Basico Receives Seed Funding and Becomes another Example of How Ecommerce is Booming in Brazil
Over the last few years, there has been a big focus on the emerging markets of fashion in Brazil. Right now, not only is fashion the main focus in Brazil, ecommerce has joined the list. According to the Brazil’s Chamber of Ecommerce, ecommerce sales reached $11 billion in 2011 and were up 29% reaching $12 billion in 2012.
Many brands are beginning to take advantage of this when considering a wider reach and sales. According to Techcrunch, Basico has received $500,000 in seed funding, which will be used to launch their ecommerce brand. The funding was led by Initial Capital, the Israeli/Brazilian VC fund headed up by investor) Roi Carthy along with Brazilian angel investor Guilherme Soarez.
3i Group Invests in Óticas Carol
International investor, 3i Group, acquired Óticas Carol (OC), a Brazillian eyewear retailer from entrepreneur Marcos Amaro. Óticas Carol’s CEO, Ronaldo Perelra has agreed to significantly increase his equity stake in the company. Other investors such as Neuberger Berman and Siguler Guff are co-investing with 3i Group, which is expected to close by the end of March. The combined equity investment totals to R$108 million.
Has the Market Shifted? Latin Brands Began to Dominate Entrance into the U.S. Market
For decades, the American market has been introduced to many European brands. European fashion has also been the foundation of many American brands. However, this trend seems to have shifted slightly from the heavy influx of European brands that was seen in previous decades. According to The Ivey Business Journal, emerging economies such as those of Brazil, Argentina, Colombia and others represent the fastest-growing middle class consumer markets in the world. Nearly one billion potential customers are beginning to earn enough discretionary income to afford quality brands and quality consumer experiences. At the same time, many of these markets are just now seeing widespread penetration of the Internet and social networks – in societies where upwards of 60 percent of the population is under the age of 30. According to global consulting firm ATKearney, Brazil has 80 million Internet users who spend $10.6 billion online per year, the largest total in Latin America, and are expected to spend $18.7 billion by 2017.
Latest Trend: Investing in the eCommerce Sites of Emerging Markets
When it comes to fashion, the world has always focused and relied on Europe and the U.S. The latest trends have always graced European runways and eventually made their way to the U.S. However, this trend has taken a dramatic shift. Many emerging markets have become the focus of not only the fashion industry, but investors.
Many emerging markets are taking advantage of the use of technology and the internet by creating a series of eCommerce businesses. A great example would be Lazada, which is Malaysia’s premier online mall. The company has seen great success with location throughout emerging markets in Asia. The online mall has also received a staggering $100 million in investments over the last four months! This move is also a sign of how established fashion businesses in developed markets are continuing to look for ways to penetrate emerging markets.
Dafiti Acquires New Funding from International Investors Worth $ 65 Million
Brazil’s online fashion platform Dafiti announces its fourth round of investment stating a $65 million in funds towards the Latin American fashion house.
The newly acquired capital is used to support and improve on Dafiti’s logistical operations as well as to grow the company’s portfolio and brand extension in other Latin countries such as Argentina, Chile, Colombia and Mexico. While it is no surprise that Dafiti is looking to grow as the Brazilian market is on an all time high, only time can tell if expanding into other markets will prove to be as successful due to the fact that Argentina’s peso is fluctuating and suffering from inflation and corruption and political instability might increase. The international investors, however, who were led
Guest Blogger and 2012 FashInvest Capital Conference Participant Lubna Khalid Gives Us an In-Depth Look into the Beauty Industry
The worldwide beauty industry represents $382 Billion annually. The top 5 global beauty companies are Procter & Gamble, L’Oreal, Unilever, Estee Lauder Companies and Avon Products. This is an industry all about change, there are more new products, new ideas, new packages, new formulas and new shades brought to market every year, than in nearly any other business.
Generally, these trends tend to be cyclical, but incorporate new technology and delivery systems, frequently requiring education for consumers to fully understand. Even with these explanations, women often find it hard to believe some of the claims and over-promises. Many consumers, based on changing demographics, skin tones and special needs are still overlooked.
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From the Archives
Frenzoo Takes Things to Another Dimension
Hong Kong Based Startup Raises $1M Frenzoo, which was launched a few years ago by founder Simon Newstead, has raised $1 million in seed funding from investors in Asia, Europe, and the United States to create 3D lifestyle games for women. The major investors include Efficient Corporate, Siemer Ventures, K5 Ventures, and Metaverse Services. Besides the funding, Frenzoo will also add Doug Glen to its Board of Directors, whose previous experience with companies such as Mattel, Imagi Studios, and Harmonix will undoubtedly be of great strategic and technical use for Frenzoo.
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HEADS UP: MALLS COULD DIE SOONER THAN ANYBODY THINKS.
Department stores and specialty chains are in for a shock. Why no one sees it coming, and what retailers can do to survive. It’s no secret that malls are in danger.
