Rikochet Resale & Boomerang Kids

At Boomerang Kids stores, you can buy the best quality clothes, toys and equipment at the most affordable prices. You put money back in your wallet by helping the planet through reuse and recycling. You can participate in free fitness and wellness activities with your friends - and make new community connections. And, you can help your community by donating children's items to families in need.

Boomerang Kids is all about making it easy to make smart choices.

Krista Thompson, and Genevieve Bonin took ownership of Boomerang Kids in 2007. The business had been in operation since 1994 with two locations, it's flapship location in Ottawa South and it's more recent location in Westboro.

By March of 2008, the ladies added a new partner to the equation, Heather Meek, and the ladies soon after added two new locations in Orleans and Kanata.

The plan has always been to create a franchise operation that could be expanded outside of Ottawa. The introduction of Rikochet Resale in June of 2009 is a strategic part of that plan. By capitalizing on their experience in setting up the operational model for resale clothing, they were able to add a new market dimension with Rikochet and capitalize on their expertise. This additional market focus then broadens their franchise offering which is part of their overall vision for expansion and growth.

Rikochet Resale is a Manhattan-style resale fashion boutique focused on the man and woman who like to dress in “fashion now” premium brands for half the price of retail. Rikochet pays cash for stylish fashion items like clothes, bags, shoes and jewellery. Bargain hunters and treasure hunters alike will find one of a kind fashion items from all over the globe.

The partners jumped into this market because they wanted to create something and grow a business and they felt they had the right set of skills to effectively work together. Because there were all busy mothers who had shopped and used Boomerang for years, they were sold on the value of the business model. They wanted to take the opportunity to take the business to the next level.

The Changing Landscape

Since taking ownership and expanding the business, the economy has taken a huge hit which has fed the need for their business. Although there have been new competitors in the market, Boomerang has a very solid customer base that is very committed to them. Rikochet also does not feel threatened by competition because so many of their customers are looking for unique items so in most cases they are checking out all the competition in the neighborhood. The upscale resale market seems to be clustering in the Westboro neighborhood these days.

Similarities and Differences of Their Markets

Boomerang Kids
Geographic - 4 locations in Ottawa
Demographic - New mothers and mother's of younger families
Psychographic - Looking for a deal, green focus, community minded
Benefits Sought - Cash for clothing, trading vs. buying, convenience (can also buy gifts and some of the latest new trend items for young children)
Usage - regulars, seasonals

Rikochet Resale
Geographic - Westboro
Demographic - 16 -35 yrs and 35-55 yrs
Psychographic - Bargain Hunters (looking for the deal) and Treasure Hunters (looking for something unique)
Benefits Sought - low prices, fashion focused experience, brand names
Usage - regulars and occasionals

Note that both businesses have two very different target markets but note that there are definitely other segments that they are selling to. For examples younger girls at Rikochet and grandparents at Boomerang.

Insights from the Interview

My favorite quote from my interview with Krista was "I have the best life". Krista is creating and growing a business which is her passion but she's also a mother of three kids so she understand the market. She's contributing to her community which is important to her and working with great people. Although the development of Boomerang Kids and Rikochet has been challenging (which she loves) she has also had flexibility to be with her family. I'd say that is a pretty nice life.


A Few Words of Advice from Co-owner, Krista Thompson

Overlay TV – Watch it. Click it. Get it.

Let me paint a picture for you.

You’re watching a music video and you really like the jeans the lead singer is wearing or maybe the funky table in the background catches your eye. Just ‘click’, pay and it’s shipped - then back to your video without disruption. At the end of the clip, the band endorses a charity they are supporting and a button appears giving you the opportunity to donate as well.

With a ‘click’ of a button, video has become interactive, functional and entertaining.

The Ottawa The United Way office is using ‘clickable’ video in their newly launched campaign and the Jonas Brothers turned their video into a video karaoke experience using Overlay TV.

The Backstory

Tyler Cope and his wife were watching TV one night and she commented to her husband that she loved the shoes worn by a character on the TV program but how could she ever get her hands on them. Eureka! Tyler discovers an unmet need.

