Catch

Catch.com.au's primary revenue streams are:

1. In-stock revenue: Sales of products bought, warehoused, and sold by Catch.
2. Marketplace commission income: Commissions charged to sellers on the platform, ranging from 10-25% depending on the item category[1][2].

These streams provide a diversified revenue base, with in-stock sales offering a traditional retail model and marketplace commissions leveraging third-party sellers. However, the marketplace commission income is still developing, indicating potential for further diversification[1][2].

Revenue Streams and Growth

• Revenue Decline: Catch's revenue dropped 25.9% to $227 million in FY24, down from $364 million in FY20.
• Gross Transaction Value (GTV): Saw a decline of 28.5% to $524 million due to various factors including inventory adjustments and reduced marketing efforts.
• Cost Management: Implemented cost management strategies, including a significant reduction in in-stock inventory, leading to improved contribution per order by 54%.
• Competitor Pressure: Intense competition from major players like Amazon, Shein, and Temu significantly impacted traffic and sales.

Profitability Metrics

• Earnings Loss: Recorded an earnings loss of $96 million in FY24, worsening from a loss of $163 million in FY23.
• Restructuring Costs: Included $23 million in restructuring costs and non-cash impairments in the reported loss.
• Performance Improvement: Excluding certain costs, losses improved by approximately $50 million compared to the previous year.
• Negative Impact from Competition: The influx of global competitors coupled with its inability to scale effectively led to persistent operational losses.

Strategic Initiatives

• Operational Reset: Focused on remediating operational issues by significantly cutting down stock ranges and prioritizing efficiency initiatives.
• Resource Reallocation: Transferring fulfillment capabilities to Kmart to leverage unused capacity and enhance logistical efficiency.
• Digital Integration: Catch's digital capabilities contributing to the OneDigital initiative within Wesfarmers to enhance omnichannel growth.
• Value Creation Focus: Wesfarmers continues to prioritize strengthening existing brands instead of sustaining Catch as a standalone entity.

Biggest Challenges

• Intensified Market Competition: Increasing competitive intensity from international giants hindered Catch's ability to attain profitability.
• Sustained Losses: Accumulated losses exceeding $350 million raised concerns about long-term viability and shareholder value.
• Closure Announcement: Planned shutdown of Catch.com.au affecting approximately 190 jobs and necessitating a one-off cost of $50-60 million for Wesfarmers.
• Market Dynamics: Challenges in adapting to changing consumer preferences and industry trends further complicated recovery efforts.

Catch.com.au is an Australian e-commerce platform that targets a broad audience, particularly focusing on families. Here's an overview of its target market and customer base:

Target Market

• Geographical Focus: Catch.com.au primarily operates in Australia and New Zealand, with a global reach[1].
• Demographics: The audience is predominantly Australian, with a slight female bias (50.93% female vs. 49.07% male). The largest age group of visitors is 25-34 years old[3].
• Interests: The platform attracts users interested in lifestyle, fashion, and apparel, as well as electronics and technology[3].

Targeted Customer

• Family-Oriented: Catch aims to be Australia's most loved online shopping destination for families, focusing on saving time and money for its customers[4].
• Value Seekers: The platform is popular among customers seeking competitive pricing and discounts, offering a wide range of products across multiple categories[2][5].
• Active Users: Catch has over 3 million active customers, with 30,000 new customers joining each week. The platform also has over 1 million app users[5].

Overall, Catch.com.au targets a diverse customer base with a focus on families and value-conscious consumers in Australia and New Zealand.

The primary competitors of catch.com.au include Kogan, Target, Big W, Amazon Australia, eBay Australia, and JB Hi-Fi. These competitors differentiate themselves through various strategies:

• Kogan focuses on competitive pricing and frequent promotions.
• Target and Big W offer a wide range of products with strong brick-and-mortar presence.
• Amazon Australia provides global reach and diverse product categories.
• eBay Australia is known for its marketplace model with competitive pricing through auctions.
• JB Hi-Fi offers a strong price matching policy, attracting price-conscious consumers[1][3][5].

Catch.com.au's workforce is primarily based in Australia, with no indication of a global workforce. The company's main offices are located in Melbourne, Victoria, with a head office in Bentleigh East and a major distribution center in Truganina, Victoria[1][2][4]. There are no physical stores; the business operates entirely online[2].

Catch.com.au's foundational technologies include:

• Blue Yonder's Cloud-Based Warehouse Management System (WMS) and labor management solutions to enhance warehouse operations and efficiency[1][3].
• Körber Supply Chain Software for automation in its fulfillment centers, featuring autonomous mobile robots (AMRs) and automated packaging machines[4].
• Marketplace Integration Tools like MyIntegrator for automating catalog updates, order management, and inventory syncing[2].

Main Products/Services of Catch.com.au:

• Diverse Product Range: Catch offers a wide variety of products including fashion, beauty, homewares, tech, toys, sporting goods, and groceries.
• Daily Deals Model: New deals are introduced daily at competitive prices, making it a one-stop shop for budget-conscious shoppers.

Problems Solved:

• Affordability: Provides products at significantly lower prices than retail, solving affordability issues for consumers.
• Convenience: Offers a convenient shopping experience with fast shipping and a user-friendly app, addressing the need for easy online shopping.
• Product Variety: Solves the problem of having to visit multiple stores by offering a diverse range of products in one place.