The other day Ehandel.se reported that Hundlands more than tripled its operating profit to 3.5 million Swedish krona and reached a turnover of 24 million Swedish krona. Behind these figures lies a clear strategy regarding product development and customer loyalty.
Fewer and Better Products
According to Olle Moberg, co-founder and CEO of Hundlands, it is the company's range and the community around the brand that have created the great leverage. Instead of a wide range, the company has chosen to focus on quality.
The most important factor is our products. Strong products create organic growth: customers recommend us to other dog owners, and our community spreads the word about the products, says Olle Moberg to Ehandel.se, and continues:
We naturally invest in reaching new customers, but we do not need to increase marketing at the same rate as growth. And even though we have brought in a lot of new customers, the proportion of returning customers has increased, from 34 to 37 percent in one year. We have consciously focused on fewer and better products instead of a wide range and heavy marketing. Products that customers return to.
Local Adaptation Crucial in Germany
The company has also seen strong development in Germany. According to Olle Moberg, the German audience demands high standards of function and material, but is also willing to pay for quality. Choosing to localize the website, with the right prices, payment methods, delivery options and customer service, was an important step for the establishment. This in turn laid the foundation for a local community consisting of dog profiles and competition teams.
The local adaptation opened the door, and the products and community have allowed it to grow, he explains.
E-commerce Remains the Core
Although the brand is sold through selected retailers, the company sees these as a complement, where customers are given the opportunity to examine and try the products in a physical environment. However, its own sales channel still remains at the heart of the business.
Our own e-commerce will be the core even going forward. That's where we own the customer relationship, the brand and the margin, and where we can use our data fully to understand customers and make the right priorities, says Olle Moberg.
Looking Towards the USA and Great Britain
Going forward, the ambition is to become a leading global brand for active dog owners. The goal for the current year is continued growth and deepened presence in Germany and the Nordic countries. At the same time, the foundations are now being laid for an expansion to Great Britain and the USA.
The goal is to continue growing strongly this year as well, but in line with our strategy, never at the expense of profitability. It is profitability that enables growth, concludes Olle Moberg.