Fashioning a future in retail
SELLING clothes and accessories online is hardly a novel concept but Brisbane "fashion technology" entrepreneur Madeline Veenstra is hoping her new business will tap a niche online retailers have overlooked.
The co-founder of Wikifashion, an online fashion news and images repository modelled on Wikipedia, is now in San Francisco, where Veenstra and her boyfriend and business partner, programmer Coen Hyde, have launched Popbasic.
The site sells "mini monthly collections", a bundle of clothes and accessories priced between $50 and $100 and delivered free. Customers sign up to an email alert and are sent details of the collections each month. It is almost a monthly subscription, but without the obligation to buy.
The debut collection - designed by Veenstra and sourced from China - comprised a spotted blouse, two costume jewellery necklaces and a surprise gift. It was launched via social media in late January and sold more than 100 units, a break-even point for the venture, according to Veenstra. About 3000 potential buyers subscribed to the alert in the first two weeks.
Popbasic aims to undercut chains such as Sportsgirl in the under-30s market, but Veenstra is also planning premium and men's micro-collections.
No strangers to the rag trade, Veenstra and Coen co-founded Wikifashion in 2009. It is updated regularly by a team of 6000 mostly unpaid contributors, and has 70,000 regular users, most of them based in the US.
After Wikifashion was listed for funding by the Australian Small Scale Offerings Board last year, the pair prepared to take their business to New York, the world's fashion capital. When funding wasn't forthcoming, the pair decided to retain Wikifashion as a community-driven resource and headed to the west coast instead.
Veenstra said San Francisco's budding fashion technology sector was a better fit for the self-funded new business than the Big Apple.
Cheaper shipping costs and the absence of GST made the US an attractive location for online retailers, she said.
The vibrant west coast start-up sector was a bonus, as was the presence of a slew of fashion and beauty vendors keen to align themselves with the latest online store, she added.
"There are a lot of fashion technology meet-ups . . . it could be run out of Australia but the time difference makes things difficult and there's no beauty and lifestyle brands to partner with in Australia."
Opengear chairman and angel investor Bob Waldie said Veenstra's reasoning was sound.
"Australia is not a great place from which to grow a global technology business - and if that business involves manufacture and distribution of physical goods, then Australia is not even a sensible place," Waldie said.
But Brisbane Angels Group chairman John Mactaggart said some entrepreneurs were too quick to pack their bags.
"There is the perception that things are easier in the US, so few people spend the time to analyse ways to exploit the advantages of their local community that will give them a point of difference from the competition," Mactaggart said.
Frequently Asked Questions about this Article…
Popbasic sells 'mini monthly collections' — curated bundles of clothes and accessories priced between $50 and $100 with free delivery. Customers sign up for an email alert and are sent details of each month's collection; it's like a subscription service but without an obligation to buy each month.
Popbasic was launched by Brisbane entrepreneur Madeline Veenstra, co‑founder of Wikifashion, together with her boyfriend and business partner Coen Hyde, a programmer. Veenstra designs the collections and the pair have prior experience building an online fashion resource.
The debut Popbasic collection — designed by Veenstra and sourced from China — included a spotted blouse, two costume jewellery necklaces and a surprise gift. Launched via social media in late January, it sold more than 100 units (the venture's break‑even point) and attracted about 3,000 people who subscribed to the alert in the first two weeks.
Popbasic aims to undercut established chains such as Sportsgirl in the under‑30s market by offering low‑priced, curated micro‑collections. The founders also plan to expand into premium and men's micro‑collections to broaden their appeal.
The founders cited San Francisco's budding fashion technology sector, cheaper shipping costs, the absence of GST in the US, and the presence of fashion and beauty vendors and meet‑ups as advantages. They had considered New York but decided the west coast was a better fit for a self‑funded start‑up.
Wikifashion is an online fashion news and images repository modelled on Wikipedia, co‑founded by Veenstra in 2009. It is updated regularly by about 6,000 mostly unpaid contributors and has roughly 70,000 regular users, most of them based in the US.
After Wikifashion was listed for funding by the Australian Small Scale Offerings Board, the founders prepared to expand to New York. When funding didn't materialise, they kept Wikifashion as a community resource and decided to self‑fund their new retail venture from the US west coast instead.
Opinions in the article differ: angel investor Bob Waldie said Australia is not a great place to grow a global technology business involving manufacture and distribution of physical goods, supporting the founders' move. Brisbane Angels Group chairman John Mactaggart cautioned that some entrepreneurs are too quick to leave and should first explore local community advantages that could provide a point of difference.
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