High-end beauty, controlled strategy
Case Study | Retail | Beauty
Premium beauty products group takes special care of its position as leader in high-end products in its category, giving importance to the price corridor in the whole market and trying to maintain the most homogeneous PVP’s as possible.
1. Challenge
Managing a fragmented distribution, with a multitude of sellers coming into play, becomes an impossible task to handle without the right tools to do so. When the majority of the sales department’s working hours are lost in this manual process, time to grow the business is reduced, with the opportunity cost that comes with it.
The high-end beauty products retail group started using flipflow with the main objective of monitoring all its retailers in Spain and Europe, controlling price differences in real time, and focusing on Amazon to detect infringements by third party sellers and thus avoid channel conflicts.
2. Solution
Retailer monitoring in Spain and Europe
Thanks to flipflow, the company has real-time information on its recommended retail price differentials, which it uses to monitor all its retailers both in Spain and the rest of Europe, as well as the availability of its products, thus minimizing the time with stock-outs.
Full control of Amazon sellers
With this data, they focus on Amazon sellers and the activity of each of the sellers within the Buy Box, so that their sales department can detect PVR violations and also avoid channel conflicts.
Detection of infractions and unauthorized sales
On another hand, by using flipflow’s platform they also have full control of the distribution of their products, and detect in real time the infringements we talked about before, as well as unauthorized sales in their main markets.
3. Results
By monitoring marketplaces with flipflow, this brand is able to have real-time alerts of violations with respect to their recommended selling prices from both Amazon Vendor and 3P sellers.
This way, they are able to avoid under-priced sales that cause conflicts with their distribution network and, in addition, maximize 1P purchases by marketplaces.
In addition to this main use, this brand controls its stock-outs in Pure Players online, so that it is able to trigger purchases on a day-to-day basis and guarantee the availability of its products in these channels, as well as avoid losing sales due to these mismatches in supply.
40% conflicts caused by unauthorized sellers
+10% 1P sales to Amazon
50% time to restock in online Pure Players
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“Flipflow allows us to react from the sales department and ensure our offer in all channels by having our assortment available and without stock-outs in any postal code in Spain. Its daily use ensures that we don’t lose sales due to stock and assortment shortages.”
“In our case we analyze the products of our categories in 45 retailers in 9 countries to have quality information that we use in competitive manufacturing trends for customers, knowing the average price per gram of many products per country and we also detect potential winner products to add to our offer”.
“We have really noticed the improved control over our recommended prices. Manually it was impossible to maintain a price corridor on so many online channels and that brought us a lot of friction. Now we detect unauthorized sales and sellers on marketplaces that cause us conflicts with our customers.”
“We can analyze our own and competitors’ price movements on a daily basis and have improved our revenue by adjusting prices on a daily basis in terms of pricing and promotional strategy.”
“This is definitely the future of retail. Flipflow gives us an improvement in the quality and structure of the information and considerable savings over traditional market research from well-known consulting firms that sell aggregate data without detail including information we don’t need.”
“Flipflow is core to us in setting prices on a daily basis for more than 60,000 SKUs and maintaining our automatic repricing system in a very competitive industry.”
