LPM Paper

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Your Days are Numbered, Top Online Entrepreneur Tells Retailers

The founder of Rocket Internet, the German venture capital company behind dozens of online start-ups, warned the retail industry on Thursday that e-commerce and smartphones would mean there will be little future for stores in emerging markets.

Oliver Samwer, 40, told the annual summit of the Consumer Goods Forum (CGF), an industry network of some 400 retailers and big brands from 70 countries, that many of them risked being left behind as the growth of e-commerce accelerates.

“You only have stores because there was no Internet, but that does not mean there is a right to have a store,” Samwer said, adding that traditional retailers focused too much on older shoppers and not enough on smartphone-savvy youngsters.

“What you fear will come much faster,” he warned.

Rocket Internet is bidding to create the largest internet empire outside the United States and China, seeking to replicate the success of Amazon and Alibaba in markets the U.S. and Chinese e-commerce groups have yet to dominate, such as Africa, Latin America and Russia.

After his speech, Samwer traded blows about whether stores will survive, in a panel discussion with Mark Price, managing director of British grocer Waitrose, who introduced himself to Samwer saying: “Hi — I’m Mark, I’m a dinosaur.”

Samwer founded Rocket Internet in 2007 with his brothers Marc and Alexander and it is already active in 102 countries, making revenue of $1 billion in 2013 via online fashion stores including Dafiti in Latin America and Lamoda in Russia, as well as Jumia for general merchandise in Africa.

Sources have told Reuters the company is considering a stock market listing in Frankfurt later this year which could value it at up to 5 billion euros ($6.8 billion), as buoyant capital markets have encouraged a flurry of e-commerce flotations this year, with most focus on Alibaba.

Samwer said the stock market value of Amazon and Alibaba would soon dwarf the world’s biggest retailer Wal-Mart.

“What would you buy for your children? I would buy Amazon and Rocket (shares),” he said, adding he believed French retailer Carrefour would have been better off buying a stake in Alibaba than trying to open stores in China.

ONLY 10 PERCENT LEFT OFFLINE?

Noting that 75 percent of the world’s population lives in the markets Rocket is targeting, Samwer said e-commerce had even better prospects in emerging markets than in developed economies, as online sites do not have to compete with such established stores.

“If you don’t have to share with offline, your percentage will be much higher,” he said. “It will all move online, you will have 10 percent left that will not move online.”

Samwer said Rocket Internet ventures around the world already had 44 million fans on Facebook, more than Nike and Apple combined, noting that the cities with the most active users of Facebook are Bangkok, Jakarta and Istanbul, with none of the top 10 cities in the United States.

Deutsche Post, the world’s largest postal and logistics company which is profiting from booming deliveries for online retailers, predicts e-commerce could account for up to 40 percent of total trade by 2025 in developed countries, from under 10 percent in most markets now, and up to 30 percent in emerging markets, up from a tiny fraction today.

The Samwers have raised hundreds of millions of dollars of funding for Rocket Internet and its ventures, including from Swedish investor AB Kinnevik, billionaire American industrialist Leonard Blavatnik, JP Morgan Asset Management and retailers like Tesco and Germany’s Tengelmann and Rewe.

Before founding Rocket, the Samwers had success with German online auction site Alando, which they sold to eBay and mobile phone content provider Jamba which they sold to VeriSign.

Rocket Internet also helped launch Zalando, Europe’s biggest online fashion retailer, which is considering its own stock market listing. Rocket is no longer invested in Zalando, but the Samwer brothers’ European Founders Fund still owns 18 percent. ($1 = 0.7368 Euros)

This post first appeared on Business of Fashion

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How to Network for Business Success

If you ask, most business owners will acknowledge that connecting with others is a crucial element in their success.

Of course, we know how important networking is in building a client base. Yet it also can help you answer questions on how to start and operate your business, as well as help you find your business opportunity.

Effective networking offers guidance in the regulatory steps you need to take when you start. It also helps you figure out who to call when the lights don’t work.

Networking can help you select the banker, accountant and insurance agent you should put on your team. And if you have a problem, your network can help come up with a solution, or at least get you to the next step.

Networking is not new. If you read business literature, you will see articles on a regular basis on the importance of networking. What those articles don’t always include is how to do it effectively.

