Online retailer Newegg.com has expanded into Canada with the launch of Newegg.ca.
The U.S.-based company, which sells computer components and consumer electronics, was founded in 2001 and has offices and distribution centres in California, Tennessee and New Jersey, as well as Taiwan and China. Newegg cleared $1.9 billion in worldwide revenues last year, and Bernard Luthi, the company’s vice-president of merchandising, believes that its business model will appeal to technology-savvy Canadians 18-30. Previously, the company did not accept orders or ship products north of the border.
“For obvious reasons, like proximity, Canada makes sense,” says Luthi. “Also, buying behaviour is very similar. There’s a burgeoning gaming community in Canada, and if you look at that 18- to 35-year-old male, our product is geared very specifically to him. There are also very high broadband adoption rates and people do a lot of online research, and that matches our model very well.”
Newegg.ca officially launched October 1. Shortly afterward, the company began running a television commercial created by an American customer as part of a U.S. contest earlier this year. The animated spot shows an egg breaking apart, with two electrical cords emerging and weaving in between the various electronic devices that flash across the screen while text supers tout Newegg’s product selection, fast shipping and customer service.
“Our customer base in the U.S. is so enthusiastic and loyal, and we decided there was no better way to advertise to our core group than to use something that one of our customers created,” said Luthi.
The television ad is supported by print creative and promotions that offer consumers discounts on selected items. Newegg also held an event at a downtown Toronto subway station this week, where representatives handed out coupons with special promotional offers.
The event was staged with the help of Toronto firm C2E Consulting. According to Luthi, Newegg does not yet have a relationship with any Canadian advertising agencies and currently handles all marketing and media buying internally. “Ultimately we may end up hooking up with an ad agency, but for now we’ll be doing some testing and seeing how the volume grows.”
Luthi adds that Newegg’s current marketing campaign will continue through the end of this year.
