How luxury brands are turning old inventory into opportunity whilst staying environmentally sustainable

OnTheList ties up with brands like Jimmy Choo and Armani for weekly, members-only flash sales.

Meeting consumers’ demand for luxury and lifestyle goods, whilst helping brands be more environmentally sustainable – OnTheList was launched in Hong Kong in 2016 with this dual goal in mind. A pioneering concept of members-only flash sales on luxury brands at discounted prices that last for only a limited number of days, OnTheList was a hit in Hong Kong, and in 2018 expanded into Singapore, and subsequently to Taipei this year.

OnTheList not only became popular with consumers by offering authentic quality items at affordable prices, it also pushed a social cause. OnTheList offered brands an eco-friendly way to move past-season merchandise that would otherwise sit in warehouses, get burned,
or end up in landfills.

With over 300 brands on their distributors list, and luxury partners such as Jimmy Choo, Armani, Ferragamo, Michael Kors and Furla on board, and plans to expand across the region, OnTheList is making strides with its unique business approach. Singapore Business Review speaks with Delphine Lefay, Co-Founder and CEO of OnTheList, to learn more about how the concept got its start, it’s unique business model, and its ambitions.

Tell us more about OnTheList (OTL) and how the platform is changing the retail landscape in Asia.
Founded in 2016, OnTheList (OTL) is a pioneering platform that holds weekly independent, members-only flash sales in Hong Kong, Singapore and Taiwan, each time featuring different international premium brands.

We offer brands an opportunity to clear past-season stock, turning old inventory into opportunity, and gain access to a wider consumer base. We also offer our customers the convenience of shopping online as well as offline. We believe we have a business model that appeals to both brands and consumers, and to date we have already successfully hosted over 400 flash sales in Hong Kong, Singapore and Taiwan. We have helped clear over one million items from partner brands, and built up a membership database of 220,000 shoppers since the inception of OTL three years ago.

How does OTL differ from luxury brands doing their own flash sales, or family and friends sales?
OTL is a service provider, managing all aspects of the sale for our partner brands – from operations and logistics to pricing strategies, providing the database and manpower. Typically, luxury brands will only do sales for family and friends once or twice a year.

OTL, on the other hand, has flash sales on a weekly basis. This gives our members something to get excited about and look out for every week.

Do your partner brands find it more effective to host sales through you? From a business standpoint, why only limit the flash sales to OTL members?
Yes, definitely. Because we manage all aspects of service, it frees up their limited manpower, especially since we are able to host such sales on a weekly basis. Our partner brands also value our qualified database as it allows them to expose their brands to a new target audience, on top of their existing database.

Over the years, we have managed to build a community of members. We have members who have visited almost all our flash sales. Having a membership program helps us curate and ensure that our luxury and lifestyle partner brands reach out to the right audience.

How did the business start? What made you expand to Singapore and Taiwan?
Before founding OTL, I spent a good part of my career in the retail industry and found that there was no channel to get rid of past-season merchandise sustainably. These excess items get stored in warehouses and take up valuable inventory space.

OTL was founded to fill this gap in the market, to help brands offload their excess stocks in a sustainable way. Expanding to Singapore and Taiwan was a natural plan of progression for us. There are many similarities among shoppers in Singapore, Hong Kong and Taiwan and a huge
demand for quality luxury products at affordable prices in these countries. One of our most memorable events in Singapore was with Moleskine.

Almost two items were sold every minute, with over 1,000 units sold on the first day alone. We have also received many requests from various brands that we have worked with to enter these markets.

Are there any key differences in the demand and consumer behaviours between Singapore and Hong Kong? What are the challenges faced when entering the Singapore market and how did you overcome them?
In terms of key differences, Singapore does not have four seasons, unlike Hong Kong. Tastes and preferences in terms of design also differ. This is why OTL has a wide list of partner brands, so that we cater to the different needs of different customers.

The initial challenge we faced when entering Singapore was trust in the brand from customers. Initially customers were surprised at the discounts we offered. However, through word of mouth and good brand education, more and more customers started coming to our flash sales once they understood where the products come from and how OTL is in fact helping our partner brands move past-season stock in order to be more sustainable.

How does OTL select its partner brands and what are some of your best performing brands? Which category of products performed the best amidst your Singapore audience and how are you looking to leverage on this trend?
We work with premium brands that offer premium quality products for our members. Within the luxury and lifestyle markets, there are different categories, and hence sales performance depends on the discount strategy, quality of the products, season of the sale, and the product offering.

Our job is to ensure that brands have a wide range of stocks available for the flash sales, and that the prices offered are the best in the market. Apart from luxury brands and leather goods, the other popular categories include fashion, beauty, wine and jewellery.

On the sustainability front, what else is OnTheList doing with partner brands besides supporting them with a platform for sustainable disposable of their excess products?
As our main goal is to reduce waste and environmental harm, we also encourage our partner brands to donate their leftover items to charity. In Hong Kong, items are donated to Crossroad and Mother’s Care to reach out and help people in need. We recently participated in a recycling programme at Lane Crawford which saw 3.4 tonnes of cartons and 146 kg of polybags recycled from the OTL showroom this year alone.

We also try to avoid using plastic bags, and encourage members to use our recyclable OnTheList shopping bag instead. This is starting to gain traction and our recyclable bags are becoming something of an icon in Asia.

How would you describe Singapore’s current start-up landscape? What advice would you give to start-ups?
Singapore has a very vibrant start-up scene, especially within the eCommerce sector. The country has made it easy for SMEs like OTL to enter the market in terms of administration, setup and ease of doing business.

My advice for entrepreneurs is to make sure the business model makes sense for the market and that there is really potential for the product or service. Try and test, and from there, learn and adapt.

Will the brand be expanding its footprint in Singapore and the wider Asian market? What's new for the brand in 2020 and beyond?
We have expanded into Shanghai and Beijing, and we are exploring new markets, including Korea, Australia, Dubai and Thailand. In Singapore, apart from adding more pop-up locations in the central district and engaging an extensive range of luxury brands, we will focus on sustainability and a more eco-friendly model, with more initiatives to reduce wastage in fashion and luxury.