1 DEBORAH  WEINSWIG,  MANAGING  DIRECTOR,  FUNG  GLOBAL  RETAIL  &  TECHNOLOGY  DEBORAHWEINSWIG@FUNG1937.COM    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

APRIL  20,  2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

About   the   Company   Love,  Bonito   is  a  Singapore-­‐based  women’s   fast-­‐fashion  platform  that  was  started  by  a  local  entrepreneur,  Rachel  Lim,  in  2010.  The  site  has  become  one  of   the  most   successful  online   fast-­‐fashion  businesses   in   the  country.   Lim  said   that   she  and   her   cofounders   came   up   with   the   name   hoping   that   it   would   express   that  everything  comes  from  the  company  with  love.  

Women  Entrepreneurs  in  Action  The  startup  was  born  from  an  idea  that  Viola  Tan  and  Rachel  Lim  had   in  2006,  when  they  were  teenagers.  Today,   the  company   is   reportedly  generating  seven-­‐figure  revenues.  Lim  was  recently  named  one  of  “30  Under  30”  in  the  retail  and  e-­‐commerce  category  by  Forbes  for  2016.  

Fast  Fashion  +  Private  Label  Model  The  company  is  vertically  integrated,  from  design  to  manufacture   to   distribution,   and   it   carries   its   own   private   labels   in   basics,   swimwear,  petites,  bridesmaids  and  activewear,  and  will  soon  launch  maternity.  The  company  uses  a   fast-­‐fashion   model,   and   the   private   label   creations   are   directly   inspired   by   runway  looks.   The   company’s   designers   create   fashionable   pieces   that   range   from   $25–$50.  Some  45  creative  staff  generate  about  80–100  new  styles  per  month.  

Products   Tailored   to   Local   Asian   Consumers   A   major   differentiating   point   for   Love,  Bonito   is   its  combination  of  on-­‐trend  and  tailored-­‐to-­‐local  products.  Lim  takes  pride   in  her  expertise  in  tailoring  major  fashion  trends  for  Asian  women  and  for  the  year-­‐round  summer  weather  in  Southeast  Asia.  Since  its  creation,  Love,  Bonito’s  site  has  become  a  source   of   style   inspiration   for  many   Singaporeans,   as   the   company   truly   understands  local  consumers’  small  physiques  and  their  quest  for  comfort.  

Recent   O2O   Expansion   Experiment  Given   that   over   95%   of   shopping   still   happens   in  stores   in   this   region,   the   e-­‐commerce   pure   play   has   started   its   offline   journey   by  creating  pop-­‐up  stores  in  central  commercial  districts  in  Singapore,  where  it  hosts  social  events.   In   2015,   it   also   opened   two   physical   stores   in   neighboring  metropolitan   cities  Kuala   Lumpur   and   Jakarta.   Lim   said   of   the   recent   expansion,   “Different   cities   have  different  characteristics  and  customers  have  different  behavior,  so  in  Kuala  Lumpur  and  Jakarta,  we  have  physical   stores   so   that   customers   can  go   in   [and]   touch  and   feel   the  clothes  before  buying.”  

 

  2 DEBORAH  WEINSWIG,  MANAGING  DIRECTOR,  FUNG  GLOBAL  RETAIL  &  TECHNOLOGY  DEBORAHWEINSWIG@FUNG1937.COM    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

APRIL  20,  2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Promising  Growth  Trajectory  The  Love,  Bonito  site  gained  popularity  at  the  same  time  that   the   e-­‐commerce   sector   in   Singapore   and   its   neighboring   countries   was   quickly  taking  off.  The  company  is  likely  to  continue  to  benefit  from  this  trend.  The  size  of  the  e-­‐commerce  market   in   Singapore   is   expected   to   have   totaled   $4.4   billion   in   2015,   four  times  its  size  in  2010.  While  the  market  size  growth  was  significant  over  this  period,  e-­‐commerce  in  Singapore  still  accounted  for  only  4%–5%  of  total  retail  sales,  versus  about  7%   in   the   US.   The   country   is   expected   to   catch   up   with   other   developed   countries,  though,  and  many  e-­‐commerce  startups  are  emerging  at  the  same  time  that  consumers  are  showing  a  growing  preference  for  shopping  online.    

Figure  1.  Online  Retail  Sales  as  %  of  Total  Retail  Sales,  2014  

             

                 

Source:      

7.8%  7.2%  

5.8%  

4%  to  5%  

Around  or  below  1%  

Europe

 

China   US  

Singapore  

Malaysia

 

Thailand

 

Philipp

ines  

Indo

nesia

 

Vietnam  

 

  3 DEBORAH  WEINSWIG,  MANAGING  DIRECTOR,  FUNG  GLOBAL  RETAIL  &  TECHNOLOGY  DEBORAHWEINSWIG@FUNG1937.COM    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

APRIL  20,  2016

Figure  2.  Estimated  E-­‐Commerce  Growth  Rate,  2013–2017                            

*ASEAN  6  includes  Indonesia,  Malaysia,  the  Philippines,  Singapore,  Thailand  and  Vietnam.  **EU  5  includes  the  European  Union’s  five  largest  economies:  Germany,  France,  the  UK,  Italy  and  Spain.  Source:  eMarketer/A.T.  Kearney      

   

   

Deborah  Weinswig,  CPA  Managing  Director  Fung  Global  Retail  &  Technology  New  York:  917.655.6790    Hong  Kong:  852.6119.1779  China:  86.186.1420.3016  deborahweinswig@fung1937.com    Joseph  J.  Yurman  Editor  in  Chief  

Jing  Wang  Research  Associate    HONG  KONG:  10th  Floor,  LiFung  Tower  888  Cheung  Sha  Wan  Road,  Kowloon  Hong  Kong  Tel:  852  2300  2470    LONDON:  242–246  Marylebone  Road  London,  NW1  6JQ  United  Kingdom  Tel:  44  (0)20  7616  8988    NEW  YORK:  1359  Broadway,  9th  Floor  New  York,  NY  10018  Tel:  646  839  7017  

FBICGROUP.COM  

 

25%   25%  

11%   10%  

6%  

China   ASEAN  6*   US   EU  5*   Japan