Otto seeks agency to drive sales online

by Ed Kemp Marketing 29-Nov-06

LONDON - Otto, the world's biggest mail-order company, is reviewing its UK eCRM account as it looks to encourage more customers to shop online, rather than using its paper catalogues.

The company, which is based in Germany, owns the Freemans, Grattan and Kaleidoscope brands in the UK. The incumbent on the eCRM account is Tequila\Manchester, which also handles the majority of Otto's direct and press advertising.

Otto's aim is to have at least 40% of its sales accounted for by online transactions, according to a spokeswoman.

The company's focus on online comes at a time when fewer homeowners are opening the catalogues sent to them (Marketing, 27 September). Online orders are also cheaper to process than those made by mail or phone. To better service the market, Otto launched Duck.co.uk, an online retail site specialising in electrical products in July.

Separately, Otto is believed to be seeking a UK advertising agency to launch a more upmarket catalogue in the New Year.

It is already reviewing its £4m media planning and buying account, which is held by MediaVest Manchester.

Otto is the fourth-biggest mail-order business in the UK, behind market leader Littlewoods, JD Williams and Next.

The latter is also looking for an agency to handle its CRM programme and is understood to harbour similar aims of increasing the proportion of its online sales.

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