Tendam to launch third-party brands online
Tendam, the Spanish retail group behind clothing brands Cortefiel, Pedro del Hierro, Springfield, Women’Secret, Fifty and Hoss Intropia, has announced plans to rival online marketplaces like Zalando and Asos with the launch of third-party brands across its e-commerce stores.
In the company’s first major online push since the start of the coronavirus crisis, Tendam has revealed that both Spanish and international brands will be available for purchase on Cortefiel.com and Womensecret.com from this autumn. Fifty will launch third-party brands on its platform in 2021.
The initiative comes on the back of successful first experiences with labels like Wrangler, Champion and Hemper. Levi’s, Dockers, Jack & Jones, Only, Vero Moda, Mamalicious and Selected Homme are also joining the selection, with more fashion brands to be added in the future. According to a press release, Tendam is currently holding talks with a number of other brands.
Risks and opportunities
Pedro Esquivias, customer director at Tendam, said that the group is taking a slow and curated approach to brand partnerships to ensure the selection meets the interests and preferences of Tendam customers. “Evidently, they will continue to enjoy all the advantages and benefits traditionally associated with the Tendam online shopping experience,” he said. These include free delivery and returns, the option of combining several products into a single order, in-store online shopping, customer service, special promotions for customers with a Tendam account and the chance to collect points with the brands’ loyalty programmes.
But seeking business growth through diversification also has its challenges. An extensive brand directory could lead to brand dilution and Tendam could start selling brands that are in direct competition with its own labels. However, the group insisted that the new e-commerce strategy will “enhance its omnichannel positioning, highlighting the appeal of its e-stores and consolidating greater economies of scale in their online operations”.
Tendam is in a good position to become the partner of choice for international brands looking to grow their presence in Spain and Portugal, as well as smaller brands with growth potential. According to the latest available data, the group’s online stores generate more than €100 million ($117m) in annual revenues and had over 125 million visitors last year. Additionally, more than half of all online orders placed were with in-store collection, driving footfall to the retailer’s 950+ locations in Spain and Portugal. And nearly 75% of all online returns took place in a store. These operations combine convenience for customers with significant cost savings for the company, allowing it to leverage its logistics capabilities to support the latest move.
The group, which has over 2,000 stores, franchises and e-commerce sites in more than 70 countries, reported annual revenues of €1.18 billion ($1.4bn) in the latest financial year. And management has set high ambitions for the group’s online business, with e-commerce revenues expected to triple over the next few years. This is despite experts warning that the sector will only recover from the Covid-19 pandemic in 2022. Tendam has also forecast a 25%-35% fall in sales during the current year.
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