Challenge
In December 2020, R17 took a stake in Secondhandbags AG as a shareholder and is also operationally in charge of performance marketing and web development. In the first month we were able to grow by 400% compared to the previous year.
Solution
Management summary In December 2020, R17 joined Secondhandbags AG as a shareholder and as a performance marketing and technology partner. Within a month we were able to set up a new shop - with a new CI / CD. At the same time, we were also very involved in the corporate strategy. The long-awaited go-live of Secondhandbags.ch took place on January 4th, 2021 . In the first month we were able to increase sales by 400% compared to the previous year . One of the first great lessons learned in performance marketing was the long deliberation process from customers. The designer handbags are in the luxury segment and impulse purchases are rare. The consequence is that retargeting becomes even more important. It also requires many touchpoints (cross-platform), i.e. on Facebook, Instagram, Pinterest and Google. Learnings Marketing funnel / cross platform The quick realization that retargeting in this business model does not require 30% of the ad spend but rather 50-60% was important. This learning enabled us to be profitable from day one. We also tested not only Facebook and Google, but also Pinterest and Snapchat advertisements right from the start. This shows that Pinterest in particular is very successful. Email automations With second-hand bags, each product is unique and is only sold once. Announcing new handbags via email automation is a key success factor for second-hand bags. We were also able to clearly segment customers very early on and thus increase the relevance of our e-mails. We have carried out the segmentation in particular on a designer basis (Louis Vuitton, Chanel, Hermès). Shopping experience We understood very quickly that the shopping experience, the filter options and the category pages are much more important than the product landing pages. We then launched an agile improvement process that constantly improves the shopping experience for customers.
Results
400% growth in 3 months We are currently achieving a return-on-ad-spent (ROAS) of over 10 across all paid media channels . We are delighted, together with the managing director Emanuel Müller, to establish the company as the market leader in Switzerland.
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