Let’s continue with part 2 to see how can they spend this money and what is the most challenging thing in using money!
How long would WYW spend $1.5M? and any metrics, approach to define the way you spend this amount of money?
Salary for the expanding team is also a large amount of money
It all depends on how aggressively we want to expand (in Thailand as well as regionally). Of course we’re using budgets to define our spending, else it would be even harder to spend them wisely than to actually get them. So, I can’t tell you how long it will take to spend the money, as it very much depends on how soon you’ll see WearYouWant operating in neighbouring countries.
Martin: “In our case it was disbursed at once”
How do the VCs disburse the money? e.g how many phases and conditions? or you guys already have $1.5M in WYW bank account?
In our case it was disbursed at once, but it very much depends on the state of the company and the VC’s.
Mutual trust is of course essential, and a proven record of achieving targets in the past also influences the willingness of the investors to disburse the full amount right away.
What are support from the VCs’ side in this phase?
The support from our VC’s actually count several areas. Besides the funds, they’re also assisting in terms of recruiting, sourcing and marketing. All in all, we have a very strong team of VC’s who’s very much involved in the company. This is something that we truly appreciate the value of.
Money will help WearYouWant products and sevices become more sexy in the eyes of customers?
What are the things your team will spend much money on?
A large proportion of the money will obviously go to marketing. We’re at a point where taking market shares and establishing ourself as one of the major players in the market for online fashion is key to success. Besides that we’re still growing the team and actively looking for key positions such as COO and CMO.
We’re at a point where taking market shares and establishing ourself as one of the major players in the market for online fashion is key to success.
A large proportion of the money will obviously go to marketing.
What is the first country WYW will expand to? and the top expenses in this new market?|
I can not tell which country will be the first, but I can guarantee no matter which it will be, it will not be the last! Regional expansion is very important in order for us to show we can scale WearYouWant and the business model not only in Thailand, but regionally as well. The top expenses during the first 6 months will obviously be to set up all the operations, office etc. Luckily we can control some parts from Thailand, hereunder developers and part or the marketing.
The top expenses during the first 6 months will obviously be to set up all the operations, office etc.
How can you guys co-operate with VCs or How will the VCs keep observing the way WYW spend their money? Do you report to them on a weekly or monthly basis?
We have weekly calls with our VC’s where we inform about everything from GMV to recruiting. On these meetings the VC’s also actively try to assist with their connections, experience etc to grow the company as fast as possible.
And do they provide any metrics to measure the effectiveness of spending their money? for ex cost per acqquired user/customers…
Yes, we do have metrics for cost per first time buyer etc. These are of course important numbers for us and the VC’s combined with a range of other elements such as business development, PR, tech improvements etc, which are considered important for the success and expansion of WearYouWant.
How can WYW with $1.5M compete with Lazada and Zalora with more than $150M?
First of all they are two very different businesses. First one obviously has a different look and positioning in the market. We’re not trying to expand in to other categories such as electronics and home appliances, and because of that we can focus only entirely on fashion and beauty. Also, the money the above mentioned companies have raised has been split over the region and not solely for Thailand. Besides that, both are running their own warehouses, with inventory, stock control etc. Our operations are much leaner and as a consequence of that our costs obviously much less. That being said we need to have a slightly different focus, and the launch of our new design clearly shows that.
While they are being busy focusing on their own cheaper labels and pushing them hard to the market, we’re more interested in the well known premium fashion brands, both international and local.
Do you approach series B VCs from now?
Of course we do, and this process has already started. Securing enough runway for expansion is one of the top priorities at the moment.
So far what is the most challenging thing on spending money?
The most challenging thing is still that Thailand is an emerging market when it comes to e-Commerce. Therefore, it takes time to find out how to optimize the online marketing spend on various channels.
I believe it is very much the same if you’re a major player or a smaller start-up – spending wisely and and having a positive ROI on all channels is a challenge.
If you think the post helpful or cool then LIKE & SHARE it to your friends & colleagues!
Minh Bui is a seasoned eCommerce veteran from both Southeast Asian startups and corporates in online commerce and offline retail chain as well. He's also an avid Asia explorer and love to enjoy local foods and learn cultural differences in Asia.
Welcome to Bangkok Retail & eCommerce Insiders Group!