**London**: GigaCloud Technology is enhancing its supplier-fulfilled retail model to adapt to economic uncertainty and rising consumer caution. CFO Erica Wei highlights the model’s efficiency, particularly for small retailers, as the company also expands its European market presence with significant growth in gross merchandise value.
GigaCloud Technology is intensifying its focus on its unique supplier-fulfilled retail model as it seeks to bolster growth amidst a backdrop of uncertainty characterised by looming tariffs and fluctuating consumer confidence. The company, a B2B marketplace designed to facilitate connections between furniture suppliers and retailers, is positioning itself as a critical resource for businesses striving to find operational efficiencies in today’s challenging market landscape.
According to Chief Financial Officer Erica Wei, the current climate has made consumers feel somewhat less confident. Speaking to Furniture Today, she expressed understanding of this sentiment, stating, “The consumer seems a little less confident this year because of all the uncertainty, and it’s very understandable.” Wei emphasized the importance of GigaCloud’s mission during these turbulent times, saying, “During these times, the key question is, how do we stay efficient and help our clients?” The company’s strategy involves maintaining a focus on its core business while remaining competitive, nimble, and capital-light.
GigaCloud’s supplier-fulfilled retail model is especially advantageous for small and medium-sized retailers as it significantly lowers inventory costs by allowing them to order products only after receiving customer orders. Wei elaborated on this model, saying, “The marketplace is an open-ended ecosystem that enables a lot of scale in terms of wholesale trading between suppliers and retailers.” This model creates a risk-pooling effect that benefits all participants, especially for brick-and-mortar retailers who typically must manage a wide array of stock-keeping units (SKUs) to meet shifting consumer demands.
The platform assists retailers in minimising uncertainty in inventory planning, particularly for categories where demand can be unpredictable. “(The B2B marketplace) allows retailers to take on inventory only when they have sales certainty,” Wei noted. She highlighted the broader benefits of the marketplace, reinforcing the idea that limiting relationships can restrict opportunity, especially in a growing marketplace.
GigaCloud is also making significant inroads into European supply chains as part of its strategy to drive further growth. The company’s gross merchandise value (GMV) in Europe soared by an impressive 155% year-over-year in 2024. Wei described the European market as “very exciting for us,” noting that it presents a “natural next step for the marketplace.” She explained that the growth in Europe is fostering a relatively friction-free trading environment, which is beneficial in offsetting some of the challenges observed in the U.S. market. “Our marketplace participants are very excited about the opportunity,” she added.
Wei acknowledged the numerous challenges that businesses face, including fluctuating ocean freight rates, port strikes, and soft consumer demand. Despite these economic headwinds, she affirmed the continual need for furniture from consumers, indicating that the fundamentals of consumer demand remain robust. Reflecting on the ever-changing landscape of business, she remarked, “Every year there’s something new we have to manage… In the end, it’s just another day.”
Source: Noah Wire Services
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