It is what a young man from the lower class is called in Madrid. It would be a derogatory pimp, although it is used affectionately. 2º_ Chulapo is a ravine in the parish of Vilcabamba (Loja canton, Ecuador). The origin of the name is Quechua, for chulla ("only") apu ("chief, cacique, great").
In Madrid it is used to refer to people who work in humble jobs such as laundresses, dressmakers, florists, cigar makers, etc. (which should not affect their dignity). It means poor, dispossessed, humble, lower-class person. Very poor.