Leroy Merlin Brazil launches the first online marketplace for home improvement in Brazil to expand its product offering in an omni-channel context.
Project context
About Leroy Merlin Brazil
Adeo is the third largest home retailer worldwide and a world-leading home improvement retailer. Leroy Merlin, a subsidiary of Adeo with nearly 760 do-it-yourself stores across 12 countries, is committed to helping residents and homeowners find the perfect solutions for their home improvement projects.
In Brazil, Leroy Merlin is a highly renowned brand and a leader in the DIY sector.
- 444 million customers worldwide; 100,000 employees
- Over 22 billion USD in annual revenue
- 43 stores in Brazil, and the go-to retailer in the DIY sector
The goals behind this marketplace project, which may be seen as the first virtual shopping center for DIY and construction articles in Brazil, are to allow Leroy Merlin to drastically increase its product offering in existing categories as well as new categories (household appliances, furniture, bedding, etc.) and services (installation, repairs, etc.).
"With the launch of this marketplace, our goal is to ensure that customers can purchase whatever they want, wherever they want and whenever they want." – Alain Ryckeboer, CEO of Leroy Merlin Brazil
Why Mirakl?
Following the 2018 decision to launch the marketplace project, the Leroy Merlin Brazil team had two main objectives: to deploy the marketplace the same year and to provide top market standards to both customers and sellers. The brand therefore chose the Mirakl turn-key solution, which has already proven to be successful in Latin America. In the words of François Gabert, CMO of Leroy Merlin Brazil: "We chose Mirakl for its proven experience in marketplace business, strong and tested platform, and capacity to quickly implement the project."
Launched in mid-June 2018, the project took less than 5 months to be completed. Approximately 50 sellers have been active on the platform since the launch, and hundreds of others will be joining in the upcoming months. Over 30,000 additional items are now available for customers, with a goal of offering 200,000 more products by the end of 2019.
The omni-channel dimension is also an important element in the brand's marketplace strategy: as of January 2019, Leroy Merlin customers can purchase all products sold on the marketplace in physical stores, simply paying for them with their in-store purchases at the checkout desks.
Why a Marketplace?
The marketplace model enables Leroy Merlin Brazil to rapidly reach this goal in the most cost-effective manner, without investing in storage space and logistics, while receiving commission on sales. Thanks to its marketplace, Leroy Merlin will see a significant rise in sales volume, due to the combined increase in conversion rate, online and in-store traffic, average basket value and recurring purchases.
"After evaluating a number of different options for building our online marketplace, we selected Mirakl for its proven experience in marketplace business, strong and tested platform, service capabilities, and capacity to quickly set up the new platform." – François Gabert, CMO of Leroy Merlin Brazil
5 months
from initiation to marketplace launch
50
active sellers on the platform 1 month after launch
30,000+
products added in only a few months
