[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_column_text css=”.vc_custom_1532599501005{padding-bottom: 30px !important;}”]
We have a large portfolio of successful international brands in our little country. Philips, G-Star, Brabantia and Fatboy, to name but a few. For these brands, export is essential, for further global expansion. With the rise of major e-commerce platforms like Alibaba, Amazon and Zalando, international growth is becoming a lot easier, it seems. In practice, these companies are both friend (customer) and foe (competitor). They increasingly determine the brand manufacturer's sales, but also encourage price competition. This has everything to do with the marketplace function, because when more companies offer the same brand, the price is lowered to win the order. A lower price attracts more consumers and a snowball effect occurs. As a brand manufacturer, how should you deal with this development if you want to reach consumers internationally?
[/vc_column_text][vc_column_text]
From wholesale to Amazon
International market penetration through the wholesale channel has traditionally been a strong driver of sales growth and brand awareness. The product is on the shelves of foreign stores, thus sales are made and the brand naturally becomes known. Sales are increasingly shifting from offline to online, and from many resellers to a few large vendors - such as Amazon and Zalando.
"Downside is that you are competing on Amazon with your loyal sellers."
Amazon is often a major buyer. But Amazon has now become not only a buyer, but also a marketplace. You can sell on Amazon as a Vendor or Seller. What brands are running into is that the various resellers are also starting to sell their products through the Amazon marketplace. This makes brand manufacturers increasingly question whether it would not be better to sell themselves through the marketplace.
With "fulfillment by Amazon," you can take advantage of the giant's logistics capabilities, but by selling on the marketplace yourself, you have maximum control over price and content. The downside is that you are competing on Amazon with your loyal sellers. Should you then put them out of business? Tricky, because then you do lose offline sales and have to build a name for yourself abroad.
Raising sales through its own online brand store
Having your own online brand store can be very lucrative. Research by HighText Verlag from Germany shows that 73 percent of providers who sell through marketplaces and the web shop find the web shop more lucrative. This is significant. Realizing more online sales from their own channels is therefore high on the agenda among brands. In fact, online sales are mainly generated by the accumulated brand awareness. Thus, it benefits from the brand awareness built by resellers abroad. By cleverly deploying SEO and Google AdWords on the search volume that exists on the brand, you grab sales with a high return.
Online brand building becomes essential
If the brand manufacturer takes the reins by selling itself through Amazon and the online store, it does have to publicize its brand itself. That is an expensive and often difficult challenge in the countries around us. A German market may be five times larger, but the marketing budgets required also increase by the same magnitude. With a TV advertisement you still reach most of the market in Germany, but then it quickly involves a budget of millions. For those who do not (yet) have this to spend, social media and influencers offer the opportunity to enter on a smaller scale. This way you can easily segment within the target audience or region. But then you need local partners who know the market very well.
What do consumers want?
Consumers are increasingly starting their searches at Amazon. It's that easy. In Germany in 2017, 46 percent of total e-commerce sales went to Amazon. But in second place, consumers very much like to buy directly from their favorite brand. Especially if there are also benefits attached, such as extra warranty or loyalty programs.
"Consumers are very happy to buy directly from their favorite brand."
De wereld zou een stuk makkelijker zijn als merkfabrikanten alleen nog zelf hun eigen producten online verkopen, of dat nou via een online brandstore of via een bekende marktplaats is. Zover is het nog lang niet, want merken zijn voorlopig ook afhankelijk van hun offline aanwezigheid bij wederverkopers in het buitenland.[/vc_column_text][vc_column_text css=”.vc_custom_1534145339386{padding-top: 10px !important;}”]Bron: Marketingfacts – World Domination[/vc_column_text][/vc_column][/vc_row]