So what are key elements in building an effective network?

Effective networking can be broken into three basic steps. You have advance preparation, a networking event and follow-up.

As you prepare, think about your current questions or future issues for which you might need help. Set a goal of what you would like to have accomplished when the event ends.

However, don’t get focused on one specific question. Good networkers always are listening for who may be a future resource. Remember, you want a support group who can help today and tomorrow, next month and next year.

Then practice your introduction and 30-second elevator speech (a brief summary that defines you and your product or service) and get your business cards ready.

During the event, remember that you are not there to socialize. You have a goal. Find people you don’t know and get to know them. Leave your card with them. Listen more than you talk. Finally, being a good networker means helping others more than they help you.

Three simple tips can help:

Most networking occurs during the first 30 to 45 minutes of the event, so get there early. If you find that going up to someone you don’t know is hard for you, stand by the food and let them come to you.

If this is a no-host event, take over that role. Introduce people you have just met to others you already know.

Finally, after the event, follow up on promises. This is the time to recontact people and have those longer conversations. Also, find ways to stay in touch. And critique how you did so you are better prepared for the next networking opportunity.

Networking and building a network isn’t a contest. No one is judged on the size of your network. What counts is how well it helps you run your business.

Good networking is hard. It takes time and practice. It may feel uncomfortable at first. Watch and listen how others do it.

Remember, networking and building your network can be the key to your business success.

This post first appeared and was culled from Smallbizsurvival.com

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4 Marketing Skills Every Designer Must Have

If you run or own a business, you are definitely in the business of marketing. Everyone is in the marketing department whether they think so or not. Marketing has to do with being able to advertise or sell your product. Of course, you can't always be everything or do everything. However, there are some basic skills, required of you to succeed in this digital age and time.

Here are four key marketing skills that every designer and design business must have:

Storytelling This is a critical aspect of creating and reinforcing your brand to your stake holders and the world at large. Storytelling basically, defines the voice, persona and position that the brand takes in communicating to consumers. It allows a brand to be unified across channels, while connecting with the consumers/users on a deeper level. Storytelling defines the brand and transcends to in-person interactions with customers, bringing out the human side of the brand.

Thinking Mobile Everyone or almost everyone living in an urban area has a gadget or mobile phone which has access to the internet. Infact, data shows that most people access the internet via their mobile gadgets, as we humans are always on the move.

When it therefore comes to marketing your content, understand that people are always on the go. The one device that is always on them is their phone (and most likely a smart phone). Therefore, your strategy must put into consideration, the fact that the world is mobile. So, your website, content and social strategy etc must be done with mobile devices as top of the mind.

Understanding Social Media The use and advantage of social media cannot be over-rehashed. The various platforms make it easy to reach your target audience in different manners, using interesting and engaging tools. Social media helps your brand to engage, re-enact and reinforce the narrative around which your brand is built. It’s important to understand how each channel works, what it’s used for, which audiences are on it, and how best to distribute content within those channels. What works on one platform may not necessarily yield fantastic results on another platform and what is good for one brand may not be great for your brand. It is therefore important to know the essentials and the best ways to get great results for your brand.

Networking Effectively You don't have to be a party animal or the greatest live wire, but you need the abillity to engage people in decent conversations. Networking is a skill that is paramount in reaching people and selling yourself. if you cannot successfully engage people, how will your product be engaging. Your product begins with you.

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Rocket Internet has Huge Plans for Global e-commerce

German technology incubator Rocket Internet is most commonly associated with being a ‘clone factory’ that creates imitations of successful businesses, but its ambitious strategy in emerging markets is increasingly challenging that label.

While it is true that Rocket Internet ventures take their cues from existing companies, the organization has graduated from starting and growing businesses in the hope of making ‘quick’ money from acquisitions, to a different philosophy of building longer lasting, permanent entities.

This chart from the Economist recaps the successful sales that the Samwer brothers, who own and run Rocket Internet, have overseen:

Rocket Internet still pumps out a wide-variety of new companies that draw ‘inspiration’ from Silicon Valley success stories, but, as some of its early ventures mature, so the company is shifting to look at the long term for those that have made the grade. The organization remains ruthless about cutting business that aren’t performing or don’t show the requisite growth potential though — indeed, it pulled its entire operations in Turkey overnight in 2012.

