VTech uses Price Observatory to implement its digital distribution strategy on marketplaces
1. About VTech
VTech is a Hong Kong-based multinational company with an average annual turnover of over €2 billion. Founded more than 40 years ago, VTech has a global presence in three main markets:
- Telecom
- Electronics
- Toys
In France, VTech is the undisputed educational and electronic toy industry leader, thanks to its cutting-edge technology and unique know-how in the field. The company has stood out for its constant innovation and commitment to quality over the years. Thanks to this innovation, they offer high-quality educational and interactive toys. In addition, VTech has in-house recording studios to create exclusive audio and music content tailored to their toys. With over 400 references in its catalog, VTech offers a wide range of educational toys for children ages 0 to 12.
2. Challenges in VTech's distribution network
Patrick Semporé, Key Account Manager at VTech Electronics France, explains the digital distribution challenges VTech faced.
We initially set up Price Observatory in 2016 to track the value of our products in the market. We were already monitoring prices and running price surveys in physical stores. This was done by analyzing checkout exits with the company Circana. However, we had a one-week delay before receiving the information and we needed it in real time. Thanks to Price Observatory, we were able to follow our online distribution network at any moment in time!
Today, with more in-depth use of the solution, we are tackling another important issue: the digital distribution of our products. Our main online resellers in the toy industry are major marketplaces like Amazon, Cdiscount, Cultura, King Jouet... These strategic marketplaces have specificities. Amazon, for example, is a marketplace, but it is also a seller on its marketplace. Amazon Vendor is our distributor on the Amazon Marketplace, but it is not the only one selling our products there. Other sellers, with whom we don't have any special agreements, also sell our products. This is why Amazon, like other marketplaces, has set up a Buybox system. A buybox is an algorithm determining which seller will be in the spotlight for a specific product. For more details on buy boxes, do not miss this article. Therefore, our goal is to ensure Amazon Vendor has as many Buy Boxes showcasing our products as possible.
Price Observatory also helps us understand the value of our products in the market. It allows us to monitor and understand the strategies of each of our distributors.
3. Choosing a price monitoring solution
After analyzing several other solutions, we chose Price Observatory because it is an intuitive, user-friendly, and comprehensive tool and offers the best value for money.
We are delighted with the solution and the responsiveness and efficiency of Boris, our technical support contact. Boris always answers our special requirements quickly and efficiently. This flexibility is a big bonus in our collaboration with Price Observatory. The price/quality of service ratio is all the more noticeable with the passing of the years.
4. The project : monitoring the market
The solution was implemented quickly and very easily. We defined the websites we wanted to monitor and sent our SKUs to Price Observatory in a CSV file. The application was delivered in a week, and Hélène trained and supported us in the deployment.
Our market is seasonal. From January to September, we have a permanent toy catalog. From October to December, an enriched holiday catalog. Every new season, I send a new CSV with our SKU references to Boris who integrates it immediately. Robots quickly apply price reconciliations on new references under the supervision of the quality team. The process happens smoothly.
5. How Price Observatory helps VTech with their digital distribution strategy
To sum up, today Price Observatory helps us:
- Monitor prices on our distribution network
- Control digital distribution of our products
- Verify that our resellers hold the Buy Boxes on marketplaces
- Improve business relationships with our resellers
It is a complete comprehensive and extremely useful tool.
“Thanks to Price Observatory, we have complete control over
our digital distribution on marketplaces.”
6. What are the benefits of using a price monitoring solution?
Accurate monitoring of our digital distribution would be unthinkable without Price Observatory. Even with 400 products and 16 main reseller sites, I get a snapshot of our distribution network and all the BuyBoxes held at any given moment in under 2 minutes.
With a growing number of sellers on marketplaces, the solution is a real asset.
With Price Observatory, we benefit from a 5-star customer service that is very responsive. Additionally, they are quite flexible in implementing tailor-made developments to meet our needs as closely as possible.