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: Increased orders and strengthened relationships with a premium brand.

Conclusion:

This case highlights the importance of understanding the unique needs of premium brands and the value of strategic negotiation. By reimagining traditional industry practices and advocating for tailored solutions, it is possible to create outcomes that drive growth and satisfaction for all parties involved.


Comments

Post a Comment

Popular posts from this blog

Crafting a Show-Stopping Handmade Rug for a Scandinavian Luxury Brand

 Challenge: An emerging Scandinavian luxury brand approached 360 Bluebirds Impex with a bold challenge: to create a handmade rug that would become the highlight of their exhibit at a prestigious French luxury event. The design was intricate, requiring meticulous attention to detail, and the brand demanded nothing less than perfection. Multiple revisions and numerous samples were needed to meet their high standards. Solution: For three months, the 360 Bluebirds Impex design team worked tirelessly, refining the rug design through several iterations. We produced multiple samples, ensuring each one aligned perfectly with the brand’s vision. Throughout this process, we maintained a strong partnership with the supplier, motivating them to create each sample without additional costs. We assured them that their investment of time and effort would lead to substantial rewards. Outcome: The final rug was a triumph, winning the prestigious “Product of the Year” award at the luxury exhibition i...
Read more