In 2022, direct-to-consumer (DTC) is now a household name. Big brands like Adidas and Nike rely on direct sales – either through their own websites or through big marketplaces like Zalando and Amazon. In the fashion industry, since the pandemic, DTC has enabled consumers to shop from home at cheaper online prices and continues to drive retail development in many ways. Smaller brands can take advantage and transform their identity, tweak their technology and marketing to keep up in this ever-evolving platform game. But there is a strategy for that.
Jan Kegelberg is an expert and pioneer when it comes to the right implementation of this transformation. With titles as CDO of SportScheck, CEO of fitfox and now CEO of Inwerk GmbH, he is the e-commerce and digital supply chain expert who has guided SportScheck through the entire transformation from traditional retailer to a successful multichannel platform company.
Here are Jan’s 5 tips to make the switch easier.
1. Understand its own identity as a platform company.
Being authentic is still a big challenge for newer brands that want to get known and sell to everyone. It is important to know the reason for your brand’s existence and to represent it in the market so that consumers recognize what the brand offers. The concept sounds simple, but many brands want to be everything for everyone and Jan believes that from a business perspective this proves counterproductive at every stage. “You need to know why your business is there, what you want to offer and to whom.” He also suggests new players to ask themselves the bold question: “What makes my offer different from the competition?” compete by offering your absolute value and building a strong customer base.
2. Define your onboarding strategy – the sooner the better.
The targeted addressing of leads and partners and a clear concept of who you want to work with are essential for your project. For SportScheck, Jan focused right from the start on the most important partners that should be included in the platform. He started with a clear focus on athletic apparel and later strategically expanded SportScheck’s product range into sub-categories such as food and sports nutrition.
3. Classic hands-on work is still necessary for automation.
While there is the luxury of automation services and programs designed for launch, marketplace software is a tool that needs constant testing for functionality and accuracy. Jan modestly explains: “When we started, we didn’t have an easy-to-use, plug-and-play solution. There was no simple API where you just had to insert the customer or supplier details or the item master data and everything else happened like magic. It was a very hands-on, lengthy, and collaborative process that required endless hours of negotiation and integration to deliver customer-centric experiences. This meant we diligently conducted technical testing, evaluating customer service and supply chain performance which were key parts of our transformation from omnichannel retailer to marketplace – where every detail counts.” Understanding all the moving parts and monitoring their quality and efficiency give you a head start on automation while building a stronger connection to your new operating model.
4. Your team is the key to a successful transformation.
Transformation requires collaboration. Your entire team – purchasing, sales, marketing, engineering, logistics, customer care and management – is vital in bringing together all the skills and knowledge needed for a successful transformation process. Jan emphasizes: “There were a lot of people on the team who brought top-notch knowledge to help us make decisions. Traditional departmental boundaries must be dissolved in favor of a process-oriented customer experience. We wanted each expert to do their part to avoid pitfalls and maximize customer success. In the end, everyone was heard and the decisions were made by the 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 forefront when it comes to how to thrive as a platform company. Jan initiated many changes when SportScheck switched from wholesale to the digital world – from classic marketing to digital marketing to the development of web shops and the move away from stationary retail. He believes that while it makes sense to look at competitors’ strategies, it’s crucial to develop and stick to your own vision. “From 2000 to 2010, for example, everyone thought e-commerce was the panacea. Then 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 these five tips will prove useful not only in transformation, but in all aspects of today’s and tomorrow’s digital business strategies.
More trends and topics in the ECD expert interviews.
AUTHOR: David J