With the rise of online shopping, marketplaces are becoming more popular than ever. Whilst it’s easy to associate the word “marketplace” with the word “Marketplace”, there are other marketplaces that are making waves within their respective industries. One such example is Connox, a European furniture retailer that is opening it’s doors to third-party sellers to become a marketplace.
In a recent episode of the Marketplace Jungle podcast, Tobias Röbig, an industry expert with experience building marketplaces (including OTTO & AboutYou), discussed Connox's plans to become a marketplace and revolutionise the way Europeans buy furniture online. Through learning from the fashion industry to providing a solution that goes beyond just being a marketplace, Tobias shared valuable insights that can help any business thrive in a competitive marketplace.
Learning from the fashion industry
According to Röbig, the fashion industry has been at the forefront of the marketplace movement. Fashion marketplaces like Zalando have shown that it's possible to sell high-end products online. Connox is taking inspiration from the fashion industry and applying its learnings to the furniture industry. By studying the fashion industry, Connox aims to provide a better online shopping experience for their customers. The fashion industry has always been about style, trends, and aesthetics. Connox has taken this concept and applied it to furniture. They have partnered with well-known furniture brands to offer a wide selection of products that cater to different styles and needs. Through this approach, Connox aims to differentiate itself from other furniture marketplaces.
Providing a solution, not just a marketplace
Connox's aim is to go beyond just being a marketplace. They see themselves as a solution provider. The furniture industry is notoriously difficult to sell online due to the logistical challenges of shipping bulky items. Connox aims to overcome this challenge by partnering with logistics companies and offering a white-glove service. This includes everything from the management of external marketplaces (e.g. Home24, Amazon, OTTO, etc.) on behalf of their partners, as well as the logistics and delivery to consumers. By providing a full-service solution, Connox aims to differentiate itself from other furniture marketplaces.
The importance of branding
Building a strong brand is crucial for success in a marketplace. Connox aims to do this by focusing on high-quality products and exceptional customer service. They have also partnered with well-known furniture brands to offer a wide selection of products that cater to different styles and needs. By building a strong brand, Connox aims to establish itself as a leader in the furniture industry in the same way that Zalando did for the fashion industry.
Understanding customer needs
At the heart of Connox's success is their understanding of customer needs. By listening to their customers and providing a solution to their problems, Connox aims to build a loyal customer base. They aim to attract new customers by offering a seamless online shopping experience and exceptional customer service. Through this, they have already built a successful online retail business which generates over €100m in revenue across 7 European markets.
Conclusion
Connox is planning to show how marketplaces can thrive in industries outside of the typical Amazon-dominated landscape. By studying other industries, such as fashion, and applying their learnings to the furniture industry, Connox aims to provide a better online shopping experience for their customers. By providing a full-service solution and partnering with well-known furniture brands, Connox aims to establish itself as a leader in the furniture industry. Understanding customer needs and providing a solution to their problems will be at the heart of Connox's success. There are many lessons that businesses can learn from Connox's plans to become a marketplace, such as the importance of branding, providing a solution that goes beyond just being a marketplace, and understanding customer needs.
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