothy’s: Uses recycled plastic bottles to make stylish flats and sneakers. Strong female
customer base, positioned around USD 130–170. Rothy’s emphasizes circularity and
innovation in materials.(Rothy’s, 2025)
● TOMS: Once known for its “One for One” giving model, TOMS has shifted toward
broader social impact messaging. Prices range from USD 60–120, targeting conscious
consumers with a slightly more accessible offering. (TOMS, 2025)
● Veja: While French-Brazilian, Veja has a significant U.S. presence and customer base. Its
pricing (USD 120–200) and values closely align with the Pacoa Eco ethos —
transparency, organic materials, and fair trade.(Veja, 2025)
Pacoa Eco would probably need to position itself between Allbirds and Veja, aligning
with the USD 120–160 price range. However, its core differentiator would be its deep connection
to Brazilian heritage and craftsmanship, which none of the current U.S. players leverage. The use
of banana fiber and handcrafted textiles creates an emotional and cultural appeal that could
resonate especially well in urban centers like New York, San Francisco, and Portland, cities
where slow fashion and ethical consumption are deeply rooted in consumer behavior.
Furthermore, Pacoa Eco can leverage the rising interest in regenerative design,
artisan-made products, and Latin American brands to carve out a distinct space. Unlike most
U.S. competitors focused purely on performance or design minimalism, Pacoa tells a human
story, one that merges sustainability with tradition and culture
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Section 2 - Marketing
● Expand online presence and create partnerships with retailers
● Message sustainability, exclusivity, and style
● “Step Light, Live Green”
Promotion Channels
Online Presence
Website and E-Commerce Store:
● Create an optimized Shopify website that provides clear branding and highlights
sustainability messaging.
● List ourselves on eco-conscious marketplaces like EarthHero, GOODEE, and Etsy to
engage with sustainability-focused consumers.
Social Media Strategy:
● Create Instagram, TikTok, and Pinterest pages with good quality visuals and engaging
storytelling.
● Using TikTok create short clip video content including behind the scenes of production,
artisan interviews, fashion tips with footwear.
Influencer & Blog Partnerships:
● Partnering with eco-friendly, sustainability driven influencers and bloggers to get reviews
of products to promote.
● Sending free samples to influencers to create engagement alongside promoting the
product.
Email Marketing:
● Offering discounts for first-time buyers.
● Building an email list with social media sign-ups and website pop-ups.
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● Research and contact U.S-based eco-friendly stores such as Patagonia, Everlane, and
Reformation.
● Provide them product samples and digital lookbooks to store buyers.
Subscription Box Collaborations:
● Partner with sustainable fashion subscription services such as Wantable, Earthlove, and
Adore Me to show Pacoa Eco in curated boxes that suit a specific interest of the recipient.
Network and trade Shows:
● Attending sustainable fashion expos and trade shows
● Provide brand information to B2B platforms like DHgate, eBay, and Amazon.
Projected Timeline:
Month 1-2: Build online store, set up social media, begin reaching out to influencers and
retailers.
Month 3-4: Run starting ads, create partnerships with small boutiques, launch online live
shopping presence.
Month 5-6: Evaluate success, expand on ad budget, explore trade shows, and clarify marketing
strategies.
This plan keeps costs low while also reaching eco-friendly buyers!
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Message
Task 1: Best Way to Convince Consumers to Buy Pacoa Eco Shoes
To influence consumers, focus on their needs and wants by showing how Pacoa Eco
shoes provide a sustainable, stylish, eco-friendly, and durable alternative. Show off the shoes by
highlighting the unique benefits of banana fiber, how it's lightweight, eco-friendly, and
comfortable. Use ads, social media, storytelling, reviews and engaging visuals that will bring
people to create an emotional connection with shoes. Address any concerns regularly and
emphasize Pacoa Eco brand as a solution to sustainable alternatives, not just a product. Create
urgency with exclusive, time-sensitive offers while guiding customers to make confident,
informed choices.
Message: “Step Light, Live Green – A Sustainable Style with Pacoa Eco.”
Presentation: The message will be given through a visually engaging Instagram ad, designed to
draw attention from users' scroll. The ad will feature eye-catching visuals, influencers wearing
Pacoa Eco shoes, and vibrant content showcasing the eco-friendly materials and real-world
impact. Short videos, customer reviews, and interactive elements will highlight sustainability and
style, motivating eco-conscious consumers to take action.
Creating vibrant, scroll-stopping ads that show the natural beauty of banana fiber and the
eco-friendly production process it has. Use high-quality imagery and short, dynamic videos to
catch consumers attention quickly.
Social Influence:
Use customer reviews and user-generated content to build trust and emphasize our commitment
to sustainability and the eco-friendly shoe product.
