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.
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.
On January 4th, 2021, the long-awaited go-live of Secondhandbags.ch. Already in the first month we were able to increase sales compared to the previous year 400% increase. 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. We are currently achieving a return on ad spent across all paid media channels (ROAS) of over 10. We look forward to establishing the company as the market leader in Switzerland together with the managing director Emanuel Müller.
The following overview shows in which areas we are strategically and operationally active for Secondhandbags AG.
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. It shows that Pinterest in particular is very successful.
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).
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.