The people behind four e-commerce businesses based in Singapore share with Melissa Gail Sing how they turned their virtual business idea into a reality and what it will take to stay ahead in the digital shopping realm.

There are no grand buildings with marbled floors and piped-in music to welcome you, none of that flattering lighting that makes anything you try on in the fitting room look good, no sampling bars, and certainly not a hint of aromatherapy in the air to manipulate you into parting with your money. Yet the global e-commerce space is expected to rake in a whopping US$1.77 trillion in sales by the end of 2015, and some US$680 billion of that will come from Asia-Pacific, making the region the biggest e-commerce market.

Not only has online shopping become a recreational activity much like catching a movie, greater security in online payments, quicker product delivery, busier consumer lifestyles, rapidly expanding online and mobile user bases in emerging countries and a host of other factors have helped e-commerce to take off in a big way. Chief among them is perhaps the rapid advances in mobile phone technology and the advent of m-commerce or mobile commerce, which virtually keeps our favourite stores in our pockets and purses all the time. In terms of customer relationships, it’s not going to get any cosier than this.

Here in Singapore, a number of e-commerce businesses have found comfortable spots in the virtual shopping sphere, but just as any entrepreneur in a traditional business will tell you, there is no such thing as overnight success. As e-commerce is still a new idea and with digital technology evolving so quickly, there are risks involved and sacrifices have to be made.

The people behind four e-commerce businesses based in Singapore share with Melissa Gail Sing how they turned their virtual business idea into a reality and what it will take to stay ahead in the digital shopping realm.

SAMUEL LIM
CEO, Reebonz
Samuel, whose first company eFusion was making $8 million in annual sales by the time he completed his undergraduate studies at NTU in 2003, is the CEO of luxury goods portal Reebonz. Established in 2009, it now has over 2.5 million members and physical boutiques in Singapore, Malaysia, Indonesia, Taiwan, Hong Kong, Thailand, Australia and South Korea. It has over 350 employees across Asia-Pacific and pulls in over $100 million in sales annually.

What was the inspiration behind your e-commerce business?
The Reebonz concept was created in October 2008 to fill the gap in the market for affordable luxury. In March 2009, Reebonz.com was launched to offer its members exclusive access to luxury fashion brands like Prada, Balenciaga, Givenchy and Michael Kors at affordable prices, through online sale events that typically last for two or three days. Members may also visit our boutiques in Singapore, Malaysia, Thailand, Australia and Myanmar for a physical shopping experience. They can sell pre-owned luxury items through the White Glove Service or Closets mobile application.

What were the start-up costs and what were some of the tools and knowledge you needed to start the business?
The early stage is always “fast and furious”. It’s about achieving the impossible with limited resources. The major challenges were achieving market adoption and managing cash burn. Initially, we faced some challenges sourcing for merchandise suppliers and convincing potential brand partners to work with us. We were lucky to get traction by hitting on a sweet spot that unleashed big market demand.

What are some of the key milestones for the business?
We have set up regional branches in Malaysia, Thailand, Taiwan, Hong Kong and Australia. We have also expanded our sourcing and distribution channels in order to facilitate expansion across the Asia-Pacific region. This January, we launched Closets, a mobile phone application that is a do-it-yourself selling platform. We also plan to launch Merchant Marketplace in April. It will gather the world’s best multi-brand and vintage boutiques on one single platform, thus expanding our inventory and offering our members more shopping options.

Consumer trust has helped us to achieve these milestones. A great team has proven to be important for the company’s growth, too. We are planning for greater regional expansion and membership growth. There are also plans to further develop our individual online product verticals and enhance our retail concepts.

What are the pros and cons of running an e-commerce business compared to a traditional business?
Greater consumer confidence with online transactions and the convenience of shopping anytime, anywhere, and accessing brands and merchandise across borders 24/7 are key advantages. It is easier to enter the market with reduced cost to both the consumer and e-business owner. On the flipside, compared with brick-and-mortar traditional businesses, it takes a longer time to build up the e-commerce brand and gain consumer trust. 

How has the e-commerce industry evolved since you started your business?
We have noticed a growing receptiveness to e-businesses. Consumers are getting more confident and savvy in making online and mobile purchases.

What will it take to sustain a business where your competitors come from all over the globe?
Great foresight and a strong social media and digital marketing presence to better understand customers and trends. Constant innovation and self-improvement are also crucial to business sustainability.

The luxury industry has certainly developed a greater online presence, embracing e-commerce and social media platforms to engage with their global audiences. With the whole “sharing” phenomenon and desire of consumers to be more involved with a brand’s products and services, it is only essential that the luxury industry start connecting with its communities through digital communication platforms, too.

What’s your top advice for others contemplating an e-commerce venture? 
Online business owners need to understand the importance of personalised services. It is reassuring to customers purchasing online when a reliable team of customer service personnel genuinely serves them, or when their parcels are delivered to them by a dedicated delivery team. I believe it’s not enough to just establish a physical retail space but it’s the personalised service that eventually puts a trustworthy and credible face to the online business. I believe this level of commitment to personalised services will add a new dimension to the retail environment.