Limited-Time Offers:
While the brand name "Pacoa Eco" clearly communicates sustainability, their website notes that
the natural color mixing from banana fiber—present across the six available styles—might not
always be perceived as fully eco-friendly by some audiences. Although not direct consumer
feedback, it's an important factor to consider when entering a new market.
Product Presentation:
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Instead of changing the brand name, consider adjusting the presentation. Highlight that the
natural color mixing is a unique, authentic result of using banana fiber, which is inherently
eco-friendly.
Promotional Materials
To reinforce Pacoa Eco’s online marketing presence, we have created some samples of various
promotional materials that Pacoa Eco could use to attract US consumers.
Above is a concept sketch of a graphic that could be used in a social media post or
advertisement. The graphic can be utilized on a variety of platforms such as Instagram,
Facebook, Snapchat, X, and Threads. This can be the first picture of the post. Others will be
pictures of footwear that are taken from different angles. The caption will feature information
about the product being promoted in the post or the advertisement. Included in the image are the
proposed slogan, “Step Light, Live Green”, and a template for Pacoa Eco to insert an image of
the particular product they want to promote in the advertisement or post. The Pacoa Eco logo is
on the bottom right, and contrasts with the background so that consumers recognize the brand
quickly.
At the core of the graphic, we wanted it to convey Pacoa Eco’s core values that would be
attractive to consumers. Since American consumers value eco-friendly, comfortable, and
sustainable products, we made sure to emphasize these areas. The background features banana
fiber, and can be customized to fit Pacoa Eco’s preferences for a particular product. Banana fiber
is the key material that Pacoa Eco uses, so we think it should be prominent in the social media
graphics to spark curiosity in consumers and communicate its importance to the brand. The color
green is also used heavily throughout the image and the text due to its strong association with
sustainability and environmental causes.
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2. Website Banner
Here is an example of a pop-up advertisement that Pacoa Eco can utilize to direct
consumers quickly to their website. Similar to the social media post, it features the color green, a
footwear product, and the Pacoa Eco logo and slogan. We wanted to emphasize that Pacoa Eco is
a Brazilian brand since the US is home to many Brazilians and it also implies that Pacoa Eco is a
more exclusive or desired brand. The advertisement also has a “Shop Now” button for
convenient access to Pacoa Eco’s website.
Below is an example of an email that Pacoa Eco could send out to consumers that have
previously purchased a product or have expressed interest in purchasing a product in the
future. Pacoa Eco could offer some sort of incentive such as a discount on a product to sign up
for the email list. This will result in repeated exposure to Pacoa Eco products and an increased
likelihood of repeat purchases.
You can help save the world by buying the footwear of Pacoa Eco! We are committed to
making sustainable and eco-friendly products to meet your footwear needs. Our products are
designed to reduce waste and promote a healthier planet.
● About Us: Founded with a vision for a cleaner, greener world, We offer innovative and
sustainable solutions that make a real impact. The main material of our footwear is
banana fiber. By using banana fiber, it generates great economic benefit for small banana
farmers and groups of artisan women. It is not only reducing the waste but also creating
job opportunities for artisans.
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● Explore Our Products: We have a wide assortment of sandals, sneakers, and flats to suit
many different lifestyles. From reusable essentials to biodegradable alternatives, our
products help you lead an eco-conscious lifestyle effortlessly.
● Join Us in the Green Movement: Follow us on social media and visit our website to learn
more about our products and how you can contribute to a sustainable future.
IG:[Link]
Website:[Link]
Section 3 - Management
● Continue direct sales online while creating partnerships with retailers
● Establish a centralized warehouse and pursue environmental certifications
● Increase price in the US market
Entry Mode
There are various methods that Pacoa Eco could employ to expand their audience and
gain more market share through their commitment to eco-friendly and sustainable fashion
solutions. A multi-channel market strategy would ideally boost their sales and ultimately prove
to be optimal. A direct sales approach, while useful, is a slight limitation for Pacoa Eco through
their website, as it may not be sustainable or able to handle any increase in traffic. Their website
should still remain as a premier platform for their e-commerce. The website would be able to
speak for the company, their sustainability actions, and can have the highest profit margins as
they are a direct to consumer company. This standard direct sales approach would not have the
reach that Pacoa Eco is striving for, especially for people who prefer brick and mortar shops.
