Three Years of Establishment, Sale Stock Soon Reaches Break-even Point and Profits

Platform E-commerce Sale Stock fashion claims to be close to break even (break even point/BEP) and is preparing to make a profit since it was first established at the end of 2014. This performance was supported by growth revenue doubled during 9 months after obtaining series B+ pendanaan funding worth Rp360 billion in 2017.

Unfortunately the CEO & Co-Founder of the Lingga Madu Sale Stock is reluctant to reveal more details regarding his claim in his joint interview DailySocial. "We on track to BEP, but has not been able todisclose when," he said, Tuesday (27/3).

Furthermore, Lingga explained, the company was basically built with a mission to serve 1 billion users, for that the strategy must be in line but healthy. Companies can't always implement marketing strategies that burn money to attract transactions, they need to think about how the business is sustainable for the future.

As a result, the mecca adopted by Sale Stock are companies such as Unilever, PnG, and Coca Cola that have been able to survive for decades by relying on profits alone. As a first step, this is proven through achievements gross margins which is rated on par with fashion companies E-commerce open on an international scale such as Boohoo, Asos, and Zalando.

"From inventory, Sale Stock only sell their own goods. We can cut inefficiency, then allocates most of saving to consumers and the rest to build the foundation so that the company can be bigger."

Therefore, he continued, Sale Stock is not a startup E-commerce who diligently seek new funding every year. The last funding announced by the company was a series B+ of Rp360 billion led by Gobi Partners and Golden Equator Capital, followed by MNC Media Investment, SMDV, Convergence Ventures, Kip, and Alpha JWC Ventures.

"The money we raise yesterday, enough to get to BEP. When it's BEP, it's delicious. We want to live from operations, we can, if we want to grow faster or expand regionally we can raise funds again. There are so many options after we can BEP and BEP it proves that our business is solid and business really."

Sale Stock's main business model is B2C, with no B2B at all, providing access to quality fashion for women -- as well as for men -- at affordable prices. The goods sold on the platform are the results of the manufacturer's own production working together to reach SME tailors scattered in various locations.

Production results are stored in the Sale Stock warehouse located in Cawang, then shipped using the services of a third party. The sales channels used by Sale Stock are multi-platform, including applications mobile devices, websites, LINE, WhatsApp, BBM Channel, and Instagram that have been supported with help chatbot "Soraya".

Soraya is customer service Sale Stock is available for 24 hours. Past chatbot In this case, users can request product recommendations according to taste and accommodate up to payment.

Strategies to convince new consumers

Although Sale Stock is a business that is fully engaged in technology, the company provides a service with on-site payment processing (COD) called "Try First New Pay (CDBB)". The goal is to encourage new users who previously hesitated to shop for clothes on online sites for fear that they would not fit when the order arrived.

In this service, users are welcome to try on clothes for 15 minutes after the courier arrives at the appointment location. Users can return the product at that time if they don't like it and only pay for the product they like if the payment method chosen is COD.

This service pilot started in September 2017 for the Greater Jakarta area. From there, Sale Stock learned a lot and finally decided to expand this service to 250 cities throughout Indonesia to include Maluku, Papua, Kalimantan, NTT, NTB, and Bali.

"We decided to make CDBB a permanent service, not a periodic one that only exists periodically."

This service, according to Lingga, is indeed a condition with various inefficiencies because the potential for goods to be returned is quite high, especially since the service has been nationalized. However, these concerns can be overcome because Sale Stock products carry a 100% guarantee of the original appearance because the company designs and produces them themselves. The size is also uniform according to the benchmark, does not differ between products.

"We have made calculations [for CDBB services] if returns occur. However, from this study, we conducted internal research by asking respondents. The result was that 74% of them said that the first time they shopped online was through Sale Stock. This made us optimistic ."

It is claimed that Sale Stock has received 400 thousand consumers who use the service throughout Indonesia. In total, until now Sale Stock has sent more than 4 million orders with a total SKU of around 150 thousand items.

Sales Stock offices are located at six points with three locations, in Jakarta, Bandung and Yogyakarta with a total of around 700 employees, all of whom are local talents. The app for the Android version alone has been downloaded more than 5 million times.