Apparel label Quicksilver has over the years established itself as a Surf Giant and is known to teens and youngsters across the globe since its founding in 1969.
Quicksilver has also throughout the years engaged the use of huge influencers in and outside of the Surfing community to stand for their brand image and today can be found in stores across the globe.
But the Australia brand recently found itself filing for Chapter 11 bankruptcy protection for it’s United States Division in September and trading of their shares has since been suspended. This is after it’s share prices dropped over 80 percent this year as the company try to fend off accounting issues & shipping cost. In March, Quicksilver was forced to delay it’s 1st quarter reports of it’s earning with due to a “revenue cut-off issue”.
In it’s bankruptcy filing, Quicksilver listed over $100million of assets but with $500million worth of liabilities.
CEO Pierre Agnes said in a printed statement “After careful consideration, we have taken this difficult but necessary step to secure a bright future for Quiksilver.”
While this filing is only for Quicksilver’s United States division and they have stated that their Asia Pacific and European business is doing well, the fall of such a retail giant still brings a chill up our spine.
When i speak to most Entrepreneurs in the retail space, most of them seem to have this ideology that they should have or is working towards having a physical brick and mortar store. Many a times, entrepreneurs grasp on to the believe that “if they have more money, to own a shopfront or for marketing, they would succeed and be rich.”
But the fall of Quicksilver offers a rude awakening as we realize that as a startup, we probably wouldn’t have as much Money as Quicksilver did for marketing but still, a household name such as Quicksilver would fall despite having shops in internationally.
My point is, while having a physical shop is a good to have in the long run, is it really necessary at the very beginning especially in a country when rental prices can easily cost you a hand or a leg? Should you not be turning to Digital Marketing instead? Shouldn’t we as a startup, keep costs low at the very beginning? Web designer fees are a complete steal even if it’s coupled with the fees of Social Media marketing or SEO services compared to local rental prices.
I personally feel that startups can sometimes go too fast too much at the very beginning. Again, while having a physical shop is a good to have in the long run, it is not necessary to do so at the very start. Instead, try creating a website and through SEO/Social Media marketing etc, build your audience and brand.
Singapore offers countless list of retail companies such as blogshops that have succeeded in the Digital Marketing space and that is for a very good reason. Because that is where consumers are turning to to look for products they need.
Do you feel the same way? Share with us your thoughts whether you agree or disagree in the comments below.