Veepee, formerly Vente-Exclusive, has noticed emerging trends in the e-commerce landscape. Therefore, the flash sales provider is investing in artificial intelligence, recycling and a new return-service.
Second-hand is a win-win
The fact that the coronavirus crisis has given e-commerce an extra boost has most certainly not escaped Veepee's attention. But within this, evolutions can be seen, defined the rise of new trends and customer expectations. Consequently, the era of 'ReCommerce' has arrived, according to the online platform. Online sales of second-hand goods are expected to grow by 15 to 20 per cent annually worldwide over the next five years.
In 2019, 25 per cent of consumers bought a second-hand product, while 70 per cent wants to buy more second-hand in the future, according to the French Fashion Institute. And that's what Veepee desires to capitalise on: "From an economic and ecological point of view, ReCommerce is a win-win model that fits the consumer habits of millennials and GenZ. The boom that is happening in the second-hand market is just the tip of the iceberg," Veepee says.
On the French market, the company has launched 'Re-turn' and 'Re-cycle', two projects that will soon be extended to other European countries. Re-turn is a new service to reduce the number of returns: customers can resell products to each other on the platform. With Re-cycle, customers can return old clothes, which will then get recycled, repaired or upcycled to give them a second life.
"Thinking in terms of circularity is a challenge and a necessity on a global scale. We need to take the idea of circularity on board as we plan for the future of e-commerce and encourage retailers to reinvent their business models - from the supply chain to product design and inventory management. In the process, we need to leverage the insights provided by AI and data," said CEO and founder Jacques-Antoine Granjon.
More artificial intelligence
Of Veepee's 5,000 employees, 600 already work in IT. Big data is an important part of it all, both for consumers, as for the brands the platform works with. Artificial intelligence is expected to further assist the "holy trinity" of predictability, optimisation and relevance.
"Artificial intelligence is already being used on the consumer side by suggesting the most relevant products to the buyer, based on purchase history and browsing behaviour. AI is thus increasingly playing the role of a personal shopping assistant providing tailored recommendations and advice," Granjon explains. For its brands, Veepee now wants to optimise the supply chain and sales strategy using AI. But, they leave room for emotion and aesthetics, for instance, through a new social media strategy that focuses heavily on artistic creativity.