Zalora IPO?

The shift in approach is most evident in Southeast Asia where a recent job ad indicates that Zalora, Rocket Internet’s online fashion retail business, is looking into a potential IPO in the US.

Zalora was launched in March 2012, and sells a range of fashion items from independent and global brands across eight markets in Southeast Asia — it covers New Zealand and Australia via a separate site, The Icon.

Alongside sister site Lazada, an Amazon-like site which began selling technology goods but has branched out into other items, Zalora is looking like the most promising venture within Rocket Internet’s portfolio. That assessment is made entirely on interest from investors, however, since neither site has disclosed financial figures.

Money, money, money

Unlike past Rocket Internet ventures, which were built and quickly sold, Zalora and Lazada have gone past the point of being acquisition fodder for Amazon or other online retailers thinking of expanding their global footprint. That’s down to the numerous funding rounds and presumably high valuations for both businesses.

Here’s a potted history of their investment deals to date — it’s worth bearing in mind that these are funded by institutional investors, rather than regular tech-focused venture capitalists:

September 2012: Lazada raises “over” $50 million

September 2012: Zalora raises undisclosed round

November 2012: Lazada raises $40 million

December 2012: Lazada raises $26 million

January 2013: Lazada raises $20 million

March 2013: Zalora raises $26 million

May 2013: Zalora raises $100 million

June 2013: Lazada raises $100 million

December 2013: Zalora raises $112 million

December 2013: Lazada raises $250 million

That’s close to $750 million in less than two years. An incredible amount for anywhere in the world, let alone Southeast Asia, where traditional investment is comparatively scarce, to the point that corporate companies partake in startup fundraising.

It seems clear that Rocket Internet has different goals for Zalora and Lazada compared to its past initiatives. This time it is about building opportunities in green field regions where online retail is nascent and the top brands in the West are not present.

Both Zalora and Lazada anticipate profitability in 2015 so it makes sense that, having raised a lot of investment, a public listing could be a possible route to take – note: there is no evidence that Lazada is doing so, though the companies have followed similar cycles since launching.

There might yet be a bigger plan, however.

Plans to create international retail super-brands?

Rocket Internet and its investors haven’t just spent big in Southeast Asia. They’ve dished out major investments in e-commerce sites in Latin America,Russia, the Middle East and Africa — I was struck by the potential significance of a minor announcement last year that might just show a glimpse of what the company is planning overall for its e-commerce businesses.

Back in October 2013, Rocket Internet launched real estate platform Lamudi in an initial 12 countries across Asia, Africa and Latin America. The new site was actually a consolidation of different regional businesses, as we wrote at the time:

The launch of Lamudi sees Rocket Internet consolidate four different services — Vamido (Africa), Ubilista (Latin America), Zamudi and House (both Asia) — under one roof.

Could it be that there are plans to unite its business into huge entities? Rocket Internet is already using a ‘single brand for global business’ strategy with Uberrival EasyTaxi, FoodPanda and other businesses, so why not do the same for online retail?

Let’s recap what fashion retail businesses it has and where (there are also other Lazada-like businesses too):

Zalora: serves 8 (10 alongside The Icon) markets in Southeast Asia, has raised over $250 million

Lamoda: serves Russia and CIS, has raised over $140 million

Dafiti: serves 5 markets in Latin America, has raised over $220 million

Namshi: serves 6 markets in the Middle East, has raised over $30 million

Jumia: serves 6 markets in Africa, has raised over $30 million

If a united global brand is planned, then a Zalora IPO would suddenly make a great deal more sense.

Rather than floating a company with business that is operational in eight countries in Southeast Asia (a region not known for high consumer spending), it could unite the businesses in Africa, Europe, the Middle East, Latin America and Southeast Asia and float a genuinely global company.

That’s quite a number of ifs and buts and an IPO may not even occur – but the prospect of such an event shows just how far Rocket Internet has moved from its initial position as a clone factory.

We contacted Rocket Internet before publishing this article, but the company declined to comment on global plans for its e-commerce businesses. A Zalora spokesperson declined to comment on potential IPO plans when contacted by TNW.

