Recognized as a venerable footwear brand with an extensive legacy, this prominent homegrown enterprise has solidified its presence in the market over numerous decades. Originally established as a brick-and-mortar retailer, the company has successfully extended its reach to encompass tier-2 and tier-3 cities through its robust ecommerce division.
Presently, the organization boasts a remarkable daily production capacity of over 400,000 pairs of footwear. Embracing the digital landscape, industry-leading brands like this one have diligently pursued a harmonious integration of online and offline channels, maintaining a steadfast commitment to sustained profitability.
Their challenge: Striking a balance between profitability and value
For ecommerce fashion brands, product selection and discounting remain important aspects of business. The main challenge was a low average selling price (ASP), which had to continue providing value to its customers and maintain profitability in order to boost its ecommerce vertical. It’s also important to ensure price parity across online and offline channels.
Our execution: Bolstering online merchandise
To cater to the growing online consumer base, the brand launched over 200 exclusive new styles for men’s and women’s footwear. The brand followed the latest trends and demands in the online market and aimed to cater specifically to this demographic. This is where Tenovia stepped in – by offering lucrative discounting strategies that made products profitable and a bargain deal for the customer.
Tenovia’s discounting strategy sought to achieve three main goals:
- Ensuring a low average selling price
- Expanding the product range without affecting profitability
- Providing value to customers with price and range of options
The results: Facilitating a sharp rise in SMU revenue
SHORT TERM GOALS
- 2x growth in revenue from the expanded range, accounting for 12% of the total GMV
- Greater active participation in events across marketplaces due to increased brand awareness and visibility
LONG TERM GOALS
- Increase in selection month by month with the addition of trending styles in the catalog
- Curate an exclusive online merchandise collection with higher margins and lucrative discounting
Another significant metric that proved the efficacy of our strategy was the steady and impressive rise of the SMU revenue percentage, climbing from 17.03% to 28.93% in FY-2023.
Keeping in mind the importance of product range as well as discounts for India’s price-sensitive customers, Tenovia’s strategic tactics have proved to be beneficial for the footwear brand, leading to: