Merchandising Competitive Analysis

Goal:

Evaluate competitors’ strengths and weaknesses to easier assess competitive advantage and potential opportunities.

Strategy:

● Followed and subscribed to emails from each competitor ● Analyzed and compared merchandise, target market, categories and collections, pricing, and

strengths and weaknesses of different aspects of each company. ● Looks for overlapping areas in the merchandise mix ● Put together SWOT Analysis● Identify high level opportunities and secondary opportunities

Project Goal and Strategy

Scoutmob “We celebrate the independent makers by seeking out their inspired goods and crafted

experiences, providing meaningful ways for our users to connect for themselves”

Largest Category: Women’s

Target Market: Middle class men and women ages 20+

Wholesale Platform: Yes

Number of products: 10,000 +

Revenue Growth Percentage: Not disclosed- Venture Round of funding (24% /MO in 2013)

Differentiation: Does not offer product reviews, has marketplace on Amazon Handmade, also sells location aware coupons, largely known for brand personality-shown in emails and throughout the website, occasionally has sales, mobile app, offers more apparel and fashion forward products

Scoutmob Overlapping Products

Overlapping products tended to be simple, smaller, and lower priced everyday products. Some of these products were offered on sale at a lower price.

Strengths● Marketplace and location based

deals● Email Strategy (targeted,

humorous and simple messaging)● Mobile app● Personality ● Good reputation● Has marketplace on Amazon

Handmade

Weaknesses● Not a B corp● No product reviews● No price matching● Visual merchandising (limited

images, image quality)● Limited activity/engagement via

Twitter and Instagram● Limited focus on makers/stories● Frequent flash sales

Scoutmob

Scoutmob vs. The Grommet

Opportunities for The Grommet

● Increase social media engagement on all channels (Twitter, Facebook, Instagram,Pinterest)

● Mobile app● Price matching● B corp

Competitive Advantage

● Customer loyalty● Successful mobile app ● Marketplace on Amazon Handmade● Brand Reputation

“We believe that creativity and the expression of individuality represent two great human treasures. We have set out to create a business that

makes uncommon goods accessible to everyone.”

Largest Category: Gifts

Target Market: Artistic women and men, mostly women 20+

Wholesale Platform: No

Number of Products: 10,000 +Revenue Growth Percentage: Not disclosed- Steadily growing

Differentiation: Offers gift registry, Exclusive “Uncommon Collection”, global, not as focused on

the makers and their stories, offer items on sale, more female customers

UncommonGoods Overlapping Products

Overlapping products were found in many different collections and categories ranging from Fun, Kitchen and Bar, and Jewelry. Price points for overlapping products are approximately the same. Closest related competitor.

Strengths● Engaging emails ● Facebook, Twitter, Instagram, and

Pinterest activity● B corp● Easily identified target market● “Uncommon Collection”-own

exclusive collection● Gift registry● Global● Live chat with customer service● Diverse collections and categories● Product Reviews

Weaknesses● Limited focus on makers/the story● Social media interaction on Twitter● Limited apparel● No mobile app

UncommonGoods

Uncommon Goods Vs. The Grommet

Opportunities for The Grommet● Improve virtual shopping experience

(ex: zoom) ● Mobile app● Maker focused ● Twitter and Instagram engagement

Competitive Advantage

● B corp● Diverse target market ● Global reach● Diverse product assortment

“By connecting directly with the designers, we bring you products that are timeless and truly unique, and we do it at unbeatable members-only pricing.”

Largest Category: Fashion Accessories

Target Market: Primarily men and tech savvy women

Wholesale Platform: No

Number of Products: 15,000-20,000

Revenue Growth Percentage: 150% / yr -as of 2015

Differentiation: Some very high priced products ($5,000+), main basis is short duration (5 day) sales,

specializes on curation and personalization, poor website design

Touch of ModernOverlapping Products

Overlapping products mostly tech/gadgets or problem solvers. Lower price points because of flash sales.

Strengths● Innovative products● High Google search page rank● Word of mouth marketing-

cheaper● High growth percentage● Strong mobile app (70%

purchases from men on the app)

Weaknesses● Website design/navigation● Requirement to log in(members

only)● Short duration of offers● Limited engagement with

consumers ● High shipping rates● No search ability on site ● Poor customer service ● Twitter, Facebook, Pinterest

engagement and activity

Touch of Modern

Touch of Modern Vs. The Grommet

Opportunities for The Grommet

● Increase Pinterest, Facebook, and Twitter activity and engagement

● Maintain and strengthen customer service level

● B corp ● Enhance website capabilities to

maximize shopping experience

Competitive Advantage

● Narrow and deep product focus on tech

● Lower prices

“Our mission is to reimagine commerce in ways that build a more fulfilling and lasting

world.”

Largest Category: Accessories

Target Market: Buyers and sellers - women of all ages and classes with slightly lower income

Wholesale Platform: Yes

Revenue Growth Percentage: 35.4% / yr -as of 2015

Number of Products: 30,000,000 + as of 2015

Differentiation: Well known common household name, varies between shops and sellers, extremely diverse

merchandise mix, no quality assurance, 2 sided marketplace, B corp

EtsyOverlapping Products

Overlapping products were mostly some of The Grommet’s best sellers, jewelry, and simple products. There are lots of knock offs on Etsy, so the pricing differs.

