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If you are just starting to expand your channel management or are struggling to keep up with the ever growing channel flood, it’s good to evaluate the right business model for the channels you are adding to your mix.
Each channel requires different data, formats and offers slightly different business models.
Each channel and business model comes with their Pros and Cons and fit different company sizes and maturity.
Confused? Well, don’t be.
In this article, we will cover the essentials how to engage with the different marketplaces and how to build a balanced strategy beyond multiple marketplaces to reach customers and convert them to loyal customers.
So let’s get right into it.
1P Marketplaces Relationships – What are they?
3P Models – With more power comes more responsibility
Dependency & Channel Mix – How to stay competitive?
So how to reduce dependency & create a broader channel mix?
Especially in Asia major tech platforms are dominating the “path to customer” and require ever higher CAC (customer acquisition cost) cashing in on their dominant position.
DISTRIBUTOR IN ASIA - Partnerships & JVs
Classical Channel management is still strong and allows a more eye to eye relationship with the retail or channel partners. Additionally regional and niche marketplaces can be a good way to diversify your channel mix and reduce dependency on the big 4-5 players.
ASIA BEYOND MARKETPLACES - Social Selling
Beside marketplaces and retail partners social selling is becoming more and more dominant not only for B2C but B2B scenarios allowing a more personal communication with your customers. This can happen via owned channels and shops on well known platforms like facebook or Tik Tok or via sponsored or customer generated content.
Most of the major social media platforms shifted from pure content sharing towards an eCommerce-driven business model opening store functionality.
Additionally, non Owned channels are a good way to spread the word especially in Asia where despite quiet some concerns about legitimacy of the sometimes astronomical follower & revenue numbers social business models are taking countries by storm.
Do your sales teams share their expertise already? If not let’s discuss a good strategy!
Why it’s great?
- Getting a non salesy access to customers
- Great for connecting to customers beyond transactional activities
- Connecting Research, Education with commerce element
- Bi-directional communication
Concerns Brands should consider:
- It takes time and strategy to grow these channels
- Content Generation is tedious and needs lots of creativity
- Brand language and visuals need to align the platform
- Risk of not on brand content
- Requires resources to manage the channels
BEYOND THE WESTERN WORLD - Asia Unleashed
While Amazon and Co are conquering the western world being the first channel to scale a brand in America or Europe the Asian market is way more diversified with regional leaders.
OUR TAKEWAY - Think beyond marketplaces
A well rounded Omnichannel strategy is key to utilize the right marketplaces to acquire customers but ensure that you are driving traffic to your other channels. So creating great product experiences (after service,…) ensures loyalty & engagement beyond the Point of sales allowing to connect customers to your brand permanently and win back the path to customer. Marketplaces are a great marketing channel to reach a broad or targeted audience but it requires dedication and bears a risk.
So finding an efficient strategy to optimize your channel efforts and balancing multiple channel is key to win in these channels. Interested of increasing your margins by transitioning to a 3P relationship or build a Syndication Strategy?
Need more information?
- Read our Whitepaper – Asian marketplaces your path to Asian Success?
- Read more about our Customer Success story helping companies globally (Chervon)
- YouTube the difference between PIM vs. PCM & PXM