Smart50 rank: 14
Revenue: $32,900,000
Growth: 109.25%
Founders: Gabby Leibovich, 39; Hezi Leibovich, 33
Based: Victoria
Employees: 35
Industry: Internet
Website: www.catchoftheday.com.au
Most companies are begging for the good times to come, but Gabby and Hezi Leibovich of Catchoftheday.com.au hope the downturn lasts for a little while longer.
"While retail figures fell off a cliff in early 2009, online generally and Catchoftheday figures in particular have been on the increase month after month throughout 2009. As is always the case, some industries experience a surge during downturns, and it is quite conclusive that the online shopping segment of the market is in such an enviable position."
"On the other hand, we are certainly using our time upgrading software, servers, improving warehouse and office productivity, improving customer services... as well as hiring some better staff, as we all know that now is the time to find some gems in the unemployment market."
The company, which recorded average growth of 109% and $32.9 million in revenue for 2008-09, offers just one product on its website each day until it is sold out.
The business started, like many other tech companies, as a small garage operation. But Gabby says there are some simple rules that helped them move from small start-up to an internet success.
"Pay your bills on time, or earlier. Treat your staff fairly and don't ask anyone to do something that you would not do. Keep all your options open, and do not close doors on suppliers and service providers. The small supplier today can become a major force in a short time. Work hard."
Due to the online and rapid nature of how the business operates, Gabby says advertising through social marketing will keep the company exposed to its young target market.
"We use viral marketing like Twitter and recently released an iPhone application to spread the word. Millions of dollars have been spent on traditional media as well and the results speak for themselves. The site, last week, sold 20,000 items within seven days, and stats show that a product is being sold every 30 seconds."
"The online shopping category is certainly a fun place to be at the moment. With retailers struggling, more and more buyers are realising that better deals are to be found online. Shoppers are flocking to the internet for convenience and better prices. Price comparison tools encourage educated shoppers to research before buying, which in turn increases conversion."
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