Friday, August 04, 2017

ETSY Marketing Shift: Grow the Brand or Focus on Existing Users?

Etsy, the handmade and vintage e-commerce company, announced their first positive quarter of earnings since Q1 2016. This was just their 2nd quarter of positive earnings in the 2 years the company has been public. This article discusses the recent shift in their marketing strategy. Last fall, the company embarked on a brand marketing campaign titled "Difference Makes Us", designed to increase awareness about the company. However, new management has halted brand marketing for the remainder of this year and is now focused on "user-acquisition marketing". The company has made investments in payment security and push-notification capabilities in effort to increase buyers on the site.

This strategy makes sense for Etsy, especially as Amazon's 'handcrafted' unit grows. There is no debate that strong brand awareness is important for Etsy and can lead to revenue. However, they must defend against losing customers who are already a part of their eco-system. These buyers have shown they will transact on the site and the company is smart to make an effort to maintain a "proven" dollar. I believe that as Amazon continues to encroach on different industries, the original companies in the space must invest in user experience. This will be the only thing keeping them from going to Amazon. This step by Etsy is the right move

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