18
de Maig
de
2017
Act.
18
de Maig
de
2017
A few days after announcing the merger with Go-PopUp, the leading German platform for the renting of temporary retail spaces, Karen Prats (Alella, 1987) is still getting used to saying farewell to the PopPlaces brand in order to lead the way to a new phase. A restless entrepreneur, she has not stopped travelling to make her idea a reality: joining forces in the pop-up sector. If a year ago she took the first step through the alliance with Smart Retail Hub, now she really means business.
Let's start at the beginning. How did the alliance with Smart Retail Hub come about?
We began in 2014 and we were always clear about wanting to be everywhere. However, little by little, we realised it was not so easy to replicate the same model when we still did not know 100% how it was going to work. Once we were clear about what we wanted, we started looking at the options for internationalisation and the first of those was getting on a plane and going to Milan to talk to a sales representative who could take our business there. That did not work out because it was very difficult to get this person to stick to the project. With Acció's Trade Missions we went to SIlicon Valley and to Israel, and I saw that wherever I went there was already a marketplace doing similar things as us. If that's the way it was, why not contact them rather than starting from zero? It was as simple as that.
How did that contact go?
We made a list of the ones that seemed the most relevant to us. We began contacting them, first on Skype and then in person.
The signing of this alliance was just a year ago. Why now merge with the German player?
That was the idea from the first minute. When I went to see the French it was with the message that it does not make sense to have 25 platforms all doing the same with different brands and teams. We were thinking that the larger we became the more complex it would be to merge, that the best thing was to do it as soon as possible, as there were only a few of us. We sat down with the French and the Germans, but we saw that merging three companies at the same time was very complicated. There is a logistical issue that, while in concept seems very easy, in practice is very complex. That's why it turned into something easier. We gave ourselves time to work together, to see whether we could bring in clients or not. And we came to bilateral agreements as a first step to becoming a single company with a single brand. For the moment we have done so with what seems to us the most relevant of all.
Are you considering the option that the other parties will also end up joining you?
The idea is to find the formula so that they join us not only with a commercial agreement, which still makes sense, but they they become our brand. We are now talking with each of them to see how we can do this.
How have the other players taken the merger between Barcelona and Berlín?
Everyone has congratulated us and they are very open to talking to us. The Italians, for example, are very receptive and now we have to find the way to make it work.
With this merger you have taken the PopPlaces platform and the German Go-PopUp, and located the HQ in Barcelona. Why here?
First because most of the team was already in Barcelona. We have seen that from here we can do a lot of things without the need for two different offices, such as content creation. And we have added three people who live here, but who are Germans, as well as keeping one person in Berlin.
How have the founding partners taken to this merger with your team?
It has been and continues to be one of the main challenges. Two companies with the same mission and vision, but with some values that are not the same. We had different ways of communicating or forming relationships. That is why we have put a lot into this. We have done various workshops on mission, vision and values together to develop what we had but taking from both sides. And the whole team has done this, not just the founders. We have redefined our business culture so that we are all aligned and we all understand that we are improving and have to take the strong points of each.
How does the merger affect the internal working of the company?
We have redefined roles but always aligned with the people. It has also affected us founders, who have gone from two to three. And that is also a learning experience for us that we have just begun, just like changing the name. It is a process that cannot happen one day to the next.
How have roles been distributed among the founders?
Each person's personality has an influence, what that person did and what they are good at. What David and I did has always been very well defined, we complement each other. And with Patrick, the founder of Go-PopUp, it has not been too difficult. He is very good at brand creation and as we are taking over his, it was clear that he had to continue with this line of work.
Another important point in the merger process must have been the opinion of the shareholders...
Obviously we took them into account from the beginning, but we have a lot of small investors and they do not constrain us in anything. Naturally, we explained everything to them and we took into account what they said, but as it was an operation that made so much sense it wasn't too difficult to explain. As for their interests, they remain the same or are better off. On the German side, because they are investors who are a little larger, perhaps there were some doubts, but in the end they too came on board.
Was the negotiation difficult?
Particularly with legal issues. From the idea to reality, to get it into a contract, you come across a lot of things. Perhaps it is not so complicated, but it is very long.
One of the first actions you plan is starting a funding round to open the doors to Asia. What opportunities do you see in this market to make it a priority?
All the countries we have been to was because we knew the market and the point they are at in our sector. After doing a little analysis, we realised that in Europe there are a lot of brands per person but relatively few commercial square metres. However, in Asia it is the other way round. There are a lot of commercial square metres, but very few relevant brands. And to that you have to add the social context, especially in China, with a growing middle class with money who want to spend it on foreign brands.
These differences of context will also affect the way into the market...
Our arrival in each place we will do it with someone local who knows what is going on. We won't get involved anywhere we don't know or where we cannot go accompanied by someone who really knows what they are doing. We always try to look for leaders in the places we are going. It would never occur to me to go to Asia alone, and less so China. But if you find the right person, yes.
What do large brands get out of pop-ups?
Each of them have their own objectives according to their brand strategy. For example, when landing in a new market, instead of opening a new shop for five years, they set up a pop-up. It is what Tesla is now doing in Barcelona. First they will do a test for three months and then they will decide if they want to stay or not. Another option is what we did with Vibbo, which wanted a physical space where people could meet. With Ikea we spent a month in Barcelona and Madrid in a small space with limited editions to introduce their product to the user, in the city centre.
Do they usually come back after these experiences?
Oh yes. For example, Kenay Home, a platform selling furniture online, tried it once and it is now part of their strategy. In every city they want to go to they set up a pop-up for three months and then close it. It gets them known in the city and then they continue selling online, which is their objective.
We will get to a point where everything is a pop-up or should it be seen as a complement to traditional retail?
