Title: Digitizing Cross-Border Wholesale: Markato Revolutionizes Asia’s Retail Market
Introduction:
In the wake of the COVID-19 pandemic, the retail industry in Asia experienced a significant shift towards e-commerce and digital payments. However, one crucial aspect remained unchanged: the traditional sourcing practices of retailers in foreign markets. Markato, a cross-border marketplace founded by Brian Lo and Martin Li, aims to transform this process by offering independent brands a one-stop solution to manage their wholesale operations in Asia. With $5 million in seed funding led by Lightspeed, Markato launches in Hong Kong, signaling the venture firm’s first investment in the region.
I. The Untapped Potential of B2B Wholesale in Asia
A. Lo and Li draw inspiration from the success of similar wholesale markets
B. Independent brands lack time, resources, and knowledge to tap into the Asian retail market
II. Overcoming Cultural and Language Barriers
A. Independent brands struggle to navigate cultural and language differences
B. Markato’s digitization approach akin to Uber and Deliveroo’s disruption of their respective industries
C. Success stories of boutique brands partnering with Markato
III. Empowering Retailers and Independent Brands Through Personalization
A. Markato offers personalized product recommendations to retailers
B. Wholesale platform enables retailers to purchase from global brands at competitive prices
C. Risk reduction for retailers with flexible payment and return options
D. Brand analytics aid production and pricing decisions while reducing costs
IV. Lowering Costs and Streamlining Operations
A. Integration with a payment infrastructure to save on transaction costs
B. Lower cross-border fee costs through consolidated shipments
C. Markato’s impact on cross-border e-commerce for SMB buyers and sellers
V. Impressive Growth and Expansion Plans
A. Markato’s growth trajectory and brand partnerships
B. Future expansion into Singapore and beyond
C. Utilization of funds for team expansion, proprietary technology, logistics infrastructure, and data analytics
Engaging Additional Piece: Enhancing the Future of Cross-Border Wholesale
The rise of Markato and its innovative approach to cross-border wholesale opens up new possibilities and opportunities for retailers and independent brands in Asia. This digital transformation not only simplifies sourcing but also catalyzes the growth and global reach of boutique brands. Let’s delve deeper into the topic and explore how Markato’s platform can revolutionize the retail landscape further:
I. Leveraging Technology and Data Analytics
A. The role of advanced analytics in helping independent brands make informed decisions about production and pricing
B. Enhanced understanding of customer preferences through data analysis
II. Nurturing Sustainable Business Practices
A. Collaborating with eco-conscious brands and promoting sustainable practices
B. The potential for Markato to drive the adoption of responsible sourcing and production standards in Asia
III. Fostering Collaboration and Community
A. Building a network of independent brands for knowledge-sharing and collaboration
B. Enabling retailers to discover and support niche brands, fostering a sense of community
IV. Driving Economic Growth and Empowering Small Businesses
A. The role of cross-border wholesale in spurring economic growth in Asia
B. Empowering small businesses to compete on a global scale through efficient digital platforms
Summary:
Markato, the cross-border marketplace founded by Brian Lo and Martin Li, aims to transform Asia’s retail market by digitizing the traditional sourcing practices of retailers. With a focus on independent brands, Markato provides a centralized platform for brands to manage their wholesale operations in Asia. The platform offers personalized product recommendations, competitive wholesale pricing, flexible payment and return options, and brand analytics. Markato’s growth has been impressive, with partnerships forged with 200 brands and plans to expand to 2,000 buyers and 2,000 brands in the coming months. By simplifying cross-border wholesale, Markato aims to lower costs, streamline operations, and empower both retailers and independent brands in Asia. In the future, Markato’s digitization approach has the potential to shape sustainable business practices, foster collaboration, and drive economic growth in the region.
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During the pandemic, almost all retailers in Asia established an e-commerce presence and adopted digital payments. But one thing that didn’t change was sourcing, say the founders of the Markato cross-border marketplace. Retailers still need to travel to foreign trade shows, cold email new brands, and fulfill orders by filling out forms and purchase orders. Markato wants to change that with a cross-border marketplace focused on independent brands that also allows them to manage their wholesale operations in Asia in one place. The startup launches today in Hong Kong with $5 million in seed funding led by Lightspeed, marking the venture firm’s first investment in Hong Kong.
Markato was founded this year by Brian Lo and Martin Li, who previously worked at Deliveroo and Uber respectively. The two told TechCrunch in an email that they believe there is huge potential for the B2B wholesale business model in Asia, the world’s largest retail market, and were inspired by the success of similar wholesale markets. They wanted to work with independent brands because many lack the time, resources, and knowledge to tap into the Asian retail market.
Lo and Li said independent brands often have to build local teams or work with traditional wholesalers to overcome cultural and language differences when selling to new markets. Just as Uber and Deliveroo digitized the transportation and food industries, Markato is focused on digitizing the process of bringing boutique brands to foreign retailers. Some examples of the brands she works with include ceramic brands Jore Copenhagen and Ini Ceramique, natural wellness line Nala Care, candle studios Ambustum and Stan Editions, and jewelry brand Gisel B.
Markato founders Brian Lo and Martin Li.
For retailers, Markato offers personalized product recommendations, making it easy for them to discover new brands. It then allows them to buy at wholesale prices from European, American and Australian brands by adding volume. Markato offers a 60-day buy now, pay later option, and 90-day free returns, making it less risky for retailers to carry unsold inventory and more likely to try new products. In turn, brands get analytics that help them make production and pricing decisions, while reducing customer acquisition and operating costs.
Lo and Li said that Markato can lower the price of cross-border e-commerce for SMB buyers and sellers by integrating with a payment infrastructure that saves foreign currency and other payment-related transaction costs. It can also ensure lower cross-border fee costs for marketplace users to reduce shipments, which are further reduced by consolidated shipment volumes.
Markato now has 19 employees and has worked with 200 brands. About 80% of the brands it offers were not previously available in Asia and 90% are sold exclusively through Markato. The platform currently has over 4,000 products listed and plans to grow to 2,000 buyers and 2,000 brands in the coming months. Some of the retailers it currently serves include kapok, Co Ninety Select Shop, TLE Wellness Select Shop and JIA Group.
Markato plans to expand throughout the region soon, starting with Singapore. The funds will be used to hire engineering, product and business development teams, and develop proprietary technology, work on its logistics infrastructure and develop its data analytics.
In a statement on the financing, Lightspeed partner Rahul Taneja said: “We are excited to partner with Brian and Martin as they build Markato. Their vision of serving independent businesses in Asia and enabling access to the best products globally is compelling. The initial progress on the platform is very encouraging and we strongly believe that they are the perfect team to transform the end-to-end experience for retailers in Asia.”
Lightspeed backs Markato, a marketplace that helps independent brands break into Asia
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