eCommerce success: the story of Laagam (1)
Miguel Nicolás
23/03/2021
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There are always companies that do something different. The story of lagaam is one of the best examples that in eCommerce not everything has been invented.
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Everything about laagam is unique: from its story to its business model, which has not been reinvented (although there is some of that too): it has simply been raised based on new standards in a native way.Pay attention to the success story of the fashion brand laagam, because it is one of the most inspiring we have brought to this blog since we started analyzing why certain online businesses work.
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Who is behind laagam?
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We like to start by taking a look at the entrepreneurs behind the brands. This helps to see that they are people like us, who have believed in their idea and have found a way to make it a reality in terms of business.The project´s engine is Inés Arroyo, its creative director, a very important Catalan influencer in the fashion world. She has a great career despite being really young. Even so, the business would not be the same if it did not have Diego Arroyo, CEO and co-founder of the company and, sure, he is Inés' brother.They also have a third co-founder and COO, a close friend named Christian Badía who shares the "blame" for their success.
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INSIGHT: We will never stop saying that you always have to be able to combine different skills within a board. It's the best way to get the most out of the team; let everyone focus on the areas they are really strong.
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What is laagam?
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In business terms, they define themselves as a vertically integrated, digitally native fashion company. This vision is very interesting and, if we analyze it term by term, it is also very revealing.
- Laagam is a women's fashion eCommerce, but before going into segmentations, let's continue with the rest of the attributes of this brand.
- It is digital native since the day it was born and has developed its business exclusively online.
- It is vertically integrated, as it absolutely controls the value and distribution chain. They design their garments, manage manufacturing, online sales and distribution.
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INSIGHT: Whenever it is possible to supervise and act on all aspects of the company, as in this case, you will have the advantage of absolute control. Strategically, you will even be able to make far-reaching changes very quickly and you will have a 360° view of what is happening in the business.
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To these 3 pillars of its business model we should add one more: laagam is a brand that produces in proximity. Its workshops are located in Spain and Portugal. This is an added value when the vast majority of its competitors work with China or Asia in general.This, in fact, is not due to casual reasons. It is true that this decision is influenced by the importance given to control and final product quality. But the distribution model itself also has a great deal of weight, in which immediacy is a priority, and which we will talk about at length later on.
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INSIGHT: Your production model conditions your business model. Therefore, both must be properly aligned when the time comes. laagam simply could not fulfill its commitment to its customers if it had to import its product from other countries.
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Store without stock and collections
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We have been seeing stores without stock for some time now. Let's say it is not the most common thing, but it does not surprise us that much.What does seem revolutionary is to create a fashion brand that does not stick to the classic collections that are usually marked by the seasons. At laagam they have a much more elastic and fluid concept of how things should be.
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Inés, in her role as creative director, proposes new models that are presented weekly to her potential clients. Production is directly on demand: if 100 blouses are ordered, 100 blouses are made and delivered in 10-15 days once the sale is closed (hence the importance of proximity production).
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INSIGHT: In fashion, it is especially delicate to err in stock calculations, since collections depreciate very sensitively. With this strategy, we achieve 100% optimization of the model with the sale of everything produced and, at the same time, we manage to break the seasonality that conditions so much other competitors in its segment.
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Innovación en la comunicación
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It seems logical, if you are characterized by having a different business, is that you are able to communicate it in a different way. If you bet on the same channels and the same type of creativity as everyone else, you are missing an opportunity to stand out.We insist that not everything has been invented: there is always an additional twist that can be applied. laagam, let's not forget, comes from Inés' previous experience in influencer marketing, so all her communication efforts have been focused on exploiting that strategy.While most fashion eCommerce share their budget between Google Ads (Shopping included), Facebook Ads, influencers, sponsorships... laagam has created its own mix that is super effective.In terms of PPC, they only carry a notable investment in Instagram Ads, but that is not all. They have a lot of faith in their organic reach and the link with the community that supports them.They have found a very effective formula by using Twitch to create a virtual showcase, or rather, a virtual catwalk, by combining their influence and video streaming.
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And not only have they been able to exploit video: their podcast is one of the most listened in Spanish on fashion, beauty and style.
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INSIGHT: Invest only in the channels that are going to bring you a profit; and, if you have the capacity, generate relevant content that projects the lifestyle your audience is looking for. laagam has done it this way and the result could not be better.
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As you may have seen, there are many interesting things in this success story that have only been lightly mentioned. We would like that this post give you a general view of the business. Let´s leave the details for a second very interesting post that we are already working on.
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What do think about the case of laagam? Has it given you any good ideas to apply to your business? Do not miss the next post about laagam.
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Images | Unsplash.