Buyer Insider Sessions: Balance by Euronics
Sandra Stadler, Head of Category - Health & Wellbeing, Euronics recently took part in the first of the Buyer Insider Sessions, organised by Channelhub, to share insights into Euronics’s pilot Retail as a Service programme ‘Balance’, together with advice and considerations for brands interested in the scheme.
Balance is a pilot programme that represents a new way of working with Euronics International. The initiative focuses on 4 key categories of wellbeing including Activity, Sleep, Nutrition and Mind with products made available to consumers online and through stand-alone retail units at selected stores in Europe and the Middle East. The instore units are designed with consumer interaction in mind and are managed by specially trained health advisors. The Balance initiative is managed by Euronics International directly rather than by individual Euronics members.
The ‘retail as a service’ model marks a departure from the traditional Euronics retail approach. The membership driven organisation will take a more hands-on role in the management of the scheme and charge participating brands a management fee for their participation in the programme.
Key points include:
Euronics International charge participating vendors a management fee
Vendors must provide a supporting product launch strategy
Management fee covers a number of costs such as stock management & e-shelf labelling
A minimum 6 month commitment to the Balance programme is required
Vendors recoup 100% of sales generated
Review period after 6 months with the option to switch to a margin model
1 sample product per participating store to be provided by the vendor
Pilot programme is up and running
Balance is already active in select outlets of Sharaf DG, UAE, Topo Centras,Lithuania and Euronics, Germany. Euronics, Italy is anticipated to go live in November. The results of the pilot programme should be known in Q1/2 2024 with growing appetite amongst Euronics members to adopt the instore RaaS model.
A launch pad for international brands and startups
The Balance ‘retail as a service’ programme is a great opportunity for US and Asia based vendors with no formal distribution arrangements in Europe. Euronics International manages the vendor’s stock at their central warehouse in the Netherlands, and will distribute their products to participating stores across Europe, with the service included in the management fee. However, it’s important to note that vendors must have the necessary certifications in place to be considered for the Balance programme.
What products are Euronics looking for?
The buyer brief for the Balance programme is fairly simple and there is no limit to the product types amongst the four categories that can be listed online and showcased in store. What is important is that the product has a demonstrable USP and clear positioning in the market versus similar products already available.
Example product categories include:
Nutrition - air fryers, blenders and hydroponic solutions
Activity - smartwatches, trackers and sports related pain relief solutions
Mind - a wider category for products that can help you relax and destress
Sleep - ear plugs, air purifiers and sleep quality monitors
For a more comprehensive list of categories and products, go to the Euronics website.
The full interview is available to Vendor ChannelHub members only via their online account. If you are a vendor and would like to access the Buyer Insider Sessions, register now for your free ChannelHub membership.
Coming soon - Buyer Insider - Exertis