The COVID-19 pandemic has forced businesses and entrepreneurs to turn to e-commerce and online marketplace in order to survive this difficult time.<\/p>\n\n\n\n
Online competition between brands has become increasingly fiercer as consumer behaviours are changing tremendously in this new normal era.<\/p>\n\n\n\n
Pomelo, Southeast Asia\u2019s first digital fashion brand, is well aware of the difficulties facing many fashion brands that have to undergo their online transformation, although COVID-19 has no severe impacts on Pomelo in terms of sales volume.<\/p>\n\n\n\n
David Jou<\/strong>, Pomelo\u2019s co-founder and chief executive, has come up with the idea of sharing its experience and capability in innovating a new product with local brands and SMEs in Southeast Asia. This can help them stand on their feet and prepare themselves for more digital challenges in the future.<\/p>\n\n\n\n Jou said creating brand awareness and achieving stable sale growth require more than just showing the products on social media. You also need to map out business management plan and market strategies, set the brand target, choose the right tools, provide great service, train the talent and supervise overall business management from front desk to back door.<\/p>\n\n\n\n Pomelo has accumulated and refined those capabilities since the brand\u2019s establishment eight years ago. Therefore, for him, no one knows better than Pomelo about brand building and hitting the online sale targets.<\/p>\n\n\n\n \u201cCOVID has made it very clear in everybody\u2019s mind the importance of the digital disruption. What we want to do? We want to take many of the abilities, the people and the technology we built and offer it to the ecosystem. That\u2019s really the biggest evolution in our business, I would say,\u201d Jou said.<\/p>\n\n\n\n Pomelo has enjoyed steady growth since 2020 as its user base is rapidly expanding. The huge users increase is boosted by lockdowns that restrict travel and commute, forcing more people to go online to buy their stuffs. <\/p>\n\n\n\n Its strong growth and online sale have helped Pomelo compensate for decreased offline sale, Jou said.<\/p>\n\n\n\n \u201cIn 2020 we had over 40 million visits through our app and website, which was really a big number. And then we have over 200 third-party brands on the platform. We are adding a lot more.\u201d<\/p>\n\n\n\n As the number of third-party brands keeps increasing, Pomelo sees an opportunity to focus on the technology side. This involves turning their kit abilities into products so that they can give it to their customers as an option and then using this opportunity to build their third-party brand base. With this path, Pomelo believes that the company can expand their platform and user base in the current fast growing e-commerce industry, the CEO said.<\/p>\n\n\n\n \u201cThis year we expect to continue to expand platform, offer more and more services to our brand, add more brands and hopefully on the app side, we also continue to add more users in the rapidly growing e-commerce,\u201d he said. <\/p>\n\n\n\n \u201cAnd like last year, we will continue to grow quickly this year. It\u2019s hard to say right now because the situation is still uncertain. But so far we are on the good track this year.\u201d<\/p>\n\n\n\n With the third wave of COVID-19 in Thailand, Jou admits that a slow growth in sales is inevitable. However, he remains confident the overall online fashion industry can continue to move on, especially in the second half of 2021, as restrictive measures could be relaxed and even lifted in many areas. The CEO expects the business to enjoy a quick rebound after that.<\/p>\n\n\n\n \u201cWhen things reopen in the second half, we see a very quick rebound, with fashion that is always pent-up with demand. If you have to stay home for more than two months, when things reopen, you really want to go out with your friends and family,\u201d he said. <\/p>\n\n\n\n \u201cYou have share retention during the close and when things reopen, you see the strong rebound. So, I think we face the same situation with the lockdown here in Thailand. Let\u2019s see how it goes. We expect what we call the 2020 effect \u2014 a very strong rebound when things reopen. You already see it in US and other countries where vaccination has roll out.\u201d<\/p>\n\n\n\n To continue developing Pomelo’s products and services to meet the consumer needs, David reveals that Pomelo has changed its core strategy that will be a catalyst for the company to become a strong platform in the online world, where fashion entrepreneurs, large and small alike, can come and use Pomelo\u2019s kits to build their own brands.<\/p>\n\n\n\n \u201cWe have over 200 brands, international companies, SMEs, Instagram brands, Local brands. When COVID hit, everybody was saying what we do now as an industry. What can we do? I think so many brands started to innovate and shift to online sale. They explore the platforms to access users and build their brands through social media,\u201d the CEO said.<\/p>\n\n\n\n That demand is in line with what Pomelo has been working on over the years. What Pomelo has to do is accelerate these brands’ transition to the platform. Pomelo needs to rapidly reach more brands.<\/p>\n\n\n\n Currently, Pomelo offers the service of helping outsourced brands to sell products on its platform, including warehousing and delivery management. In the future, Pomelo plans to set up a system for outside brands, mostly ones built on social platforms such as Instagram, to manage their own inventory and delivery service.<\/p>\n\n\n\n Pomelo now has both giant international fashion brands and small brands. Most of the participants with the best growth are \u201cInstagram brands\u201d whose entrepreneurs produce, market and sell their products through their Instagram accounts. To put it more simply, the fashion brands have emerged and gained acceptance in the national, regional and global fashion markets with the use of Instagram in creating their brand story and sales promotion.<\/p>\n\n\n\n Pomelo’s main strength is the brand\u2019s past success, which Jou says earns Pomelo confidence like Amazon has done with the e-commerce market. Amazon is known for its strategy that can create products and services to serve the demand of e-commerce market. Therefore, once Amazon announced that it would provide warehousing service or Amazon Web Services (AWS), business owners and brand entrepreneurs entrusted their products and services to Amazon without hesitation.<\/p>\n\n\n\n \u201cFor us, it is very similar. We started as a brand and have already done it. It\u2019s just a question of sharing what we have learned and capabilities with others.\u201d<\/p>\n\n\n\n Meanwhile, Pomelo\u2019s board member Ariya Banomyon<\/strong>g, who oversees the company\u2019s business strategy to help drive it into its next phase of growth, adds that when talking about Amazon and others, no one is born a platform. It\u2019s a revolution that everybody needs to learn, adapt and find the way to apply its advantages and benefits to support the development of the organizations. The present situation is the right time for Pomelo to improve their platform and enhance that platform to others, he said.<\/p>\n\n\n\n \u201cDue to COVID, malls are closed and sales are down. We need to do something and now all the brands are trying to get online. Everyone talks about e-commerce. If it was easy, everyone could be doing it. The credibility that Pomelo has built as a fashion brand and turning to platform is the right attraction that others ask, \u2018Can you do the same for us?\u2019,\u201d Ariya said.<\/p>\n\n\n\n Moreover, Jou says fashion is basically different from other e-commerce sectors. It is about content, curation, fitting, trying on, and also about inspiration. Other e-commerce sectors more are about price and having the biggest assortment while content is less important. So, the first criteria differ from fashion. That\u2019s why business owners have a specific fashion platform for fashion brands and fashion customers.<\/p>\n\n\n\n Pomelo this year has shifted its business focus towards creating an online platform but the CEO insists that the brand\u2019s fashion identity remains its major priority as a fashion company.<\/p>\n\n\n\n \u201cWe have two main business units. We have the brand and the platform. Pomela as the brand is always what it stands for. It is always trendy and accessible for everybody and it\u2019s all about Pomelo community. It has not changed at all. We keep expanding our footprint, launching in the Philippines earlier this year and planning to launch in Vietnam later this year. Now we also have physical stores in Singapore, Kuala Lumpur and Jakarta,\u201d he said.<\/p>\n\n\n\n Once the brand\u2019s growth is steady and consistently speedy, Pomelo\u2019s next goal is to strategically create a platform that is the fashion space online.<\/p>\n\n\n\n \u201cToday, the platform side is just starting out. So, it is smaller but it grows very quickly. Within a few years, we expect it to be about 50-50 brand and platform,\u201d the CEO said.<\/p>\n\n\n\n \u201cWe focus on both sides. We are going to keep growing and investing in the brand, coming out with great products. At the same time, we think of our capabilities and the industry. Like Khun Bee [Ariya] said, they want to get online. They want the advantage of the next chapter of growth. We want to help other brands do that specifically in the fashion base.\u201d<\/p>\n\n\n\n Ariya also points out that most existing e-commerce platforms still cannot answer the demands of fashion brands. What Pomelo has created is a platform with obvious target audiences for the fashion market \u2014 women who love shopping and enjoy showing their fashion and style.<\/p>\n\n\n\n \u201cPomelo is not just aiming to become a platform. It\u2019s also a marketplace with strong demand for the brand. Over the past year, we realize that it\u2019s not easy to go online. You can\u2019t go online on any platform on any marketplace. Some may not suit your brand,\u201d he said.<\/p>\n\n\n\n \u201cDavid and Pomelo are approaching over 200 brands. Not everyone like to sell their products at discount or low prices. So, it\u2019s important to not just having a platform or to show that you are in the market. You also want some place that fits for your brand and has a team who basically understand fashion.\u201d<\/p>\n\n\n\n Last year, 90% of Pomelo transactions were through the app, with additional product categories including apparels, athletic wears, sports, accessories, shoes, home and living products. Apart from typical fashion products, Pomelo also launches pre-left products or second-hand goods to promote sustainability and recycling, upcycling method as well as reducing carbon footprint for sustainable growth.<\/p>\n\n\n\n Jou views that with COVID, people are asking themselves: What are the most important things? It\u2019s friends, family, the environment, and health. That\u2019s why Pomelo focuses on sustainability. Its customers have experienced more sustainable collections during the pandemic.<\/p>\n\n\n\n When asked what makes Pomelo stand out from others and become ASEAN\u2019s first leading brand, Jou points to four factors.<\/p>\n\n\n\n First, it is the Pomelo super app, which has users-friendly channels, unique personalization, professional promotion program, search engine, and live streaming through social media. \u201cPomelo is all the customers want for their fashion passion,\u201d he added. <\/p>\n\n\n\n The second factor involves Pomelo\u2019s strength in technology, unlike most other fashion brands. The company has a big tech team that is constantly developing innovations to digitize the fashion industry. \u201cBoth fashion and technology are equally in Pomelo\u2019s DNA,\u201d the CEO said. <\/p>\n\n\n\n The third point involves meeting the customer\u2019s demands. When speaking about Pomelo, customers do not think of discounts or promotions, but rather finding the latest look, the perfect dresses or outfits for them and their occasion. It\u2019s about expressing their style, he added.<\/p>\n\n\n\n \u201cWe have a true fashion platform in Thailand where you can come and really have fun with fashion. That\u2019s really our focus. Everything we do is about making our customers really love fashion and express their style.\u201d<\/p>\n\n\n\n Lastly and more importantly, it is sustainability. More and more customers are asking brands, retailers and companies what they are doing for the environment. Customers want to see the responsibility from the business sector and their concern about the circular economy.<\/p>\n\n\n\n \u201cThat\u2019s something we try to be working very hard on. We try to reduce our carbon footprint as much as possible. Already we have \u2014 our denim is organic cotton and we really use recycled polyester,\u201d the CEO said. <\/p>\n\n\n\n \u201cWe are using different washing techniques to reduce the amount of water used. We are doing upcycling. On a lot of collections, we use scraped fabrics and turn them into products. We do many things on the sustainability side. This is a really important message I want to get out there.\u201d<\/p>\n\n\n\n Meanwhile, Ariya added that what also makes it stand out from others is that Pomelo is not only focusing on innovation and technology, but also putting most of the efforts in improving users\u2019 database and management system as well as maintaining its unique fashion identity.<\/p>\n\n\n\n He pointed to two keywords \u2014 platform and super app \u2014 in Pomelo\u2019s mission to promote the participating fashion brands.<\/p>\n\n\n\n \u201cRight now, there are 200 brands \u2014 that\u2019s a very good number. I\u2019m sure David has much more ambitious goal than 200 brands across the region.\u201d<\/p>\n\n\n\n According to the executive, unlike other online marketplaces, Pomelo \u201chas done a good job\u201d about curation and condense creation. \u201cIt\u2019s everything about fashion. Fashion is more content driven and that\u2019s what we are trying to package for the brand,\u201d he said.<\/p>\n\n\n\n In David\u2019s view, the online fashion industry has great opportunities and trends to grow. Currently, the size of Southeast Asia\u2019s online market is about US$25 billion, accounting for approximately 6% of the overall e-commerce business in the region. <\/p>\n\n\n\n On the other hand, China\u2019s lifestyle and fashion products represent 30% of total online sale. Therefore, ASEAN\u2019s online market for fashion products still has a lot of room to grow.<\/p>\n\n\n\n Pomelo is in a good position to invest in both the brand and platform, thanks to the funds of US$52 million raised from various investors like Provident Growth Fund, JD.com and Central Group during series C round. <\/p>\n\n\n\n \u201cPomelo really wants to build an omni-channel fashion platform for Southeast Asia. Based here in Bangkok, we have an amazing team of over 600 people. We have raised $52 million \u2014 the highest amount raised for an independent start-up in Thailand,\u201d the CEO said. <\/p>\n\n\n\n \u201cCertainly, we will keep investing in resources, talent, technology, and the brand absolutely. Finally transforming to [become] unicorn would be great. But again, the important thing is to focus on becoming the leading platform, continuing to focus on the fashion super app strategy and continue to expand the brand across Southeast Asia.\u201d<\/p>\n\n\n\n Jou promises that Pomelo will continue to add more varieties of third-party brands so that it can serve all the customers\u2019 demands. Having both international and domestic brands to choose from, shoppers will have more pleasure time when engaging with the platform. At present, most of the brands that Pomelo has partnered with are local brands with their unique stories.<\/p>\n\n\n\n \u201cTo become a super app, we have to cover all those segments. So, we cover everything from international to Instagram and everything in between,\u201d said the CEO.<\/p>\n\n\n\n Pomelo is not worried about the emergence of more online platforms, especially from e-commerce giants, he said. For Pomelo, more platforms can help complete and diversify the ecosystem, which finally benefits the market and customers. Online fashion brands and mainstream e-commerce giants can coexist peacefully in Japan, Europe, the United States and India. Meanwhile, support from Central Group and JD.com is expected to help Pomelo improve its platform technology and online marketing. <\/p>\n\n\n\n Omni-channel is an innovative business strategy combining technology with marketing tactics to link all channels to access customers directly, rapidly and pleasingly. Pomelo plans to increase more of its \u201cTap Try Buy\u201d stores that it initiates to solve a pain of buying fashion items online \u2014 customers are unsure about their size and unable to try the clothes. <\/p>\n\n\n\n With Tap Try Buy, when making an order online, customers can visit a physical store to try their products. If they are not satisfied, customers can leave the products there. Pomelo now has about 116 Tap Try Buy locations across Thailand.<\/p>\n\n\n\n \u201cTap Try Buy comes in to maintain the product quality. Tap Try Buy is omni-channel. What people dislike most about buying fashion online is that you cannot try the product. You don\u2019t know if it fits, how it looks and feels. With Tap Try Buy, you can buy anything you like and try it. This is one of our most popular ways to shopping. Obviously, it has been affected by COVID, but we really think omni-channel approach is the future,\u201d the CEO said.<\/p>\n\n\n\n Ariya concludes that many retailers have shown much interest in omni-channel as a business strategy in recent years. However, for him, no one else has been able to create a successful omni-channel as Pomelo did. Tap Try Buy is the first and only solution for online fashion brands, he said. <\/p>\n\n\n\n By taking this significant step forward, Pomelo is in the right direction and the right timing to achieve its goal of becoming the top platform and super app of the online fashion world.<\/p>\n\n\n\n Interview by Asina Pornwasin The COVID-19 pandemic has forced businesses and entrepreneurs to turn to e-commerce and online marketplace in order to survive this difficult time.<\/p>\n","protected":false},"author":17,"featured_media":32302,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[118,119,121],"tags":[7796,7797,7798],"class_list":["post-32300","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-story-special","category-interview-en","category-startup-en","tag-pomelo-2","tag-digital-fashion-platform","tag-digital-fashion"],"yoast_head":"\nMain strategy adjusted with focus on platform<\/h2>\n\n\n\n
Aiming to be the Amazon of online fashion world<\/h2>\n\n\n\n
Convergence between fashion and technology<\/h2>\n\n\n\n
Setting sights on becoming top fashion platform<\/h2>\n\n\n\n
Article by Nongluck Ajanapanya<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"