5 years already!
Letzshop celebrates its fifth anniversary
14 September 2018 marked the launch of Luxembourg’s first online platform bringing together 500 retailers in the Grand Duchy. Five years on, Letzshop’s journey tells a story of resilience, innovation and adaptability.
Letzshop CEO Philippe Herremans takes stock.
How did the idea for Letzshop come about and what were your main objectives at the time?
The idea for Letzshop came from the desire to create an online platform that could help support and promote local merchants. At a time when e-commerce giants were increasingly dominating the market, it seemed important to create an alternative that would benefit the local economy.
Our main objective was to increase the online visibility of local traders by offering them an electronic marketplace where they could easily sell their products.
We wanted to be a bridge between traditional commerce and the digital world, helping small businesses to adopt e-commerce.
Philippe Herremans, coordinator of the project
How would you describe Letzshop’s journey over the last five years in terms of growth and development?
Since our launch in September 2018, Letzshop‘s journey has been a fascinating adventure marked by key milestones. In our first year, we were still in our incubation phase, refining our model and gradually gaining traction despite a highly competitive market environment.
The year 2020 was a real turning point. The arrival of the COVID-19 pandemic was a delicate period, but also a unique opportunity to demonstrate the relevance of our platform. The influx of new users and merchants generated exponential growth, confirming our value as a reliable and flexible solution in times of crisis.
In 2021, although transaction volumes were down slightly on the previous year, they remained robust. This relative slowdown can be explained by the reopening of physical shops and a stabilisation in consumer behaviour, but it also demonstrates the sustainability of our business model.
In 2022 and 2023, we consolidated our position, confirming that our platform is not only a relevant choice in times of crisis, but also a viable and competitive option in a post-pandemic environment.
How has the platform impacted the local market or community around it?
Letzshop has a multi-faceted impact on local commerce and the community, creating a beneficial synergy on a number of fronts:
- By providing an online sales channel, we have not only broadened the business horizons of local traders, but also made them more resilient in the face of challenges such as pandemics or economic fluctuations. This financial second wind can be crucial when it comes to keeping a business afloat.
- By designing a platform focused on promoting local businesses, Letzshop is playing an educational role by raising consumer awareness of the importance of supporting community businesses. This helps to create a loyal and informed customer base that understands the value of their purchasing choices.
- Letzshop is not just a sales platform; it’s also a virtual training centre. We equip local retailers with the digital skills they need to succeed in the digital age, a competitive advantage that benefits the whole community in the long term.
- By encouraging local transactions, our platform reduces the need to transport goods over long distances, which in turn reduces the carbon footprint associated with trading.
What have been the biggest challenges Letzshop has faced over the years, and how have you overcome them?
Letzshop has faced a number of strategic and operational challenges over the course of these great but demanding years. Convincing small retailers to integrate an online platform was our first hurdle. To encourage them, we eliminated subscription fees in 2020 and 2021, a particularly welcome boost during the pandemic. Since 2022, an affordable and progressive subscription model has been introduced, enabling a smooth transition to a sustainable business model.
Another crucial aspect was differentiation from the major platforms. We emphasised our unique mission of revitalising local commerce. Our platform dedicated to Luxembourg products, MadeInLux, accentuates this differentiation and highlights the authenticity and quality of local products.
Another significant challenge is the robustness of our platform. We have invested in optimising the user experience (UX) and in a multilingual search engine, making our service accessible and user-friendly. The site is now also available in English, extending our reach. Other improvements are underway, thanks to valuable feedback from our users.
What major projects or initiatives is Letzshop currently working on?
We are actively working on a set of strategic initiatives designed to take the Letzshop experience to new heights, while supporting our three main strategic thrusts:
- Optimised AI: Currently, we are working on incorporating artificial intelligence technologies to make our platform more intelligent and agile. This innovation will be used to automate crucial elements such as SEO optimisation and the generation of relevant and eye-catching product descriptions.
- The Ecosystem for retailers: To help our merchant partners maximise their efficiency and customer engagement, we are developing a suite of commercial management tools. One of our most anticipated launches this year will be the ‘Merchant Coupons’ functionality. This new offering will enable retailers to issue shop-specific coupons, stimulating repeat purchases and customer loyalty.
- Amplifying ‘Made in Luxembourg‘: In addition to our platform optimisations, we are planning targeted marketing campaigns to highlight and encourage the consumption of Luxembourg products and services.
As CEO, what message would you like to send to the Letzshop team, partners, retailers and, of course, your loyal customers?
First of all, a huge thank you. The road to this point hasn’t always been easy, but it has always been rewarding, and it wouldn’t have been possible without your commitment, your trust and your ongoing support.
To our team, thank you for your hard work, creativity and unwavering dedication to making Letzshop a success. You are the heart and soul of this company.
To the partners who have supported us every step of the way, thank you for your trust and for believing in our vision. We look forward to continuing to build and innovate together.
To the retailers who make the Letzshop marketplace what it is, thank you for trusting us to be your partner in this online adventure. Your success is our success, and we are committed to providing you with the tools and support you need to thrive.
And finally, to our valued customers, thank you for your loyalty and for choosing Letzshop for your online shopping needs. We are committed to continuing to provide you with an exceptional shopping experience, and look forward to introducing some exciting new features in the near future.
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