It’s not usually startup founder is courageous sufficient to try disrupting a effectively established business reminiscent of vogue. However that's precisely what Luke Grana did when he determined to launch Grana.com in 2014. In only a brief two and a half years the corporate has not solely raised effectively over US$10 million from the likes of Alibaba’s Entrepreneurs Fund, 500 Startups and MindWorks Ventures, they're effectively their method to turning into Hong Kong’s hottest e-commerce vogue model.
Grana, a serial entrepreneur from Australia, arrange his very first enterprise whereas nonetheless in college which was an on-campus espresso store which he spent AUD$20,000 establishing. Inside 9 months, Grana noticed his first exit and was capable of promote the store for AUD$190,000. From that second, he knew that he was born to be an entrepreneur.
In 2013, Grana visited his brother who was dwelling in Peru and it was then that he found Peruvian Pima cotton and the prime quality comfortable material that got here from it which might make for an excellent T-shirt. However having no prior expertise in vogue or retail, Grana determined to study from the bottom up and spent half a yr working at each Zara and French Connection, studying the fundamentals of promoting, customer support, pricing and naturally, fashion. It was then that he realized that vogue had a really large legacy part with hundreds of retail outlets, warehouses and middlemen that will make an ideal subsequent problem for him to sort out.
Disrupting vogue with lean stock
Grana’s enterprise mannequin could be very easy: his staff sources the most effective materials from world wide (suppose Peruvian cotton, Chinese language silk, Japanese denim and Irish linen), cuts out the middlemen and has no retail shops leaving him with a pure direct-to-shopper e-commerce mannequin which turns a close to 50% revenue margin. As shopper conduct continues to shift there are increasingly prospects who understand that garments can truly be bought over the web (at half the value) versus going to a retailer to strive on the merchandise. Grana strategically relocated his enterprise to Hong Kong because of the metropolis’s strength in logistics after he was capable of safe extraordinary charges and instances on international DHL delivery. Grana now boasts two day delivery to over 60 nations world wide.
For many massive vogue manufacturers, because of the number of product choices, their stock will get cut up up all world wide. Grana discovered shortly that stock is a killer to many companies so his purpose was to create a enterprise with very low stock, all saved in a single central location that may very well be shipped globally.
“We're very knowledge-pushed. So, in any new product that we launch, we'll all the time do very restricted colours and restricted numbers. And if we promote effectively, we'll see that in a short time. After which if it is doing effectively, then clearly we've got a chase order, after which we are going to put that product in one in every of our timeless collections, timeless merchandise.”
In true lean startup vogue, as an alternative of carrying extra stock on product traces which may not promote (which find yourself having to get discounted), Grana leverages the direct relationships he’s established with the material mills and garment makers to begin lean, set up proof on idea after which replenish as wanted. What usually takes a large brand nine months in design and development, Grana can achieve in four.