DEBRA LANGLEY
CEO and founder, Inverted Edge
The former president of DKNY JEANS International and international vice president of Hearst Magazines International, Debra is the CEO and founder of Inverted Edge, an omni-channel retailer featuring independent contemporary fashion and lifestyle designers from around the world. The collections are complemented with special collaboration capsules. Inverted Edge is also the e-commerce partner for Manifesto concept store in Singapore, SPH Magazines and Digital Fashion Week Singapore. 

What was the inspiration behind your e-commerce business?
While running a global clothing brand and later working with an EU-based e-commerce company, I met many incredibly talented fashion and lifestyle product designers who were established in their own countries and ready to grow across borders – but what I kept hearing from them was that they didn’t have an appropriate platform to do this, nor did they have the desire or technical expertise to create a website and then run it themselves. What they needed was the right kind of environment to be seen and heard internationally.

On top of that, I was very into the notion of creating one’s own style by mixing and matching from high street, luxe, contemporary and vintage retailers – this was really just starting to become popular three years ago, and yet there was this gap in contemporary brands. It’s true that mass and fast fashion labels are everywhere, but even then it was clear that more and more shoppers were looking for great fashion that’s different, wearable and affordable, and that enables them to dress in ways that reflect who they are.

These two major factors really underpinned the creation of Inverted Edge.

What were the start-up costs and what were some of the tools and knowledge you needed to start the business?
The main start-up costs were around ensuring we had the right people, securing the merchandise, and building marketing and technology capabilities. I was very particular about the technology, because I wanted a retail platform that was modular and easy to use, but also one that would scale and allow us to create different language and product versions very quickly if needed. As a start-up, we learned quickly to be very nimble on a budget and to focus on the deliverables that our investors set.

Apart from the timeline, one of the key challenges we faced was working with the unknown of some relatively new international designers. Sometimes there was inconsistency between the samples we'd seen and the production order, and that meant having hard conversations with them; we even had to cancel some orders, leaving a gap in the brand list and our merchandise plan. Any retailer will tell you that the merchandise plan is their Bible, so you can imagine the scramble when holes emerge. But we're pretty rigorous about the score card we use to evaluate brands, and we knew we couldn't compromise on those standards. Having said that, at the other end of the spectrum, some designers delivered quality that was truly superb and they've sold well for us.  

How do you plan to grow the business?
We are very focused on enhancing the brand mix with the most talented contemporary designers from around the world. At the same time, we have always believed in having an offline presence that enhances and complements what we do online. So, we've opened a two-month test store in 112 Katong Mall and we’ve partnered with Manifesto on a new concept store opening in the Capitol Piazza development in April. 

We've also launched showcases of collections of designers from different countries, bringing in partners. The first one we created was TOKYO 3.0, which included 12 up-and-coming brands that had never before stepped outside of Japan. For this, we partnered with international brand consultant, Yoshio Yokobori, and Manifesto the concept store. The TOKYO 3.0 collection is sold online, in store at 112 Katong and Manifesto, and via an event that we held. The second showcase is by 10 New Zealand designers who are building their footprint in Asia. Going forward, we'll continue to create these kinds of multi-platform showcases with groups of designers from different countries.

What are the pros and cons of running an e-commerce business compared to a traditional business?
I don't think that retailers today should be "traditional"; I think the way forward is to treat brick-and-mortar, e-commerce, and of course mobile − as different channels that can touch customers in different ways, but all should offer customers the ability to purchase and become engaged with products and the brand. What we see now is that many e-commerce retailers are moving back into the real world, but they're reinventing the offline experience so that it's consistent with and reflects what happens online. Burberry's London flagship was the first to take this omni-channel approach and what they've done at the Regent Street store is incredible. E-commerce sites like Bonobos and Warby Parker have created wonderful, innovative brick and mortar experiences that don't feel like traditional retail − and I love that reinvention of the concept of a “store”.

What will it take to sustain the business as more competitors enter the market from all over the globe?
The key to sustainability is to have a clear point of view, to be able to surface the next batch of internationally ready designers with quality products, to offer customers an interesting integrated digital and real world experience, and also to enter into creative partnerships that help us to grow our audience. 

What is the one thing that really helped e-commerce take off?
Social media − it's often the first place someone, who could be anywhere in the world, sees something about a new product or website, so sales can literally come from anywhere. 

How has the e-commerce industry evolved since you started your business?
In the past few years, the e-commerce industry has given rise to lots of different applications designed to improve the online experience; visual engagement; tracking and data capture; as well as better merchandising and sourcing through B2B sites; improvements in logistics; and the reinvention of real-time customer services like live chat. In fact, the whole ecosystem has grown and developed in many ways that we couldn't have anticipated a few years ago, and it will continue to do so. That's really exciting. We're also seeing a move towards bringing commerce into content, and I'm not talking the old affiliate click-through-to-buy-from-another-site process but about something much more engaging, and developing that is a big focus for us now.

How do you keep up?
The pace of change, new apps, new brands, new everything… it’s incredible! I'm pretty much always online, I read a lot, and I follow lots of different blogs and sites that focus on retail and customer (not just e-commerce) experiences, fashion and lifestyle brands and designers. I'm also fortunate to have a great network in this space that is constantly surfacing new and different propositions.

What’s your top advice for others contemplating an e-commerce venture? 
Don't wait! 

You might also like: