Crowning data king when conquering new retail markets

Alexander Otto, Head of Corporate Relations, Tradebyte

With 50 different countries, more than 200 languages spoken, and 28+ currencies used, the European retail market is a complicated space to navigate. But with every second e-commerce pound now spent on marketplaces, retailers looking to expand and find new customers cannot afford to ignore the opportunity. Agility is key. And at the heart of this agility lies data. By harnessing data, brands can make informed decisions and act quickly on them, rolling out products according to different marketplace requirements to conquer new territories.

Bringing vital data streams together

Both business data and consumer data are crucial for success. Business data encompasses internal insights such as potential leads, transaction records, and operational metrics, which are instrumental in refining operational efficiency. On the other hand, consumer data spans behavioural, personal, and demographic information, providing invaluable insights into consumer preferences, needs, and purchasing habits. By synthesising these data streams effectively, retailers can gain a nuanced understanding of market trends and tailor their strategies and product offerings accordingly. Understanding when to make strategic moves – whether to enter new markets or reallocate resources – hinges on these data-driven insights. For instance, brands can leverage sales data from platforms like Zalando in Germany to gauge market potential and assess the feasibility of expanding into similar territories. Conversely, if a market is underperforming, shifting focus may yield better results. This strategic agility is essential for maintaining a competitive edge in a landscape where market trends evolve rapidly.

Leveraging data for omnichannel success

The creation of seamless connections with consumers across European marketplaces also hinges on data. Brands and retailers need to ensure a flawless experience across all platforms and interfaces for an effective omnichannel approach, making the uniformity of cross-market product data a vital element of omnichannel sales strategy.

However, using different platforms in various markets has its own unique set of challenges. For example, there are distinct requirements concerning the data structure and format of product information. Without correct information on marketplace criteria such as relevant images, text style and language and product tags, a brand’s listings may not feature or appear in searches. With stringent listing norms imposed by many platforms, compliance with product information requirements is fundamental. Non-compliance can result in hefty penalties or even delisting. Therefore, companies must stay informed about marketplace guidelines and regularly audit their product listings.

Resource investment

This, of course, involves significant investment in resources and infrastructure. Companies often find themselves grappling with the need to hire dedicated teams to oversee data management and platform maintenance. Collaborating with technology partners to automate processes and streamline data management can alleviate some of these challenges, allowing companies to focus on strategic initiatives and refining their e-commerce strategies.

There is no question that market data plays an indispensable role in informing decision-making and driving business growth when it comes to marketplace strategies. By harnessing the power of data and adopting efficient solutions, brands and retailers can conquer the complex European marketplace landscape with confidence, seizing opportunities and staying ahead of the competition.