Otto’s turnover is expected to increase by eight percent to 3.2 billion euros in this financial year. One success factor is the transformation to a trading platform.

Since mid-2017, the online retailer has been working on developing its business model into a trading platform and opening up otto.de to other brands. Otto has already connected 400 new providers. The company is also expanding the automation of its onboarding processes. In the new financial year Otto will again invest around 100 million euros in the further development of the platform. By 2020, customers should be able to access the products of up to 3,000 new partners, according to CEO Marc Opelt: “Our transformation to a platform is not a success in itself – so I am all the more pleased that we have been able to make the biggest change in our company history so successful. We are completely repositioning ourselves in some business areas, are working on the automation of our partner connection and are nevertheless creating considerable growth.

Group subsidiary limango also pursues trading platform concept

The Otto subsidiary Mytoys Group with the family shopping provider limango is also pursuing the concept of the trading platform. At the end of 2017, limango started building the marketplace model. In 2018, more than 80 new partners with around 75,000 articles were connected. They are to expand the limango product range with brand classics and numerous smaller and unusual brands. For limango, this strategy of transformation into a trading platform is a building block of its business success. In the 2018/2019 fiscal year, the online retailer recorded a 20 percent increase in sales to EUR 229 million. Last year, limango had 1.2 million active customers, more than 900,000 of them in Germany and Austria. According to the company, about one in five families with children up to the age of twelve made purchases from limango. “With the marketplace model, we are consistently continuing our strategy of becoming the leading platform for family shopping,” says Sven van den Bergh, founder and managing director of limango.

Mytoys integrates family travel into its portfolio

The limango parent company and Otto subsidiary Mytoys Group is also increasingly adding further products to its portfolio. At the beginning of the year, Mytoys Family Travel launched a new holiday portal for families. Travel offers tailored to families can be booked. The offers are limited in time and can be purchased within a period of approximately 30 days. Also here the concept of the commercial platform seizes. Strategy is it to concentrate selected and family-friendly destinations on a portal. Mytoys Familienreisen acts as an intermediary between hotels or tour operators and the customer. For this Mytoys cooperates with the Incoming agency Travel partner GmbH from Austria. As a tour operator, this agency is responsible for the website, booking and payment processes as well as customer service.

 

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Link: The online giant Otto is undergoing a strategic transformation into a trading platform.

Image: Otto

//KH