Zusatzumsätze und Neukunden: OTTO-Einzelgesellschaft launcht mit privileg.de ihren sechsten Spezialshop

The business concept for OTTO’s specialist online shops works. In a nutshell, these are based on a product presentation that’s optimally tailored for selected sub-assortments and accompanied by the full range of relevant customer advice features and services, and are supported by all available synergies with the core business regarding product offers and processes. “We closed the last calendar year with a significantly better overall result than planned, and achieved break-even despite high investment in building our three newest platforms”, sums up Dr Michael Heller, Member of the OTTO Management Board, Categories, Vice Spokesman OTTO.

On 17 February OTTO launches privileg.de, a new specialist online shop for household appliances under the same, much-loved traditional brand name. Privileg has been doing business successfully for 50 years now, has built a loyal customer base and today is exclusively distributed via the OTTO sales platforms. Privileg covers the entire assortment of appliances for washing and drying, chilling and freezing, cooking, baking and dishwashing, as well as smaller appliances such as coffee-makers and vacuum cleaners.

“These appliances stand out thanks to their low water and power consumption”, emphasizes Axel Seemann, Division Manager Category Household Appliances OTTO. Customers purchasing at privileg.de will benefit from competition-beating, end-to-end service. “From rapid delivery, through installation, connection, used-appliance collection and financing, to customer service – customers can simply select the services they desire with a click during the order process and the price is then automatically calculated and clearly displayed”, explains Online Shop Head Philipp Bößem.

Privileg.de is not OTTO’s first consumer-technology specialist: ekinova.de, the specialist online retailer for kitchen appliances by a very wide range of brand manufacturers, has been doing business since September 2014. After just a few months it is reporting above-plan revenue and earnings – without any cannibalisation of otto.de sales. “So we’re generating genuine additional revenues”, beams Seemann.

The OTTO specialist online shops are running well in the Living assortment segment too. They’re contributing to further extending OTTO’s market-leading online-retail position in interior furnishing and furniture assortments. Schlafwelt, the pioneering online shop launched back in 2009, is seen as a role model for the new assortment concepts and is achieving 4 per cent profitability. Cnouch.de, the specialist for sofas and armchairs launched in January 2014, can look back on a highly successful first year: “We’ve done better than our 2014 revenue plan”, enthuses Head of Department Katharina Koch. She is also responsible for naturloft.de, another new online shop, which focuses fully on FSC-certified solid wooden furniture in the country-house style.

Last but not least, neckermann.de has also been part of the OTTO online-shop family since February 2013. Rather than specialising in a particular sub-assortment, this platform concentrates on providing outstanding value for money – and this approach has brought it a level of success comparable to Schlafwelt’s: “As early as our first financial year we were able to report revenue in the double-digit millions – and in our second year we achieved clear growth”, says satisfied Online Shop Head Stefan Lange.

In the current year, OTTO aims to continue this success story and celebrate further launches: two new specialist online shops are already under construction, hints Heller.