Pomelo Fashion, a Bangkok-based fashion e-commerce site that counts JD.com amongst its investors, plans to open its first micro-retail store in Singapore, as the corporate looks to expand its online business model to brick-and-mortar stores in Southeast Asia.
The company, founded by former Lazada Thailand managing director David Jou, is positioning itself as a digital fashion brand that’s vertically integrated – meaning it really works with manufacturing partners and handles all material sourcing itself, from design to retail.
Pomelo believes that by allowing customers to narrow down their decisions online and have their chosen garments shipped to physical stores to try on, it may possibly mix the convenience of online retail with an offline experience.
The company can also be in a position to rent smaller spaces in major shopping areas with high traffic to make it easier for purchasers to try on their chosen clothes online. This variety of business model may significantly reduce the variety of returns.
“Fashion discovery happens online, where you’re not limited by having to view an entire catalog,” David Jou, co-founder and CEO of Pomelo, said in an interview last week in Bangkok.
“But e-commerce in fashion is affected by returns because clothes don’t fit or look right. The online-to-offline model reduces returns because consumers only buy what they struggle on.”
Pomelo is an element of a wave of firms promoting online-to-offline commerce, a business strategy that goals to extend conversions from web browsing to shopping by blurring the road between online and offline sales.
Customers could make purchases in brick-and-mortar stores via online channels or complete the transaction online after making payment within the brick-and-mortar store.
Chinese e-commerce operator JD led a $19 million investment round in Pomelo last yr, which also included investors comparable to 500 Startups, Hong Leong Group and Jungle Ventures.
Source : South China Morning Post
