Marketplace models can drive growth but having a USP is vital

Core Insights - Retailers adopting marketplace models must maintain their identity and unique selling proposition (USP) to avoid becoming indistinguishable from third-party platforms [1] Retailer Strategies - UK retailers are launching marketplaces to enhance their offerings, with Marks & Spencer (M&S) launching "Brands at M&S" in 2021 to compete with Next and attract a broader customer base, resulting in a 42% increase in online partner brand fashion sales for FY24/25 [2] - Other retailers like Tesco, The Range, Superdrug, and B&Q are also exploring marketplace models to enter new categories with lower investment and risk compared to developing their own products [3] Customer Acquisition and Retention - B&Q's marketplace, launched in 2022, has attracted around 50% new shoppers, with 15% of these customers subsequently purchasing B&Q's first-party products, highlighting the importance of retaining these new customers through improved fulfillment options [4] Consumer Expectations - The marketplace model allows retailers to offer a wider range of products and price points, meeting consumer demands for convenience while potentially achieving low-risk, profitable growth [5] - Retailers must ensure a consistent shopping experience, including fulfillment options and product quality, as negative experiences with marketplace products can lead to loss of future sales [5]