Multi-brand e-tailers can help a strong store brand become an online powerhouse.
It is an understatement to say most brands find it challenging to have a strong stand-alone position on the web.
Yet, many mid-market retailers have eschewed online marketplaces and do so at their own peril. A majority (94 percent) of Digital IQ Index retailers have an online presence, but only a fraction–less than one-fourth—have embraced multi-brand e-tailers.
To succeed in an increasingly digital future, retailers need to recognize that routes to market are changing. They must adapt their online distribution strategy to embrace the opportunities presented by multi-brand e-tailers.VIEW THE REPORT [PDF]
In just one month, mono-brand sites averaged 600,000 unique monthly visitors, while leading multi-brand e-tailers averaged six times as many - at 3.6 million unique monthly visitors.
Online sales are driven by multi-brand retail.
Offline, there is a clear preference for mono-brands, however, online sales are driven by multi-brand retail with six times more traffic.
Retailers’ “outsides” are digital but their “insides” are decidedly analogue.
Many retail companies are still run like traditional wholesale organizations with a distribution model unsuited to working with multiple third parties. Updating their digital capabilities allows them better control of their brand when working with third parties like major e-tailers.
Losing mono-branding does not have to mean losing control.
Online retail leaders are developing a proactive strategy for selling on sites like Amazon, participating in emerging platforms and engaging in social media. A clear strategy allows them to maintain branding control while widening their reach.
U.K. 2016: In-store sales shrank three percent while e-commerce sales grew 7.5 percent.
Brands that want to break out of a mono-brand mindset and gain the growth potential of multi-brand e-tailing need to put strategic partnerships with leading platforms in place.
Gain more control of branding and pricing by participating in partner programs.
Develop new online distribution skills and capabilities.
To support relationships with third-party e-tailers, brands need to improve their skills in analytics, campaign management, and search optimization, among others.
Manage stock differently.
Brands need to more proactively manage partners, and offer terms that protect the integrity of their pricing and stock.