Silicon Valley senior investor advice Fashion electricity supplier will go from here

Abstract: vertical electricity supplier than we thought it was closer to the general sense of the retailer. Despite the impression that these electricity suppliers or technology start-ups, they still need to follow the rules of the retail industry.

Nasty Gal (American fashion website) and ModCloth (Amoruso Sophia CEO Home Furnishing set of independent designer clothing and jewelry trading platform CEO Eric Koger) before departure is not a small billows in the business sector. Does this mean that the decline in the retail platform class vertical electricity supplier

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Boris Wertz (pictured below) is the founder of Version One Ventures, invested in more than and 50 start-up companies, including Chloe &, Isabel, Frank &, Oak, Julep and Indochino and other fashion startups. In January 21st, he believes in to the American technology blog TechCrunch wrote the article, retail platform vertical business will enter a new phase, and wise participants will understand how to more "retailers" rather than "traditional business". Success stories such as: Warby Parker, Bonobos, Frank &, Oak, Julep, etc., of course, also includes Nasty Gal and ModCloth.

below for details:

 

a lot of electricity providers do not have the development of the network often take the form of vertical integration of production, access to the upstream and downstream links – including design, management, manufacturing and sales. This is conducive to strengthening the independent controllability of the intermediate links, direct contact with the customer, at the same time, compared with the high cost of the store has a relative price advantage, but also because of this, the vertical electric providers at relatively low prices and high quality products, such as clothing or glasses.

is more important, these start-up companies can rely on unique products, unique in the market, a share. And can control their own design and manufacture, do not have a head-on confrontation with the electricity supplier giant Amazon. In addition, the vertical electricity supplier can also be produced in small quantities, emphasizing the concept of crafting to create a unique customer experience.

vertical electricity supplier is difficult to do large-scale

many vertical electricity supplier is difficult to achieve sales of $100 million. 2014, ModCloth scale has not expanded, and even the size of the project team to 6 people.

although through the long tail marketing, the company can be faster and more efficient access to the target customer base, but it also means that the market will be more difficult to enter. This is a Hollywood blockbuster theatrical movies > N

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