To achieve a goal of being incorporated at shops, Pacoa Eco should look to established
retailers in Brazil and in the United States that are all known for sustainability and eco-friendly
actions. In the United States, there are many states and shops that have retailers known for their
sustainable fashion, one the these shops, located in California, is Amour Vert, known for their
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harvested beechwood fibers clothing made for everyone (Hadley, 2021). Mentioning Pacoa Eco’s
eco-friendly values and Amour Vet’s commitment to every order is another tree planted would be
a great way to approach them and begin conversations. A partnership like this would achieve
Pacoa Eco’s vision of tapping into the United States sustainable fashion industry. Amour Vert’s
contact page would offer a channel of initial conversations.
Amour Vert Website Link
Another partnership opportunity for Pacoa Eco in the United States, would be with
California based brand Reformation. Reformation is known for their dedication to sustainable
fashion and their website reflects their transparency in the eco-friendly practices(Reformation,
2025). They have created a strong reputation for how they use low-impact materials,
carbon-neutral shipping methods, and use rescued fabrics (Reformation, 2025). Their
commitment to sustainable fashion aligns perfectly with Pacoa Eco’s values of transparency and
environmentally safe practices. Highlighting Pacoa Eco’s banana fiber use and Reformation’s
dedication to innovation would be a gripping message to start conversations. Collaborating with
Reformation would expand Paco Eco’s brand recognition and continue to align them as a
premium footwear brand. Reformation’s “Contact Us’ page would provide an ideal starting point
for outreach.
Reformation Contact Us Page
Email: love@[Link]
There are other collaborations that Pacoa Eco could seek out in Brazil, according to the
“7 Sustainable Fashion Brands From Brazil” article, one of the companies listed was Osklen,
where they combine high-end designs with eco-friendly practices. Pacoa Eco would see the
opportunity to make their brand synonymous with high end fashion and design. Osklen’s
philosophy and dedication to sustainable fashion allows them to constantly innovate and pursue
successful eco-friendly partnerships(Osklen, n.d) This aligns well with Pacoa Eco’s message and
this type of partnership could allow the company to be a more seen sustainable footwear
solution. Similar to Amour Vert and Reformation, conversations should begin and revolve
around Pacoa Eco’s banana fiber shoes and how their commitment to sustainability aligns with
Osklen and that together they can rise to the top of sustainable fashion. Starting with their “Call
Center” page would be a good start to discovering how Pacoa Eco and Osklen could potentially
work together.
Osklen Contact Page
Pacoa Eco currently sells mainly through social media but on limited platforms. There are
multiple sites and apps that they could be on to reach a larger audience. A new platform that has
arisen is the TikTok Shop (Introducing TikTok Shop, 2023). People of all ages have access to
this platform, and many young individuals who care about the environment are more likely to see
ads and listings for Pacoa Eco footwear. This digital platform would allow Pacoa Eco to enter a
larger market and gain a high market share. As of February of 2025, the United States and Brazil
have approximately 135 million and 91 million users, respectively, making them two of the three
largest TikTok user markets. (Ceci, 2025). This may be too large of an audience for Pacoa Eco
who can fulfill about 120-200 pairs a month.
Seeking out retailers both locally and internationally, while continuing with digital selling
tools like social media are both optimal modes of entry in Brazil and the United States.
Modes of Entry Image (see next page). This image is a depiction of what was mentioned
above for the various Modes of Entry Pacoa Eco could apply to their strategies in order to help
grow the business and spread awareness of the product. To create the image, OpenAI was
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used(OpenAI, 2025.). In order to create the image, I asked OpenAI to create an image based on
the Modes of Entry that were presented above.
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Logistics: Shipping, Trade Regulations, Certification
Logistically, to meet new demand, having and using a centralized warehouse and bulk
shipment model would be best for Pacoa Eco. While Pacoa Eco is limited in their current supply
and production, making more shoes and housing them in a main distributor hub would be more
effective in timely order fulfillment. This warehouse would reduce shipping costs, increase
delivery time, and reduce the company’s environmental impact. For both local and international
shipping logistics, companies like DHL and FedEx are great providers. Utilizing these
companies would enhance the tracking capabilities of Pacoa Eco’s shipments, shipping rates, and
customer ratings.
Pacoa Eco being in Brazil and their current focus on their domestic market, they would
incur generally shipping fees but they would face tariffs and custom duties. With the United
States being a target market expansion audience, Pacoa Eco will be subject to tariffs depending
on their customs classification mode. The United State government just introduced new tariffs
globally and one of the countries affected was Brazil, hit with a 10% reciprocal tariff (Trump,
2025). Pacoa Eco could expect to be hit with a 10-30% tariff on their footwear. While this is
currently up to date, these tariffs are subject to change and it is with my recommendation that
Pacoa Eco continually monitors these situations and adjust their pricing and strategy accordingly.
