Luxury Brand MOQ Redefinition
Background: A luxury brand struggled with high Minimum Order Quantities (MOQs) for a traditionally commodity product. This was impacting their ability to offer variety and maintain exclusivity. Challenge: The brand needed to balance the product’s commodity status with their premium image. Thus, it required to lower MOQs and introduce multiple color options without compromising on luxury standards. Our Approach: Shifted Sale Model: Transitioned from selling by weight to selling by piece for exclusivity. Negotiated Lower MOQ: Reduced MOQ to enable multiple colour variations. Engaged Supplier: We emphasized the potential long-term benefits for the supplier, highlighting the increased business opportunities and brand association that could result from catering to a premium market segment Outcome: The negotiations led to a win-win outcome for both the buyer and the supplier: Brand: Expanded market presence with various colour options while maintaining luxury standards. Supplier: ...