Wednesday, August 31, 2016
article: The rise and fall of Rocket Internet SE in India
Rocket Internet has fallen in prominence as quickly as it had risen—and no other market illustrates that decline more than India.
Since the start of 2016, Rocket Internet has sold Jabong and FabFurnish in a fire sale. Its other holdings Foodpanda and Printvenue are struggling to survive.
Rocket Internet SE is a Germany-based Internet conglomerate that copies business models proven in the US or China and adapts them to high-potential markets outside those two countries. The idea is simple: copy the original, hire young, hungry consultants and finance professionals as so-called founders to run the company, deploy massive amounts of capital to grow fast and overtake incumbents in two years or so, and sell at an attractive price.
Copy, adapt, hire (founders), overtake, sell.
Bad Q2 2016 for Rocket Internet SE? via AB Kinnevik.
Do you know that ALL European countries fit in Brazil, Russia, Africa or Australia?
It means: If you want to replicate a big success in Brazil, it will be as hard as the same to replicate it in ALL European countries, but in this case with 1/8 of population and the majority of the persons DO NOT own or WILL NOT use a credit/debit card to buy online!
They will prefer to research online and then buy offline.
Many if not most, USA, Canadian or European businesses models are unfeasible in Latin American countries, African countries, Russia or even Australia because transportation costs could be 10 times bigger than in Europe. http://onlinedatingsoundbarrier.blogspot.com.ar/2016/05/rocket-internets-ceo-oliver-samwer-on.html
All the domino should fall ... when they run out of money!