Australian daily deals site Catch Of The Day has transformed into a general retail marketplace, vowing to take the leading market position after Amazon.
“I’d be quite happy being number two to Amazon,” said Catch Group founder Gabby Leibovich. “There’s a lot of opportunity here. Amazon’s arrival will increase the online audience.”
Catch Of The Day started off as a ‘deal of the day’ site in 2010 but over the years has developed other brands such as Scoopon, GroceryRun and Mumgo, as well as acquiring children’s fashion house Pumpkin Patch this year.
This week’s transformation sees it shed its daily deals and group buying heritage with a rename to Catch.com.au.
Leibovich told Business Insider that select retailers will be invited to sell directly to consumers in the Catch.com.au marketplace – much like a third party sellers on Amazon – in a reform that will take the product catalogue from the current 30,000 items to 2 million by the end of 2017.
Catch Group has already signed up Speedo, North Face, Lorna Jane and Asus as third party merchants at launch, but did not disclose the financial terms for a merchant to join its marketplace.
Catch of the Day has been the retailer up until now, storing and selling its own stock. This side of the business will now work alongside the third party merchants – a concept Leibovich said only became palatable to local businesses in recent times.
“When we approached Australian retailers three years ago, they were just not ready to do that for various reasons. Today, every retailer takes online seriously and they all know it’s an area of growth. They all know they have to have great customer service and ship quickly.”
But the issue for local retailers, according to Leibovich, is reach – “being where the customer is” – and that is the missing piece that he says Catch.com.au will provide manufacturers.
“Quite a lot of local retailers have experienced that already by offering their products on eBay. Catch of the Day is running a shop on eBay, but so is JB Hi-Fi and many others.”
The Melbourne company currently ships 10,000 products daily and says it’s on track to rack up $500 million in revenue in the coming year.
In March, Catch Group made its first foray into the manufacturing and supply side of the chain by purchasing the assets of troubled kids clothing brand Pumpkin Patch from receivers for a reported $2 million. The company plans to relaunch the business as an online shop.
While goods manufacturing is not in Catch’s “DNA”, Leibovich did not rule out further acquisitions in the area.
“We’re a marketing company and we’re a tech company. But having jumped into [manufacturing], I’m certain that every other opportunity that will present itself in the local market we will consider,” he said.
“Some will suit us, some will not. But we’ll definitely keep an eye on it.”