Monobrand or multibrand- advantages and disadvantages

Monobrand or multibrand- advantages and disadvantages

Online sales are an efficient way to increase general sales and also for brand awareness. How do we do this and get to the best way to make your brand known in the online environment? Well, there are advantages and disadvantages in any option you consider, depending on the development stage of the shop and the logistic and financial capacity to sustain this sale channel. For a startup, most probably the best way is to start within a multibrand online shop. There, the shop can benefit of a smaller commission per sales (possible), a higher visibility  (the multibrand having a bigger potential clients database, while the disadvantage would be that these clients are not specifically interested and focused on what you want to offer them). Moreover, it is more simple for a multibrand to do cross sale between the brands and the demands it makes to each brand are not extreme: product photos, technical details, descriptions and a commission per sale. Sometimes, support in the marketing campaigns, offers to the consumers, etc.

The disadvantage, in this case, is that the brand doesn’t get as much publicity as in a monobrand, related to the number of brands present on the multibrand. Therefore, the vicious circle: the brands that sell are promoted, while the ones that don’t covert so successfully are not so in front. Being as this, no so visible, they cannot convert. And so the vicious circle.

Still, if you consider a monobrand, you can choose building an online shop on a standard platform, with the support of a supplier of e- commerce services. There are differences here also. Many times, when you are hosted on a standard platform, you are relatively limited to customizations. You have to consider this aspect for the moment when you will need to develop and offer more experiences to your online customers.   These customizations are possible, but they require time, resources and costs. There are several suppliers on the market and you can correctly choose what is more fitted to you.

The big advantages in developing a monobrand shop, whatever the form you choose for, are creating a brand identity (or reinforce it) and increase the offline sales (if the brand is also present offline). Moreover, through correct and targeted promoting actions, you can develop a database with clients that are loyal to your brand and to your products; you can convert them with offers that are specially designed for them.  They are already your clients, so it’s easier and cheaper to keep them as loyal customers. Of course, it is necessary that you invest in a marketing budget to promote the shop, not only the brand, which can generate higher costs than the ones allocated when you deal with a multibrand.  If you take into consideration a long term strategy, the option with a monobrand shop seems more appropriate. If you are constraint of costs, you can test the market’s reaction to your product within a multibrand.

Delazero develops complete online shops on a customized platform, which holds and administrates through all the processes until the B2C sale. Basically, you have the brand, and we take care of placing it online, taking care of every stage from the online sale process: design, development, optimizations, promotion, marketing, sales to the final consumer; hence, we become a sole point of contact between your brand and the online consumer.




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