Over then next six months, Tyler and his business partner Nadav Zin investigated how a solution could be developed. Quite by coincidence around that time Rob Lane is having discussions with a well-known local VC firm who suggests that he meet Tyler and take a look at the concept. Rob brings in Gord Wyse and

Overlay TV formally opened their doors in mid-July 2007. Over the past two years, they have raised $9.2 million dollars in Canadian venture capital financing in two separate rounds. They have 17 staff, are generating revenue and are expanding rapidly.

Where is the opportunity?

The inspiration for the business was the unmet need of being able to buy what we see in videos. But inspiration isn’t enough to open a business. There has to be a clear business opportunity. The four partners of Overlay TV believed that the world of online video was in its infancy. The volume of video was going to grow exponentially and video would be used in new and different ways. They saw their ‘clickable video’ as a big piece of the puzzle.

Rob Lane, the CEO of Overlay TV, was kind enough to sit down and share the history and offer his views on the future. I found him to be inspiring, authentic and genuinely interested in helping students learn from his experience.

When I asked him what the ‘catalyst’ was for launching the business, his response was ‘we just gave it a go’. This statement seemed a little nonchalant for me, but then I realized that when you have a team of seasoned professionals that are comfortable within their business domain and have been around the block a few times, they can trust their judgment and ‘give it a go’. Naturally, this sparked a discussion about risk, which is something every entrepreneur must wrestle with. But that’s another discussion altogether.

Over the past two years, there has been a surge in video uploads, viewing and overall usage on the Internet. Overlay has also been able to capitalize on the surge in social media marketing efforts that many brands have undertaken. Marketing budgets have been shrinking, but activity and effort has been redirected into projects that Overlay can deliver on.

Who are their Primary and Secondary Markets?

Overlay TV does not sell to consumers. Their markets are businesses (B2B). They have a global focus with initial customer traction in the United States, United Kingdom and Canada. Their primary market are large e-commerce retailers, for example, Zappos.com. Their secondary market is creative agencies that are producing video content and online marketing solutions to their clients.

Overlay TV services these markets with a direct sales force and independent consultants and are in the process of securing channel partnerships where they can add value as part of a larger solution.

Surprisingly, they have little in the way of direct competition, as of yet. They attribute this to the fact that they are on the leading edge of how video is being used. They are the first ones at the party, but they have no doubt competition will arrive.

When I asked Rob what success means to him, he feels that you must find success in all levels of your business. There is no one thing that defines success for him. He feels success in building the team, bringing amazing people together, raising finance and winning the trust of customers. From Rob’s perspective, success is in the process of getting things done.

The words of wisdom that Rob would like to pass on to students include;

• Define an idea or core concept and don’t be afraid to think big. It takes as much energy to think small as it does to think big.
• Go for it! The only risk is not taking a risk.
• Course correct rapidly. Be ready to adapt and change.
• Surround yourself with amazing people.

With a smile on his face, he shared with me that he is always looking for PSD’s (Poor Smart & Driven) people. Energy and passion are everything in a business.

DNA11 – The intersection of art & science

DNA 11 pioneered the application of genetic science in the creation of truly personalized unique custom art. We’re really proud of that fact. In addition to our DNA art, we continue to lead the way with innovative new products like our Fingerprint Portraits, KISS Portraits and our latest creation, the NEW! DNA Mini Portrait. We are focused on impeccable quality, and the kind of devoted customer service that might better be called ‘pampering’.

(DNA11.com, Sept 2009)

Adrian Salamunovic and Nazim Ahmed joined forces in July 2005 to launch DNA 11, located in Ottawa’s trendy market area. Today, DNA 11 employs nine staff and estimates that revenues will climb to two million in 2010. With clients all over the globe, DNA 11 is very focused on their direct online business that accounts for close to 90% of their revenue.

DNA 11 has been highlighted in a wide variety of media including websites such as Relvet, Designspotter and Josh Spear, magazines such as GQ, Metropolis, Playboy, Cargo, USA Today and Wired, and television shows including Cityline, Today Show, A-Channel, Fashion Television, and HGTV. A DNA 11 original piece was also the central focus of a CSI-NY episode last year.

Salamunovic graduated from Algonquin’s Business Marketing program over a decade ago. A serial entrepreneur, Salamunovic sold his first business when he graduated from Algonquin. He then dove into the world of online marketing working with clients to market their products and services using the latest Internet tools. At the same time Ahmed, was working in Ottawa at Bio-Rad. As a Western University science graduate, Ahmed was developing his skills as a geneticist and working with DNA imagining equipment. Both men were creative, curious, and looking for opportunity.

