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

14

THANKS!Any questions?

You can find me at

https://web.facebook.com/forian.sandoval

or e-mail me at

forian.sandoval@lspu.edu.ph