ensogo - e-commerce company : a case analysis
TRANSCRIPT
By:
FOR-IAN V. SANDOVAL
A Case Study on E-Commerce
Company that Failed
Ensogo is…
▰ An Australia-based e-commerce website
▰ Entertain, Social and Go (Ensogo)
▰Promote products, services and brand online through offering
attractive deals
▰Legal entity in 2009 as Thailand’s first social shopping website;
▰ In July 2011, Ensogo became a part of The LivingSocial
▰ Also operated in Indonesia, Malaysia, Philippines,
Thailand, Singapore and Hong Kong 2
Ensogo is…
▰South East Asia (SEA) operation sold to Patrick Grove’s
iBuy Group in April 2014
▰iBuy drifted IPO to Australian Security Exchange (ASX)
renaming it as Ensogo in December 2014
▰43 million members in 25 countries
▰Shutdown SEA operation including Hong Kong
in June 21, 2016 3
Vision
The Ensogo vision is to pioneer Social Commerce
through supporting social responsibility. Social responsibility
is important for Ensogo members and business partners,
which is why a part of all Ensogo sales are donated to local
charities. Because transparency is valued by Ensogo Inc.,
the company shows the amount donated to charity,
contributed by their business partners and members.
4
Mission
The Ensogo mission is to make it more affordable for
consumers to shop, dine, travel, and do their favorite
activities.
5
Business Model
▰Advertising the brand, products, or services of their partner
business
▰Gain repeated business within the existing market by
selling discounted daily deals (restaurants, hotel
accommodations, spa services, beauty treatments,
activities and retail products)
▰ Success Fee from the vouchers they sell for businesses
6
Business Model
▰Offers performance marketing
▰Expand its business both nationally and internationally
▰Ensogo B2C Marketplace App in 2013
▰A new revenue stream charging sellers 15% charge
7
How it works?
▰ First, Go visit www.ensogo.com to update of daily promotion
▰ Second, Buy the voucher in 3-easy steps:
(a) log in or sign up to Ensogo site (free of charge)
(b) choose your promotion and confirm
(c) click to get your voucher, choose your online paymentoptions you will receive a confirmation through your email
▰ Print your voucher or show SMS message to the merchant
8
Factors Lead to the Closure of
Ensogo
▰ The Essence of Discounted Deals
▰ The Decision of Business Model Pivot
▰ The Hasty Layoff of Employees
9
Other reasons why Ensogo
Collapsed
▰ It held on to daily deals and flash sales for too long
▰ It was late in the marketplace game
▰ It couldn’t stem its losses and was burning cash
▰ It disappointed merchants
10
Findings & Conclusion
▰ Merchants weren’t receiving the money forproducts
▰ Reduced manpower
▰ Customer complaints
▰ Stakeholders withdrew investments
▰ Concept failed to generate loyal customers
▰ Looking for a new investment opportunities11
Findings & Conclusion
▰Ensogo is dead, but Catcha Group founder Patrick
Grove still has iFlix, iCar Asia, iProperty, and Rev
Asia to care about.
12
“Change almost never fails
because it’s too early. It
almost always fails
because it’s too late. –
Seth Godin
1313
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THANKS!Any questions?
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