Brand and Manufacturer - Based in Germany
Fulfilment by Everpeaks (FBE) has the ability and the capacity to provide fulfilment and ecommerce integration solutions for businesses operating at any size. Let’s walk through how FBE can be of service to a well-established, large footwear brand and manufacturer in Europe that runs at a 600-man capacity. We’ll call them Kaiser Footwear.
This is where Kaiser Footwear is at, as of Q4 of 2020.
- They own 67 retail stores across Europe. The majority of their stores are located in Germany, and others spread across France, Italy, Spain, Switzerland, and Turkey. Every store is owned by Kaiser Footwear.
- Many footwear retailers across Europe carry their products - imagine Footlocker selling Nike products. The dealers make about 10% of their business, and are authorized to sell their products in any manner they choose - whether only in retail or also online.
- They have an online presence, but a very limited one. This is because they are a traditional brick and mortar business, and are focused on their retail business. However, due to the effects of the COVID-19 pandemic, their retail sales have taken a huge hit, and they are actively researching ways to more effectively sell their products directly to consumers, and on a wider geography.
- Kaiser Footwear currently has 10 dealers across Southeast Asia, majority of which are in Singapore. Despite the limited number of the dealers, their sales in Southeast Asia amount to a whopping 5% of their total sales, because of the unique features and popularity of Kaiser Footwear in the region.
- They currently sell direct to consumers on their brand website, Amazon EU, and Amazon US. Fulfilment is limited to the countries in that region because of the expensive export duties and delivery charges. For a brand that sells footwear at an affordable price, international fulfilment almost makes no sense.
- As part of their recent efforts, Kaiser Footwear has been researching potential partnerships outside of Europe and are willing to take on the challenge of possibly selling internationally at a larger scale. The biggest challenge they face is still fulfilling customers at a sensible rate.
Now that we have an idea of where the business is at, the challenges that they are facing, and their intent to pivot, let’s take a look at how Fulfilment by Everpeaks will benefit them, or any manufacturer for that matter.
- FBE unleashes the prospect of access to the entire Southeast Asia region. This will allow B2B distribution of Kaiser Footwear’s products to dealers in Southeast Asia from a centralized distribution point - the FBE Warehouse. Instead of shipping directly to a multitude of countries, the manufacturer can now ship bulk orders by the container to FBE, and then distribute the orders accordingly within the region. This will save them a lot in shipping costs, on top of saving on duties because the FBE Warehouse is a duty-free warehouse. More on that in point number 3.
- With FBE, Kaiser Footwear will also be able to sell direct to consumers (M2C), and fulfil orders from the FBE Warehouse. This entails market access and a shipping network to the whole of Southeast Asia (and beyond), without having to go through a distributor or dealer. FBE does not operate as a distributor, but rather as a fulfilment solution that allows the manufacturer to integrate all online platforms and marketplaces into the FBE System, and fulfil orders directly from the FBE Warehouse to the consumer at a fraction of the traditional export delivery charges. How does this work? Let’s take a look at point number 3.
- Duty-free storage. As one of the only few ecommerce integration and fulfilment solution providers that own a duty-free warehouse, FBE enables manufacturers to store their inventory - you guessed it - duty-free. This means that Kaiser Footwear will have a potentially significant increase in cash flow, because duties are only paid when a sale is made, regardless of whether the sale is B2B or M2C. The FBE Warehouse has a fully operational team, unlimited storage, and is located in a high-security Free Trade Zone.
- With FBE’s ecommerce integration and fulfilment solution, Kaiser Footwear will be able to enjoy a hybrid high revenue sales stream of:
- High profit direct to consumer sales (M2C), and
- High volume B2B distribution to their current and future potential dealers.
Here's an infographic summary of how FBE works for Kaiser Footwear.