*Originally gotten from The Next Web 

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Top 5 Predictions for Fashion Business in 2014

It's 2014 and based on data gathered and insights collected, a few predictions for this year in fashion have emerged:

Technology - Last year, technology became ingrained in fashion from wearable technologies like arm bands and foot wears, to mobile targeted fashion marketing strategies. Basically, technology rocked. This year, more technology based wearables and strategies will emerge, with interesting and cool stuffs. Mobile apps will also rise, producing long term engagement and better service delivery.

Social Media Use - Instagram direct made it's way into the lime light. Snapchat became popular in a heart beat. And the remaining social media platforms converged on twitter ;). Basically, social media should be a major part of your marketing strategy. If you are not dancing to the tune of social media, it's time to put on your dancing shoes. You need to be where your customers are. And, yes they are on social media.

More PR Opportunities - Contrary to what you may think, fashion is in everything. If you don't see fashion in everything yet, you need to get a better mirror. Fashion can be infused into everything, every activity and every thought. Events, shows, trade shows, road concerts and all manner of activities will be on the high side this year. Fashion businesses can tap into these events for making sales, partnership purpose (so as to get their names out there) and building relationships.

Big Data - Big data made a massive wave in 2013 and it's not going to slow down this year. Data makes for better metrics and measurement in business. You'll be able to track everything that your business is based on, measure what works and what doesn't; and then be able to know where to plough your resources and focus your decisions.

E-commerce Growth - Online retail and ecommerce has been predicted to turn into a huge bubble, this year. The number of ecommerce websites will grow exponentially, social shopping will surge on Pinterest, Instagram, Blogs etc. Fashion businesses can plug into this and build a good and interactive website, that will help their lead/conversion/sales funnel.

These predictions are not passing fads, they are here to stay. Fashion businesses should put strategies in place for smooth integration.

Happy 2014!

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Before You Close for the Year

The holidays are here already and it's time to let the festive cat out of the bag. But before you hang up the business phone and go dancing, you need to keep your house (business)in order.

Here are a few things to do:

1) Do a Round off Send out any left-over business pitches and follow up email you were supposed to send. Clear out your to-do list and ensure you are on the radar of those who need you. Set up your out-of-office prompter and make the message as interesting as you can.

2) Schedule Use a social media planner such as HootSuite or Buffer to schedule your social media content to automatically post while you’re away from the office. This way, you are still in touch with your users, while enjoying your break.

You don’t want to disappear completely for the holidays. Since many of your fans will be active on social media during the holidays.

3) Brainstorm on ideas and things that will make next year rock.

4) Determine the resources needed for the coming year; technology, human, other tools and make plans to get them before you close for the year.

5) Close for the year

#countdowntochristmas #fashion #fashionbusiness #AfricanFashion #entrepreneur

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LPM LAGOS HAS A NEW HOME!

Join us this November for our debut at our new home! Its a super versatile event space with lots of great features and can be used for other events during the month!

For more enquiries:

Email [email protected] 

Tel: [phone]

BB Pin: 28BC6BE3

#LPMNOVEMBER #DISCOVERACCESSORIES

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4 Books Every Entrepreneur Must Read (+1)

The greatest lessons you'll ever learn will most likely be from your own experience. But entrepreneurs can also learn a lot from the advice and experiences of others, as long as we allow ourselves to be teachable.

Perhaps you were in grade school the last time you heard this but it's as true today as it was back then: one of the best ways to gain information, inspiration and education is by reading books. As an entrepreneur, I've read a number that I've found invaluable to my professional success.

Consider the following four books your mentors and teachers as they reveal skills and lessons that can possibly shave years off your learning curve, and thousands of dollars from avoidable mistakes:

Read more here

Also consider Ram Charan's Execution (LPM Recommends)

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The Habits of the World's Smartest People (Infographic)

There is no one picture of intelligence, but many people with high IQs do tend to share some of the same habits -- both good and bad. For example, according to research complied by Online-PHD-Programs.org, while those with high IQs tend to set goals and read avidly, they are also more likely to drink more heavily and suffer from anxiety.

For more on the habits of smart people, including a look at the IQs of icons such as Albert Einstein and Bill Gates, check out the infographic below.

Read more here

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4 Ways to Turn Social-Media Fans Into Raving, Loyal Customers

t's nice when companies see fans and customers responding positively to their products and messaging over social media. But figuring out how to convert all that positive energy into an effective sales and marketing strategy can be tough to figure out.

