What's Next? A qualitative study about the growth of online B2C marketplaces in the Swedish fashion retail industry. Will curated marketplaces replace retail companies' own online channels?

Abstract: Online marketplaces are currently gaining popularity in the Swedish market, and global incumbents such as Amazon have recently entered the market. Marketplace platforms are traditionally seen as an additional distribution channel that serves as an opportunity for retailers to capture new revenue streams and customers. Nevertheless, a recent trend has been to focus on other values, such as providing inspiration and creating more compelling offerings towards customers Today, brands are seen to create a curated marketplace themselves by carefully introducing selective third-party resellers, with a clear focus on the customer experience and with a specific customer segment in mind. Long term, curated marketplaces have the potential of 1) challenging incumbents and 2) replacing brands' own online channels. With the aim of understanding the challenges and opportunities that Swedish fashion retailers face in exploring this marketplace model, the study seeks to guide retailers in the decision of being established on a curated marketplace or choosing to create a curated marketplace. This paper uses a qualitative method where industry experts and consultants within the scope of fashion retailing have been interviewed. The result emerged that retailers need to consider either entering a curated marketplace or becoming a curated marketplace. In the long run, a potential market consolidation is likely to happen; defined in this context as a movement of niched actors being brought together, as it is becoming increasingly attractive to tap into ecosystems within niche categories. Brands that have a strong position in the market, together with a clear niche, can take part in untapped opportunities by doing the latter. Suppose retailers implement a curated marketplace model and succeed in creating the ecosystem that usually arises around it. In that case, there is potential to capture and analyze high-quality data, which is vital in customer understanding and product development. In the long term, curated marketplaces are seen to capture an increased number of customers and sellers in a specific niche. Finally, as most time spent online is allocated on social media, and customers seek more inspirational content, curated marketplaces blur the lines between e-commerce and social commerce.