Showing posts with label Offlining. Show all posts
Showing posts with label Offlining. Show all posts

Saturday, August 20, 2011

Online businesses getting a storefront

Going offline is a goal of many blogshoppers.  In this article a couple things jumped out at me.  First is that it is important to solidify the online business before starting up a brick store front.

Secondly, going slow, that is flea markets before full commitment.

From: http://sg.news.yahoo.com/blogs/fit-to-post-finance/checklist-online-businesses-getting-storefront-022802023.html

By Terence Lee, SGEntrepreneurs

Don't count on renting a storefront to revive the flagging sales for your online business and compensate for a weak business model: You might end up digging yourself a bigger hole. Rather, going retail may be prudent only if your online business is doing very well.

So if you're considering whether to head in that direction, here's a checklist compiled from the experiences of retailers who've made that step, and well as blogshop owners who chose not to.

1) Make sure you have a strong online fanbase

If your online business does not have loyal customers, then it may not be wise to transition offline. For KissJane, which aggregates blogshops in two physical locations, it can rely on the branding of its myriad of partners. Tracyeinny, on the other hand, was able to leverage on its strong fan base to offset the lack of human traffic in their first outlet in Pearl's Hill Terrace, Chinatown.

Ng Chong Kee, co-founder of KissJane, suggests that blogshop owners build a strong niche for themselves by focusing on a particular style. Only by doing so can they differentiate themselves from the thousands of blogshops out there.

Jeannie Pang of Tracyeinny believes good customer service is paramount. Customers must feel that you're reliable and always ready to respond to their requests and complaints.

"Accountability is damn important. If you failed or neglected to deliver a product, you'd better admit it," she says.

2) Make sure you won't be burnt financially
The amount of money you need to invest in going retail is no joke. For prime locations, expect to fork up around S$200,000 (US$166,653) in upfront rental, deposit (which will only be returned at the end of the lease), renovation, and other costs. Even in places like Chinatown, monthly rental can cost around S$3,000 (US$2,499) a month, in the case of Tracyeinny.
Depending on the contract, lease commitment can be as short as six months or as long as three years for many shopping malls.

So it really helps to work out the sums, know what you're in for, and plan accordingly. Jeannie made sure she had at least S$18,000 in the bank account, or six months of rental liquidity, before committing to a lease. This precaution made sure that in the event the endeavor didn't do well, the overall business would not be adversely affected.

3) Ensure you have a healthy revenue stream for your business

Jeannie ensured that the profit margin from her online business was strong enough before embarking on her retail project. She also made sure that she had a sizable sales volume as this meant that she won't need to pass the increased costs from the retail business to the consumers.

To generate a healthy profit margin, online retailers should not be afraid to charge a premium for their products. As a rule of thumb, a shirt that costs S$15 should be priced at around S$30, says Jeannie.

4) Consider starting small, such as at a flea market

Before committing to that hefty three-year lease in a swanky shopping mall, why not take smaller steps first? If you're confident about your brand's drawing power, opting for less-than-ideal locations may not be a bad idea, since rental is cheaper and the lease is shorter.

Working with companies like KissJane may be an attractive proposition, since you're only paying for a rack as opposed to the whole space, although you'd have to figure out a way to get ahead of the waiting list.

Finally, you can opt for flea markets to get a taste of what it feels like to operate in a retail environment. There are plenty in Singapore, and they don't cost a lot to get involved in. Zouk Flea & Easy and Flea Fly Flo Fun, for instance, will only set you back around S$50 per slot.

5) Make sure you are willing to commit more time and effort to your brick and mortar business

Sure, going retail may reap in heaps of profits, but you'll have to work harder for it too. Vincent Goh and Tan Yi Fong of Ministry of Retail, which specializes in Korean fashion, prefer to keep their lives simple and so decided not to set up a physical store of their own. And they've apparently done well so far, with Yi Fong becoming one of the top five earners in her university.

In addition to managing inventory, rental, and other facets of a retail business, there's human management, which require a lot of effort, as Jeannie asserts. She had to hire six salesgirls to manage operations and train them well since they represent the brand.

"Sometimes when they do something wrong, I go mad like a volcano!"

Thursday, July 28, 2011

When blogshops get physical

The desired outcome for many blogshop owners is to own physical retail shops.  Blogshop sites are just a startup mechanism to help them realize this. 

This article shows how online shops end up offline... and how offline stores can add an online presence to complement the business.

Particular note should go to the KissJane model, an oflline aggregator for blogshops so that online retailers can have physical rack space to show their products.  This is the current area of growth as there are now a handful of similar concept stores in Singapore and KL.