There are studies that say that one out of every four shops will be a pop-up within 15 years. We do not aspire to 100% of the market. In the end it is just another channel of communication that will become increasingly related to e-commerce, who are the ones who have the most difficulty in making their products tangible.
Let's start at the beginning. How did the alliance with Smart Retail Hub come about?
We began in 2014 and we were always clear about wanting to be everywhere. However, little by little, we realised it was not so easy to replicate the same model when we still did not know 100% how it was going to work. Once we were clear about what we wanted, we started looking at the options for internationalisation and the first of those was getting on a plane and going to Milan to talk to a sales representative who could take our business there. That did not work out because it was very difficult to get this person to stick to the project. With Acció's Trade Missions we went to SIlicon Valley and to Israel, and I saw that wherever I went there was already a marketplace doing similar things as us. If that's the way it was, why not contact them rather than starting from zero? It was as simple as that.
How did that contact go?
We made a list of the ones that seemed the most relevant to us. We began contacting them, first on Skype and then in person.
The signing of this alliance was just a year ago. Why now merge with the German player?
That was the idea from the first minute. When I went to see the French it was with the message that it does not make sense to have 25 platforms all doing the same with different brands and teams. We were thinking that the larger we became the more complex it would be to merge, that the best thing was to do it as soon as possible, as there were only a few of us. We sat down with the French and the Germans, but we saw that merging three companies at the same time was very complicated. There is a logistical issue that, while in concept seems very easy, in practice is very complex. That's why it turned into something easier. We gave ourselves time to work together, to see whether we could bring in clients or not. And we came to bilateral agreements as a first step to becoming a single company with a single brand. For the moment we have done so with what seems to us the most relevant of all.
Are you considering the option that the other parties will also end up joining you?
The idea is to find the formula so that they join us not only with a commercial agreement, which still makes sense, but they they become our brand. We are now talking with each of them to see how we can do this.
 |
| Photo: Àngel Bravo |
How have the other players taken the merger between Barcelona and Berlín?
Everyone has congratulated us and they are very open to talking to us. The Italians, for example, are very receptive and now we have to find the way to make it work.
With this merger you have taken the PopPlaces platform and the German Go-PopUp, and located the HQ in Barcelona. Why here?
First because most of the team was already in Barcelona. We have seen that from here we can do a lot of things without the need for two different offices, such as content creation. And we have added three people who live here, but who are Germans, as well as keeping one person in Berlin.
How have the founding partners taken to this merger with your team?
It has been and continues to be one of the main challenges. Two companies with the same mission and vision, but with some values that are not the same. We had different ways of communicating or forming relationships. That is why we have put a lot into this. We have done various workshops on mission, vision and values together to develop what we had but taking from both sides. And the whole team has done this, not just the founders. We have redefined our business culture so that we are all aligned and we all understand that we are improving and have to take the strong points of each.
How does the merger affect the internal working of the company?
We have redefined roles but always aligned with the people. It has also affected us founders, who have gone from two to three. And that is also a learning experience for us that we have just begun, just like changing the name. It is a process that cannot happen one day to the next.
How have roles been distributed among the founders?
Each person's personality has an influence, what that person did and what they are good at. What David and I did has always been very well defined, we complement each other. And with Patrick, the founder of Go-PopUp, it has not been too difficult. He is very good at brand creation and as we are taking over his, it was clear that he had to continue with this line of work.
Another important point in the merger process must have been the opinion of the shareholders...
Obviously we took them into account from the beginning, but we have a lot of small investors and they do not constrain us in anything. Naturally, we explained everything to them and we took into account what they said, but as it was an operation that made so much sense it wasn't too difficult to explain. As for their interests, they remain the same or are better off. On the German side, because they are investors who are a little larger, perhaps there were some doubts, but in the end they too came on board.
 |
| Photo: Àngel Bravo |
Was the negotiation difficult?
Particularly with legal issues. From the idea to reality, to get it into a contract, you come across a lot of things. Perhaps it is not so complicated, but it is very long.
One of the first actions you plan is starting a funding round to open the doors to Asia. What opportunities do you see in this market to make it a priority?
All the countries we have been to was because we knew the market and the point they are at in our sector. After doing a little analysis, we realised that in Europe there are a lot of brands per person but relatively few commercial square metres. However, in Asia it is the other way round. There are a lot of commercial square metres, but very few relevant brands. And to that you have to add the social context, especially in China, with a growing middle class with money who want to spend it on foreign brands.
These differences of context will also affect the way into the market...
Our arrival in each place we will do it with someone local who knows what is going on. We won't get involved anywhere we don't know or where we cannot go accompanied by someone who really knows what they are doing. We always try to look for leaders in the places we are going. It would never occur to me to go to Asia alone, and less so China. But if you find the right person, yes.
What do large brands get out of pop-ups?
Each of them have their own objectives according to their brand strategy. For example, when landing in a new market, instead of opening a new shop for five years, they set up a pop-up. It is what Tesla is now doing in Barcelona. First they will do a test for three months and then they will decide if they want to stay or not. Another option is what we did with Vibbo, which wanted a physical space where people could meet. With Ikea we spent a month in Barcelona and Madrid in a small space with limited editions to introduce their product to the user, in the city centre.
 |
| Photo: Àngel Bravo |
Do they usually come back after these experiences?
Oh yes. For example, Kenay Home, a platform selling furniture online, tried it once and it is now part of their strategy. In every city they want to go to they set up a pop-up for three months and then close it. It gets them known in the city and then they continue selling online, which is their objective.
We will get to a point where everything is a pop-up or should it be seen as a complement to traditional retail?
There are studies that say that one out of every four shops will be a pop-up within 15 years. We do not aspire to 100% of the market. In the end it is just another channel of communication that will become increasingly related to e-commerce, who are the ones who have the most difficulty in making their products tangible.