Barbeques Galore has launched a B2B e-commerce site as it looks to grow its wholesale business both in Australia and overseas. It is just the latest retailer looking to tap into the rapidly growing opportunity around B2B e-commerce, with online rug retailer Miss Amara also investing in this space. Miss Amara has grown the number of its B2B customers from 400 to over 4000 in recent years. The global B2B e-commerce market was valued at US$7.4 trillion in 2022 and is projected to reach US$36.
US$36.1 trillion by 2031, registering a CAGR of 19.2 per cent from 2023 to 2031, according to Straits Research.
Currently, Barbeques Galore’s wholesale business includes 200 independent distributors in Australia and a growing number worldwide.
The business is focused on growing globally by investing in its current international B2B markets before seeking new ones.
Competing with industry giants
Barbeques Galore is Australia’s largest specialty barbecue retailer with 89 stores Australia-wide and is eyeing the New Zealand market next.
The retailer’s CEO Angus McDonald told Inside Retail that Barbeques Galore currently has a “very small share” of the New Zealand B2B e-commerce market, “but based on our position as Australia’s leading specialist, barbecue retailer, and the product that we have, which we think is very relevant for the New Zealand market, we see a strong opportunity to grow that business quite significantly.”
But while Barbeques Galore is the largest specialty retailer, it faces competition from hardware, department stores and appliance retailers.
“We’re certainly very focused on the opportunity and will continue to grow our presence in that market,” he added.
Honing wholesale
Since 1977, Barbeques Galore has supplied Australians with high-quality barbecues and expert advice. Today, the business also retails heating and outdoor furniture.
In addition to global barbecue brands, such as Kamado Joe, Barbeques Galore stocks several private-label brands, including Ziegler & Brown, Turbo, Beefmaster and Firehawk. And now, it’s looking to ramp up these brands in new markets.
“We’ve got these great brands and products that we’ve developed, predominantly distributed through our store network, and independent channels. We’ve seen a real opportunity to accelerate and drive growth in that part of the business,” McDonald said.
Last year, at the end of a distribution agreement, Barbeques Galore established a B2B presence in the New Zealand market and began distributing its products directly to local independent and national retailer networks.
“We don’t have a direct-to-consumer presence in New Zealand,” McDonald said.
Barbeques Galore’s Ziegler & Brown brand has been sold in the New Zealand market for many years, through a small number of distribution points, but since establishing its own B2B presence locally, it now has over 70 distribution points across the country.
The business is also exporting to several international markets and is focused on finding more.
“Based on what we’re doing in New Zealand, we see the opportunity to increase our presence in other markets over time. But at the moment, we’re focused on working through some local distributors in those other countries that we’ve partnered with and that’s been quite successful today,” McDonald said.
This is where the new B2B e-commerce site comes in. By taking the same customer-centric approach to its B2B operations as it does with consumers, the retailer aims to improve the experience for its wholesale partners.
Marketplaces
Barbeques Galore also sells a broad assortment of products online – through its e-commerce site and third-party marketplaces. In 2021, it extended its digital offering to include backyard lifestyle products by launching an online marketplace.
“We want to make sure that our brands are where our customers are expecting to find them,” McDonald said.
“That means, outside of the Barbeques Galore network and online presence, we’re distributing our brands into a number of those different channels through marketplaces,” he added.
“We’ve had that on our website for two and a half years now, and it’s been quite successful,” McDonald said.
Over the last few years, Barbeques Galore has been focused on, “doing a lot of work to transform the capability of our business,” McDonald said.
This has involved investing in the brand and the systems that drive its retail and wholesale business operations, in addition to changes and renewal across its product ranges.
“Now we’re focused on growth in other markets and other opportunities through wholesale distribution points. And that makes for a compelling opportunity for us over the coming term,” McDonald finished.