French Sneaker Marketplace Wethenew Acquires Rival’s Assets
Despite a challenging climate in the European sneaker market, the French company Wethenew is resilient and on the move. With competitors grappling with oversupply and fundraising hurdles leading to the shutdown of platforms like Restocks and Kikikickz in late 2023, Wethenew has seized the opportunity to expand. On April 23, the French marketplace announced the purchase of intangible assets from Kikikickz, with expectations to increase their customer base by 30 to 40 percent.
Wethenew’s Growth and Automated Sourcing
Wethenew’s growth trajectory is evident as they raised 20 million euros in 2023 and reported 100 million euros in turnover in 2022. They have evolved from relying solely on a network of 100,000 European resellers to forming direct partnerships with brands and distributors. The company aims to improve competitiveness and product range.
To scale up, Wethenew advanced its technology for supporting their increased volumes. Previously, sellers would manually connect with the “Seller Space” to post listings, which were then evaluated by Wethenew’s team. This process is under transformation—25% of products are now automatically sourced, with a target of 80% by year’s end.
Introducing VictorIA: An AI-Powered Pricing Tool
Wethenew recently developed an artificial intelligence tool named VictorIA to streamline the offer process. This system proposes market-aligned prices to sellers by analyzing a range of data, marking a step towards greater sourcing efficiency.
On Track to Profitability and Market Leadership
With an eye on profitability by 2024, the founders express satisfaction with their financial progress. Diversification into streetwear aims to drive additional revenue. While buying stock directly from brands offers higher margins, Wethenew prefers maintaining a marketplace-driven business model.
The quest to become the European market leader by 2026 faces delays, however, with 80% of the company’s turnover still rooted in France. They are weighing cost-efficient international expansion options, including establishing corners in major European stores and acquiring assets from liquidated foreign competitors, mirroring their recent Kikikickz transaction.
Important Questions and Answers:
Q: What are the key challenges Wethenew faces as it expands?
A: Wethenew’s challenges include managing the operational complexities of integrating new assets from competitors, dealing with the oversupply in the market, international expansion while maintaining predominance in the French market, and shifting to a higher degree of automation whilst ensuring accuracy and customer satisfaction.
Q: How does Wethenew plan to ensure profitability by 2024?
A: Wethenew plans to achieve profitability by diversifying its product offerings to include streetwear, forming direct partnerships with brands for better margins, and continuing to refine its AI technology to streamline operations and reduce costs.
Q: What controversies are associated with artificial intelligence in marketplace platforms?
A: The use of AI in marketplaces can raise concerns about data privacy, accuracy of pricing algorithms, and the potential displacement of jobs that were previously performed by humans.
Key Advantages and Disadvantages of AI in Wethenew’s Business:
Advantages:
– Increased efficiency: Automated sourcing and AI-driven pricing can significantly reduce the time and manual effort required to list and price products.
– Scalability: With AI, Wethenew can handle a larger volume of transactions without a proportional increase in overhead costs.
– Competitive edge: Adopting AI technology can differentiate Wethenew from competitors and help capture a larger market share with improved services.
Disadvantages:
– Implementation cost: Developing and integrating AI technology can be expensive and may strain financial resources.
– Reliability concerns: AI systems may make errors or require fine-tuning, which can affect trust with sellers and buyers.
– Job displacement: Automation can reduce the need for certain roles within the company, potentially leading to layoffs or reduced hiring.
Here are some related links which you might find helpful:
– To know more about Wethenew: Wethenew
– For information on the latest AI technologies in e-commerce: AI in Retail
– To learn about marketplaces and the sneaker industry: Sneaker Market Watch
Please note that these are not direct links to specific articles but to the main domains of the recommended resources, which are believed to be 100% valid at the time of this writing.