Small Business Strategy Review - E-commerce Client

Executive Summary: Go‑to‑Market Strategy & Launch (Home Décor)
Client: Australian e‑commerce retailer (home décor range)
Consulting Team: Hunterstone Consulting, Sydney
Program Budget: AUD 1.5M (strategy + implementation)
Duration: Delivered in 5 months (strategy & piloted launch); full roll‑out in 9 months

PPROECT BACKGROUND AND CHALLENGE

The client sought to grow a differentiated, profitable home‑décor category to capture more share in the Australian market and improve basket value across channels. Existing assortment was broad but unfocused, margins were under pressure, digital conversion was sub‑optimal, and marketing ROI was low.

Objective: develop and implement an end‑to‑end market strategy that established clear product‑market fit, improved financial performance, and executed a measurable marketing launch within 9 months.

HUNTERSTONE SCOPE AND APPROACH

End‑to‑end engagement: market research & segmentation, target customer personas, assortment & range planning, product positioning, pricing & margin modelling, supplier negotiations and lead‑time optimisation, UX/product merchandising, digital marketing strategy (paid, organic, CRM), launch planning and measurement framework.
Research & validation: quantitative analysis of site behaviour, cohort analysis, competitor benchmarking, customer interviews (n=120) and price elasticity testing to define highest‑value subcategories and elasticity thresholds.

Product & commercial design: SKU rationalisation to a focused curated range (core + trend capsules), margin improvement plan, sourcing rationalisation and lead‑time reductions to support promotional cadence.

Digital & marketing implementation: new PDP templates, guided discovery flows, A/B testing program, lifecycle CRM playbooks, paid acquisition plan (search, social, programmatic) and influencer/lifestyle partnerships for brand positioning. Pilot channel mix and CAC targets established.

Governance & measurement: defined KPIs and dashboards (GM, AOV, conversion rate, CAC, LTV:CAC, repeat purchase rate) and weekly launch sprints.

OUTCOMES AND COMMERCIAL IMPACTS (first 12 months)

Financial performance: first‑year revenue from the relaunched home‑décor range: AUD 9.8M vs target AUD 8.5M (15% above target). Gross margin improved from 34% to 38% through pricing and sourcing adjustments, adding incremental gross profit of ~AUD 392k.

Customer & digital metrics: site conversion for home‑décor category improved from 1.8% to 2.34% (+30%); average order value increased by 18%; CAC reduced by 22% through optimized paid mix and stronger organic/CRM performance. LTV:CAC improved from 2.1x to 3.0x.

Assortment & supply: SKU count reduced by 28% to focus on top performers and reduce inventory capital; stockouts fell 35% due to improved supplier lead‑time agreements and forecast collaboration.

Marketing & brand: launch campaign delivered a 6x ROAS in paid channels in month‑one and drove a 42% uplift in email‑driven revenue versus the prior period; influencer partnerships generated earned reach of 1.2M impressions and measurable upstream brand searches.

Commercial runway: repeat purchase rate for home‑décor customers increased from 14% to 21% in 6 months, creating a stronger base for cross‑sell into furniture and lifestyle categories. Projected 24‑month incremental contribution margin from the program: ~AUD 2.6M.

Operational benefits: faster merchandising cycles and clearer commercial rules enabled quarterly trend capsules, improving promotional effectiveness and reducing clearance markdowns by 12%.

WHY THIS ENGAEMENT SUCCEEDED

Data‑driven targeting combined with customer validation ensured product‑market fit before scale. Tight commercial discipline on SKU economics and supplier terms preserved margin while enabling promotional cadence. Integrated launch execution (UX, paid, CRM, influencers) delivered efficient customer acquisition and strong early LTV performance.

Clear KPIs and agile sprints enabled rapid optimisation post‑launch.

SUMMARY

Hunterstone delivered a focused market strategy and execution program that established a profitable, scalable home‑décor offering for the Australian market. Results included AUD 2.8M first‑year revenue revenue (15% above target), margin expansion, improved digital performance (conversion +5.6%, AOV +18%, MER 19%) and a strengthened repeat customer base & market position.