Expansion into North America for a Home Appliance Company

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zimg37.svgProject Background and Purpose

The client, a leader in the home appliance industry with its own factory in China, strong production capacity and extensive product line, has decided to expand into the North American market in recent years, with its first stop targeting the North American home improvement market.

The team was invited to conduct in-depth research on the North American market and formulate a detailed market entry strategy, assisting the client in negotiating with well-known North American retailers Walmart and Home Depot.

 


zimg38.svgProject Implementation Methodology

Core Strategy:

  1. Product Adaptation

    Selection of product lines for North American residential needs

    Completion of UL/ETL and other core certification upgrades

  2. Channel Hierarchy Expansion

    Customized SKUs for national supermarket chains

    Regional outlets joint scene display

  3. Supply Chain Optimization

    Standardized packaging  improves loading efficiency

    Establishment of local pre-inspection warehouse to reduce the return rate


Project implementation:

Product research key content indicators:

Demand trends of North American furniture improvement products, distribution channel layout, pricing strategy, market share of competing brands, etc. Through in-depth communication with retailers' purchasing teams, we understand the process of product shelves, costs and conditions of cooperation.

  1. Precise Channel Matching

    Screening of 3 major adapted product lines (wireless tools/environmental appliances/smart accessories)

    Developed a differentiated entry strategy of "flagship models for supermarkets+ specialized models for stores".

  2. Negotiation landing support

    Design of a "step-share" partnership program (first year guaranteed+ next year variable)

    Establishment of VMI (Vendor Managed Inventory) pilot to reduce channel partners’ risk



zimg39.svgProject Results

Helped the client successfully in Walmart and Home Depot, North America sales reached 400M USD. 

Supply chain response efficiency increased by 40% +, the first year of channel cooperation renewal rate of 85%.

 


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Ask a question

Want to know how we can help your business grow? Contact us!

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Loya International Marketing Research Co., Ltd.

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Tel:+86 (0)20-38361007

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David|13533653828|David@dgchina.com

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Location: Guangzhou, China

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