Translate Site to English
Translate website into French
Translate website into German
Translate website into Spanish
Welcome to emarket.com
The first 'total solutions' online exchange for the FMCG industry
Thursday 24 April 2014

Linearies - September 2009, Florent Vacheret

Should we trust in online stock exchanges?

The arrival in September of emarket.com, an online stock exchange, boosts the interest to b2b business on the internet. The newcomer wants to learn from failures of marketplaces created at the end of the 1990’s. And the dream is of a secured EBay for professionals in the FMCG industry. Do you remember GNX and WWRE? These international platforms of purchase by internet, more usually called marketplaces, they had unchained passions at the end of the 1990’s. Big bosses only spoke about that, and almost the totality of the giants of the distribution subscribed to this. Carrefour for GNX, Casino and Auchan for WWRE, in particular.

Attractive on the paper, the idea was to expand massively purchase on a global level, with big suppliers, and to make play inverted bids for punctual calls for tender or still to stock up for lowest costs on products which going into overheads. But quickly, adventure made pschiit. Today, GNX and WWRE merged and the new entity, Agentrics, has nothing more of a strategic asset for brand names which still adhere to it.

The arrival of a new operator in September, Emarket, couldn’t thus arouse that skepticism.

“We are not a market place, but an on-line exchange, that is very different”, defends Manuel Dieryck, the Chief Operating Officer.

The birth of Emarket deserves, actually, that we stop there some moments. The four founders of the project are, at first, specialists of secondary purchase. They operate in the “grey market” with the company Veles based in Portugal, which furnishes brand name products of big brands, bought cheaper in countries where prices are more interesting.

The Georgian Coca Cola, or the Champagne Mumm of Spain, had, for example, their hour of glory at Leclerc. Veles works in essentially beverages (soft drinks, beers, and spirits), and health, beauty and Pharmacy. The Portuguese claims € 80 million of Turnover and would deliver an average of 100 trucks of drinks per week.

A price “all inclusive” in real time

“Everyday, we were confronted with a penalizing constraint: the lack of reactivity. It was necessary to pass on to 3000 prospects an opportunity which reached us. But the time to calculate the price of transport, and possible excise taxes, meant that goods had often already left somewhere else.” tells Manuel Dieryck.

Therefore, the idea to get closer with a carrier, in this case, Geodis”, to have in real time a quotation which permits to pass on to prospects, an all inclusive solution.

Partner of Emarket, Geodis proposes a database of 60000 connections, updated everyday.

The potential buyer has thus the direct reading of his cost price, any expenses and taxes were included. The question of the liability of the supply and the transaction remained to adjust. Emarket plays an intermediary's role. As to the stock exchange, the buyer and the seller are anonymous. Emarket buys the goods, and then the trucks deliver to one of the 17 cross docking warehouses of Geodis, where the concordance of the orders is verified before being delivered to the buyer. Always in a concern of security, the financial reliability of every company member of Emarket is collected with the Coface. And the field of the features in which the customer has access is defined by its rating: some people can only sell, and the other one can to sell and to buy for example.

Avoid difficulties of supply

The activity of Veles will pass from September to the emarket channel. But the appetite of the founders of this virtual stock exchange far exceeds the boundaries of the grey market. Emarkets aspirations are for recurring and normalized business relationships to use this channel.

Nevertheless, in very precise cases of purchase in promo spot, which usually require a procedure of referencing in due form, or destocking, brand names, could find their interest there. In particular the independents. „The fact that I can simply click and buy through a secured source avoids me many difficulties of supply ", appreciates Franck Helou, national buyer for beverages in Galec.

The user has a tariff base archived to estimate the real competitiveness for a proposition at the time. He can pass on calls for tender or still place an alert on a product according to a price threshold.

 

© 2012 EM Trade Solutions SA trading as emarket.com ® and/or its subsidiaries and licensors - All rights reserved