Strengths● B corp● Leader for handmade items● Low fees for sellers ● Wide target market● Global reach● High Facebook, Instagram, Pinterest, and

Twitter engagement● Mobile app● Trendy and fashion forward● Wholesale platform● Very diverse merchandise mix● Ability to support less established makers

Weaknesses● Maker focused not customer focused● No guarantee of authenticity or quality● Merchandise mix is almost too saturated● Extreme variation across shops- some sales,

some have different policies, warranties etc. ● Poor customer service● Untrained makers/sellers

Etsy

Etsy vs. The Grommet

Opportunities for The Grommet

● Maintain customer focus● Continue to build The Grommet brand

name● Continue to strive for high quality

products and makers● Continue to be a resource for makers

Competitive Advantage

● Established household/brand name● Wider assortment of products and

categories● B Corp● Appeals to anyone and everyone● Mobile app● Trendy and fast to market

“We scour the globe to find exceptional, quality objects for every aspect of your life. By creating a community which values creativity, we're empowering independent designers & artisans to thrive online.”

Largest Category: Women’s

Target Market: Men and women- mostly men

Wholesale Platform: No

Revenue Growth Percentage: 140% /yr

Number of Products: 18,000 +

Differentiation: Only dropship, global marketplace, mobile app, wide extent of products and price

ranges offered, more fashion focused

AHAlifeOverlapping Products

Overlapping products in various categories, all with similar price points. Many of The Grommet’s best sellers can be found on AHAlife as well.

Strengths● Growing customer base● Mobile app● Global● Supportive of makers● No inventory risk (100%

dropship)● Some videos on products

Weaknesses● Quick success attracts more

competition● Narrow target market● Poor customer service reputation● Inconvenient website design-

have to click a product to see its price

● Poor website layout● Low quality product images● Low Facebook, Twitter,

Instagram, and Pinterest activity and engagement

● 100% dropship

AHAlife

AHAlife vs. The Grommet

Opportunities for The Grommet

● Globalization● Increase Twitter, Facebook, and

Pinterest activity● Mobile app● Enhance website capabilities to

maximize shopping experience● Continue expanding target

market● Maintain and strengthen

customer service level

Competitive Advantage

● Strong mobile app● Global● No inventory risks

“Bootstrapped, Profitable, and Proud”

Largest Category: Clothing

Target Market: Outdoorsy and adventurous men on a budget

Wholesale Platform: No

Revenue Growth Percentage: Rapid Growth (not disclosed)

Number of Products: around 10,000-20,000?

Differentiation: Narrow target market, more social media engagement, very little products for

women, 7 day flash sales

Overlapping products were mostly outdoors products or apparel. Most of these products’ price points are lower at Huckberry.

Huckberry Overlapping Products

Strengths● Focused target market and

defined brand personality● Military discount● Strong Emails● High Facebook,Twitter,

Instagram activity and engagement

● Some products have videos● Customer service

Weaknesses● Weaker brand recognition● Low funding● Frequent flash Sales● Narrow target market● No mobile app ● No reviews

Huckberry

Huckberry vs. The Grommet

Opportunities

● Continue to build customer engagement

● Build email subscriber base● Continue expanding target

market

Competitive Advantage

● Engaged with customers● Customer service reputation● Competitive pricing

Strengths● High Snapchat and Youtube,

Facebook, Twitter, and Instagram activity and engagement

● Focused on independent makers and their products

● Customer service● Supporting undiscovered products

and makers● Strong relationships with makers● Launch day conversation board

Weaknesses● No mobile app● Limited promotions/sales● No global reach ● Amazon undercuts pricing● Competitors offering same

products at lower prices● Low quality website search

capabilities● Low photo quality on Instagram

Opportunities● B corp● Global potential● Mobile app● Loyalty program● Strong social media and engagement● Improve customer service

Threats● Competition with same products

and price matching ● Competitors are household names

already● Competitors loyal social media

engagement● Other competitors are global

already

The Grommet

High Potential Opportunities for The Grommet

● Stay positioned competitively from price and services offerings

● Mobile app - incentives for downloading and shopping

● Maintain and Strengthen Customer Service Level

● Globalization

● Continue expanding target market

● Promoting Facebook, Twitter, Instagram, Pinterest, Youtube, and Snapchat engagement and activity

● Enhance brand awareness

Secondary Opportunities for The Grommet

● B Corp Certification - benefits*

● Continue to build apparel category with Fashion forward, innovative and

universally appealing items

● Offer the option to search local makers by city- “local makers”

● Military discount/ Customer loyalty program- find the right way for The

Grommet to incorporate sales

● Continue to infuse The Grommet personality into emails and social media

● Offer Gift Registry- Weddings, Baby Shower, Birthdays, etc.

Competitive Analysis Table