While it is unknown what it would cost for Pacoa Eco to ship to the United States, other
footwear competitors based in Brazil charge over $10 USD per shipment with a minimum order
cost of $50 USD. Pacoa Eco should look to find and charge a similar price for shipping. Having
a main distributor hub would allow for lower shipping costs through larger product pick and
reduced pick-up visits.
In the Brazilian market, it is recommended that Pacoa Eco is compliant with the National
Institute of Metrology, Standardization and Industrial Quality (INMETRO) guidelines for goods.
The certification is not mandatory for all footwear products, but it is worth ensuring Pacoa Eco
does not need to obtain the certification. This certification could enhance brand value and trust
amongst consumers.
To receive an INMETRO compliant verification, Pacoa Eco needs to go through their
structured process that ensures the products meet Brazilian quality and safety requirements.
Initially, they have to verify whether the product falls under the mandatory certification category.
From there, Pacoa Eco needs to partner with an independent certification body that is accredited
with INMETRO. The products are sent to an accredited lab for testing based on the necessary
standards for sustainable footwear. While the products are being tested, there are factory
inspections as well to ensure the manufacturing and quality control steps are aligned with Pacoa
Eco’s efforts. If passed, the certification body will provide a certificate that allows the
INMETRO seal to be used on the products. (TUV SUD, n.d.)
There are certifications that Pacoa Eco could seek out, they are not required, but could
help expand the word of Pacoa Eco products. An OEKO-TEK STANDARD 100 certification
would prove to be valuable to Paco Eco and show their commitment to product safety and
sustainability (Oeko-Tex, n.d.). OEKO-TEK STANDARD 100 100 and Made in Green
Certifications are textile labels for products that have been tested for harmful substances, it
certifies products for passing safety tests and showing they were manufactured in sustainable and
responsible conditions.
To receive the OEKO-TEK STANDARD 100 certification, Pacoa Eco must begin with an
online application, where they register the product and submit a sample for evaluation. To meet
the human and ecological standards, the material is tested for over 1,000 substances. The process
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also requires a facility assessment to ensure eco-friendly and sustainable processes are practiced
at the Pacoa Eco facility. (OEKO-TEX, n.d.)
Pricing
To attract new customers while maintaining their current base of clients, Pacoa Eco does
not need to radically change their pricing structure. They must continue to balance their
positioning as a premium eco-friendly and sustainable fashionable footwear company with the
changing price sensitivities felt in Brazil and globally. As reported by Mark Segal, roughly 16%
of consumers in Brazil and 11% in the United States are willing to pay a 12% premium on
products that are eco-friendly and made from sustainable materials. However, economic issues
should be accounted for, with any price increase, as consumers might become unwilling/unable
to pay the higher prices. The study presented, as well as the rising global appeal for sustainable
fashion can allow Pacoa Eco to become a premier brand and reflect premium pricing methods in
areas that see higher income demographics.
The optimal pricing strategy Pacoa Eco should employ is a dynamic dual-fixed price
model for their markets. A dual-fixed price model would allow Pacoa Eco to have a more
balanced profit margin across their Brazilian and United States markets. While they have already
established themselves in the Brazilian market, the pricing should not change much to retain and
expand on their consumer market. Products like the Tênis Noronha and Flat Paraíba cost roughly
$250-500 BRL(Pacoa Eco Products Page) which has placed Pacoa Eco competitively with other
sustainable fashion brands. The pricing is not too low either reflecting the work that goes into
creating each pair.
The United States market, currently, has a significantly stronger economy than Brazil,
and Pacoa Eco could then increase their product prices for the United States market (Silver,
2025). The sustainable fashion market has seen a dramatic shift with many consumers
demanding more eco-friendly and sustainable fashion. Currently, the United States Sustainable
Fashion market is valued at around $550 million USD and is expected to continue to grow at a
Compound Annual Growth Rate (CAGR) of 10% from 2025 to 2034 (Global Market Insights,
2025). Other eco-friendly brands in the United States, like AllBirds, in the United States
currently charge roughly $100-150 USD per pair of shoes. These brands are seen as ethical and
sustainable clothing with standard and fair product pricing. Pacoa Eco would have a huge
opportunity to position itself competitively in the United States market. Pacoa Eco shoes are
currently the only footwear made from banana fibers, this messaging would align with their
vision of being a premium footwear brand. For the United States market, an ideal pricing
strategy would be anywhere from $100-$120 USD. This would position the company in the
middle of the market, as well as cover the potential increased costs they face with new tariffs and
rising shipping costs.
Pacoa Eco could potentially add a returning customer discount to consumers who have
previously purchased a pair of shoes or flats from the company. This strategy would increase
their consumer retention rate and drive more revenue into the company. Offering a 10% discount
to returning customers, would keep customers coming back and spreading the word to their
peers.
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