Agile Retail @ Lesara The Family Berlin, February 2018
Mar 16, 2018
Lesara strives to be the leading agile retail pioneer, with rapid revenue growth and geographic expansion.
Founders
A clear growth strategy with a successful supply chain model has allowed Lesara to expand at a very fast pace.
Current Investor Setup
Roman KirschCEO & Co-Founder
Matthias WilrichCOO & Co-Founder
Robin MüllerCTO & Co-Founder
2016 201720152014
* Extrapolated to FY
20152013* 20162014 2017
+300% CAGR
Rapid revenue growth and geographic expansion
Since the first days of Lesara, our supply chain agility has played an important role in our development
Fastest growing company – Europe (2016), Germany (2016, 2017)
One of the most important elements of the success story of Lesara is our supply chain work.
In 2017, Lesara has participated successfully in a number of supply chain competitions
“Lesara is the logic result of a long development: Online first, high efficiency,
low prices (…) and fast turnaround”
“Lesara stands as the global leader in agile retail”
“Lesara (…) has set up a remarkably efficient operation”
“Faster and smarter than Fast Fashion”
Lesara in the Media
Mass-Market : 50-60%
(Price points €5-€40)
Mid-Tier: 25-35%
(Price points €40-€150)
High-End: 15%
(Price points >€150)
Dominant Offline Players Dominant Online Players
Existing players are not up to excellence due to product quality & customer satisfaction (Chinese marketplaces) or time-to-
market & supply chain speed as well as product innovation (European players).
There is a huge window of opportunity for apparel companies targeting the mass market segment online
▪ Assortment: Width beats depth.
▪ Experience: Mobile beats desktop.
▪ Time to market: Fashion is not a commodity,
trendiness beats price.
▪ Speed: Reduced replenishment time reduces risk.
▪ Quality: Customer satisfaction is the basis for
sustainable success.
Deriving some lessons learned, here’s what we thought we’d consider when founding Lesara
Lessons learned from Fast Fashion Lessons learned from e-commerce
Innovative, agile supply chain management is the key to unlock an entirely new retail potential!
Our business model was built with a fundamental belief: supply chain should be the No. 1 enabler for our business success
To: Supply Chain as an enabler
The supply chain of a company enables a
company to sell products in a cost- and time-
efficient way
A different perspective has allowed us to focus on ways to always make our supply chain faster and more flexible
Traditional focus
Manufacture
goods
Order
placementDistribution
Customer
fulfillmentPlanning Transit
New focus
From: Supply Chain as a service
The products sold by a company should be
moved by the supply chain in an cost- and
time-efficient way
Since the first days of Lesara, our supply chain agility has played an important role in our development
Faster time-to-market for trend merchandise
tClassical
Retailer
Reverse-auction
factory quotations
Day 1
Data-driven trend &
merchandise selection
Day 0
Extensive research
(2 to 10 weeks)
Time-to-Market
(12 to 18 months)
Production
Day 2-7
Quality check of
product sample
Day 3-4
In-house Photoshoot
Day 4-5
Arrival in
warehouse
Day 8-9
Go-Live on Lesara
Day 10
SaleDay 10
Fastest trend sourcing possible!
Cutting the classical retailer’s trend-to-mass market time from 12-18 months to just 2-3 weeks.
Agility and speed keep proving that they’re fundamental
Agility + Speed: main growth drivers for growth
Source (without Lesara): Company data, Goldman Sachs global Investment Research.
Only a super-fast time-to-market allows a business model to shift from push to pull – and become more demand-driven
Lead Time / Time-to-Market
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Pre-season Commitment (% products)
Pull (test-and-repeat)
Pull (test-and-repeat)
Pull (feedback loop)
Push
100%: 2-3 weeks
50%: 3-5 weeks, 15%: 8-12 weeks, 35%: 26 weeks
20%: 8-12 weeks, 80%: 26-39 weeks
Push/Pull Approach
50%: 2-4 weeks, 50%: 8-12 weeks
Agile Retail – why data is the key to success
Data driven trend detection Fast inclusion into assortment
Smart Replenishment
▪ Forecast future demand
▪ Optimal quantities ordered at the right time
▪ Top-sellers never out of stock
▪ Strictly avoiding overstocks
Karl Lagerfeld-driven approach Data-driven approach
Using data, testing and a strong operational backbone to improve the performance of products.
Testing between indoor and outdoor, additional perspectives and focus
Using data, testing and a strong operational backbone to improve the performance of products.
Testing between indoor and outdoor, additional perspectives and focus
+5272%
Time-efficient replenishment reduces inventory depth, and allows to carry more variety and avoid discounting needs
Styles on offer % of products sold at full price
Prime store space re-merchandised
0% 20% 40% 60% 80% 100%
H&M
Boohoo
Zara
Lesara
Daily
Weekly
Every two
weeks
Every two
weeks0
10000
20000
30000
40000
50000
60000
At one point in time Over course of year
Agile Retail concepts outperform even fast fashion retailers in terms of inventory turns, classical retailers fall behind
Inventory Turnover
Source: company reports, data from financial research companies
Classic Fast Fashion Agile RetailPlatform models
0
2
4
6
8
10
12
14
Lesara BoohooInditexH&MEsprit Gerry Weber AsosYoox Zalando VIPshop
Teamwork has allowed us to achieve challenging milestones with focus on speed and performance across all of our history
Website Launch First Internationalization Chinese Warehouse
4 weeksIdea
Finalization
5 weeksIdea
Finalization
8 weeksIdea
Finalization
Our value is about more than just words: NO to Limits – YES to Opportunities
Erfurt Go-Live: Coming up in H2, our own distribution center
We’re making fast progress in our 30,000 m² distribution center, ready from the ground up in just a few months!
In short: we are still confident we chose the right direction
Only a super-fast time-
to-market allows a
business model to shift
from push to pull
JIS, fast replenishment
reduces depth, and thus
allows to carry more
variety at lower risk
Agile Retail concepts outperform even fast fashion
retailers in terms of variety and inventory efficiency
(Semi-)integrated own-
or no-brand players are
achieving higher gross
margins
Growth rates show: it is
much easier to scale
more fashionable direct-
sourcing concepts
Customer satisfaction
leaders were always the
winners that came out of
any “retail decade”
Lesara combines Western (fast) fashion experience with Eastern direct sourcing
features
Our supply chain enables us to sell products in a cost- and time-efficient way