The do-it-yourself (DIY) industry is in a state of upheaval. More and more classic DIY store sales are migrating to online retailers. The large DIY store operators are being hit by the strong competition from Amazon & Co. At the same time, new market platforms such as ManoMano are entering the market with a specialized range of products. Obi and the other DIY store companies are resisting the "Amazonisation" and trying to keep up. Therefore alternative concepts are needed, which should be the result of this
paper.
Table of Contents
1. Introduction
2. OBI
2.1. Company Key figures
2.2. Current business model
2.3. Digital Activities
3. ManoMano
3.1. Company Key figures
3.2. Business Model
3.3. Disruption potential for OBI
4. Recommendations for OBI
4.1. From Cross- to Omni-Channel
4.2. Pop-Up-Stores
4.3. Shop-in-Shop Format
5. Conclusion
Objectives and Core Topics
The primary objective of this paper is to analyze the disruptive impact of digital DIY marketplaces like ManoMano on traditional retail giants such as OBI and to provide strategic recommendations for adapting to these shifting market dynamics. The research questions focus on how OBI can leverage its physical footprint to maintain competitiveness against purely online rivals.
- Analysis of the current business model and digital transformation of OBI.
- Evaluation of ManoMano's platform strategy and its potential to disrupt the traditional DIY industry.
- Examination of the "ROPO" (Research Online, Purchase Offline) consumer trend.
- Strategic recommendations for omni-channel integration and innovative retail formats.
Excerpt from the Book
3.3. Disruption potential for OBI
The do-it-yourself market in Germany has an annual turnover of almost 50 billion euros. In 2019, however, less than ten percent of sales came from online business. The main reason for this are products that require intensive advice and sometimes are too bulky for a profitable distance selling business (Gardt, 2020). ManoMano now wants to fill this gap. When the French start-up entered the German market in 2016, it did so with a declaration of battle. "We are the only way for retailers to build up an intelligent online offering away from Amazon," said the founder Christian Raisson (Baumarktmanager.de, 2019a). This is the first potential of disruption for OBI. ManoMano is a virtual marketplace in the field of e-commerce. At a central location different products are offered by different retailers and presented to the buyer. Throughout Europe, ManoMano sells about four million different articles, whereas an average OBI market has between 40,000 and 60,000 articles in the stationary and about 70,000 articles in the online assortment. In contrast to DIY stores, the platform business model is not tied to linear (supply) growth through network effects. As a result, the entry barriers for sellers on the platform are significantly lower than in the stationary retail trade. Dealers benefit from the cross-border reach as well as the logistics services and can hope for further expansion.
Summary of Chapters
1. Introduction: This chapter highlights the upheaval in the DIY industry due to increasing online migration and competition from specialized platforms like ManoMano.
2. OBI: This section provides a comprehensive overview of OBI's history, current business structure, revenue streams, and its ongoing digital transformation initiatives.
3. ManoMano: This chapter examines the business model of the digital marketplace ManoMano and analyzes why its platform-based approach poses a disruptive threat to traditional retailers.
4. Recommendations for OBI: This section outlines strategic shifts for OBI, including the transition to a full omni-channel approach, the implementation of urban pop-up stores, and shop-in-shop formats.
5. Conclusion: The concluding chapter synthesizes the findings, suggesting that OBI can successfully compete by focusing on service and experience-based differentiation rather than mere cost leadership.
Keywords
OBI, ManoMano, DIY Industry, E-commerce, Digital Transformation, Platform Economy, Omni-channel, Pop-up stores, Retail Strategy, Business Model, Customer Experience, Market Disruption, Online Marketplace, Retail Innovation, ROPO.
Frequently Asked Questions
What is the core focus of this paper?
This paper focuses on the competitive landscape of the DIY industry, specifically analyzing how traditional retail chains like OBI are adapting to the rise of specialized online marketplaces like ManoMano.
What are the primary themes discussed?
The themes include the analysis of business models, digital transformation, the disruptive potential of platform economies, and strategic retail innovations such as omni-channel retailing and pop-up stores.
What is the main objective of the research?
The main objective is to determine how OBI can defend its market position by leveraging its physical stores to provide services and experiences that are difficult to replicate in the online-only domain.
Which scientific methods are applied?
The paper utilizes a corporate and industry analysis approach, drawing upon recent market reports, case studies, academic literature, and company data to evaluate strategic options.
What is covered in the main section of the paper?
The main section covers a detailed look at OBI's organizational structure and digital strategy, followed by an analysis of ManoMano's growth and ending with concrete strategic recommendations for OBI.
Which keywords best describe this research?
Key terms include OBI, ManoMano, DIY industry, e-commerce, digital transformation, omni-channel, platform economy, and market disruption.
How does ManoMano threaten OBI's market share?
ManoMano utilizes a highly scalable platform business model with low entry barriers and uses specialized "Manodvisors" to provide expert advice, effectively challenging traditional DIY retailers in their core competence area.
Why are pop-up stores recommended for OBI?
Pop-up stores in urban centers allow OBI to address customer needs for immediate product testing and in-person consultation, helping the brand penetrate areas where traditional, large-format stores lack access.
What is the "ROPO" trend mentioned in the paper?
The "Research Online, Purchase Offline" (ROPO) trend describes consumers who utilize digital tools to inform their purchasing decisions before completing the transaction in a physical store.
What is the significance of the "Shop-in-Shop" model?
The "Shop-in-Shop" format allows OBI to collaborate with manufacturers, enabling better brand experiences for customers while reducing OBI's own commodity risks and releasing financial resources.
- Citar trabajo
- Paul Heck (Autor), 2020, Analysis of potential disruptors in the DIY business, Múnich, GRIN Verlag, https://www.grin.com/document/909265
