Singapore-based online supermarket RedMart, has launched Marketplace as a platform for independent sellers to list and sell their products to RedMart’s customers, using RedMart’s delivery channels to get their products out to them.
RedMart will launch its marketing efforts for Marketplace on 15 August 2015, promoting it through existing customer communications, as well as offline and digital marketing channels, as part of its customer acquisition efforts.
During the four months of testing, RedMart Marketplace garnered a strong positive response from both sellers and customers, according to company executives.
According to Penny Cox, VP (commercial) at RedMart, the three pillars of the commercial strategy for the RedMart Marketplace are price selection, convenience and product range. 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.
“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,” said Roger Egan, co-founder and CEO at RedMart.
Partnering with niche grocers, restaurants, nutritional stores, health food and organic partners, RedMart hopes to use Marketplace as a way to enlarge its selection of good and expand the range of product categories it offers.
Currently, more than 100 independent sellers have established their stores on RedMart Marketplace. Some brand with a presence on the platform are The Straits Wine Company, Nature’s Superfoods and Gryphon Tea.
Commenting on the marketplace, Wendy Ng of Euraco Finefoods said: “RedMart Marketplace is a fantastic way for us to sell to a wide customer base without the worry of setting up our own logistics and delivery network. We have already seen an increase in our revenues and are very excited to be a part of this community. We look forward to celebrating the official launch tonight.”
A partnership with SPRING Singapore will also enable RedMart to extend the Marketplace offering to local small & medium enterprises (SMEs). The SPRING Singapore partnership 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.
Kee Ai Nah, group director for Industry & Enterprise Group, SPRING Singapore, explained: “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.
Kee added, “Such know-how will enable participating SMEs to better engage digital-savvy customers and grow their online sales.”
The project will run from 1 September 2015 to 3 August 2016, with 400 local businesses participating in the pilot business improvement programme. At the end of the programme, the SMEs will be able to continue as sellers on RedMart Marketplace or establish their own e-commerce ventures.
Currently, RedMart has raised $28.4 million across five rounds of funding, with major investors like Eduardo Saverin, Softbank Capital, Wong Meng Weng, Golden Gate Ventures, East Ventures and Toivo Annus. Corporates who have invested in RedMart are Lion Rock Capital and the Northstar Group.