Traditional businesses enter online trade

Traditional businesses enter online trade

“Modiseh” online store in the field of fashion and clothing has more than 20.000 products and more than 100 people are working there. Modiseh is a part of Golestan group investment in online sector. This big company has entered online business and here we talk with its directors.

 

Where does Modiseh start from?

“Modiseh” online store in the field of fashion and clothing has more than 20.000 products and more than 100 people are working there. Modiseh is a part of Golestan group investment in online sector. This big company has entered online business and here we talk with its directors.

 

Where does Modiseh start from?

About two years ago, E-commerce became known to Golestan group. I and Hadi Arbabi, CEO of Modiseh, provided a business plan to Golestan group. This plan was related to online retail sale of fashionable products. Since the beginning of 1394, this company started its online business and began to prepare software infrastructures, distribution and stock systems and workforce. Then in Mordad 1394 the site was launched.

 

How much do you grow in this period?

We became the third Iran e-commerce within 7 or 8 months. Our warehouse is very big which is about 10.000 square meter. This is one of our advantages.

 

Which businesses are the first Iran e-commerce companies in your opinion?

DigiKala and Bamilo

 

DigiKala announced that it had 2000 sales per day in 1392. Nowadays its sales should be more than 6000 per day. So you should have 2000 sales daily as a company in the third place?

You can estimate it. We are the third e-commerce in Iran right now!

 

What is the advantage of having a warehouse for online retail businesses?

In this way we don’t encounter the risk of not having inventory and we can send orders on time. Moreover, business owner can buy goods at the right time for example when producers offer seasonal big sales.

 

How many products do you have in your stock right now?

More than 20.000 Items

Which facilities have you used to progress in your job?

We imported a strong platform from abroad and we use global standard ERPs in our back office. We can process 10000 orders per day.

 

How many people are employed through Modiseh?

Our workforce consists of more than 100 people.

 

What happened than Golestan group decided to enter online business? Did you propose the idea?

Golestan was familiar with internet sales. Hadi Arbabi was IT manager of Golestan group and this group was active in the field of technology.

We were the first company which had launched SIP and we had a strong data center. On the other hand, we had enough experience in online sector. We had Hyper Clubs which was a social network. We also had Golestan Farm game. We have online sale of automobiles. Thus, because we have experience in web, we proposed Modiseh to directors.

 

Why did you think that you would succeed?

We had enough experience and specific infrastructures. These two factors are important for being successful. Another factor is investment which could be gained by using group capacities.

 

Do you consider yourself a successful business?

We don’t consider ourselves a startup because all we do is online retail. The one who has many experiences in logistics, transportation, warehousing, inventory control system and etc. can be successful in E-retail. Also back office is very important. We had all these capabilities in Golestan group and put them together and added a new business to it.

 

Most of internet business owners are young people who have little capital or graduates from universities who don’t have much experience. But you used infrastructures and financial aid of Golestan group. How much did these benefits help you?

We could become successful in 8 month but if other startups want to reach us they should spend about 5 years to become something like us. Previous experience and financial support are very important. I think startups can’t be successful in the field of E-retail because they can’t compete with big and strong companies like us.

I think startups should not enter internet sale of clothing, foods or even electronics because they need large capitals and experience. They should pay tax and spend large amount of money to be survived and become successful.

 

Has Modiseh have paid large amount of money for advertisement?

Yes. Startups should do businesses which are mostly based on users’ involvement.

 

Don’t you think that DigiKala is successful? Because DigiKala is a startup in the field of E-retail.

I think situation at the time of Digikala was different. This business had grown when macro investment was done in it. Digikala is still in investment stage. It should invest so that others can’t compete with it.

 

Don’t you have rival? Who are your rivals?

Our most important rivals are physical clothing stores across the city.

 

  Why do you think so?

These stores don’t pay value added tax. They have smuggled goods but we don’t. So they don’t pay taxes. We have some advantages over them but in general they are our rivals because there is no big online store that works in our field.

 

Clothing sector is different from digital goods. Because people prefer to touch clothes and then they buy. This is a problem. What are your solutions for this problem?

We focus on culturalization of online purchase. There are even people who don’t use smartphones. In Iran the share of E-retail is 5 percent. This figure is significant and we can invest on it.

There are some obstacles in buying clothes online including size. What are your solutions in this regard?

This is a problem but we see that people even in Telegram sell clothes. We have found that online purchase is not done at once. That is, a person sees and selects a product and one or two days later after getting enough information, he/she buys it. Another issue is related to the texture of clothes. People prefer to touch them. In this regard we have tried to produce content, high quality videos and pictures so that buyers can see products. On the other hand, they can return the purchased good within 7 days. There are two options in the site: one is “size or pattern was not good” and the other is “I didn’t like it”.

 

Have a large number of goods returned?

