Vinted was founded in Lithuania in 2008 by Milda Mitkute and Justas Janauskas. After years of building a solid platform and an engaged community, they were finally able to start making money. They thought. The figures fell around 2016. Users switched to cheaper and, at the time, more accessible alternatives. Thomas Plantenga about that time: “I had just sold my company and was doing some consultancy work. That’s how I came to Vinted: I was going to stay there for a few weeks. I was very impressed with the technical skills and entrepreneurial spirit of the founders. The advice I gave was drastic and it meant turning the whole company upside down. Then they surprised me again: they took all the advice and we went to work together. “
The Vinted Revolution
The new Vinted is built on three pillars that are entirely based on the customer’s experience. Plantenga explains them. “First, we make the entire process as simple as possible for the customer. He must understand it intuitively and not encounter an obstacle anywhere. Second, costs are an important factor in this competitive market. We have drastically cut a large part of the costs and entered into discussions with partners to further reduce costs on their side as well. Sellers do not pay any commission to us and the contribution from buyers is also low. Finally, reach is extremely important. We put all the money we could save on TV advertising. “
We put all the money we could save on TV advertising
Television? For a digi-hero?
Sounds illogical, an all-digital platform using the traditional TV channel to reach customers. Plantenga explains that it is actually a golden combination. “First, it is a fundamental truth that television still has the greatest reach in numbers. It is especially interesting for digital community-based players like us, because we can measure the effect of those commercials very accurately. We see the effects in reach and conversion immediately during and after the commercial. We can even measure parts of the commercial and A / B analyzes are also possible. We can therefore use the medium very effectively. We are growing fast. “
The new strategy is successful. Vinted is expanding its market country by country and is already active in eleven European countries.
More than 34 million users know where to find the platform and in October 2020 it took over United Wardrobe in the Netherlands, about which Plantenga can tell more during the PIM talk show.
The golden rules of digital transformation
Thomas Plantenga has gained experience at various companies, was a successful entrepreneur himself and has a keen eye on today’s world. In 2017 he became CEO of Vinted. He sees two important success factors for companies that are committed to digital transformation. “Companies that are able to integrate the online offer with offline services thus provide great added value to their customers. Until recently, those worlds were separate. A customer found something on Marktplaats, made an appointment, picked it up, paid and had to hope that it was good. Today’s successful players take over all of that: the financial settlement, packaging, transport, sometimes even insurance and warranty. This relieves the customer of a lot of worries and adds value. At Vinted, we enter into far-reaching partnerships with partners who can provide these services. “
For example, we work with drop-off and pick-up points to limit CO2 emissions from transport.
Being good for society
The second success factor is in line with the universal and global movement in which companies and brands are increasingly looking to do good for society. “If you grow fast, like us, that is even more relevant,” says Plantenga. “The bigger you are, the more impact you have. Then you want that to have a good impact. We focus on that fundamentally. This attracts employees who are motivated to contribute to this and it results in loyal, satisfied customers. We test everything we do for its positive impact. For example, we work with drop-off and pick-up points to limit CO2 emissions from transport. And we are not sitting still. We are currently investigating the impact of our business and the goods passing through our platform. With this insight we can determine how and where we can further improve in the future. “
Learnings for the marketer
On December 8, Aljan de Boer of PIM will continue to discuss these topics with Thomas Plantenga. How did the new business model come about and on what basis did Vinted make those drastic choices? What have they learned about the effects of TV advertising? And it sounds great, linking the online and offline world, but how do you do that? There is an opportunity to ask questions via chat.
The PIM online talk show will take place on December 8 from 3:00 pm to 4:30 pm. The other prominent speaker is Wankie Chan, Marketing Director EMEA Medium Business at Dell Technologies. She discusses the determining role of marketing in the digital transformation of companies.