B2B division is latest Chaos theory

Four-year old Australian etailer ChaosMusic has taken the first step in developing an ebusiness strategy by launching its business-to-business division, which will provide B2B music-related services to clients in Australia and overseas.

The B2B division of ChaosMusic features a wholesaling operation, which is currently being managed by Melbourne retailer Gaslight Music. The division also includes B2B relationships with insurance companies, schools, and other organisations.

With the NRMA as its largest account, ChaosMusic is currently working "with a number of insurance companies, and is about to deepen its activity in this market", said David Holloway, vice president of Chaos' B2B division.

According to Holloway, the company is also looking into building B2B relationships with public and private schools, and other organisations, including "any company that needs to buy music in large quantities and would like to purchase from a large catalogue and have the product shipped to them".

Holloway said ChaosMusic aims to provide these organisations with "easy access to a large range of musical products, shipped directly to them with web-based management tools", and in the case of the insurance industry, to provide "(replacement) music product that may be the subject of an insurance claim".

"As we have such a large catalogue of product (over 600,000 titles) and access to a US warehouse (Valley Media), we can usually replace stolen product -- including obscure titles -- quite quickly," he said.

ChaosMusic is planning to build its B2B relationships on the basis of "giving the company or institution (involved) a discount or rebate appropriate to the volume of product they are ordering", Holloway said.

It also aims to provide "product shipped to them, or in certain cases to their individual clients, using Chaos's current direct-to-consumer shipping facilities, (to have their) customer service team monitor the shipment.

"When fully commissioned, website interfaces will allow the client to manage their account and view the status of their orders, in addition to being able to talk to our customer service people."

Through building its relationships with insurance companies, schools, and other organisations, ChaosMusic principally hopes to achieve increased sales revenue, "but it is also a natural extension of our direct customer fulfilment, website management skills and customer service expertise".

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