Middle East kids fashion marketplace off to a strong start

E-commerce has proved once again to be a promising industry for
entrepreneurs in the Arab region.

After witnessing the rise of many online retail services
providing children’s items and products such as Mumzworld, new
entrepreneurs are hitting the market with a service altogether new
to the Arab region.

Launched in early 2014, Mini Exchange works as an outlet for retailers,
and an online marketplace for parents to buy and sell clothing and
accessories, all of them new or like-new. Hand-me-down clothes must
have been de rigeur for founder Sarah Appleton, a British
expat in Dubai who quit her job at Deloitte to start Mini Exchange;
growing up with six siblings, she surely learned the value of
gently used clothing items, sometimes worn only for a few months
before a child grew too big.

The platform solves two main problems for both parents and
brands. Through Mini Exchange, parents can sell outfits that were barely worn by their growing
kids, and brands can re-sell their stock, which then allows parents
to dress their kid in high-end brands.

It is a win-win situation for everyone. “When the sales season
comes to an end in the market, brands give us their stock, instead
of sending them to waste,” explains Appleton.

Appleton and her partner invested from their own pockets to
establish and build their startup, and chose to delay their first
fundraising round until early next year. “We want to see how far we
can drive this on our own before taking on any investment,” says
Appleton.

Buy and sell from home

The way Mini Exchange works is giving buyers access to
discounted brands and designer clothes. Items are collected from
sellers – whether parents or stores – for free by an Aramex
representative and quality-checked by the team, says Appleton on a
Skype call with Wamda. The Mini Exchange team then evaluates the
items and suggests a price to the seller. If the seller is not
happy with the price they can either take the goods back or choose
to donate them to a charity supported by the company. Mini Exchange
then professionally photographs the items lists them on the site,
and delivers to buyers.

The seller receives 50% of the sale price on each item sold. The
money can be spent on the site, transferred via PayPal, or donated
to charity via the platform. If the amount exceeds 1,000 AED (~$272
USD) they seller can collect a check.

As the business model relies on collecting 50% of every item
sold through the platform, products that are of a low cash value
are not worth listing. High street brands like Zara, Gap, or United
Colors of Benetton represent the low end of the spectrum, which
runs all the way up to Dior dresses.

Small successes in nine months

So far, the future is looking bright for the platform. Mini
Exchange has signed partnerships with over 20 leading international
brands, and done business with 150
multi-brand local boutiques and parents. The team is also
currently receiving 1,000 items from parents and brands every
month.

Based on these numbers, Appleton says they will be moving from
storage facilities to renting warehouses very soon. “We are
expecting the number of items we receive from parents to increase
by 10 times in the coming months,” she adds.

Almost one month after launch, the platform won third at the
ArabNet Beirut StartUp Demo Competition and the
PITME Labs Middle East Impact & Ingenuity
Awards earlier this year.

A charity twist 

Mini Exchange also gives users the opportunity to support causes
across the Middle East while “clearing out their kids’ wardrobes.”
The company has tied up with three organizations –
START, Little Wings, and
Action Care – all of
which work to help and support children across the region. Sellers
can make a difference and support their communities by listing
clothes and donating the profits directly to one of these
causes.

The website also allows individuals and organizations to support
their favorite causes by creating a ‘Mini
Group’. Users can invite people in their networks to clear out
their kids’ wardrobes by listing items on the site, and donating
profits to any cause, whether supporting victims of a natural
disaster, or trekking the Himalayas with your friends.