In the middle of 2022, DTC has become a household name. Big brands like Adidas and Nike thrive by targeting consumers directly – either by selling through their own websites or by targeting big marketplaces like Zalando and Amazon. For the fashion industry, DTC has given consumers the opportunity to shop from home at better online prices since the pandemic, and this form of distribution continues to drive the development of retail in many ways. Smaller brands can leverage and transform their identities, optimizing their technology and marketing efforts to rise in this ever-evolving platformer. However, this requires method.
Jan Kegelberg is an expert and thought leader when it comes to properly managing this change. He is CDO of SportScheck, CEO of fitfox and now CEO of Inwerk GmbH and thus the expert in e-commerce and digital supply chains who has led SportScheck through the entire transformation from a classic retailer to a successful multichannel platform company.
Here are Jan’s 5 inspirational tips for the change.
1. Become aware of your identity when you become a platform company.
Being authentic is still a big challenge for newer brands that want to become popular and sell to everyone. However, it’s important to explain why your brand exists and represent it in your market so your consumers understand what you’re offering. The concept sounds simple, but many brands want to be everything for everyone, and Jan feels that from a business perspective it proves counterproductive at every stage. “You need to know why your business exists and what you want to offer to whom.” Additionally, he suggests new players ask themselves the bolder question: “What makes my offer different from the competition?” In this way, you compete by You offer your absolute value and build a strong customer base.
2. Define your onboarding strategy – the sooner the better.
Targeting specific leads and partners, and acting smarter by having a clear framework for who you want to work with, is critical to your efforts. For SportScheck, Jan focused right from the start on important partners that he wanted to integrate into the platform. Starting with a clear focus on sportswear and later the strategic expansion of SportScheck’s product range to include subcategories such as food and sports nutrition.
3. Practical work is still needed for automation as well.
While there is the luxury of automation services and programs designed for go-to-market, marketplace software is a tool that needs constant scrutiny for functionality and precision. Jan says modestly: “When we started, we didn’t have a user-friendly, plug-and-play setup. There was no simple interface where you just enter the customer data or supplier data or item master data and everything else happens like magic. It was a very hands-on, lengthy, and partner-specific process that required endless hours of negotiation and integration to deliver customer-facing experiences. This meant scrupulously conducting technical tests and evaluating customer service and supply chain performance, which were big parts of our transformation from omnichannel retailer to marketplace – where every detail counts. “By understanding all the moving parts and monitoring their quality and efficiency, you’ll be one step ahead in the automation game while building a stronger connection to your new operating model.”
4. Your team is the key to a successful transformation.
Transformation is a collaborative game. Your entire team, purchasing, sales, marketing, engineering, logistics, customer care and management, is critical to bring together all the skills and knowledge needed to successfully drive your transformation process. Jan insists: “There were many people on the team who brought top-notch knowledge to help us make decisions. Traditional departmental boundaries need to be broken down in favor of a process-oriented customer experience. We wanted each expert to help avoid pitfalls and maximize customer success. In the end, everyone was heard and decisions were made as a team.”
5. Adopt a “learning by doing” approach.
The pandemic has evolved, as have markets and consumer needs. Change always seems to be at the fore when it comes to being successful as a platform company. From classic marketing to digital marketing to building web shops and leaving business models with conventional sales channels, Jan drove many transformation initiatives as he switched SportScheck from wholesale to digital. He believes that while it pays to look at competitors’ strategies, it’s crucial to create your own vision and stick to it. “For example, from 2000 to 2010 everyone thought e-commerce was the magic bullet. Next came omnichannel. However, the reality turned out to be much more difficult. Jumping on what everyone else is doing doesn’t make sense if you don’t have a clear strategy.”
We believe that these five inspirational tips will prove useful not only in transformation, but in all aspects of today’s and tomorrow’s digital strategies.
You can find more trends and topics in the ECD expert interviews..
AUTHOR: David J