Case Study Of A Belgian & Swedish Style Furniture Company

This company was founded by two former retail shop and interior design business owners, Kristen & Bob.  In 2010, they closed their retail shop and started a wholesale furniture company. During the first 2 years the company developed a strong brick and mortar presence.

KEY OBJECTIVE:

Create an E-Commerce Sales Channel that reflects the values of the company’s Co-Founders.

ACTIONS TAKEN BY RSG:

Step 1: Spell: First, we defined the requirements to be a Drop Ship Supplier for Bob and his team to implement. This included but was not limited to upgrading all of the current packaging to avoid damages. We helped to establish a second pricing model for their E-Commerce Customers. This pricing model took damage and returns allowance into consideration as well as promotions for major holidays.

Step 2: Probe: Once the company was actively selling to Wayfair, Overstock, Gilt, My Habit, and One Kings Lane we examined the product assortment. We assessed the top selling items by using the 80-20 Rule. After our assessment, we determined that mirrors, accessories, and lighting were not getting the desired return on investment. We encouraged Kristen and Bob to focus only on furniture. They began to sell through the slow moving inventory and reinvest in new furniture SKUs.

Step 3: Analyze: Sales had grown to a point where Kristen’s current team was not set up to handle the sales volume 5 different E-Commerce Retailer. As a result, we made a strategic decision to focus on their largest E-Commerce account, Wayfair.

Step 4: Revenue: Now that all of the resources were going into Wayfair, we were able to grow the account to over $700,000 within 12 months.

Step 5: Key:  Kristen is continuing to bring in new products that are moving with the trends. Her product assortment is constantly evolving based on the needs of her customer. Even better than the sales growth, Kristen has been able to create a company around her lifestyle and stage of life. She can travel, spend time with her grandchildren, and keep her creative juices flowing!