It has been an exciting time for the start of fashion e-commerce team StalkBuyLove week. Was $ 7 figures a group of investors including 500 Startups Seasoned, LITTLEROCK and uniqueness Ventures. Co-founder and CEO co-founder and CEO Tushar Ahluwalia spoke with the contractor in India one day before the announcement of funding for the investor well and what I was learning Spanish retailer Zara.
Convincing the consumer is the first priority
Tushar says that the contractor must first convince the consumer and convince investors. People today think that fundraising is a success, but the real work starts after the fundraising. If your business is very good, investors will realize that they have a mandate to get good returns. If a company has a good number of customers, and good investors automatically go to them.
A majority of investor base is StalkBuyLove foreign investors.
business model StalkBuyLove
Foreign investors must first understand the context and development of e-commerce sector in India – different phases as multi-brand, private label and market place model. The differentiating factor of our company is that not only build a brand. StalkBuyLove right thumb is the strategy to market for us, the whole structure of what we are building is much larger.
I would describe as three pillars; the most fundamental layer is our change in diet, followed by patented technology that allows us to run something like just in time deliveries and the third layer is the brand. With the set-up we have and are in the process of construction, we will be able to launch multiple brands.
In StalkBuyLove we have fabric and are 100 prototypes on the site each week. Then people click on it, what we call the customer approval process. So they involve clients in a self-selection process, because once you click and select something on the site, we understand what the customer likes and then make the decision inventory. Zara is selling stocks decision is then StalkBuyLove sales-inventory model making.
Lagerfeld notes and Zara
The two main problems in e-commerce in India are terms of lifetime value and inventory. To try to solve these two problems, we have seen how Zara has emerged. In the late 90’s and early 2000 it was not the biggest brand.
In the last 15 years, it has become the largest ever firm and critical factor for success is the model “of the supply chain.” We are not Karl Lagerfeld, we can not predict trends. Lagerfeld can predict what the trend in a year, which essentially means lower inventory risk.
Zara plans next two months, they work very fast and work during the season. Trend risks are ignored. Zara is not a trendsetter, which are trend followers and follow the trends very quickly. In StalkBuyLove we have a -Market eight days time.
Learn from the evolution of Zara
The first training should be that if you get the right trend, then you can charge a higher price for their product. Second, the construction of a large chain of fashion really is more science than art. Get assumptions of business right and work constantly on it as Zara did and this will help you build a great company. I learned from Zara that if you get your basics right ie low acquisition costs, high margins, inventory make a good product, then over time you can build a great company.
The two main factors in the retail space are the margins and inventory risk. Online, it is the relationship marketing as the third factor and offline is renting income ratio. These are the three important factors in a retail business model.
Retail on other platforms
We do not sell retail on other platforms – which is a typical question in the short term and long term facing the company. By doing this in the short term, increase my income. However, the long-term problem is that a platform like Amazon eventually make a greater proportion of revenues compared to my own website, because they have more customers.
They will have more power over my brand because time will give 80 percent of my sales. updating if they like it or not start, and eventually people will stop coming to StalkBuyLove portal and prefer to buy at a cheaper price on Amazon.
All high value customers will buy their products off the place and its margins erode potential. You can not build a brand on Amazon. Eventually it boils down to good profits and bad results. Strong entrepreneurs should not do bad income just to inflate the size of your business.
StalkBuyLove is currently growing at 8 percent from month to month with an implementation rate of increase in current revenues of $ 5 million and the company plans to use the recent series of funds to invest more in their talent base and strengthen its supply and complete facilities, among other things.
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