Fashion Brands on Marketplaces

Customer Cannibalization through Marketplace Presence?

Many fashion manufacturers have a problem with direct sales on marketplaces. There is fear about losing customers to the marketplace and giving up direct customer access. The data analysis from Arvato SCM Solutions shows a different perspective: marketplace integrations actually lead to increased numbers of new customers for the brand.

It has never been so easy to offer goods over a variety of different channels and still retain price control. Marketplaces and partner programs make this possible. But the advantages still carry a price: direct access to customers is increasingly controlled by the marketplace. The danger? Customers buy less from the Brand shop and shift more and more toward the marketplace. Direct customer access is then truly no longer held by the Brand.

Important aspects like direct marketing promotions or monetization of the customer are eradicated. Vertical brands like H&M or Zara are still avoiding this trend by using strong brand messaging and a broad appeal. But they also start to show signs that significant changes in their strategies are essential. Meanwhile, Inditex is offering their brands Oysho, Pull&Bear and Massimo Dutti over Zalando.

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Michael Schröder

Michael Schröder

Business Development Manager