New growth through comprehensive business transformation

Increasing efficiency and profitability at Europe's largest online shop for baby and children's products

As part of our collaboration, we want to develop babymarkt into an efficient digital player with sustainable growth. But the macroeconomic situation is worsening, which, in addition to growing cost pressure, results in cautious buying behavior on the part of consumers. Despite radical measures, bottom-up optimization is therefore not enough to achieve our common goal. The baby market business model must be transformed quickly and comprehensively. The focus of this transformation is the creation of a strong brand, a technological renewal of the commerce layer and an organizational and cultural transformation towards a customer-centered product organization.

Tense situation in the e-commerce segment

Falling sales due to (post) corona effect
In 2020 and 2021, e-commerce companies achieved incredible growth well above the average trend line of total trade. This growth has now declined sharply and was even negative in 2022. As a result, the usual sales expectations were revised downwards. *
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Increasing costs due to macroeconomic factors
The cycle of inflation, supply bottlenecks and supplier failures continues to intensify. It is becoming more difficult for manufacturers to buy their necessary raw materials. This increases the costs that they have to pass on to retailers. In order to increase their sales, retailers are increasingly investing in marketing, which drives up the costs of advertising on social media, for example. *
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High customer expectations due to strong competition
Everything immediately, in high quality at the lowest possible price: Companies that do not adapt 100% to the increasing and sometimes unrealistic customer needs and the individual customer journey of their target group are gradually losing their customers to (international) competition. *

*Source: Semrush

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Babymarkt's path back to sustainable growth

Business analysis and interviews

Initial on-site meetings take place first in order to obtain a consolidated overview of information with the help of stakeholder interviews, for example, and to initiate the next steps.

The transfer of knowledge is considered right from the start. In this way, initial touchpoints and in-depth interviews between the experts from Babymarkt and Etribes are organized at an early stage.

Potential analysis

At Babymarkt, we study the following
E-commerce segments, evaluate their status quo and put them in relation to our proven e-commerce success factors within a GAP analysis:

Customer focus and loyalty
User Experience
Brand and content
Price and range
technology
Operational excellence
International expansion

Measures and areas of action

Based on the potential analysis from Step #2, we realign Babymarkt's e-commerce success factors, select the necessary tools and methods for their conceptualization and derive concrete levers to increase efficiency.

The focus of this work is the continuous technical and resource-related reality check of all derived optimization measures. At the same time, all of our concepts and recommendations are subject to an integrity check in order to utilize the company's existing strengths and create new ones.

Together with the relevant specialist areas, we identify and implement the quickest optimization measures to ensure short-term efficiency gains and sales growth in the baby market.

Vision of the future

We evaluate the strategic integrity of the individual measures and, together with the baby market team, create an ambitious and at the same time realistic vision of where the company could be in 5 years. This goal includes modernizing the brand presence, opening up new customer segments and extending the customer lifestyle cycle.

Business case

For Babymarkt, we calculate a customer-focused business case integrated into existing financial planning in order to be able to forecast the performance of the business model.

To do this, we first evaluate the measures developed within the work packages with regard to their financial impact. For this purpose, we define relevant e-commerce target KPIs for each measure, on which the impact has a corresponding impact.

In order to enable Babymarkt to adapt its financial planning to the individual measures based on the e-commerce target KPI, we have integrated a new control logic into the existing financial structure.

Clear focus on efficiency and profitability

#1 - Expansion

We want to help baby markets scale their profitable core business and focus not only on existing and currently de-prioritizing markets but also completely new countries.

#2 - Private brands

We want to help Babymarkt further expand their existing own brands, develop some of them into independent brands and strategically position them.

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#3 - Future Commerce

We want to help baby markets address mega trends such as circular commerce or digital ecosystems and close the current gap in the highly fragmented marketplace segment.