One of the big online retailer start-ups of the last few years, The Iconic, has continued to flourish despite stories recently that the retailer is experiencing huge losses. The company has been openly criticized recently with many saying that the company has an unsustainable business model. The business model that is employed by the company is one which means the company is selling at very low or no margin in an attempt to gain market share and destroy competitors. The company also employs strong promotional methods such as offering consumers huge discounts or a The Iconic coupon with their purchases.
The company has had to respond to the slowdown in retail by cutting staff. This move has been defended by it’s co-founder, Adam Jacobs, who has said that these moves are a natural progression to a more mature business. Jacobs also added that the company was focused on growth but will now move toward ensuring profitability.
Retailing has been going downhill in Australia for years and The Iconic will need to ensure that it has a sustainable model long term for it to survive.
