Ultimate Hustle!!

[xavi22]

I just came across this interesting article about some German guys pretty much cloning every popular site in the U.S. and making it popular in other non-U.S. areas then reselling to the original founders for big $$$$. These guys are cut throat.

@MJ DeMarco Be careful about someone approaching you about selling some forum by the name of "la carretera rapida" . Any way, I'm not sure if something like this would be legal here in the States but I thought it was a worthwhile read.

http://thehustle.co/rocket-internet-oliver-samwer

 

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[Maxjohan]

Bunch of venture capital and not having to care about being profitable. Can do you wonders. I hope we see a big fat tech bubble soon. I think some companies and people need to be reminded, that profits matters. There are too many balloon valuations too in my opinion. I find it quite disgusting. Outside of tech, listed companies are mostly valued at like 15x-20x yearly profits. But in tech it goes to 100x and sometimes beyond that.

Time for a reality check and a bubble in 2016??

Here is one article on that Zalora that supposedly was sold.
http://www.forbes.com/sites/susancu...are-moving-toward-profitability/#7caefc022916

Nah, I'm not jelous at all. Just disturbed about blown up valuations and the kind of money that gets thrown in to these types of ventures. And I know Kinnevik well, as I am from Sweden. I just laugh at their stupidity. There's another big wealthy family here which is Wallenberg's and their company Investor. Which I respect as they aren't involved in stupid hyped up start up companies like this.

Here is a comment I found interesting on Quora:

There is a false sense of optimism there. Repeat purchase rates are very low, customer value is also negative once you take out the cost of acquisition which is all marketing driven mostly. There have been many places where other media outlets have talked about a revolving door of MDs. Entire exec teams in Malaysia, Thailand and indonesia have churned over completely. They have the 3rd CEO in charge, for now, the team seems to be dominated by Italian and Germans, low paid mostly and under tourist visa status.
Customer reviews are mostly negative , especially in Singapore where the entire call center was fired. Product selection is mainly cheap private labels from Chinese factories whose quality is pretty bad. And these poor products are sold at 50% margins.

Good luck becoming profitable and hitting the $1 bn mark from your huge current losses.

https://www.quora.com/Why-is-Zalora...y-so-optimistic-about-improving-profitability

Whatever it takes folks to make the Bling Bling Bling!! LOL.

 

[GreedyBGoode]

I believe the name you're looking for is Rocket Internet

 

[Seeker]

I really don't understand how this works. Why would the original company buy their own copy if it is not profitable? Even with huge capital they cant play the game forever. And if it really is a clone down to the color scheme why not simply sue the clone?

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[Maxjohan]

I really don't understand how this works. Why would the original company buy their own copy if it is not profitable?

Probably goes down to having the right contacts. Then add a lot of backslapping and stuff. Is my bet.

Maybe some scare tactics too. The reason Mark Cuban and his partner sold Broadcast for billions of usd. If I remember correctly from an interview Mark did, he mentioned they said to the exces that: "Look we are doing this and that, if you guys want to compete, you need to buy us out"... then they probably hyped their company up to be worth billions. Well, it was before the tech bubble. So many companies sold for insane premiums of money.