Bangkok Post : Making luxury affordable

SHOPPING

Somkiat Chaisuparakul remembers well how his first customer placed an order for a Prada bag costing 71,000 baht, on Sept 28 last year. Half an hour later, five other customers clicked to buy more handbags and it assured him that a potential number of Thais welcomed online shopping for luxury labels.

"Our first customer is also our first member, who later bought more Prada bags," said Somkiat. "After one year, we have 30,000 members, from office workers and insurance agents to physicians and 'hi-so' people. And it's only the beginning." Defined as a private online shopping club, Reebonz Thailand has proved to be a success and next month, Somkiat, its CEO, takes it to the next level by opening a customer lounge at Italthai Tower. Thus members also have the option to shop offline for their fave brand name products.

"There's a demand for luxury products and you don't need to do a market survey to confirm that," he said. "When we go to Siam Paragon and Gaysorn, my wife gets upset with me looking at other women but I'm actually surveying what brand names they carry."

His observation concluded that Thai ladies are fans of Prada, Gucci, Balenciaga, Hermes and Chanel, and becoming a Reebonz member they can get a better deal than buying at the brand-name stores.

For example, the price of a Prada handbag may be 20% less than the standard retail price because Reebonz buys in bulk. Moreover, customers can choose a 0% instalment plan for 10 months with credit cards.

Hop on the mobile boutique to find a bargain.

Members may even have the chance to buy a genuine Birkin, but without going on the waiting list. Somkiat rationalises that Asians view this big spending on luxury goods as an investment, like buying a house or a car.

"Reebonz's concept is 'Luxury you can afford', and our aim is to make quality handbags accessible to Thai women," he said. "It used to be something for hi-so people but today other women can own a Hermes handbag, just like how more and more people have iPhones."

The Reebonz Thailand website has around 40-50 visitors every minute, and it's busiest at noon and after 7pm. New arrivals are updated daily at 11am and members can get a preview before this time, hence they have a better chance to virtually grab the latest items.

Besides opening the luxurious customer lounge, Somkiat plans to take members for a shopping spree at Reebonz Space, in Singapore. Located in Raffles Place, the concept store offers upscale apparel, footwear and home accessories.

A selection of brand name products at the Reebonz Space, Raffles Place, Singapore.

The cyber business was actually launched in the Lion City, and the Thai venture is a partnership between Somkiat and his good friend, Samuel Lim, Reebonz's founder. Since its establishment in 2009, the online shopping destination now has a strong presence with over 300,000 members in 16 countries.

"Because of the 2009 economic recession, there were many stocks of luxury goods that could not be sold. So we seized the opportunity to buy them and start up a members-only online store for brand name products. The timing was right and we just did it," Lim said. "Our aim is to be Asia's biggest brand for online shopping. Every day, members have to visit our website otherwise they may miss out what we have to offer."

Reebonz's success is due to the trend for online shopping and its employment of flash marketing, which updates events featuring the latest offers, to attract members to click every day. In addition, the demand for luxury goods in Asia, particularly China, makes for a booming business.

"These trends make online shopping sustainable. While traditional retail business sees a growth of 10%, online shopping can be four to fives times bigger in sales each year," he said. "People may find going online more comfortable and convenient than going into a store at Siam Paragon. And it's important for us to build confidence and trust in online shopping. One of the challenges is to buy quality products, and as we grow bigger we have more negotiating power to ensure a good supply."

Big spenders on luxury goods can enjoy an online shopping spree. The Reebonz website is updated daily at 11am with the latest arrivals.

He assures the authenticity of the luxury goods otherwise Reebonz wouldn't be as big as it is today, with the expansion of the warehouse to accommodate business growth.

"Offering luxury labels, our online business has a 'sexy' image but behind the scene, warehouse operations demands a lot of hard work," he said. "Reebonz, however, is not a website, but a luxury experience, with our impressive packaging, customer service and offline shopping at the concept store and mobile boutique."

Reaching customers within seven working days with no shipping cost, the luxury goods will be delivered in a black box with a gold ribbon. This packaging concept entices the customer to untie the ribbon and see the surprise inside, and the name of Lim's online business actually comes from the word 'ribbons'.

"If it's delivered at the office, everybody will be asking, 'What's inside?'. When our members carry the handbags, friends will be asking, 'Where did you buy it?'. By word of mouth, the size of membership increases and we want our customers to tell other people that they're a Reebonz member," said Lim of his simple PR strategy.