Singapore online supermarket RedMart has launched Marketplace – a platform for independent sellers to list and sell their products to RedMart’s growing base of customers using the company’s delivery network.
The company will launch its marketing efforts for Marketplace on 15 August 2015 beginning with Google AdWords, said Jose Silva, director of Marketplace at RedMart.
It plans to start incorporating the Marketplace offering a lot more into its marketing communications starting then, both for customer acquisition and existing customer communications.
When asked how its marketing strategies will evolve with its latest launch, Todd Kurie, VP marketing at RedMart, commented: “Initially RedMart focused on targeted online marketing as our overall service offering was still developing and not quite strong enough to sustain broader marketing. Now that RedMart has significantly improved our pricing, selection and delivery capabilities we will be starting much broader marketing efforts.”
Moving forward, RedMart will be looking to do more offline marketing including out-of-home media, TVCs, radio etc., as well as continuing to push its digital marketing efforts, especially on mobile.
According to Kurie, RedMart is also looking to ramp up its marketing team.
Speaking at the launch, Penny Cox, VP of commercial at RedMart, said that Marketplace relies on three pillars for its commercial strategy: price selection, convenience and product range.
“In terms of convenience, we wanted to create a one stop shop for all of Singaporeans’ grocery needs – best aces to niche and specialty shops – get all their needs with one delivery –that’s the goal of our Marketplace – convenience and more selection for our customers,” said Roger Egan, co-founder and CEO at RedMart.
“Marketplace allows us to expand our product offerings in line with what customers have been asking for, and we are confident that Marketplace will take our RedMart business to new heights,” Egan added.
By partnering with niche grocers, restaurants, nutritional stores, health food and organic partners, Marketplace aims to create a much larger selection and range of product offerings.
In terms of pricing, RedMart’s business model offers low prices to its customers: “Our cost structures are much lower than that of traditional stores, so we are able to offer products at best possible prices. Using our platform, sellers can choose their own prices,” Cox explained.
RedMart provides a full back-end software for sellers to manage their products and orders.
RedMart Marketplace offers retailers, wholesalers and distributors an integrated suite of logistics and technology services. Currently there are over 100 independent sellers who have set-up their store on RedMart Marketplace, with a wide range of brands such as The Straits Wine Company, Mothercare, Nature’s Superfoods and Gryphon Tea, among many others, already on its platform.
RedMart has also partnered with SPRING Singapore to extend the Marketplace offering to local SMEs to boost their e-commerce knowledge and capabilities.
The partnership with SPRING Singapore will give local SMEs an opportunity to be a seller on Marketplace as part of a business improvement programme, where they will be trained and mentored in all aspects of e-commerce including marketing, inventory management and pricing.
“Participating SMEs will undergo a six-month business improvement programme to equip themselves with skills to thrive in an e-commerce environment. This will be done through consecutive trainings, performance review, data analytics review and one-to-one coaching sessions with the RedMart team. Such know-how will enable participating SMEs to better engage digital-savvy customers and grow their online sales,” said Kee Ai Nah, group director for Industry & Enterprise Group, SPRING Singapore.
The project with SPRING Singapore will run from 1 September 2015 to 3 August 2016 and through the collaboration, RedMart will mentor around 400 local businesses.
At the end of the business improvement programme, the SMEs will be able to continue as a seller on RedMart Marketplace or set up their own e-commerce venture.
RedMart has raised SG$34 million in funding to date with key investors such as Garena, Eduardo Saverin, Far East Ventures and LionRock Capital, among others. The company boasts a 15% month-on-month growth in revenue.
The online store generates a monthly traffic of 600,000 visitors.