The fab.com of the Flash-purchase website may repeat Groupon's path

Beijing Time August 7 News, Bloomberg Web site published in Tuesday signed Sarah Follere (Sarah frier) analysis of the article. The authors believe that the fab.com of the global expansion of the flash-purchase site may be the same as Groupon's.

The following is an overview of the article:

In less than two years, Fab.com, based in New York, set up a branch in Germany and the U.K., then diverted British company staff to Berlin, where it eventually laid off more than 100 people. Now, fab.com the next target of global expansion to the Asian market.

Fab.com's decision to move to Asia was largely due to its 150 million dollar investment this summer, including China's Tencent, which made Fab.com's valuation a staggering $1 billion trillion. Last week, Fab.com CEO Jason Goldberg Jason Goldberg announced that the company received $10 million in investment from Singapore Telecommunications's investment arm.

Goldberg is clearly aware of the bias in the globalisation strategy it invests in. Fab declined to comment, however.

Bloomberg News received a copy of a letter from Goldsmith to employees. Goldberg wrote: "When we were shopping, we focused on opening a new store every day and pursuing the differences between European and American stores." But it's not the way that truly global companies operate. Companies that operate globally should sell the same goods around the world. Ikea, the Swedish furniture store, is doing the same, as is the case with Hints Outfitters, a British fashion retailer Asos. So I think that's what fab needs to do. ”

Fab's strategic realignment also highlights the difficulties of globalisation of start-ups that are still in the process of forming a business model. Groupon once also carried out large-scale offshore expansion, in part because of the "cottage" enterprise development is too fast. "These clones have copied everything we've done," said Mason, founder of Groupon, in a 2011 earnings conference call. "Groupon's global expansion is not ideal, business growth is too slow and the challenges inherent in group buying patterns are so painful." In the end, Groupon had to pull out of the Chinese market and its business in China was merged with another local group buying website.

But not every global attempt by a power-maker will reap disastrous consequences. Another flash-purchase website Gilt Groupe in Japan with SoftBank, its business has achieved a certain degree of success. Some companies ' executives are wary of globalisation's expansion. ZocDoc CEO Serus Massuri (Cyrus Massoumi), a new york-based online doctor's appointment platform, said he would wait until the company was mature enough in the U.S. to seek development opportunities overseas.

Fab or will follow in the footsteps of Groupon. Goldberg hastily landed Fab in Germany with the motive of cracking down on the Samvo brothers in Europe, known as "The King of Internet cloning". Once this goal is achieved, Goldberg's attitude towards the European market has changed 180 degrees. The company decided to open an online shop only outside New York, contrary to the practice of opening a physical store in Germany.

In an internal mail, Goldberg said it would be painful for it to do so in Europe, but it is good for the company's overall strategy, and most crucially, the company's European job cuts are not a financial issue and will not change the company's growth target for the entire European market.

Layoffs in Europe have led to a succession of employees, including the co-founder of Fab's takeover in Britain and the CEO of a company bought in Germany. In addition, Goldberg selected Maria Molande (Maria Molland), who is in charge of European affairs, also resigned in June.

In the Mail, Goldberg to employees that it plans to set up a 1 billion-dollar business in Europe. Maybe time will tell us the real answer.