Case Study in Consumer Electronics
Going Against Giants: How Expand Propelled Twelve South Into the Power Product Arena
Scaling a business from a seven-figure revenue to an eight-figure revenue is a monumental achievement. But doing so while breaking into a fiercely competitive market dominated by established giants? That's the kind of success story that inspires entrepreneurs. And that's precisely what Expand was able to do for tech accessory pros, Twelve South.
Twelve South, a provider of high-end accessories, had a solid foundation. They had a great product line and a loyal customer base. However, they believed they had the right innovation to take their product line to new heights. Their goal was to break through to the next level and compete with the major players in the "power" product space (think: wireless chargers, etc.). That means Twelve South would be competing for market space with giants like Belkin, Anker, Mophie, etc. That's where Expand came in.
Expand's strategic approach focused on several key areas:
Market Analysis & Strategy: Expand conducted in-depth market research to identify opportunities and develop a targeted strategy for Twelve South to penetrate the power product market. This included analyzing competitor strengths and weaknesses, identifying key customer segments, and developing a pricing strategy that would be both competitive and profitable.
Sales Channel Optimization: Expand optimized Twelve South's existing sales channels and identified new avenues for growth. This included getting Twelve South’s power products into Best Buy and Verizon in Q4 of 2024. Furthermore, the brand was strapped for samples, as brands usually are with new launches, and time was of the essence. Expand was able to launch into these retailers as soon as the product was available.
Brand Building & Positioning: Expand helped Twelve South refine its brand messaging and positioning to resonate with its target audience in the power product space. This involved discovering how and where the target audience chose to shop for these products in order to be positioned for success. Twelve South's product portfolio did not include much connected power, outside of Apple exclusive products, until the end of 2024. They were known for Mac Stands and ergonomic desk set-ups and a major product hit the AirFly, so Expand had to reposition their messaging. Additionally, Expand helped to prioritize and guide the brand when developing the portfolio to set them up for long term success. They are primed for category disruption.
Operational Support: Expand tracked launched RFP's and NPI's carefully to ensure that progress and momentum were not lost. This means that, as a fractional executive sales team, we also integrated extensively and seamlessly into Twelve South’s internal teams to be on the ground and “in the weeds.” Expand also provided detailed sell-thru reports tracking per store, per week sales to ensure that products sell-through was meeting the KPIs that the buyers expected. Expand encouraged the brand to send out seeding samples for extra reviews and tweaked product details at a micro level keeping content fresh.
The results speak for themselves. During our contracted time, Twelve South saw exceptional revenue growth, a significant increase in product placement, and priceless growth in brand awareness. They successfully entered the highly competitive power product market, carving out a significant share and competing effectively with established brands.
Contracted Time: 24 Months
Apple Increase: Added 8 new power SKU's increasing their SKU count from 12 to 20 in 12 months.
Channel Acceleration: Opened up new rewards channel partners bringing about $1m in additional revenue in 12 months.
BBY USA (Best Buy): 50% Growth year over year including the addition of an in-store power assortment.
Mid Box market: Business increased by 215% year over year by adding "brand stripes" in existing retailers and focusing on sell-thru with core SKU's.
Walmart: launched in 3500 doors.
Canadian market: Business in Canada increased by 150% by strengthening existing relationships and focusing on growth within high volume accounts.
Airport Channel: Increased business by 40% by adding additional SKU’s and creating a stronger brand presence in stores. Additionally, we were able to close a deal with the largest airport retailer, Hudson News, after years of trying.
Carriers: Re-engaged with one of the largest carriers in the US, Verizon, and partnered to offer the entire new power assortment to their customers.
Door Count: By the end of the two years, ThornCrest had increased Twelve South's door count from 2500 to over 6500 doors.
Key Takeaways for Businesses Looking to Scale:
Strategic Partnerships: Partnering with a sales growth expert like Expand can provide the expertise and resources needed to break through to the next level.
Market Insight: Deep market analysis is crucial for identifying opportunities and developing a winning strategy.
Channel Optimization: Optimizing sales channels and exploring new avenues for growth is essential for reaching a wider audience.
Brand Building: A strong brand identity and compelling messaging are vital for standing out in a crowded market.
Ready to take your business to the next level? Contact Expand today to learn how we can help you achieve your growth goals.
Graph Source: Year End 2022 Consumer trends report from HubSpot, based on thousands of consumer surveys