FOCUS From the outset, the coming together of Thrasio and IdeaStream seems like David succumbing to Goliath. Looking closer, however, this is far from an uneven match
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n September of last year, IdeaStream Consumer Products was acquired by Thrasio. Regarded as the original Amazon aggregator, Thrasio is known for first identifying and then buying top-performing brands on Amazon. Combining its e-commerce expertise with deep pockets, the company then drives those brands to greater levels of volume and reach on the online giant’s platform, thereby boosting both revenues and profits. While the narrative of Thrasio buying ‘one of our own’ – clearly seeing its potential in the online space – is interesting in itself, it’s perhaps even more relevant for our readers to learn that the IdeaStream deal marked something of a departure from Thrasio’s typical approach. It provides the aggregator with a pathway into the traditional B2B wholesale and retail space. OPI’s Heike Dieckmann recently spoke to IdeaStream’s CEO Tony DeCarlo to find out what each entity is seeking from their coming together and what both can bring to the party.
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OPI: Before we get into the strategy side of your acquisition by Thrasio, please tell me a bit about IdeaStream. Tony DeCarlo: Sure. IdeaStream was created in 2002 by me and Dan Perella. We had previously both worked for office products manufacturers in our sector.
Our business was founded on what we call the principles of category management. We believe that the panning for gold starts with capturing and analysing daily transactional point-of-sale information from our customers – retailers, OP resellers, superstores and wholesalers, for example – to identify opportunities to grow. Units sold per store per week, seasonal buys – it’s all essential for planning demand, spotting trends, optimising the supply chain and simply making sure our merchants and the buyers we work with have the right amount of inventory in the right locations at the right time. Only it’s not simple at all, but very complex. OPI: But you’re not a manufacturer, are you? TD: That’s correct. I would describe us as a consumer products company which leverages third party resources for certain functions. So we don’t manufacture ourselves, but we own substantial intellectual property – patents, trademarks, etc – around the products we market. And the items we sell are exclusive to us. Some people regard us as a sourcing company, but I believe that’s too limiting. Anybody can think of a product and look for a manufacturer somewhere around the globe to make it for them. We do more. We identify category opportunities, invest in the design and development of the products, and vet them all
