Page 54 - CBM25

~ ESW ~
Visualize your

MORE PROFITABLE packaging

PRODUCT solution in

LIFECYCLE real time!

MANAGEMENT WrapPak Protector 100%

Text: Martim Avillez Oliveira, ESW CEO of Europe and UK // Photos: ESW

International e-commerce continues to drive business for brands around the world. But as
those businesses will attest, efficiently establishing a presence in those markets is complex,
to say the least. From establishing a business entity to localising marketing and storefronts,
brands and retailers must check every box. Some choose to undertake the job in-house,
which can take years. Others prioritise speed-to-market and choose a trusted partner.

hile the task of entering a new market A Smarter Sale Event Strategy
requires an entire team and is a job on Planning pre-sale events at the beginning of the cycle,
Wits own, once brands are alive, all the friends and family events in the middle, and pre-liquidation
responsibilities of ensuring profitability in that new private sales at the end is key to shoring up revenue and
market become a reality. profit in these unpredictable times. Let’s look at an example:
You order 1,000 units and plan on a 50% gross margin at a
For everything, there is a season – including merchandise. $100 Average Unit Retail Cost (AUR) and $50,000 Cost of Request a demo of our new
The viability and scalability of a product are not infinite. Even Goods Sold (COGS).
the same product tweaked and improved is still a different Augmented Reality app!
product. And because slow-moving merchandise does not Now let’s look at three possible scenarios for that product’s
magically disappear from warehouse shelves to make room lifecycle.
for newer, hotter items, it is key (and sometimes even a paid • Typical lifecycle plan – without pre-sale event;
position) to manage the product lifecycle to maximise profit without final sale event
and sustain revenue. • A lifecycle plan with a pre-sale event only Packaging spaces, big or small, can be complex workplaces. With
• A lifecycle plan with a pre-sale event, friends and
Business as Usual family event and a pre-liquidation private sale event Pack Space Excellence, we optimize your packing space to create the
Typically, unsold merchandise sees two or three rounds of
most effi cient environment possible. Pack Space Excellence will save
discounting before it is written off and liquidated. While this 1. Typical product lifecycle plan
strategy and others like it are effective for reducing inventory, In this scenario, units arrive, and due to product novelty and
there are other ways to improve your sell-through rate and great marketing, you sell 1/3 of your units at full price. As space, increase productivity and improve ergonomics. Curious on how
protect profit. the product lifecycle levels out at the maturity phase, you your optimised packing space looks? Our new Artifi cial Reality
sell 1/3 of the remaining units at a discount. The final 1/3 of
Building a strategy around the entire sales cycle lets you test, units will often go unsold and must be written off to make application shows your potential packing solution in real time.
plan and make data-driven decisions that enable smarter way for a new item. This approach would generate $53,280
buying, reduced markdowns and could improve profitability in revenue and 7% profit.
by 300%.
ranpak.com

54

2/16/2023 5:03:28 PM
AD_CrosBorder-PSEapp-202303.indd 1
AD_CrosBorder-PSEapp-202303.indd 1 2/16/2023 5:03:28 PM