Market positioning: The French company Kelkoo.com aims to become
Europe’s biggest online retail directory.
Its merger with Spain’s Donde-Comprar.com has augmented its presence in
Europe and in Latin America but the merger with Shopgenie will help its
UK expansion and achieve its goal of capturing 30 per cent of the market
by next year. Expansion is planned into Italy, Germany and
Site characteristics: Shoppers can compare prices on goods ranging from
hardware, travel, household and electrical goods to music. It searches a
portfolio of more than 25,000 e-tailers in a global merchant
It features bargains of the week and a buyers’ guide written by
Target demographic: Very broad. Anyone wanting the best deal, aged from
18 to 70.
Principals: Philip Wilkinson, the co-founder of Shopgenie UK and now
Kelkoo.com’s UK general manager since the merger, quit his job at Perot
Systems after coming up with ’a service that would search sites for the
Backers: In the UK pounds 8 million has already been raised and Kelkoo
is closing another investment deal worth around pounds 20 million.
Investors include the Aim-listed Netvest.
Marketing strategy: Last week Kelkoo appointed DDB to a pounds 10
million European drive. Around pounds 2.3 million will be spent in the
UK on online and offline activity. It aims to have negotiations
completed by the 1 June launch date.
Competitors: Its main UK competitors are Shopsmart and Asda’s
THE YEAR AHEAD
With a pan-European presence and a weighty ad campaign, the prospects
look good for Kelkoo. Its entry into the UK market ups the ante. Now it
is time to see how the competition will respond. - Excellent prospects.