With just a little bit of focus and strategizing, businesses of any size can turn one-time customers or casual fans into influential advocates and repeat customers, says Danny Maloney, co-founder and chief executive of Tailwind, a social-media marketing intelligence firm company that builds tools to harness the power of social data.

Read more here

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10 WAYS TO STAY CREATIVE

Read more here

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5 Simple Tips for Photographing Your Merchandise

Whether you sell online or in a physical store, creating a solid online presence is key to keeping your store top of mind with customers. Your website and social media accounts need to reflect the style and quality of the merchandise you carry and should showcase the items you currently have available.

Here are 5 simple tips to help you produce high-quality images of your merchandise for your website and social media accounts.

1. Know Your Camera

It’s amazing what you’ll learn spending an hour reading your camera’s manual, watching a video tutorial on taking pictures with your smart phone or taking a photography class at your local community college. It’s a small time investment now that will pay off big in the end.

Read the rest of the article here

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Gap Buys Up All of Tumblr's Mobile Ads for a Day

Gap wants to create a "pop culture moment" for its fall Back to Blue campaign, and it's turning to Tumblr to create it.

On Monday morning, Gap issued a call on Tumblr for creators to share, through an original piece of content, what "blue" means to them — blue being, of course, the color of Gap's logo and of its signature product, the blue jean.

READ THE ORIGINAL ARTICLE HERE

Credit: MASHABLE

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4 Ways to Add a Personal Touch in Your Fashion Business

As an emerging fashion brand, it’s difficult to find ways to stand out. But in such a saturated field, it’s the only way to succeed. What some emerging designers tend to forget is that you’ve actually got many advantages in your early stages of business, one of which is your ability to easily amp up your customer service; adding a personal touch to everything you do.

Read More at STARTUP FASHION

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How to Stop Comparing Your Business to Other People’s Success

Starting and running a fashion business is not easy. Like any other business, it requires you to strap yourself in, blindfolded, for a challenging, exhausting, and terrifying ride where the ups and downs are so extreme and random, that you have no real idea whether or not you’ll come out of the whole thing alive. (OK, slightexaggeration but, honestly, not that far off)

READ MORE HERE

CREDIT: STARTUPFASHION

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  If you love fashion, beauty and lifestyle (we’re kidding we know you do!) – then we know you’ll love Le Petit Marche – filled with artisanal goods from around the country and indie emerging designers every last Sunday of the month!

  This post is mostly for new vendors, but these tips are also great for returning and prospective vendors.

  Tips for Boosting (And Making The Most Of) Your LPM Stall:

  PRE LPM

Reach out to your fanbase/friends/family. Whether you’re just starting out, an established brand or somewhere in the middle – letting people who are already fans of your brand or simply want to support you when you’re participating in any event helps amplify the message and draw more people than only our brand or your brand alone could do. Look at it like this – if WE invite 5 000 people and 20 vendors invite 20 people each – that’s 5400 people. Every little counts!

      Feel free to reach out to the LPM Team! Pre and post the event we like to showcase participating vendors – so I you have an interesting story or simply want us to let people know about your product. Make sure you send us photos, your logo and a brief bio (5-10 lines max) for our website and blog!

    AT THE MARKET

  Don’t be afraid to get out of your booth to showcase your product and tell your brand story. It’s a great way to engage with your consumer, find out what he/she likes and give your product or service context.

  Direct feedback like this is INVALUABLE! Not only for product development but also for future LPM appearances ;)

    LPM IS at the end of the day about sales. So how do you maximize your presence? Think like your customer, she may come n for one thing but see a few other things that she likes. The constraint? Cash. Let your customers know what payment options you take. Its always a good idea to have signage on your table to let customers know their options. This type of information may help you get a sale, especially when most people don’t carry a lot of cash, or are prone to spending it quickly on food and drinks (myself included).

Whether it’s food, beauty or fashion, make sure you feature your product as the hero. Beautiful photos or clever visual merchandising showcasing your product can quickly entice your customer. (Ask the Team about our new format – it comes with advertising space!)

  4. Show your social media sites - eg Facebook, Instagram and Twitter icons – it serves not only as a reminder to connect, but it encourages consumers to share on the spot and in doing that – leads to further exposure for your brand!. 

