“Houzz Is More Interesting Than Amazon”

By Vibeke Specht, Jun 28, 2018 10:35

“I’m hoping we can marry Houzz.”

Magnus Pettersson, CEO of Royal Design and Rum21, tells us about a meeting that he hopes will be the start of a lifelong partnership.

“We don’t see Amazon as either a threat or an opportunity right now. Houzz, however, could be one of our most important sales channels in two years,” says Pettersson.

At the same time, he is not sure that the largest interior design and home renovation community is something that would suit Royal Design:

“It’s on Rum21.se that we sell furniture, interior design items and those kinds of products. The Royal Design concept with glass, china, and everything else for your dinner table is quite different. But I could be wrong. Maybe my opinion will change when I go meet with Houzz in London.”

Read more: The warehouse is the heart of the e-commerce business

Pettersson is hopeful about the meeting

He loves that Houzz is a friendly platform that wants to help users find what they are looking for, while inspiring them and simplifying the multidimensionally complicated process of taking on a home renovation.

It’s also important that the marketplace helps us keep our delivery promises and manage the ‘aftermarket’.

“I look upon Houzz as a potential seller, a source of information, or a market representative. They remind me of a Consumer Ombudsman or the Consumer Reports magazine. They are like a kind friend that does not try to point the customer in a particular direction; instead, it listens, helps, and guides them.

At Least 12 Million Swedish Kronors per Year

If his businesses are going to consider a collaboration with Houzz as a successful partnership, it has to generate at least one million Swedish kronors (SEK) per month once they are past the initial starting up phase. “That’s the equivalent monthly turnover of a small Royal Design store,” explains Pettersson. He then continues:

“It’s also important that the marketplace helps us keep our delivery promises and manage the ‘aftermarket.’ It has to help us live up to the helpful and reliable image that we want to be associated with—all the way. So, it’s important to me to hear how Houzz Scandinavia sees itself. What’s their raison d’être? Is Houzz a good fit for us?

Read more: This is how a successful marketplace like Houzz builds trust

“If it feels right, I’m hoping we’ll be able to go all in. The relationship should feel almost like a marriage. If not, it’s no use even trying.”

Other Marketplaces

Pettersson is relatively new in his role as the CEO of Royal Design and Rum21. In his role as the CEO, he is responsible for “everything.” Operationally, he is focusing on sales through all available channels, physical as well as digital.

“This means that the concept of marketplaces ends up on my table as well,” explains Pettersson. “Besides Houzz.com/.se I’m also looking at JD.com, which is the second largest marketplace in China. The potential is huge!”

MAGNUS PETTERSSON ON

  • Amazon: “An aggressive price-pusher. Our suppliers would probably take away our right to sell their products if we decided to sell via Amazon. On the other hand, Amazon does not handle furniture and pallets—not yet, anyway.”
  • Houzz: “The kind friend. Really cares.”
  • Houzz Marketplace: “Gives online retailers the opportunity to sell directly via the platform and not only have a presence there. It’s not available on Houzz in Sweden (Houzz.se) yet, but it’s on its way. I know it is.”
  • E-Commerce: “The physical store can offer more. Can you do something about this insight as an online retailer? One way is to offer to send the customer fabric samples. This will initially set you back, but it will create loyalty in return.”

Read more: Houzz and the Logistics—The demands the marketplace makes on your logistics

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