Rocket Internet may not be innovators, but at least they’re disruptive

This article was first published on the author’s blog at saumilnanavati.com.

Recently, my fellow Chalkboard co-founder Bernard Leong penned an article about Rocket Internet. He argued about both the good and bad sides of the Samwer Brothers’ involvement in Asia.

However, I believe there’s a bit more to the story that hasn’t been fleshed out in the debates about whether Rocket Internet is innovative and bringing real value to the market.

In an opinion piece, published at Tech In Asia (and my blog), I discussed the need for innovation versus ROI. I stated that a good and profitable business doesn’t necessarily have to be good innovators (though it does give a competitive advantage).

Going along this line of thinking, Rocket Internet may not be innovators, but there is another dimension to consider within the Asian context: Disruption.

Let’s look at Singapore. It is arguably one of the wealthiest nations on the Planet with one of highest penetration of iOS devices, internet access and wifi. Credit card access is almost a birthright. Yet it is one of the driest places for e-commerce. Brick-and-mortar businesses in every sector here are eerily comfortable with the status quo.

Take my recent experience as an example. I wanted to buy a short throw projector for my home. These were my options:

• Head over to a large brick and mortar store. It just happens that the projector is not a big ticket item, so only one  model was for sale.
• Head over to Sim Lim Square, a shopping mall for IT goods. However, I wasn’t ready to get into a verbal match up, spend hours haggling and end up realizing that only cash and NETS are accepted. Credit cards? I could end up paying 5% more, and receive more verbal mouthing.
• The Internet came to the rescue. With well-tuned googling skills, I identified a vendor (they have 9 domain names pointing to the same site). Happily, I discovered that they have a shopping cart and the product in stock. I then had to fill up an ordering form, where I was forced to create an account, disclose my religion and when my dog last went to do his daily business. I was finally all geared to make the payment and get ready for the new toy. Just 1 more important step and I’m all set to go.

I had 2 choices for payment. Either bank transfer or cash/cheque on delivery. Being with a non-local bank, it would take 5 working days for the transfer, so I went with cash.

Then all hell broke loose.

With this option, I had to call the vendor, where he told me I have to fax (who uses fax these days?) a consent-to-buy form. I argued that by going through the check-out process of disclosing my entire gene-pool pedigree, I have already consented to buying this product.

He would not budge. So the order was cancelled.

If you are already tired for reading this far, imagine my frustration with the so-called ‘e-commerce’ process. I have bought pretty expensive stuff on Amazon with their convenient ‘1-click’ buy feature. My experience with Singapore merchants is of an entirely different sort.

So if Rocket Internet or anyone else comes and fills the retail space, even if it’s pixel by pixel, guess what? They are disrupting large companies like Courts, Harvey Norman and Best Denki, delighting consumers with an efficient and hassle free experience.