5. Sell the features and benefits of your product, offer value – consumers enjoy getting that little bit more. So offers and discounts off (even easier with our themed categories) always go down well! And like Lady Biba (below) showed us it’s a great way to get repeat custom!

  6. Engage people by adding an interactive component.  Lady Biba, took “first time” photos of shoppers and posted them to Instagram. 

  Learn more about the vendors and check out http://lpmnigeria.com/

 LPM AUGUST 

COMING SOON

Credits: LPM Instagram @lpmnigeria , MajuLive Instagram @majulive, LadyBiba Instagram @loveladybiba

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DISCOVER DESIGN SPOTLIGHT JULY 2013: TOSEKI VINTAGE

Toseki Vintage – LPM Vendor Spotlight July 2013

Our brand evolution It all started during our NYSC year while trying to pass time at camp lectures during passing out week. Three of us knew we wanted to get involved in the Nigerian fashion industry. We had a number of sketches which we had drawn up for our personal use and initially wanted to bring to life a number of our designs, thereby becoming “designers”. However, our key agenda was to be creative and bring something different to the Industry.

After brainstorming on our intentions to become a fashion brand it wasn’t until the next year we realised that there was a huge market out there for vintage fashion. We individually had our own personal style and loved vintage clothing and accessories. Being able to turn ‘old’ to ‘new’ while expressing individuality in one’s fashion sense seemed to excite us collectively. Having all lived in the UK at some point in our lives and having our individual vintage collections, we felt the need to take our vintage-shopping hobby to a commercial level. We also observed that the notion of vintage fashion was gaining ground here in Nigeria also.

The name Toseki Vintage comes from a combination of our first names – Tolu, Seyi and Kike.

Toseki’s signature or aesthetic Toseki’s signature is all things vintage – prints, dots and more prints. Our aim is to provide affordable, stylish and one-of-a-kind pieces to the working man/woman (Yes, we have had a number of male customers!)

What makes African fashion unique or worth discovering? African fashion is quite popular now even though the industry has been vibrant for a number of years. A few young and veteran players are becoming more and more creative in their output. Season after season, we see new designs and ideas being produced around our continent.

Looking at Nigeria in particular, the talent we have is unbelievable. From the most complex to simplest use of fabric to the detailing involved, the African fashion industry has become a force to be reckoned with.

The recent partnership between Selfridges and a number of Nigerian designers exemplifies this. Ankara has evolved from what some might have perceived as belonging to our parents or grand parents’ generation, to something a twenty-something will freely rock to any social gathering. The modern twist on the common iro and buba is another example. We believe that African fashion now has a place on the map.

Next sale and where to purchase Our next sale will be this Sunday 28th July 2013 at the Le Petit Marche, which is scheduled to hold between 12 Noon and 7 PM at Imperial Place, Plot 274 Ajose Adeogun Street Victoria Island. We occasionally have sales on our blog – www.tosekivintage.blogspot.com . Dates will be announced soon via Twitter and the blog.

Highest point For us, the highest point so far has been the feedback which we continue to receive from our customers. Knowing that they are wearing and loving our pieces encourages us to go even further.

Vision for Toseki Vintage By God’s grace we hope to start designing a vintage inspired line and custom-made pieces to suit our clients. The plan is that each and every piece will be unique so there will be no ‘She stole my look’ moment when our pieces are worn.

Exciting news Yes, we have been apprached by a number of E-commerce sites and we are looking into taking up one of the offers as this will make our pieces readily available to new and existing customers in between blog sales.

We are also about to start offering styling services to our clients through which we advise the client on how to wear vintage i.e. mixing vintage with high end or high street pieces, or wearing vintage from head to toe without looking like you’re stuck in the 60s.

We are currently working on a lookbook but to view past lookbooks and sales here is the link to our blog -www.tosekivintage.blogspot.com

The August edition of LPM, TAGGED #DiscoverLiving is set to take place on Sunday 25th August. To participate sign up at app.lpmnigeria.com to register as a vendor and sign up for an event, if you have any difficulty send an email to [email protected]

   Hang out with the team!

Follow us on Twitter: https://twitter.com/LePetitMarcheNG

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