SMALLABLE | WWW.CWB-ONLINE.CO.UK
questions about your products, react directly to information via their mobile phones and share photos with their entourage. We use social media to communicate with our community, to give them information on our brands and products, give them the latest news on Smallable and also to ask their opinions. It’s a good way to test the water.
LT: How much exclusivity do you have? CR: A lot – we always try to have as many as possible. Online exclusives for France, for instance, include Zadig & Voltaire, Bonton and Golden Goose. We also develop a lot of exclusive items in collaboration with brands – for example Veja, Bobo Choses, Emile & Ida and Finger in the Nose.
The first investment allowed us to develop internationally; we went from 30 per cent turnover abroad to over 60 per cent today. We have also focused on restructuring our company, industrialising certain processes, and recruiting more senior team members and experienced managers. Today, the team behind Smallable equates to around 30.
LT: Where do you source product? CR: We discover new brands at trade shows; we never miss Playtime, Pitti Bimbo, Who’s Next or Maison & Objets. We also go to Nuremberg for the world toy trade show and visit other shows abroad. We also find many of our brands on Pinterest and Instagram, or come across them by coincidence, fall in love with them and contact them. Additionally, many of our brands and designers contact us directly to have their products sold on Smallable. We have a never-ending source.
LT: What are the main benefits and challenges of selling online today? CR: The potential for international development is vast, and the challenge is to manage to build a healthy, profitable business model while driving two-to-three figure growth. We managed it, and we are going to make sure we continue in this trend.
LT: How far is your customer reach? CR: We sell globally, deliver to more than 200 countries, and do more than 60 per cent of our turnover abroad. Europe remains our first market, but we are currently seeing rapid growth in the USA and Asia. LT: What has the year-on-year growth been since your launch? CR: We have seen strong growth every year – between 80 per cent and 120 per cent. We aim to have ¤20m of turnover in 2015. LT: What does the recent second round of investment of ¤5m from Sigma Gestion and Aurinvest mean for Smallable? And how did you use the first round? CR: It will allow us to further develop Smallable internationally. Our ambition is to become the international reference in the selective world of babies through to teenagers. This investment will also allow us to further develop our own fashion and interiors brands. Our brand Hundred Pieces launched three years ago and is already in the top ten fashion bestsellers. We are also going to invest in a makeover of our website, which we are currently working on.
LT: How has Smallable maintained its market share? CR: Again, there’s no secret. If you sell at a high discount all year your turnover will increase but, in the end, your business model will not be viable and there is a high chance your company will disappear after a few years. The key is to develop while keeping your margins and compensating for the weaknesses that you may have with your strengths. We became profitable over the last year, which is quite rare for an e-commerce website of our size in the world of fashion or interiors. LT: How do you keep abreast of technological developments? CR: We have a team of developers who of course keep an eye on technological developments. But we really consider Smallable as a technical company. When your business is 100 per cent online, you have to be a bit of a geek and understand what a developer tells you and keep up with technological developments in order to make the right decisions. LT: Do you utilise social media for business? CR: Today, social media is essential. A little while ago, you could communicate with your customers via a newsletter and that was pretty much it. Today, they follow your Facebook, Instagram and Pinterest accounts, they ask you
LT: How has the children’s fashion industry changed since you launched? CR: The children’s fashion industry suffered with the economic crisis. Just like women’s and men’s fashion, some brands disappeared; a lot of e-commerce websites, too. It’s more difficult to find funding and to launch a business, whether it’s a shop or a brand. The market evolved naturally and we realised that launching an e-commerce website wasn’t any simpler or cheaper than opening a shop. On the contrary, you need a lot of investment in order to obtain a critical size and become profitable. On the client side of things, there are huge differences between different countries; Southern European countries were very affected by the economic crisis and obviously radically changed the way that they consume, moving towards more accessible brands and buying more during the sales. But, globally, we have been lucky because of our selective and relatively unique positioning, with clients that were less affected by the crisis and continued to want designer brands and new trends. If the price is right, and if the brand has created its own little creative, authentic world, the success follows. So, people shouldn’t be discouraged from launching their brand. As for launching a website like Smallable, you need a large investment, much larger than we had to start with, because of the barriers to entry that have formed. You need to really differentiate yourself from the existing competitors and shouldn’t forget that creating your own company is a real vocation. LT: Would you ever consider opening a bricks-and-mortar shop? CR: We are seriously thinking about it. I am convinced that the “clicks-and-mortar” model could work well for Smallable, incarnating our world in a flagship store in Paris and elsewhere. However, we want to do things well and at the right time, since we would need a beautiful, large space in order to represent our world and express our identity. LT: What are the long-term plans for Smallable? CR: Our current projects for international development and creation of our own brands are projects that take time to put in place, and these are our projects for the next few years, but which are already taking up a lot of our time daily. LT: Tell us something we don’t know about Smallable… CR: Follow our news on Instagram and Facebook and you will have our exclusive news, with the announcement of some great new projects this autumn. www.smallable.com AUGUST/SEPTEMBER 2015 - 28