What inspired us to develop this business idea is the current situation of local commerce. We all are from small towns with several local business and they are suffering a lot. That is why we want to create a new concept to help them to save what they created long time ago.
The local retail commerce needs a way to face the post Covid-19 crisis because regarding the forecasts of the economical impact, it is expected that 15% of establishments on the hospitality sector will have to close due to the reopening rules; besides, there will be a decrease of 50% in the european textile and clothing sales.
These are just some data that show the little capacity that the local retail commerce has on adapting to the change, as well as the lack on tech knowledge it has.
How can this be changed? In this SWOT analysis there are some clues on how to support the sector and take advantage of the changing environments to push the local retail commerce.
Weaknesses of the problem:
- Lack of tools and resources to be close to customers during the pandemic.
- Little knowledge regarding technology.
- Lack of innovative problem solving culture and capacity to adapt to the changes, new rules and consumption patterns.
- Little financial muscle and money flow.
- Consequences of the Record of Temporary Employment Regulation.
- Little optimization of resources regarding stock management, inventory, supplies...
Strenghts of the problem:
- 100% access to the internet and phones.
- Faithfull traditional customers.
- A change in pattern: prioritization of national commerce instead of the international one during the covid-19 and post crisis.
Threats of the problem:
- The cessation of activity and the loss of purchasing power of families
- A decrease of sales.
- Business closures because of the reopening rules.
- Social fear of crowded places like shops, bars...
- Access to suppliers.
Opportunities of the problem:
- Exponential growth on the online sales.
- Public institutions’ initiatives: consumer credits, discounts, fundings, aids… to push the national commerce and businesses.
Our value proposition: Boosting the local consumption through a local commerce marketplace that delivers monthly personalized boxes. “We are the Amazon of the 0 KM”
On the one hand, for the local retail commerce L-COMMERCE broadens their business lines while making them visible, bringing the offer closer to customers and gaining loyal customers through a recurrent business model; everything based on an easy technology access. On the other hand, the final customers will have access to attractive experiences of local consumption as well as personalized offers and shopping processes.
Local retailer: Person 1: food shops, restaurants, bars, caffes. +40 year old boss. 0-10 employers Typical neighbourhood business with traditional structure Loyal customers Lack of tech skills
Person 2: fashion entrepreneurs. 20-30 years old entrepreneur. 0-10 employers Concerned with environmental issues Little customers Tech skills, but little investment capacity
Consumer: Urban inhabitant 25-44 years old Medium-high purchasing power Early adopters: as a Deloitte study shows, men (42%) are more prone than women (28%) to consume through subscription models.
L-COMMERCE is a marketplace for local retailers that delivers monthly personalized boxes and enables e-commerce for this sector. We add a doc with more detailed information. A demo and a flowchart.
E-commerce: Electronic commerce will continue to grow at a rapid rate. The sector that will experience the greatest increase will be fashion, with a sales figure in 2023 of $ 757 billion.
The total volume of this market in 2023 is expected to exceed 2,500 trillion dollars, which would mean a growth of more than 75% compared to 2017, when the volume generated was 1,411 trillion dollars worldwide.
In 2015, the share of e-commerce in world retail was just 7.4%. If the forecasts are met, next 2020 the share of e-commerce in world retail will be 15.5% and, in 2021, 17.5%. Therefore, if these figures are really met, the share of electronic commerce within retail global will have increased by 10.1% in just seven years.
Subscription box: According to a study made by Deloitte, 36% of consumers surveyed are interested in purchasing products or services in a personalized way. Besides, it shows that people between 25 and 44 years of age base their purchase decision, fundamentally, on personalization (46%).
As for the results of a McKinsey study, it shows that the subscription market has increased 100% annually in the last five years. 15% of online shoppers in the United States are subscribed to one or more services on a recurring basis and 15% of the respondents subscribed to an online box and media service in the last year.
Impact of the solution on the crisis
- Facilitate the reactivation of operations without the need to make important investment.
- Contributing to the generation of income from other sources of entrepreneurship.
- Emotional / Solidarity
- New ideas development
- Making life easier for everyone, especially for those most in need
- Repopulate our production counties
- Opening the mind to new business and production opportunities,
- Achieving a decrease in the use of fossil fuels.
- Recovering the flora of each region.
Our development during the Hackathon:
Regarding the project’s development process, on friday we created the team and built a schedule in order to plan every step and back-casting of the hackathon. By then we already had identified the target we wanted to address or help with the project so that we could start Saturday focused on the same purpose.
During Saturday morning, we defined the specific problem after doing research on the internet and started the ideation process for the solution with some innovative dynamic to brainstorm and that is when our first Checkpoint happened. During the meeting with our mentor we agreed on working the business model for the second checkpoint in the evening, and that was exactly what we did.
During the afternoon we defined the solution and worked on the validation of both the problem and solution. With the feedback we built the value proposition, customer segment, market size, product brochure and business model canvas. On the Checkpoint 2 we agreed on working on the functional Demo for the next checkpoint on Sunday morning.
Sunday was all about prototyping and building our service’s minimum viable product as well as working on the final documents and videos we submitted: textual pitch, app flowchart, functional demo’s video and pitch video.
The necessities in order to continue the project:
- Validate the solution through our demo with our potential customers.
- Analyze case studies of companies working on the same problem.
- Look for a CTO in order to develop the software.
- Design the e-commerce.
- Seek funding through investors and subsidies.
- Keep contacting key partners: First of all, public institutions to get support and create a bigger impact.
The value of our solution after the crisis:
With the app, local stores will have the chance of doing a way of marketing for the businesses as every product will go inside a small box with the label of the store. With this, they can also test new products and see what consumers think about them. It is also a way of getting inside the online world and making traditional businesses digital. Even if they won’t need the service as a must for delivering products, they will still have a way of diversifying their business models.
We are Jone, William, Andoni and Borja. We are LCommerce, a very passionate team of socialpreneurs, committed to our environment. Thanks for such a great initiative. Together we will defeat the virus.