Why Retailers Are Launching Marketplaces - Episode 153

INTERVIEW WITH HENDRIK LAUBSCHER - PART 2

 

DESCRIPTION

This week we are joined again by Hendrik Laubscher from Blue Cape Ventures. Last week we talked about cross-border trade, Amazon EU, specifically new marketplaces in Sweden and Netherlands, and what kind of accretive revenue a brand can expect from launching in international marketplaces. Today we’re gonna be talking about a trend of retailers launching marketplaces (the latest example being Kroger).

Make sure to tune in!

KEY TAKEAWAYS

  • Currently, there are two views regarding retailers launching marketplaces:

  • Not everybody should have a marketplace:

    • It’s like a Rubik’s cube - you have to make multiple moves to make sure it works,

    • It’s not a silver bullet - you add a whole bunch of complexity to your original business.

  • Hendrick’s view - it’s a business by a business situation: it’s complex, it’s expensive, a lot of things can go wrong (Target is a good example).

  • Amazon has executed but has its own pitfalls - you must have an Amazon strategy.

  • Kroger just launched a marketplace - the largest grocery chain in America; initially, it will be a limited selection

    • Kroeger vs Amazon: what is the right approach for their customer, not thinking about Amazon all the time; they want to stay semi-relevant and keep the finger on the pulse in the digital world.

    • They think about digital differently: Kroger partnered with Alibaba in 2018, so this isn’t a learning expedition, they’ve already experienced eCommerce from a seller’s point of view, selling private label products in China. 

    • Kroger has developed its own advertising platform. 

  • More retailer marketplaces underway - what should brands do?

    • Brands know where their products are - they need to know where their data is coming from, online or offline sales?

    • Brands should target the channels where they are successful.

    • Launching products on all marketplaces is too expensive. 

    • What kind of data is a certain platform providing, can brand leverage that data, what tools do they have access to - important questions to ask when choosing where to launch products.

  • Hendrik’s newsletter

MENTIONED IN THIS EPISODE

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