Online entertainment retailer zavvi.co.uk has been rebranded as zavvi.com as the business positions itself for European expansion.
Local distribution centres will also open across Europe and a multilingual version of the site is being developed, as part of plans to bring 50% of customers from Europe by September 2010.
Entertainment retailer Zavvi was bought out of administration in March and resurrected online by The Hut Group, the white label ecommerce provider and online retailer founded by Matthew Moulding and John Gallemore.
Richard Chapple, commercial director at The Hut Group, said the new dotcom suffix, which is internationally recognised and trusted, would allow for unlimited global expansion. He added that the move would help to distance the business from its former identity and stamp out any persisting consumer hesitance towards the brand.
Chapple said: “We were conscious of Zavvi’s past, and the fact that they were a closed business. They went into administration last Christmas unfortunately, and although this wasn’t through their own fault, we felt we needed to differentiate ourselves and try and move away from that.
“Zavvi.com is new, it’s fresh, and we can put a positive spin on the fact that it’s reborn and things are changing.”
The expansion will initially be supported by cost-effective, performance-based online channels, such as pay-per-click and affiliate marketing, to drive traffic to the site. Above the line campaigns may follow next year, using the mediums deemed most effective for each territory, and the business is now looking to hire two international affiliate managers.
“We’re using Zavvi as a test bench. The benefits from that we’ll be able to offer to our other customers,” Chapple said.
As well as its own brands, The Hut Group operates ecommerce services for major retailers including WH Smith, ASDA, Argos and Tesco. The business is now hoping to secure similar partnerships with retailers across Europe.
Last month, The Hut Group was named the fastest growing tech company in the UK when it claimed the top spot in this year’s Sunday Times Fast Track 100. The business has averaged 189% growth over the past four years.
The white label strategy has enabled the company to introduce other retailers to entertainment shopping online, helping The Hut Group to acquire market share from the likes of HMV, Amazon and Play.com.
However, Chapple said the firm’s success was also largely down to the culture of reward and recognition that Moulding and Gallemore have fostered.
“They are incredible entrepreneurs with the most aggressive and assertive appetite for success, and they’re very proud to be one of the biggest employers in Cheshire,” he said.
“The culture is very much work hard, play hard. We reward success in the business at every level.”
© Crimson Business Ltd. 2009
