Company
US-based manufacturer of premium musical instruments
需要
To reverse slumping e-commerce sales, the company was considering adding a distribution and assembly facility in 欧洲 to be able to offer lower prices and faster shipping.
目标
Assess the opportunity to increase sales in 欧洲 by:
- Streamlining the supply 链
- Receiving and assembling parts closer to 欧洲an clients
- Maintaining premium brand status and margins
Challenge
With no international manufacturing or distribution facilities, the company was passing on the shipping and import cost to its 欧洲an customers —- which made them less competitive with local businesses.
A customer survey indicated that lower prices would be the best way to service the 欧洲an market, but the company needed additional 欧洲an sales in order to justify supplying customers directly in market.
The leadership team needed to know a few things before developing its global expansion strategy:
- Would streamlining the supply 链 result in higher sales?
- Was investment in 欧洲an expansion the only solution?
Turning up the volume on international sales
In addition to these challenges, the company faced other hurdles.
- A strong U.S. 美元
- Customer uncertainty on landed costs
- Limited 欧洲an language and marketing programs
The company previously had proven it could increase international sales through a customer loyalty program, but in this case, it was limited by its supply 链. By streamlining its supply 链 to enable receiving and assembling closer to 欧洲an clients, company leaders believed they could offer faster, two-day shipping and lower prices by reducing fully landed pricing and shipping fees.