Share solution directions that can help to turn The Online Paradox into a profitable online business model
The Path to success
Leading Home retailers implemented multiple initiatives to try to pivot into profitability, with deviating successes. We believe that online DIY and Furniture has the potential to be a profitable business. This is only feasible through a holistic approach, combining best practices of leading retailers, and optimise the commercial and operational model in parallel. A clean model based on clear choices is key.
An optimised commercial model brings the right value to the consumer while making sure a fair reimbursement in pricing or consumer effort is introduced. However, consumer perception is key to take into account for all commercial improvements
An optimised operational model makes sure the commercial offering is executed in a cost efficient way. However, transactional cost benefits need to be evaluated with the necessary investments.
Sources: Deloitte analysis, company P&L data, annual reports, desk search, expert interviews