Growing, but not fast enough – Merchandise company
Growing, but not fast enough – Merchandise company
A young and successful company with a proprietary automated system for processing and distributing automated autographed merchandise was growing but not fast enough
The Challenge
The firm had been growing but not significantly as a Direct to Consumer (DTC) offering
Revenue growth was heavily dependent upon one by one scheduling of live-streamed events
The firm thought their value proposition was strong relationships with celebrities who live-streamed the autograph signings
Operating margins were below what were expected because of the time-consuming nature of the live-streamed celebrity -based DTC business
PROJECT DETAILS
INDUSTRY
Merchandise
The Findings
We performed an exhaustive amount of research on the company and the industry and found:
The firm’s core value proposition turned out to be their automated back-end process – even more than their powerful celebrity relationships
They had limited competition for the type of automated service they offered
Other entities in the celebrity value-creation chain could also use their automated services for autographed merchandise
The Solution
The firm focused on offering white labeled, back-end automated solutions to entertainment and sports related entities that were looking to provide additional value to their entertainment and sports celebrities
The firm transformed itself from a 100% DTC to firm to now also offer B2B targeted solutions of their automated backend system
Target clients included sports organizations, talent agencies, live event producers and sports teams
The Results
Selling to aggregators of talent rather than to individually to talent allowed the company to focus upon what they did the best – provide an aggregated back-end solution
Larger contracts with talent aggregators gave significant revenue boosts to the company
Talent aggregator contracts provided more predictable recurring revenue streams
Avoiding the individual talent negotiations and back and forth improved efficiency of the firm’s operations and increased profit margins