From: http://sgentrepreneurs.com/retail/2011/07/29/when-blogshops-get-physical/


When blogshops get physical

July 29, 2011 by Terence LEE
Generation Blogshop has come of age. While hundreds, if not thousands of garishly designed and brashly-colored blogshops have arrived and died, many online retailers have done well enough to venture into brick and mortar stores.
Tracyeinny, founded by cousins Jeannie Pang (check out SGE’s first interview with her) and Pamela Goi, can be considered a true online-to-retail pioneer. When they moved into their first storefront in Pearl’s Hill Terrace at the request of fans in 2009, the location was a ghost town.
“The place was dead, really.” says Jeannie. All they could rely on was their business savvy, and a whole horde of loyal fans.
The co-founders felt it was worth the risk however, since profits were already at a healthy level. And even if their offline operations bled, their existing business would not be badly affected.
In the end, such worries proved unwarranted since their fans flocked to the store like bees to honey.
About a year on, they outgrew their premises and the time came for them to move. While the rental cost was cheap, they could not renovate their store since the lease was renewed every six months, making tenancy uncertain.
“The landlords begged us to stay and even offered to cut our rent,” she says.
But sentimentality did not prevail. In 2010, they moved to their current location in China Town Square. Although a sleepy town at times, the workplace crowds hover in at lunchtime.
Jeannie says that their move into physical stores has paid off handsomely, with profit margins doubling ever since. They accumulated about $1 million in sales from January to May 2011, and expect revenue to hit about $4 million by year’s end, especially since they will be opening a new outlet at Junction 8 in August the same year.
That’s not too bad actually, considering that they were only generating about $600,000 in annual sales before they got physical.
They’ve even managed to do it without passing any costs to their shoppers, since they have the sales volume. It’s only a matter of ordering more of a particular item to pump up profits and meet the demand.
While the women at Tracyeinny certainly did their homework and minimized their risks, a new game changer has arrived to shake things up in the Singapore scene. Their pitch: An offline blogshop aggregator that lowers the cost and decreases the pain for blogshops who want to venture into the retail space.
Meet Ng Chong Kee (left) and Jason Low (right), who co-founded KissJane in 2010. And yes, the company was started by two manly men in their mid-thirties.
Photo: KissJane
“We want a plain Jane to come to our store and transform into someone you want to kiss,” says CK cheekily.
While he himself did not start a blogshop, he was intimate with the scene, having worked as a wholesaler supplying fashion items to various online retailers.
“I’ve observed the whole trend since the beginning, how they’ve evolved from their LifeJournal days and even changed the way they took their pictures,” he says, sort of like a daddy who watched his daughters grow up.
He was also at the sidelines too when the blogshop scene experienced growing-up pains — in a failed business that was Best of Blogshops.
BoB’s business model was considered innovative. They rented retail space at Far East Plaza, and in turn charged blogshops about $600 a month for putting clothes on their racks. On the surface, the business did splendidly, expanding to three units in the same shopping mall.
But everything crumbled in a flash. The business suddenly closed down and the owners disappeared without returning the deposits and upfront rentals. No one knew what became of them.
That’s when CK had the idea of starting the company. The business model would be a reincarnation of Best of Blogshops: KissJane now charges between $1,000 to $1,500 a rack per month, for a commitment of one year, as well as around 15% for the brand’s sales to fund the company’s marketing efforts.
He went to childhood friend Jason’s office, pitched the idea to him, and they agreed on the spot to start the business together. Both were determined to set things right.
“A couple of the blogshops that are now under us were badly burnt by Best of Blogshops. But we convinced them that we’re proper businessmen and won them over,” says CK.
He adds: “So we’re like a caretaker for them. If they do well, we do well. We’re here to help them with our management skills while they focus on doing what they do best — creating a style that people want to buy.”
Jason says that it’s a win-win situation for both players, since it lowers the barrier to entry for blogshops who want to dip their toes into retail space, while at the same time helping to defray the storeowner’s rental costs.
And with a presence in two prime locations, KissJane also helps them reach out to a “million footsteps on a monthly basis” and target consumers who don’t shop online.
The plan seems to be working out, as all the blogshops have not lost their investment so far and have made tidy sums throughout the last year. KissJane has broken even seven months after starting on October 23 with an initial investment of about $200,000, which includes rental costs,renovations, and initial deposit.
Demand for their racks are strong, with about 160 brands on the waiting list, although not many will make the final cut. They have a few criteria when considering whether to accept a blogshop: Being in operation for around one to two years, considerable social media presence, and passion in what they do.
Currently, 23 blogshops are already represented in their outlets, including popular names like Tracyeinny, Missy Pixie, Love & Bravery, VainGloriousYou, and MomoTeapots, all of which own their own physical stores.
True to form, KissJane brands itself as a “kaleidoscopic shopping experience”, with the promise of a faster turnaround of new designs compared to traditional fashion retailers, which often go by the four seasons.
CK whips out a calculator and began crunching numbers: With as much as four wardrobe changes a month, the fickle fashionista can expect 18,000 designs a year, color variations included.
“We don’t carry inventory either; the blogshops carry their own items,” he says.
While retailers like Tracyeinny and KissJane seem to be doing well, not everyone is sold on the idea of opening a physical storefront.
Photo: Vincent and Yvonne
Husband-and-wife team Vincent Goh and Tan Yi Fong is sticking to their online-only guns. Ministry of Retail, their first store with a potent online reach of about 11,000 Facebook fans, focuses on Korean fashion, while newly-minted Creme and Co stocks executive wear. The couple started working on their business less than two years ago.
While the couple declined to reveal sales figures, they’ve apparently done well for themselves: Yvonne was recently featured in Singapore tabloid The New Paper as one of the five top-earning recent graduates for Nanyang Technological University. Her salary: A cool S$12,000 a month.
For them, the huge cost involved is the main deterrence to going offline. Setting up a physical store requires a lot of cash for expenses such as rental, renovation, manpower and inventory.
“We have friends who own a number of retail outlets. They seem pretty busy and are always running around,” says Vincent.
Going into retail is more risky too. Locations that bring massive human traffic have exorbitant rental costs, while areas with low rental have low traffic. They would also have to fuss about renovation expenses and inventory management — which create extra work that they don’t need since in their current business model they would only purchase items from the suppliers after the orders come in, resulting in no need for storage.
Unforseen circumstances can wreck havoc too: “What if a similar epidemic like SARS comes again? Many retail stores closed down or went bankrupt during that period so we shouldn’t overlook the downside,” Vincent warns.
But what about shoppers who feel uncomfortable buying online, and prefer to touch and feel the real product? Addressing that, Yi Fong says that they have put in place an exchange policy that allows shoppers to return their purchases in exchange for another product or even web credits should they be dissatisfied in any way. That lessens the risk of wasting money on an unusable product.
“It’s something that’s common overseas, but not in Singapore,” she adds.
Whatever their approach, none of these retailers believe in exclusively sticking to one platform. In fact, all three businesses do bat on both teams in some ways. At the end of the day, the important thing is to strike the right balance and find an approach that suits them best.
While Ministry of Retail is primarily an online business, they do organise offline events to engage their customers. Recently, they held a party for Creme & Co customers to check out the new collection.
“Customers feel safer shopping at an online store if they can put a face to it. Physical interactions are still needed to foster relationships after all,” says Yi Fong.
For the guys at KissJane, who aspire to promote Singapore blogshops to an international audience, an online store (which also aggregates the best blogshops) is on the cards. Jason says that the new platform will allow them to test foreign markets and get a sense of their tastes and preferences.
“The brands trust our judgement but we want to careful in the process of our brand building. Our online presence will allow us to feel the ground with the countries we are targeting.”
They hope that by the time they set up their first brick and mortar operation overseas, legions of rabid KissJane fans would be waiting at the doorsteps.

