The online retailer The Iconic (officially named Internet Services Australia 1 Pty Ltd in Australia) that popped up in 2011 and started laying waste to its bricks and mortar competitors is now itself in trouble.
Recent reports have emerged that The Iconic, which promises excellent service and speedy delivery as its selling points, is hemorrhaging both money and staff as it tries to cut costs to stop the bleeding.
From August 2011 to December 2012, Iconic had revenue of $30.6 million but a loss of more than $44.7 million.
The company’s owners, the German Samwer brothers have used a similar model of doing business that has led to great success in Germany, India, Singapore, Poland and the Philippines through their head company, Rocket Internet.
Internal documents from the company that had been obtained by the media show that the company’s business plan is to jump into new markets and become number one at any cost using the promise of free, overnight delivery.
And whilst it has worked in other markets, it seems to have stumbled in Australia so far.
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Tags: Australia, business, The Iconic
