Online auction site Trade Me has been chosen as the avenue for international furniture retailer, Temple & Webster, to test the New Zealand market for a potential further launch.
The launch of the furniture retailer has been announced with starting in stages, firstly using the Trade Me market place to ensure they understand the market, according to CEO Mark Coulter.
“If that’s successful and we see demand for the offering, we’ll be looking to set up a dedicated digital presence. Our website, mobile site and potentially our mobile app.”
With such a demand for furniture retailer Ikea to land in New Zealand, it is clear that Kiwi’s are open to receiving more from the homeware sector. And with over 130,000 products available in its Australian locations, the retailer is coming in on strong footing.
Launching in Sydney in 2011, the retailer has both a strong physical and online presence, but will be starting ecommerce based in New Zealand with saying most orders will be shipped straight from the supplier using a drop shipping model.
The retailer will ship private-label products – which make up roughly 15 to 20 per cent of its inventory –from its third-party warehouse in Melbourne. Coulter said this approach could potentially evolve over time to include a third-party logistics provider in New Zealand, but it yet to be determined.
Temple & Webster can be expected to launch within the New Zealand financial year, adding to the growing retailers that are choosing to operate out of Trade Me’s large market place offering.
The online auction site had a record last financial year, reporting a record revenue of $122.7 million. Making it very appealing for incoming international brands to target a large group of Kiwis at once.
With Bunning’s, Nood and Freedom Furniture being our main suppliers, our New Zealand market place is far from saturated when it comes to home improvements. Leaving space for Temple & Webster to make an impact online or showroom.