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Veldskoen


Simon Magner - July 16, 2020 - 0 comments

Veldskoen is the sole of South Africa and has pivoted into a digital agency, empowering local e-commerce stores.

Established in more than 6 countries and expanding into more during a world wide  pandemic. 

At a Glance

Cloud based solutions for e-commerce stores.

With Xero,  Simple Pay, Receipt Bank, Shopify and TradeGecko, Veldskoen is able to:

  • Seamlessly adapt to a digital reality
  • Implement efficient inventory management
  • Automate bookkeeping 
  • Remain tax compliant
  • Save costs
  • Free up time spent on manual tasks
  • Increase efficiency
  • Create a scalable model for expansion

“the word ‘lock-down’ was barely out the President’s mouth and the team shifted their business”

Driekie Zondagh, Veldskoen COO

The Challenge

COVID-19 struck and presented unimaginable challenges within the retail industry. 

Pivoting to becoming an agency, moving sales offshore, going through the budget with a fine tooth-comb and working like mad are four reasons SA brand, Veldskoen survived Covid-19.

According to Veldskoen COO, Driekie Zondagh, the word ‘lock-down’ was barely out the President’s mouth and the team shifted their business.

“We acted extremely quickly, and within a 10 minutes brainstorm we decided to become an agency.  We had effectively launched Veldskoen as a digital business three years prior and had all the competence within our team to offer our services and expertise to other small and medium sized businesses,” said Zondagh.

We had learnt all the lessons from our mistakes, had experience building digital communities and understood e-commerce logistics so we felt we could do the same for other brands.

“In March and April, our agency replaced 20% of our footwear retail revenue.”

The Solution

“We approached, Brian Joffe, one of our shareholders, and within a week we produced a TV advertisement for Sportsman’s Warehouse which was aired on ENCA using a good idea, stock images and a voice over. The agency became a new revenue stream.

“In March and April, our agency replaced 20% of our footwear retail revenue.”

Veldskoen also needed to increase online sales without spending money. Veldskoen combined the Plakkies and Veldskoen businesses onto the same platform. “Every third order, a customer buys a pair of each,” said Zondagh.

“Our team wrote every single client a personalised email which offered resources designed for families to stay sane and entertained during lockdown. It included links to kid’s stories, digital puzzles and games and included a discount code for a pair of shoes ordered during lockdown, with delivery to come later.

“Our clients loved the personal interaction and we had our best online sales month in March without delivering a single pair of shoes,” she laughed.

“We were ahead of traditional retail competitors. Because we were already digital, we had built a community and had all our own customer information.

Veldskoen brings their solution together with the best in e-commerce

“Veldskoen wouldn’t be where it is without the business support of Iridium Business Solutions…

They are not your average accountants, they don’t have the traditional accounting mindset, but are entrepreneurial and have a vast knowledge of the digital world. They go above and beyond, proactively offering solutions over and above their scope of work.”

Driekie Zondagh, Veldskoen COO

Going Digital

“We started the business three years ago with great creative ideas, but no knowledge of e-commerce logistics, processes and finances. “From my background in global logistics, when I joined the company I realised some key steps were missing,” said Zondagh.

Veldskoen required an inventory management system that could work in the e-commerce world and began a search for a system that met all their needs.

“Iridium helped us implement effective and efficient systems, an IMS that plugged into our online store and accounting system. Inventory is key to retail success. By providing the systems and training they literally changed our business.

Zondagh said the company outgrew their accounting service provider and approached Iridium, who would only consider taking them on as a client once convinced that the previous relationship was in fact at a dead-end.

“Iridium ensured we’re always 100% compliant, they have done our TERS applications and we have been successfully paid out.

“Aside from pivoting the business, we went through our business forecasts and made B2B retail and export a zero line-item as a worst-case scenario. We didn’t view the future as ‘business as usual,” she added.

“We dialled back on every single unnecessary expense and extended payment plans with our suppliers, who were very supportive and appreciated our pro-activeness.

Post-Covid, Veldskoen will be opening Veldskoen Israel, Portugal, Germany and Netherlands.

The Results

Looking ahead, Veldskoen has re-evaluated the financial year and increased their global footprint.

“Pre-Covid we were in six countries, during lockdown we immediately targeted new countries and reached out to South Africans in those countries. We launched Veldskoen Italy in the height of the global pandemic.

Post-Covid, Veldskoen will be opening Veldskoen Israel, Portugal, Germany and Netherlands.

The creative team has used the lockdown to speed up developments or new styles and ranges which will be launched on 1 September 2020.

Author avatar

Simon Magner

Based in Cape Town, Simon is on a mission to help small businesses move from base camp to success. With his financial skills and the amazing cloud based software out there, running a business becomes so much easier.