We look back at the B2B marketplace morning discussion to explain the main changes and challenges set to be feature in 2019.
“Our starting point was the observation that whereas in 2017 we were at the very beginning of the “B2B marketplace spring“, we are now seeing it in full bloom!” announced Sébastien Murbach, a Partner at Roland Berger, at the opening of the morning discussion on 25 October 2018.
An analysis begun two years ago by Roland Berger, in partnership with Webhelp Payment Services and Mirakl, resulting in the annual publication of the B2B Marketplace Observatory and the #MPB2B newsfeed on Twitter.
“B2C marketplaces radically changed a lot of markets. Since 2017 it has been B2B’s turn to start taking on this transformation tool. Initially, many factors slowed its development, such as the complexity of B2B relationships, the extent of the negotiations, consultancy work and contractual formalities required,” continued Sébastien Murbach.
These factors are now under control, and 2019 will see an increase in the growth of B2B marketplaces. This is the way Alfred Hawawini, Director of B2B Business at Mirakl, sees it: “Mirakl, Webhelp Payment Services and Roland Berger all share the same conviction: B2B marketplaces are no longer an emerging phenomenon but represent a clear willingness on the part of B2B players to transform their business completely.”
The four B2B marketplace models
“In 2017, marketplace projects were very vendor-oriented,” explains Jérôme Connac, Business Developer at Webhelp Payment Services. Today, these projects are much more focused on buyers and buyer expectations. That’s why we are now seeing a lot of procurement departments showing an interest in new marketplace models. This phenomenon is set to grow in 2019.”
This new four-model classification has been adopted by Mirakl, Webhelp Payment Services and Roland Berger:
1. Range extension (G&S) or the one-stop shop
Typically initiated by a distributor or wholesaler wanting to broaden its products and services offer through third-party vendors to create a one-stop shop. The objective is to drive up customer loyalty and create barriers to entry by new competitors.
2. Distributor platform or distribution channel extension
Initiated by a manufacturer or service provider keen to create new sales channels without compromising its existing channels. The idea is to encourage customer loyalty among existing customers and attract new ones through an optimised platform.
3. Internal hub or business model transformation
A distributor or service provider wants to start up or reorganise around a marketplace to facilitate the crossover between supply and demand in a relatively unstructured market. This need is felt mainly by buyers looking to rationalise their procurement accounting by referencing a single supplier for each procurement category (for example promotional items from Pandacola).
4. Procurement platform or procurement network
This service is initiated by the members of a group of buyers or procurement departments that are looking for an easy way to secure offers at attractive prices. This category of contract givers has four key requirements:
- suppliers must be in automatic competition
- an excellent e-commerce purchasing experience
- more straightforward accounting procedures
- simple, automated supplier management
Payment, a key element in the growth of a marketplace
Whichever model is chosen, it must offer a payment system tailored to the specific national and international requirements of B2B business. As Axel Mouquet sums up, the four challenges will remain the same in 2019:
- compliance with national laws and customs in different countries,
- the diversity of payment modes and methods,
- the asynchronous nature of different payment terms,
- managing invoicing
Marketplace experiences: AccorHotels, Première Vision and Pandacola
Each of the four models has its own advantages and challenges. By way of example, we invited three companies to talk about their marketplace experiences: the AccorHotels group, the fashion show organiser Première Vision and the startup Pandacola, which is set to reinvent the distribution of corporate promotional gifts.
The AccorHotels Group: an international procurement platform that uses a procurement network model
“We negotiate the prices for the products and services required by our 4,500 hotels around the world,” explains Coline Pont, Chief Procurement Officer for the Southern Europe region at AccorHotels. Our platform must meet the requirements of some thirty brands with very different characteristics. The objective of this platform is to enable our hotel customers to make savings and to facilitate the procurement process for our hotels. Currently, we are also working to win new customers outside the AccorHotels group. This is one of our areas of development.”
Première Vision: bringing together fashion pros through a one-stop-shop model
The Première Vision marketplace is for textile industry professionals. It is open to exhibitors and visitors to Première Vision fashion shows in France and around the world. Its vocation is to foster exchanges between textiles and fashion industry professionals (distributors, brands, accessory manufacturers, etc.).
“This business is made up of a lot of self-employed suppliers. It is only loosely structured and the rate at which new collections come out is continually increasing. Our marketplace does not claim to replace human contact, but it does complement it well. Nearly 70% of the visitors to our website connect to our marketplace. Our main challenges lie in helping vendors who have little experience of using digital tools. That’s why we’ve published a lot of tutorials online,” says Gaël Séguillon, Première Vision‘s Head of Marketplace.
Pandacola: selling corporate promotional gifts using a business model transformation model
The Pandacola marketplace is set to market corporate gifts and goodies. “We are the only ones on the European market. This loosely structured market features 2,500 promotional-item retailers in France, only a dozen of which have a turnover of more than €10 million. Hence our desire to create a marketplace to structure this market starting in 2019. Very few of our vendors have embraced digital technology, so we work hard to help them and publish lots of aids”, explains Arthur Manier, CEO and founder of Pandacola.
To learn more about the changes expected in 2019 and events in the pipeline, send your request to Jérome Connac (JConnac@wps.webhelp.com).