Fast Lane Ventures launches Juvalia & You online retailer

Fast Lane Ventures Company and German business incubator Springstar launch Juvalia & You online retailer which specializes in selling jewelry and accessories by users themselves, according to Kommersant newspaper. Social sales in Russia can be risky, experts warn.

Three more companies of the international network launched in Germany, Brazil and India along with Russian Juvalia & You. Juvalia & You business model works on technology of social sales, FLV says.

Juvalia & You provides an opportunity for anyone to build a business on selling jewelry. You must register at juvalia.ru and get the status of a stylist. To get started, the stylist must buy a set of catalogs and other materials worth 2990 RUR as well as a training program and a collection of jewelry worth a total of $ 400. Stylists get commission for every sale - 25% (depending on the volume).

Jewelry can be purchased both at the website of the company (15%) and at special shows, organized by stylists (85% of estimated sales). The price may vary from 0.5 to 7K RUR, 50% of the jewelry will be sold at the price of up to 1.5 K RUR. Total investment in the company is a few million dollars; much of the amount will be spent to update the range of goods four times a year. Favorite jewelry from previous collections will also be available. The design is worked out by Juvalia & You in Germany, production - in Asia. The company expects a turnover of $ 2 M by the end of the year and to increase it at ten times in 2013 and to become the market leader in jewelry social selling in Russia within five years.

According to Data Insight, the volume of e-commerce market in 2011 reached 310 B RUR; it will increase by 2.3 times to 710 B RUR by 2015. The volume of fashion jewelry market in Russia amounts to almost 100 B RUR.

The segment of jewelry and accessories is popular with investors. Recently, ru-Net of Leonid Boguslavsky acquired 25% of Lidyana company, working in Turkish accessories market (see Kommersant of June, 20).

According to the managing partner of Addventure Sergey Karpov, despite the promising segment of jewelry and accessories of Russian online retailers, this project at the intersection of direct sales, e-commerce and retail trade in Russia is premature. People are still learning how to use e-commerce, and generally do not take the Internet as a kind of environment, which can be used to make money - he believes.