Background:
C*** is a publicly listed Swedish retail chain, established in 1918, with over 190 stores across Sweden, Norway, Finland, and the UK. The chain primarily sells hardware, home decor, leisure products, and electronics. Initially, our collaboration with C*** was limited to window film products, providing stable but limited annual growth.
Market Challenges:
Opportunity for Expansion: A new supplier management policy within the client’s organization created an opportunity to expand our product offerings beyond window films.
Product Line Diversification: While C*** offered a wide range of stationery products, our main product was book covers, which might not meet their quality and price expectations.
Supply Chain Uncertainty: Entering a new product line required finding suitable suppliers, which posed risks in terms of quality and delivery time.
Maintaining Quality and Delivery: After successfully developing new products, we needed to ensure no issues with quality or delivery times that could jeopardize our primary business relationship.
Our Solutions:
Identifying New Product Opportunities: We identified laminating film, closely related to our core products, as a potential entry point for expanding our offerings.
Supplier Selection and Evaluation: We carefully selected and evaluated suppliers to identify potential quality issues and mitigate risks.
Optimizing Payment Terms: We differentiated ourselves from competitors by optimizing payment terms, making our offer more attractive to the client.
The Results:
Expanded Product Line: We successfully expanded our product offerings to include laminating film, significantly increasing the client’s annual order value from 200,000 RMB to 2 million RMB.
Significant Growth: Through detailed market research, supplier selection, and the optimization of collaboration terms, we successfully expanded our relationship with C*** from a single product line to multiple product lines, resulting in substantial performance improvements.
Conclusion:
This case demonstrates how thorough market research, strategic supplier selection, and effective optimization of business terms can lead to significant growth by expanding product coverage for a key client. By diversifying our offerings, we were able to strengthen our partnership with C*** and achieve remarkable business growth.
