MAINE HOME B2B2C STRATEGY
MAINE HOME B2B2C STRATEGY
The brand had inventory in warehouses across the East, West and Mid-West, however, it had paused sales following COVID-19 challenges. They had significant D2C website sales, but these were loss making due to Google and Facebook advertising costs together with the cost of shipping bulky parcels nationally. The company had a further amount of B2B2C sales which were very profitable with margins of almost 60% (wholesale). The increase in shipping costs affected both irreparably.
57% Increase in Profit Margin
49% Increase in Gross Revenue
Niche Furniture & Homewares
7 Months D2C Revenue Fully Replaced by B2B2C Sales
Channels Shopify, Wayfair, Overstock, Macy's, Hayneedle, Bed, Bath & Beyond, Faire, Target, Sam's Club, Lowe's, Amazon Vendor
Services Website Revamp, Channel Management, Paid Ads, Retail Partner Liaison, Fulfilment Management
CHALLENGES
The brand had seen exponential growth since its launch, however, the post-pandemic shipping rates and subsequent online sales drought had put the company in a break even to loss making scenario.
At this stage, the companies sales were sourced via Facebook and Google paid advertising, as well as via online retail partners. With ad costs rising, conversion rates falling, and retailers unwilling to accept price increases...the outlook wasn't positive.
The companies sales were sourced via Facebook and Google paid advertising, as well as via online retail partners.
With ad costs rising, conversion rates falling, and retailers unwilling to accept price increases...the outlook wasn't positive.
The brand clearly had strong appeal and the success to this point spoke to the viability of the business longer term.
STRATEGY
We began, as always, with comprehensive audit of the business and the market before delivering our signature Growth Game Plan.
If the business was to survive, we knew we would need to be drastic. As most sales were one-time, and therefore little LTV existed in the business, pure-play D2C would be difficult in an ad-spend dependent environment.
We recommended killing D2C sales immediately, and stopping all paid advertising to the existing website. We would then be able to leverage our relationships with buyers and account managers within Wayfair, Overstock, Macy’s, Hayneedle and Bed, Bath & Beyond to consider price increases.
A comprehensive case was submitted to support the application, and they were accepted by all but one retailer. We were then able to focus on supporting these B2B2C partners fully, and once cash-flow became strong enough, were able to begin advertising on these platforms.
By focussing on a more profitable, streamlined 'dropship' model the brand was able to regain profitability and financial transparency quickly.
From here, we proposed to revamp the existing website (more on why below), improve social media presence, build out better marketing assets, and increase the number of wholesale stockists and retail partners.
WEBSITE
We allocated resources to revamp Maine Home's existing D2C website despite our focus on implementing a B2B2C strategy. This decision was made as many marketplaces and platform retailers require proof of a brand's activity outside their platform during the application process.
A custom website can serve as a strong foundation and additional piece of social proof that can be utilised to showcase why a brand's products should be sold on the platform. It provides a level of control and demonstrates the brand's commitment to quality and professionalism.
MARKETING ASSETS
Given the shift in our client's business model from D2C to wholesale, there was a need to create assets suitable for the new business model. We provided guidance to the client, recommending the creation of digital collection catalogues, which would be instrumental in engaging with selective retailers. The catalogues, being highly visual and highlighting the key product information, would be an effective tool to showcase the brand's products. To this end, we created catalogues for the rattan and rug collections, working closely with the client to ensure that the finished product met their expectations. As a suitable platform for hosting these assets, we suggested Issu, a digital publishing platform, and guided our client through the account setup process.
SOCIAL MEDIA
The organisation had a limited presence on various social media platforms, but the content was primarily sales-focused, resulting in low engagement rates. It's crucial for consumers to recognise and identify with a brand's presence across all platforms before making a purchase. To maintain a strong brand presence, we conducted a comprehensive social media audit and implemented a new content strategy focused on aspirational home and lifestyle content with reduced product-centric promotions. This approach resulted in increased engagement and impressions across the existing social media channels.
BRAND VALIDATION
Our client's products possess a unique selling proposition that makes them highly desirable. They are made by skilled artisans who utilise traditional techniques passed down through generations over thousands of years. The rattan products are crafted in small workshops located throughout Indonesia, and the plaiters are highly sought after and well-treated due to the rarity of the skill being passed down from father to son. Additionally, the rattan used in the production process is 100% natural and the most sustainable material found in nature, growing seven times faster than trees.
Considering the increasing environmental awareness among consumers, we suggested to our client that including certificates of authenticity that highlight the name of the plaiter, the limited edition number, and the weaving time would be beneficial.
CHANNELS
We conducted an extensive audit of our client's listings on their existing B2B channels to identify areas for improvement.
To enhance product performance, we optimised product copy, updated images to meet channel requirements, refreshed product specifications, developed Waymore content (or equivalent) for top-performing products, and submitted price increases as appropriate. In addition, we developed marketing strategies tailored to each channel to be implemented once cash flow stabilised.
The entire product line had received numerous five-star reviews and we recognised the importance of leveraging and showcasing these positive reviews as much as possible.
RESULTS
Within 7 months, D2C revenue was replaced entirely by B2B2C and wholesale revenue with an increase in gross profit margin to 57% (net of fees, settlements and discounts). Gross annual sales have increased by 49% since 2020.
Since then, new private label relationships have been established with other retailers including Target+, Sams Club, Lowe’s, Home Depot, Macy's and Costco. An Amazon 1P Vendor relationship began in November 22' on a drop-ship trial basis initially.
The brand is very profitable again, and we are currently working on the introduction of new collections as well as expansion into new territories such as Australia and EMEA.