We had returned goods but at the normal level and it actually helped us to know for example which color has least customers. We started with selling toys, decoration products and child wear because we were not sure about the type of clothes which are very popular. In fact people and the market have led us to clothing.

“Modiseh” online store in the field of fashion and clothing has more than 20.000 products and more than 100 people are working there. Modiseh is a part of Golestan group investment in online sector. This big company has entered online business and here we talk with its directors.

 

Where does Modiseh start from?

About two years ago, E-commerce became known to Golestan group. I and Hadi Arbabi, CEO of Modiseh, provided a business plan to Golestan group. This plan was related to online retail sale of fashionable products. Since the beginning of 1394, this company started its online business and began to prepare software infrastructures, distribution and stock systems and workforce. Then in Mordad 1394 the site was launched.

 

How much do you grow in this period?

We became the third Iran e-commerce within 7 or 8 months. Our warehouse is very big which is about 10.000 square meter. This is one of our advantages.

 

Which businesses are the first Iran e-commerce companies in your opinion?

DigiKala and Bamilo

 

DigiKala announced that it had 2000 sales per day in 1392. Nowadays its sales should be more than 6000 per day. So you should have 2000 sales daily as a company in the third place?

You can estimate it. We are the third e-commerce in Iran right now!

 

What is the advantage of having a warehouse for online retail businesses?

In this way we don’t encounter the risk of not having inventory and we can send orders on time. Moreover, business owner can buy goods at the right time for example when producers offer seasonal big sales.

 

How many products do you have in your stock right now?

More than 20.000 Items

Which facilities have you used to progress in your job?

We imported a strong platform from abroad and we use global standard ERPs in our back office. We can process 10000 orders per day.

 

How many people are employed through Modiseh?

Our workforce consists of more than 100 people.

 

What happened than Golestan group decided to enter online business? Did you propose the idea?

Golestan was familiar with internet sales. Hadi Arbabi was IT manager of Golestan group and this group was active in the field of technology.

We were the first company which had launched SIP and we had a strong data center. On the other hand, we had enough experience in online sector. We had Hyper Clubs which was a social network. We also had Golestan Farm game. We have online sale of automobiles. Thus, because we have experience in web, we proposed Modiseh to directors.

 

Why did you think that you would succeed?

We had enough experience and specific infrastructures. These two factors are important for being successful. Another factor is investment which could be gained by using group capacities.

 

Do you consider yourself a successful business?

We don’t consider ourselves a startup because all we do is online retail. The one who has many experiences in logistics, transportation, warehousing, inventory control system and etc. can be successful in E-retail. Also back office is very important. We had all these capabilities in Golestan group and put them together and added a new business to it.

 

Most of internet business owners are young people who have little capital or graduates from universities who don’t have much experience. But you used infrastructures and financial aid of Golestan group. How much did these benefits help you?

We could become successful in 8 month but if other startups want to reach us they should spend about 5 years to become something like us. Previous experience and financial support are very important. I think startups can’t be successful in the field of E-retail because they can’t compete with big and strong companies like us.

I think startups should not enter internet sale of clothing, foods or even electronics because they need large capitals and experience. They should pay tax and spend large amount of money to be survived and become successful.

 

Has Modiseh have paid large amount of money for advertisement?

Yes. Startups should do businesses which are mostly based on users’ involvement.

 

Don’t you think that DigiKala is successful? Because DigiKala is a startup in the field of E-retail.

I think situation at the time of Digikala was different. This business had grown when macro investment was done in it. Digikala is still in investment stage. It should invest so that others can’t compete with it.

 

Don’t you have rival? Who are your rivals?

Our most important rivals are physical clothing stores across the city.

 

  Why do you think so?

These stores don’t pay value added tax. They have smuggled goods but we don’t. So they don’t pay taxes. We have some advantages over them but in general they are our rivals because there is no big online store that works in our field.

 

Clothing sector is different from digital goods. Because people prefer to touch clothes and then they buy. This is a problem. What are your solutions for this problem?

We focus on culturalization of online purchase. There are even people who don’t use smartphones. In Iran the share of E-retail is 5 percent. This figure is significant and we can invest on it.

There are some obstacles in buying clothes online including size. What are your solutions in this regard?

This is a problem but we see that people even in Telegram sell clothes. We have found that online purchase is not done at once. That is, a person sees and selects a product and one or two days later after getting enough information, he/she buys it. Another issue is related to the texture of clothes. People prefer to touch them. In this regard we have tried to produce content, high quality videos and pictures so that buyers can see products. On the other hand, they can return the purchased good within 7 days. There are two options in the site: one is “size or pattern was not good” and the other is “I didn’t like it”.

 

Have a large number of goods returned?

We had returned goods but at the normal level and it actually helped us to know for example which color has least customers. We started with selling toys, decoration products and child wear because we were not sure about the type of clothes which are very popular. In fact people and the market have led us to clothing.

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