CHICAGO and CLEVELAND, July 17,
2019 /PRNewswire/ -- The dynamic and fast-growing
eCommerce channel represents a lucrative retail market for
innovative brands as online sales see explosive growth, according
to the Consumer Insider, an industry report released by
Brown Gibbons Lang & Company (BGL). U.S. eCommerce retail sales
grew 14.2 percent to top $513 billion
in 2018, outpacing the 4.8 percent increase in overall retail
sales, with changing demographics, hyperconnectivity, social media,
and convenience among the key drivers influencing online purchasing
decisions. Brand owners and retailers are jockeying for channel
access, with acquisitions a lever to more rapidly increase market
penetration and capitalize on robust growth.
Access the full report here.
The BGL report, now available online, examines essential digital
selling strategies for online brands, supported by executive
insights gathered through primary research.
Key findings in the report:
Great Management Talent Always Wins. Pacesetters in the
eCommerce channel understand their target audiences and lead in
digital strategies using a true omnichannel approach, striking the
right balance between insourcing and outsourcing of key tactical
positions. "It is much more of a proactive mindset to say: What can
we be doing? What can we be trying? How do we keep experimenting?
These are organizations trying to be on the vanguard of what is
new," offered Chris Casgar, a
partner in the Consumer practice at Webster Equity Partners and a
participant in the report. Leaders are using a combination of
digital and physical engagement to acquire customers and
alternative media to complement different sales
activities.
Secrets to Success on Amazon Seller Platform. Amazon now
commands more than 40 percent of all U.S. retail sales, making it
essential for growing brands to develop winning strategies to
thrive on the platform. Third-party sellers represent a vital
source of online commerce, accounting for more than half (58
percent) of Amazon's gross sales in 2018, or a massive $135.1 billion in revenues. "Working with Amazon
is like crossing a raging river," remarked John Tilson, an eCommerce investment banker and
head of BGL's Consumer vertical. "You have to step on the stones
one by one to get across the river. If you do that, it can be an
amazing platform." Effective advertising, product listings, and
product review strategies are among the tools employed to increase
sales velocity on the platform. "An important differentiator is
advertising. If a brand is not always advertising on Amazon, it is
going to fall behind. That is by design. Amazon's advertising
platform is growing so fast that it is rewarding brands that use
it," said Thaddaeus Hay, chief executive officer of Nozani, another
report participant.
Hotbed of M&A. M&A activity for leading online
brands is increasing, along with deal multiples, with Harry's
(Edgewell Personal Care Company), Shutterfly (Apollo Global
Management), and Flipkart (Walmart) among the high-profile
acquisitions to make recent headlines. "The M&A environment for
eCommerce businesses has been very strong, and we believe it will
continue to outperform the broader market in the coming years,"
observed John Jameson, an eCommerce
investment banker at BGL and report participant. "Quality targets
provide acquirers and investors with solid platforms for growth, as
well as a level of expertise that many large corporate or private
equity buyers lack."
About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company (BGL) is a leading independent
investment bank and financial advisory firm focused on the global
middle market. The firm advises private and public corporations and
private equity groups on mergers and acquisitions,
divestitures, capital markets, financial
restructurings, valuations and opinions, and other
strategic matters. BGL has investment banking offices in
Chicago, Cleveland, and Philadelphia, and real estate offices in
Atlanta, Chicago, Cleveland, Denver, San
Antonio, and San Diego. The
firm is also a founding member of Global M&A Partners, enabling
BGL to service clients in more than 30 countries around the world.
For more information, please visit www.bglco.com.
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SOURCE Brown Gibbons Lang & Company