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~ Panel discussion ~

WEBSHOPS OR MARKETPLACES:

INTERNATIONAL

EXPANSION IN

FASHION

Text: Sarah Jennings, Hans Siebum, Frank van den Berg // Photos: CheckOut 2 the World

Webshops or Marketplaces: Which is the best channel for fashion brands looking
Q to expand internationally?

A: Sarah Jennings consumers to experience your brand and persuade them to
Ultimately, it depends. Several questions need to be answered choose your products over someone else’s. On the flipside, you
before making this decision. What do you sell? How do you then have the additional challenge and cost of driving customers
want to position your brand? Who are you selling to? What to your webshop and making sure each market’s website is fully
country or countries are you looking to expand into? What are localised, so customers trust it and are prepared to shop from it.
your goals (short-term vs long-term)? How much money are
you able to spend to enter a new market? A: Hans Siebum
Are you a brand or a reseller? I think brands should consider
Another major consideration is the popularity of marketplaces dedicated marketplaces, like Zalando or La Redoute. Resell-
within each country. In China, over 85% of online sales occur on ers should also consider general marketplaces such as Amazon,
marketplaces, so not to use marketplaces is a higher-risk option. Allegro and bol.com. For fashion companies repeat purchases
In other countries the proportion can drop below 20%. are important and there is no doubt that loyalty programmes on
marketplaces are becoming stronger.
Setting yourself up on a marketplace is generally cheaper and
easier than creating a fully localised e-commerce site for each I expect social to become even more important for creating
new market, even if you currently sell on an e-commerce site in awareness and brand image. The question is how to capture social
your home market. Marketplaces are great when your short- browsers and encourage them to buy your products. You will need
term goal is simply to sell more items in a new market or to test a check-out engine, which could of course be either a marketplace
customer response to your product in a new market. However, or a webshop. Crucially, you must keep your potential customer
if you’re selling commoditised items and your brand is largely engaged with your brand and make the experience seamless. In
unknown, you are likely to find significant competition on any this regard, webshops provide many more possibilities. Why would
marketplace, from current market leaders to homegrown budget you lead customers from social to marketplaces where sales will
brands or marketplace own label products, which can force you seep away to competitors and you have to pay 15% commission?
into having to compete primarily on price. Leading consumers to marketplaces is missing out on valuable
data. When sales take place on your own shop, you do have these
If you’re trying to create a long-term growth strategy for your purchase data accessible.
company in any new market, you must think about how to
differentiate your brand. While some marketplaces enable a Webshops allow you to learn more about the customers and
certain level of branding and page personalisation, only your begin a dialogue with them – and there are plenty of ways of
own website gives you complete control of how you showcase getting the discussion going: offer 10% discount if you sign up
your products and your brand personality, making it easier for to our newsletter so you can email prospects your latest offers.

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