Sunday, January 9, 2011

Blogshops move to the real world

Article from the Star newspaper: http://thestar.com.my/metro/story.asp?file=%2F2011%2F1%2F10%2Fcentral%2F7743524&sec=central

Blogshops move to the real world

By TAN KARR WEI
karrwei@thestar.com.my


WOMEN who love their clothes, shoes and accessories usually also dream to have a walk-in wardrobe to store everything.

With that in mind, Offline Blogshop owners Yeo Bee Sean, 25, and Bernard Chia, 28, designed their store to look like one.

“People walk into the store and it is like going through their own things in a walk-in wardrobe,” said Yeo during the official opening of the store at 11.11am on Jan 1.

 
Not a square: Lam’s products are naughty and cutesy.
 
What is unique about the store is that each section of the wardrobe space features items being sold by designers and entrepreneurs online.

These online stores are also known as blogshops.

Having run her own, Yeo knew how hard it was to generate traffic into their sites.

“It is not easy to run an online site. Besides selling products online, we also have to go to bazaars and it can be time consuming.

“That is when I thought about opening my own store and found out about the space in Sunway Pyramid,” she said.

However, Yeo found out it was too expensive to rent the whole space on her own and the idea to bring together all the online blogshops under one roof came about.

“Each blogshop gets a wardrobe space in the shop and they customise the look of their own space,” said Chia.

