10 things to consider before rushing into new markets
Monday, June 25th, 2018
Many brands and retailers have used marketplaces as their first step into international markets. For brands, it’s an opportunity to build brand awareness in a new market and test demand in preparation for going direct.
Here are our top 10 takeaways from our Connected Customer meeting regarding Marketplaces and Growth Hacking New Markets:
- Running a marketplace presence is as much work as running a new site and it can take up to a year to see the return of the marketplace on your own site.
- Risk and cost of entering Asian markets; Asian and particularly Chinese marketplaces can be tricky and difficult to crack!
- Balance Depository Trust Company (DTC) and marketplace; controlling your brand identity is key particularly if listing on Amazon.
- Worthwhile to only feature the capsule range on the marketplace to highlight your brand and have the full range on own site.
- Niche marketplace may be a good starting point for international brand exposure in new markets with low risk/ overheads.
- Marketplaces are the future but in the short term very challenging.
- Fashion marketplaces need to allow for more brand building.
- Remember a sale is a sale – cannibalisation shouldn’t matter
- Marketplaces are a great way to open new markets. However existing markets may see a negative effect.
- Ensure you manage your spend on Amazon; marketplaces will give you the traffic but negotiating a strong agreement is key.