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~ Intershop ~

And are you still selling using the catalogues? B2C tactics to conquer B2B markets
“We stopped doing the catalogues because we invested One of the key things IGO was keen to learn was that the
€50,000 in producing catalogues to get €50,000 in return. So, e-commerce business model requires a more personal and
it was break-even. And if you were to invest €50,000 online, aggressive marketing approach. To do so, IGO has been
we could get back around €400k to €500k. Therefore, return successful in repurposing well-known B2C marketing tactics
on investment is a lot higher on the online channel.” into their B2B business strategy.

Michael continues: “But there is also another reason. We Have you ever tried to sell B2C, or does it not make
sold a lot of plastic which genuinely concerned us. That’s any sense with the kind of products you offer?
why nowadays, we have pushed really hard to achieve “Our company is predominantly B2B, but we did try to sell
sustainability, and 40% of our products are built with B2C. We had another label named Heroes of Print, and we
biodegradable materials like bamboo, jute, recycled glass, or were focused on selling to the B2C market. For example, a
wheat straw, for example. Now, if we are making this massive mug with a photo of your daughter will cost around €25 and
effort, it would not make sense to flood the market with paper has a longer production time than a larger B2B order. Thus,
catalogues later, would it? That’s also why we have pushed for we noticed that the B2C model has really small margins.
the e-commerce channel because it is more coherent with a Additionally, you can get a lot of complaints because when
sustainable approach than the catalogue business model.” you sell B2C, there is a sentimental aspect involved that
makes things extremely complex. We noticed that from a
The company has never been a traditional brick- logistic perspective, cost perspective, and general competition
and-mortar store because you started as a catalogue in the market, it was not as profitable for us.”
business, and now you are going for e-commerce.
Correct? But for B2B, you are an absolute powerhouse. What
“Yes, that is correct. We do have a showroom where you can would you say is the reason behind this success?
view our products if you want to, mostly for bigger customers “Because we operate as a B2C company in the B2B business,
that might want to ‘feel/see’ the product before placing large we have a lot of B2C tactics for marketing that we implement
orders, but fewer and fewer customers are coming to the at a competitive level in our website: we have cross-selling
showroom. Because if you are outside of the Netherlands, you and up-selling, and we work with algorithms and with all the
probably won’t take a flight to see the products physically in advertising programs. If a client is searching for a specific
the showroom.” product type, we might offer them another product that is
complementary to that kind of product. This is all algorithm

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