Yeo added that the Offline Blogshop fitted in well in the mall’s Asian Avenue because the retail area had a concentration of chic and trendy designs for the younger crowd.

Butttons galore: Lam’s button badges are inspired by the periodical table.
 
Among those who had a space in the store was Aaron Lam, 25, a designer and lecturer who has been selling his T-shirt designs on his website www.individium.com

He specialises in T-shirts that were inspired by the chemical periodical table where each element has been attached with catchy words like Always Hungry (AH), Day Dreamer (DD) or Social Animal (SA).

Lam said each person could choose the label that best fit them as an individual.

Besides T-shirts, the designs were also available on button badges and he also designed unique square-shaped Individolls in different fabrics and changeable button-badge eyes.

Each doll also had a name like The Tea Critic, The Confused Analyst or The Minty Gummer.
Another space owner Chloe Mok, 23, started to sell corsets online at www.queenchloset.com when she found out how hard it was to find them.

“I like corsets but I realised you can only find them in lingerie shops and sex stores,” said Mok.

com. Economical venture: From clothes to shoes, the Offline Blogshop in Sunway Pyramid enables online blogshop owners to market their products without the high overheads of renting their own shops.
 
She said the colourful corsets was a fashion item that could be worn with jeans.

Sara Khong, 24, who runs www.zikkos.com selling accessories, said while online shopping was getting more popular, there were also a lot of people who were sceptical about buying things online due to Internet fraud.

“That is why having our products storefront at malls is a wise move to reach the people who do not shop online,” she said.

The Offline Blogshop is located at AV149, Asian Avenue, Sunway Pyramid, Bandar Sunway, Petaling Jaya.
For details, visit www.offlineblogshop.com.



Friday, January 7, 2011

Offlining blogshop

This is taken off the ABOUT US section of the Offline blogshop site:

http://offlineblogshop.com/about.html


About us   
Yes, you are right. We are Blogshops and yet Offline.

Offline Blogshops is a tangible market place consisting of the best and most ambitious blogshops in Malaysia. We believe that each blogshop is unique with very distinctive and different taste. However, it is undeniable that there are limitations while you shop online. For example, you can't try the products on nor can you be assured of the quality by looking at the pictures. Now, you can see and try your favourite blogshops products for 'real' before decidingto buy their stuffs!! In our shop that is built like a dressing room, you can also enjoy a brand new shopping experience. We believe that you will definitely like this experience of moving about the 21 cabinets in the dressing room and discover your favourite item.

Please don't be mistaken, although we are called Offline Blogshops, we do online services for our honourable shoppers too. On our website, we constantly give you updates about the new arrivals and best offers of our 20 unique vendors.

Offline Blogshops is indeed a one-stop shopping place for you, both online and offline.

Come and discover your new surprises here!

Sunday, January 2, 2011

Off-lining blogshops.

From http://ujustfashion.blogspot.com/2010/12/offline-blogshop.html

Off-lining blogshops.

This is a key development, in my opinion, for many blogshop owners who would like a store to showcase their stuff but are unable to afford paying rental.

In this case, Offline Blogshop (run by UJUST blogshop) rents a shop and sub-rents it to a number of othere blogshops.  This is located in Sunway Pyramid, a major shopping hub in KL, so these participating blogshops (20 of them) are able to secure a prime offline shopping location.


offline blogshop






Offline Blogshop, 
and located @ Lot F1 AV.149 & 150, Asian Avenue, Sunway Pyramid.

Participated by 20 other blogshops,
do support and come to its grand opening,
on this coming New Year, 1st Jan 2011 (11 a.m)




10% will be given for every item (1/1/2011)





Website:
http://www.offlineblogshop.com
Company Overview:
We are located at Asian Avenue, Sunway Pyramid.
Mission:
Taking online blogshops into a tangible offline shop
Description:
It is probably fewer than five years that we Malaysians become less skeptical about online businesses. Blogshop is yet another newly sprang online shopping phenomena, of which bloggers sell different products in their blogs, turning them into virtual shops at just about zero cost. Slowly and somehow, everybody started to call these blogs as the blogshops. In fact, although intuitively understandable, blogshop is still a term so new that you can’t find the definition in Cambridge nor Oxford Dictionaries. Offline Blogshop takes 20 unique fashion blogshops, some of which are famous blogshop names in Malaysia, to a tangible shop, where blog-shoppers and the general public can 'surf' the blogs not only in virtual but also in real world! First of its kind in Malaysia!!! (read less)

Contact Details



Email:
bsean@offlineblogshop.com
Phone:
017-6155975