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I’m often grateful that Shein, the Chinese online fast fashion retailer, wasn’t a big thing when I was a teenager. I had some shopaholic tendencies, and the ability to buy trendy clothes at low prices would have been pretty irresistible (and pretty damaging to my wallet).
As an adult, I’m a little more conscious of the quality of the items I purchase.
Instead of buying US$5 square-neck tops that are trendy now and will probably stretch out after several washes, I’m more willing to spend more on shirts that are timeless, made of better fabric, and can be worn for years, as they’re worth it in the long run.
Where I’m going with this is that quality is important. And in times like these – when we’re all grappling with fears around inflation, stagflation, and a recession – we’re looking to make sure that, when we do decide to spend, we’re getting the most bang for our buck.
The same logic applies to businesses, too, as Wavemaker Partners’ managing partner Paul Santos shares in today’s premium story.
Today we look at:
- What Paul Santos thinks about the ongoing funding winter
- Mitra Bukalapak’s quiet expansion into the Philippines
- Other newsy highlights such as Byju’s taking a loan from a subsidiary and Stripe entering Thailand
Premium summary
The value of quality in a crisis
In the latest installment of Recession Run, our ongoing Q&A series where we ask investors about the opportunities and challenges they’re seeing in these troubled times, Wavemaker’s Paul Santos shared his perspectives on the current economic environment as well as his advice to startup founders.
- It’s about the value: According to Santos, “a crisis trigger is a flight to quality.” As customers and clients tighten purse strings, they’ll be looking to ensure that whatever they do spend on brings them value. With B2B products in particular, this will include questions like: Is it helping me increase my revenue? Is it helping me cut costs?
- It’s like sports: When asked about the sectors that Wavemaker is looking to invest in, Santos shared that it doesn’t really matter – he looks at what’s in front of him to find good founders and good theses. In his view, it’s a bit like playing sports: ”When you overthink things, you start to miss shots, you start to miss plays.”
- Some words of advice: Santos advises founders to focus on creating value and not be overcome by worries about the current situation. “If you’re going to be overcome with fear because of all of the noise, you’re going to do yourself, your employees, customers, and investors a disservice,” he says.
Read more: Recession Run: Wavemaker’s Santos sees a crisis as a flight to quality
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