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Tag: GFG

  • GFG Group appoints CEO

    GFG Group appoints CEO

    Online fashion destination Global Fashion Group (GFG) has appointed co-CEOs, who will take up their roles on February 1.

    Patrick Schmidt and Christoph Barchewitz will be responsible for the overall strategic and working development of GFG, working with the management teams of GFG’s fully owned regional businesses Dafiti (Latin America), Lamoda (Russia/CIS), Zalora (Southeast Asia) and The Iconic (Australia/New Zealand), as well as minority-owned Namshi (Middle East).

    “Patrick and Christoph are the perfect fit for the next chapter of GFG,” says chairman Cynthia Gordon. “Patrick has built The Iconic into the market leader in its region, increasing revenue by eight times in four years.

    “Christoph has established a broad understanding of all five regional businesses through his role on the board of GFG since 2015. He was responsible for key strategic alliances such as the Ayala/Zalora joint venture in the Philippines and the Emaar Malls/Namshi partnership in the Middle East.”

    Schmidt says that when he joined The Iconic four and a half years ago, he saw a company with unlimited growth potential. He will continue as CEO of The Iconic until a successor is named. Before The Iconic, Schmidt founded Groupon Australia and later oversaw its Latin American business.

    Barchewitz joined GFG from Kinnevik, where he oversaw the e-commerce investment portfolio. He led the creation of GFG in 2014 and has served on its board since 2015. P

    Meanwhile, Kinnevik CEO Georgi Ganev will join the GFG board while Romain Voog steps down as CEO after nearly three years.

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  • Zalora Indonesia future under a cloud

    Zalora Indonesia future under a cloud

    Is Zalora Indonesia for sale? Fresh after selling off a chunk of the Philippines business, Rocket denies further Asian withdrawal.

    Last week, Ayala announced it will buy 43.3 per cent ownership in Zalora manager BF Jade E-Service Philippines for an undisclosed amount, taking its ownership to 49 per cent. The investment marks Ayala’s first foray in eCommerce.

    But what of Zalora Indonesia? Parent, German eCommerce investor Rocket Internet, is also said to be in negotiations with Indonesian retail conglomerate Map Group, according to a report by TechCrunch. Other reports say it is withdrawing entirely from Indonesia. But Zalora PR director Christopher Daguimol denies a retreat from Indonesia.

    “Southeast Asia is a diverse region, and we will always look at adapting our strategy to local country dynamics and opportunities. Our objective is to build the online fashion leader in each of our Southeast Asia markets,” Zalora said at the time it announced its Philippines divestment.

    Zalora sold off its businesses in Thailand and Vietnam last year.

    Map runs nearly 2000 retail outlets in Indonesia, including fashion outlets, and more in partnership with global firms like Marks and Spencer, and Zara. The publicly listed company has more than 22,000 employees.

    Fierce competition has started escalating in Indonesia, marked by layoffs by Berrybenka and SaleStock a few months ago, says Deal Street Asia. Giants like Lazada and MatahariMall.com are meanwhile steadily marching forward with both companies received major funding from global investors last year.

  • Revenue up 36pc for Zalora parent

    Revenue up 36pc for Zalora parent

    The Lazada and Zalora parent is paring back its losses after divesting operations in two markets.

    With operating losses nearly halved and excluding disposals in India and Southeast Asia, Global Fashion Group (GFG) has reported a 36.3 per cent rise in net revenue.

    Backed by Rocket Internet and comprising online fashion retail businesses in emerging markets, GFG says net revenue in constant currency rose 47.5 per cent to 456 million euros (US$512.73 million).

    GFG sold interests in Thailand and Vietnam for an undisclosed amount to retailer Central Group in April. It also sold its Indian fashion business Jabong to Flipkart for $70 million in cash in August.

    GFG raised 330 million euros in funding from existing investors in July, cutting the holding of Rocket Internet to 20.4 per cent.

    The company says adjusted losses before interest, taxes, depreciation and amortisation (EBITDA) narrowed to 67.6 million euros in the first half of this year from 120.5 million euros in the same period last year. The EBITDA margin improved to a negative 14.8 per cent in the first half from minus 33.4 per cent, which the company says was driven by tighter inventory management and cost-cutting.

  • New lifeline for sagging Rocket Internet fashion sites

    New lifeline for sagging Rocket Internet fashion sites

    Investors have injected US$339 million lifeline into GFG, which owns the struggling Rocket Internet fashion websites.

    Rocket Internet and others have sunk the euro 300 million into its Global Fashion Group, raising GFG’s valuation to €1 billion – which is about a third of what it was worth hardly a year ago, when it raised €150 million.

    Launched in Luxembourg in 2014, GFG is a holding company formed from a merger of five eCommerce fashion companies – India’s Jabong, Latin America’s Dafiti, Russia’s Lamoda, Middle East firm Namshi, and Zalora (Southeast Asia and Australia).

    GFG acting CEO Romain Voog says the financing will provide the group with the capital it needs to continue with its strategy of “building out its leading position” in the online fashion sector in emerging markets.

    Rocket claims GFG’s performance has improved in the past year, easing its losses and raising its adjusted EBITDA margin. But it has been struggling to gain market share, and pulled out of Thailand and Vietnam, one of the fastest-growing eCommerce and internet markets in Asia.

    And GFG’s Jabong business in India, considered the next big market after China, has reportedly been up for sale for months with its valuation eroded by a tenth in just a year. Meanwhile, rival eCommerce companies like Flipkart and Snapdeal have soared in value.

    Voog is optimistic the reduced losses combined with this funding round will help accelerate the GFG’s path to profitability while it expands. A third of the €300 million raised came from Rocket. Swedish investor Kinnevik was also involved, along with existing shareholders.

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  • Zalora Thailand and Vietnam to be offloaded

    Zalora Thailand and Vietnam to be offloaded

    Rocket Internet is selling its Zalora Thailand and Vietnam eCommerce fashion sites.

    This follows the Alibaba Group investing in Rocket Internet’s Lazada, valued at US$1.5 billion. Zalora, which raised more than $250 million, was once on an equal footing with Lazada, according toTechCrunch.

    Southeast Asia did not have service from Amazon or eBay when Rocket started Lazada and Zalora in 2012, but the two outlets have posted heavy losses and experienced slow market growth.

    Zalora, part of the Global Fashion Group (GFG), covers 11 countries across Asia Pacific, including Australia, Indonesia and Taiwan. While its revenue rose 78 per cent to US$234 million last year, its net loss blew out 36 per cent to $105 million.

    Meanwhile, Rocket has announced a new strategy that takes it back to its roots, launching early-stage startups. It sold India-based Fab Furnish this month and Foodpanda Vietnam last year, and is said to be seeking buyers for Foodpanda India and eCommerce site Jabong.

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