LESSONS FROM A SUCCESSFUL ASIAN STARTUP: HOW LOCALBRAND.CO.ID GROWTH HACKED INDONESIA
While trying to figure out what makes successful founders tick, a quick search on Google would lead you to articles or interviews citing Silicon Valley titans like Elon Musk or Jeff Bezos. You are unlikely to find much information on outstanding Asian innovators and entrepreneurs, or insights from lessons learned while they were building successful Asian startups.
We weren’t satisfied with this, because we know that there is so much to learn from South East Asian startups and their founders. To start this quest to consolidate that knowledge, we thought it would be best if we got the information straight from the horse’s mouth. We spoke to Sayed, the Founder of LocalBrand.co.id, a startup which went from a simple idea, to one of the biggest e-commerce platforms in South East Asia in just three years.
Here is his story with some actionable growth secrets sprinkled along the way.
The Ideation Stage
Supply or Demand? Who Should Marketplaces Startups Target First?
Sayed: We went for supply first. We had contacts with designers and brands who already had an established customer base. The brands had a real need for our solution, because they could not sell online. As soon as the brands came onboard, they brought all their customers, so the demand side was easy.
09 FEB LESSONS FROM A SUCCESSFUL ASIAN STARTUP: HOW LOCALBRAND.CO.ID GROWTH HACKED INDONESIA
Posted at 19:08h in Uncategorized by Annette Lim 0 Comments
While trying to figure out what makes successful founders tick, a quick search on Google would lead you to articles or interviews citing Silicon Valley titans like Elon Musk or Jeff Bezos. You are unlikely to find much information on outstanding Asian innovators and entrepreneurs, or insights from lessons learned while they were building successful Asian startups.
We weren’t satisfied with this, because we know that there is so much to learn from South East Asian startups and their founders. To start this quest to consolidate that knowledge, we thought it would be best if we got the information straight from the horse’s mouth. We spoke to Sayed, the Founder of LocalBrand.co.id, a startup which went from a simple idea, to one of the biggest e-commerce platforms in South East Asia in just three years.
Here is his story with some actionable growth secrets sprinkled along the way.
The Ideation Stage
Supply or Demand? Who Should Marketplaces Startups Target First?
Sayed: We went for supply first. We had contacts with designers and brands who already had an established customer base. The brands had a real need for our solution, because they could not sell online. As soon as the brands came onboard, they brought all their customers, so the demand side was easy.
Should Startups Go For Funding Straight Away?
Sayed: At this point, we made a mistake. If I could do it again, I would raise funds straight away. Instead, I used my own money for the company, and by the time big players such as Lazada jumped in, it was too late to call for investment. We just couldn’t compete with the promotions that they offer. Customers go where it is cheaper, and the brands eventually follow.
“Marketplace startups face issues with brand loyalty. So if you are building one I would advise getting funding early on.”
The Acquisition Stage
How Long After Launch Should Startups Expect To Get Their First 1000 Customers? What Is A Good BenchMark?
Sayed: We received our first 1000 customers within 3 months after our launch. I think 3–4 months is a good timeline to aim for.
Which Channels Worked Best To Aquire Customers At This Stage? What Strategy Did You Use?
Sayed: We were lucky to have successfully executed a few online and offline growth strategies right from the beginning.
Offline, we started Local Fest — an event to showcase Local Brands and allow offline sales.
We used the festivals to learn more about our customers and define them for targeting purposes. I would recommend really taking the time to do this if you have a smaller budget. Identify one customer type and zero in on it. Map out their journey and find out where they hang out online.
Make sure you develop the product based on what you learn from this. In our case, the customers followed fashion bloggers and influencers, so we targeted these people and partnered with them to get them talking about our service.
Which Online Channel Worked Best? How Did You Make it Work?
Sayed: We employed quite a few successful online tactics. We found the organic channels were by far the most effective.
1. Social Media. We were one of the first companies to use Instagram. Indonesia is now one of the most active countries on social media, but back when LocalBrand had just started, not many people were on there. We correctly identified the early adaptors of Instagram as our target customer, and were able to make the most of this channel.
