OTTO weiter auf Wachstumskurs
“OTTO is seeing growth in all assortment areas, above all in Durable Goods segments such as Furniture and Multimedia”, explains Alexander Birken, Member of the Executive Board Otto Group, Multichannel Distance Selling, Spokesman OTTO. “Sustainable growth through technological transformation is laying the foundation for the future. This means OTTO is more firmly than ever on the path to becoming a technology-driven company.” Investments in the otto.de online shop are paying off, as the very satisfactory increase in new customers shows: this figure has risen by 22 percent versus the previous year to reach 850,000 in the first half of this year alone, with a total of 4 million active customers. Of these, over 50 percent now access the online shop via mobile devices, with 4 out of every 10 euros in revenues now generated via mobile.
“The cultural and technological change at OTTO enabled us to further raise the pace of the digital transformation”, says Birken. The result of this is long-term growth, with revenues climbing 23 percent since 2012, representing a total increase of 500 million euros annually. “Driving this transformation with the customer as the starting point is enabling us to create new business models”, Birken continues.
Customers will soon be able to rent products too – from OTTO NOW
Whether they need a TV, washing machine, tablet or coffee-maker, customers will soon be able not only to buy these at OTTO but also to rent them long-term via the new, separate platform OTTO NOW.
OTTO NOW meets the needs of everyone who doesn’t need a product forever – for instance, students moving to shared accommodation without a washing machine. Instead of going to a laundrette, the community will soon be able to rent a washing machine at otto.de and share the costs, for as long as the community stays together or needs the appliance. OTTO NOW is also the perfect solution for families with small children, or early adopters who love to use the very latest technical devices.
“The driving concept is that the consumer of the future will want to rent physical products for a limited time, just as easily and worry-free as they stream music or car-share today”, explains Marc Opelt, Member of the OTTO Management Board, Sales. “Based on observations like this, we believe that now is the right moment to test consumer acceptance of rental offers. Our goal is to be close to our customers, to understand their wishes and to fulfil these as best we can.”
In line with agile project methodology, the team will market-test its results live at an early stage, to enable OTTO NOW to go online in just a few weeks’ time. In the first phase, customers will be able to rent products from the Multimedia assortment (such as smartphones, laptops, projectors, gaming consoles and drones), Household Appliances assortment (e.g. dishwashers), and Sports assortment (e.g. fitness treadmills and e-bikes). Furthermore, OTTO is to offer a fully comprehensive service package along with each product, including installation, maintenance and cost-free repairs. The minimum rental period will be three months.