The idea for DNA 11 came to life over a glass of wine. Salamunovic noted some brochures of DNA imaging technology that Ahmed had on hand and remarked on the beauty of DNA as an art form. Salamunovic asked Ahmed to take an image of his DNA. He then framed it, displayed it, and soon started to receive rave reviews from friends and family.

Salamunovic, who at the time was a devoted reader of Trendwatching.com, realized that the idea of DNA as artwork fell into two recognized trends by Trendwatching, gravanity and massclusivity, which fueled the potential for this venture. With more research and the incentive of having interested clients, they jumped into the project in July 2005, first on a part-time basis then over a period of 6 months, they both quit their full-time jobs and committed themselves to DNA 11.

How did they grow the business? Salamunovic states that the key to their growth was “hard work.” “You need to be able to open a business with a telephone and a computer”, he continued. His recommendation is to consider opening businesses that are simple in design and require little capital to start-up.

Salmunovic and Ahmed started DNA 11 with $1000 each. They then leveraged client orders and financing to grow their business. There have been no angel investors or venture capital funding. Hard work, a reasonable cost model, a market that was willing to buy right away, an innovative product, a powerful brand image and the use of innovative marketing vehicles were the engine for their financial stability and growth.

DNA 11 sells personalized artwork to fairly affluent young urban professional and well established professionals. Their buyers are quite diverse and located around the world. The products range in price from $200 to over $1000. Many purchases are made as gifts.

DNA 11 introduced the DNA mini portrait at just over $200 late in 2008. They adapted to the changing economic environment with a strategy and product offering that had a wider appeal to a more financially conscience market. Because of their change in strategy, sales have risen during a time of economic slowdown for most other businesses.

Another change in their environment has been the introduction of close to 24 competitors all over the globe. When you are first in the market with a new product category, you are bound to feel competition nipping at your heals. DNA 11 has dealt with this threat by continuing to develop innovative products, entrenching their brand image as a pioneer and market leader as well as offering their “devoted customer service that might be better called ‘pampering.” (DNA11.com, Sept ’09)

My phone interview with Adrian Salamunovic was inspiring. He was open, forthright and authentic.

“There are several things that I attribute our success to and would like to share with students:

(1) Hard work. You have to work hard. There’s no getting around it.

(2) Think big. It doesn’t take a lot more to think bigger and if you want to go big you can find a way to make it happen.

(3) Passion. Find what you love to do.

(4) Image and brand is everything. For DNA 11 investing in brand image at the beginning was the best investment we made.”

DNA 11 is launching CanvasPop.com very shortly. You will soon be able to have personalized artwork delivered to your home or office. Take virtual content and turn it into tangible art. With CanvasPop you can have any image on canvas.

Thanks to Adrian Salamunovic for sharing his time and experience with us.

You can follow Adrian on Twitter @dna11 and @CanvasPop for the latest ideas, and tips and info.

You can also watch Adrian and Nazim on The Big Idea for part of their story.

Comments from a recent Algonquin Graduate:

Jennifer Willmetts graduated from Algonquin’s Business Administration- Marketing program in April 2009 and is the most recent hire at DNA 11 and CanvasPop. She is currently managing all post sales support inquires and upgrades while managing the social media presence on various social networking platforms.

“I would defiantly agree with all Adrian has said in regards to success, and would add that you should look for ways to challenge yourself and step out of your comfort zone.”

You can follow Jennifer on Twitter @canvaspop

Introducing Oh Ya Ottawa!

For the past 3 years, I have been teaching marketing at Algonquin College. Every year I look for examples, cases, products, and businesses my students can relate to so they will connect with the learning. I have also tried to introduce my students to entrepreneurs because I believe that this city needs some new juice. Oh Ya Ottawa is my way of bringing these two issues together and sharing my findings with other educators so they can also help inspire generation Y.

My goal is to profile 26 businesses over the next year. Every two weeks, I will profile a business worthy of an 'Oh Ya' that I have found or has been recommended to me. I'm looking for recommendations.

I will be launching the first profile on September 15th and the spotlight will be on DNA11 - small, dynamic, unique, art, international, Algonquin grads. More coming on the 15th.