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jueves, 23 de octubre de 2014

FRONTIER MAGAZINE - October 2009, Marek Kolasinski


One of the greatest challenges in today's market is to put buyers and sellers together. But, as Marek Kolasinski finds out, this may soon become much easier

How many companies out there fail to take off because they cannot find a buyer or distributor? And how many buyers get frustrated by the lack of competitive pricing or the absence of innovative products on offer? International trade markets are dominated by large multinationals with well-established distribution networks and fat contact books of all the most important buyers and, mostly, this makes the world go ‘round’. But for small and medium companies, the route to market can sometimes be a drag, or even just a distant dream. Paperwork, bureaucracy, processes, credit lines, distribution and demand will all conspire to erect obstacles in the way of suppliers who are genuinely intent on developing their business. And things get worse at an international level.

But there might be a solution around the corner that is about to hit the international community with elements reminiscent of the ubiquitous global networking websites we all love (or hate, depending on your point of view!) so much nowadays. is a new concept as far as trading is concerned and incorporates many features that could be very attractive for smaller suppliers as well as for buyers. Effectively, what does is act as a go-between - but always as a principal – between the suppliers and the buyers by providing a virtual marketplace where the suppliers can post their products and the stock available, meaning that buyers can, at the click of a mouse, order what they require.

Having concentrated primarily on FMCGs in the international domestic arena, sees a lot of potential for its service in travel-retail/duty-free. &"It is definitely a market we want to capture because I think there's a huge mutual benefit there for both people in the industry to source products much more easily and for us to make the logistics a lot simpler; of taking the product to them and also to enable manufacturers to reach the market," says Ravi Sharma, one of the founders of

Although FMCG is only one category amongst many - and mostly interesting for F&B outlets in the industry - Sharma explains that they needed to "focus on one category in order to launch and have liquidity; that's our main focus to begin with. But category expansion is definitely one of the plans and something we hope will be led by the members."

Even if at first it might seem an unlikely candidate to do well in the sector, speaking with Sharma it soon became evident that travel-retail and duty-free is very relevant to’s business model. "We see travel-retail as a massive sector where I think we can add value, for the reason that logistically it is much more complicated in terms of the fragmentation and the geographic spread," explains Sharma. "That complexity offers an opportunity for us to act as go-between between manufacturers and, say, ship chandlers or [other retailers]. So there's a huge part for us to play where we can connect the two. A ship chandler can go onto the site and compare prices on a product range, click and buy, and we handle the whole delivery process. And we also make it easier for manufacturers so that they don't have to open hundreds of different accounts across different countries but where they can service all of these people through one source."

And this is where differentiates itself from other ventures that may seem similar: it is not just a platform that facilitates transactions; it handles the entire process, from the order placed to the delivery of goods. Effectively, the order is placed through, which will then source the goods directly from the manufacturer. All the suppliers are vetted from a due diligence and credit check point of view, while representatives try to meet as many members to their site as possible to both make sure of their trustworthiness and understand the nature of their business.

In addition, there is a whole system in place to determine liability at all levels of the supply chain. Once an order is received, collects the goods from the supplier, inspects them at one of its warehouses and ships them on to the buyer's preferred delivery point.

What makes the system straightforward and easy to use is that suppliers upload their products with their selling price onto the system, which will then automatically calculate the delivered cost for any member. "So they see all the information on a personalised basis with the price delivered to them, including the freight, all applicable taxes and duties, and our margin, which is a fixed margin between 2% and 6% depending on the value of the transaction," says Sharma.

The advantages are not limited to the ease of use and the straightforwardness of the transaction. For instance, buyers can put an alert on the system for a specific product or products at a specific price range, and they will be automatically notified when these conditions are met. Similarly, suppliers will be made aware of what is requested and can adapt their offer to those same criteria. "One of the key benefits for TR is the ability to compare prices on a like-for-like basis by having instant online access to the best deals in the marketplace at any one time," says Sharma. "Looking at the breadth of products is another one; for instance, looking at what has just been launched, specific promotions for the TR sector, etc."

And the platform - ideal for SMEs - can also benefit larger companies, for instance by providing them with access to markets where they may not necessarily have a distribution network, or to find an outlet for residual stocks. Travel-retail/duty-free is a particularly tricky channel to go into, and many companies do not sell to it because they do not have a department dedicated to it. But can take that consideration out of the equation for many companies and make their route to market that much easier to pursue.


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