Leading CPG Company Establishes DTC Revenue Stream.
PIM Brands
At a Glance:
A $1 billion revenue CPG company partnered with Compose to establish direct-to-consumer capabilities and capture younger customer demographics in an evolving retail landscape. Through a comprehensive 4-month initial implementation focusing on the flagship brand, we delivered an integrated Shopify-based ecommerce platform that created an entirely new revenue channel while strengthening brand relevance with next-generation consumers.
The engagement evolved from a focused brand launch to a multi-year strategic partnership, demonstrating the sustained value of our collaborative approach to digital commerce transformation.
Key Results:
- New Revenue Stream: Established direct-to-consumer channel expanding beyond traditional retail distribution
- Demographic Expansion: Successfully engaged younger customer segments through digital-first brand experience
- Operational Integration: Seamless connection between ecommerce platform and existing warehouse management systems
- Multi-Brand Scalability: Foundation enabling D2C expansion across additional brand portfolio
The Challenge:
Business Context:
Our client operates as one of the largest CPG companies in North America, generating nearly $1 billion in annual revenue through a diverse portfolio of consumer brands. Historically reliant on traditional brick-and-mortar retail distribution, leadership recognized that evolving consumer behaviors and demographic shifts demanded a strategic pivot to remain competitive and relevant.
Specific Pain Points:
- Limited Customer Connection: Traditional retail model created barriers between the company and end consumers, limiting brand engagement and customer data insights
- Demographic Disconnect: Younger consumer segments increasingly expected direct brand relationships and digital-first shopping experiences that existing distribution channels couldn’t provide
- Revenue Channel Constraints: Dependence on retail partners limited pricing flexibility, margin optimization, and direct customer relationship building
Impact of Status Quo:
Without establishing direct-to-consumer capabilities, the company risked losing market share to digitally-native competitors while missing opportunities to build lasting customer relationships and optimize revenue from their strong brand portfolio.
Why They Chose Compose:
The organization selected Compose based on our proven expertise in digital commerce implementations and deep understanding of the complexities involved in transitioning established CPG companies to direct-to-consumer models.
The Solution:
Discovery & Strategy Phase:
We conducted comprehensive analysis of their existing operations, brand positioning, and target customer behaviors to develop a strategic roadmap for D2C transformation. Understanding the complexity of managing multiple brands, we recommended starting with their strongest brand to establish proven success before expanding across their portfolio.
Technical Architecture:
We designed and implemented a robust ecommerce ecosystem built on Shopify’s enterprise platform, chosen for its scalability, reliability, and extensive integration capabilities. The solution encompassed both customer-facing digital experiences and critical backend operational systems.
Ecommerce Platform Development:
The Shopify-based solution provided a modern, mobile-optimized shopping experience specifically designed to appeal to younger demographics while maintaining the trusted brand identity that existing customers expected. The platform featured intuitive navigation, engaging product presentations, and streamlined checkout processes optimized for conversion.
Warehouse Management Integration:
We developed seamless connections between the ecommerce platform and their existing WMS, ensuring real-time inventory synchronization, automated order processing, and efficient fulfillment workflows. This integration eliminated operational silos and enabled smooth order-to-delivery experiences.
Implementation Approach:
The 4-month timeline focused on rapid deployment while maintaining operational excellence. Our agile methodology allowed for iterative testing and optimization throughout the implementation, ensuring the platform met both technical requirements and business objectives.
Partnership Elements:
Throughout the engagement, we maintained close collaboration with their marketing, operations, and IT teams, ensuring the solution aligned with existing business processes while introducing new capabilities for customer engagement and revenue generation.
The Results:
Immediate Wins:
The 4-month implementation delivered a fully functional direct-to-consumer platform that immediately expanded the company’s revenue channels and customer touch points, providing new opportunities for brand engagement and customer acquisition.
Long-term Impact:
The successful launch established a proven framework for D2C expansion across their brand portfolio, positioning the company as a forward-thinking leader in the traditional CPG space.
Strategic Outcomes:
- Revenue Diversification: Created an entirely new revenue stream independent of traditional retail partnerships, providing greater pricing control and margin optimization opportunities
- Customer Demographic Expansion: Successfully engaged younger consumer segments through digital-first brand experiences, expanding market reach beyond traditional retail customer bases
- Operational Excellence: Seamless WMS integration ensured efficient order fulfillment while maintaining existing operational workflows and inventory management processes
- Scalable Foundation: Established proven platform and processes enabling rapid expansion to additional brands within their portfolio
Competitive Advantages:
The D2C capabilities positioned the company ahead of traditional CPG competitors while providing valuable customer data insights that inform product development, marketing strategies, and business decision-making.
The Partnership Continues:
What began as a focused 4-month implementation has evolved into a sustained strategic partnership spanning multiple years. This ongoing collaboration has enabled continuous platform optimization, expansion to additional brands, and strategic guidance as the company continues evolving their direct-to-consumer capabilities.
The sustained partnership includes regular platform enhancements, performance optimization, strategic consultation on new brand launches, and guidance on emerging ecommerce opportunities. This long-term engagement ensures the company maintains competitive advantages while continuously innovating their customer engagement strategies.
The multi-year relationship exemplifies Compose’s commitment to driving sustained digital transformation, demonstrating how strategic technology partnerships enable CPG companies to successfully navigate evolving market demands while building lasting competitive advantages in the direct-to-consumer landscape.
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