Hairhouse Warehouse's new e-commerce offering.
Hairhouse Warehouse e-commerce manager David Lithgow tells us more about the business?s move into online retail and the delivery practicalities they?ve addressed with a new warehousing solution.
Back in 1992, brothers Tony and Joseph Lattouf combined their respective hairdressing and business talents to launch Hairhouse Warehouse, a one-stop shop for customers interested in professional hair care. Twenty years and over 140 franchises later, the brand launched its e-commerce offering in July 2012.
According to e-commerce manager David Lithgow, the company has long understood that it needed to embrace the digital revolution, but it was only a year ago that a team was put in place that could realise the company?s online-retail goals.
?People are researching and then shopping online because it is more convenient,? says Lithgow. ?Online, the small players look as big as everyone else. We have recognised that we need to take on a leadership role in our industry to combat discounters and show customers that we?re as progressive as customers have always imagined us to be.?
Creating original content
Lithgow?s experience with online retail and search engine optimisation (SEO) has taught him the importance of original, owned content online. Consequently, Hairhouse Warehouse couldn?t just download images and product descriptions from other websites; it had to photograph every product and write a unique description for each one. The e-commerce offering launched with 700 products and Lithgow estimates that they are adding 150 products a week. His goal is to have at least 7,500 products online in 12 months.
While many online retail sites struggle to get traffic, launching an e-commerce platform for a 20-year-old brand has distinct benefits. ?Usually you see a slow, natural progression and growth in online traffic and sales, but Hairhouse Warehouse had an instant audience in the tens of thousands,? says Lithgow. ?The response has been immediate, thanks to the power and reach of the Hairhouse Warehouse brand.?
Benefits for franchisees
Lithgow admits the franchisees were initially apprehensive about the company?s e-commerce plans. However, Hairhouse Warehouse?s e-commerce model is designed to push traffic into stores and complements individual stores? marketing activities.
One key feature, launching in the latter part of 2012, is ?click and collect?. ?For example, when we are selling a promotional item such as the Platinum Blitz Box valued at $130.00 for $29.95, customers will be able to pay for it online, but they must choose a store from which to collect it.? The sale is attributed to the store selected for pickup, and franchisees will see how many sales they?ve made from the website. For customers who prefer to go in-store, the ?click and collect? option will soon be available for all online product purchases.
Each Hairhouse Warehouse store has its own web page, connected to the main website. Franchisees actively promote their store page as part of their local marketing, so Hairhouse Warehouse is piloting session tracking for sales attributions. ?If a customer goes to a store page and clicks on the ?Shop now? button, we will be able to identify which store page the transaction originated from,? says Lithgow. ?The beauty is customers only have to go through their local store page once. They are recognised as a return shopper for each subsequent visit and all their purchases can be attributed to their local store.?
A new warehousing solution
The launch of the company?s e-commerce operations also necessitated engaging a new third-party logistics (3PL) company. Lithgow says that Hairhouse Warehouse approached Australia Post, who recommended three 3PLs that might suit the company?s needs. ?All three of the recommended companies were fantastic and
would have worked for us, but we decided to go with Warehousing Fulfilment Distribution Solutions (WFDS), based on their experience and ideal setup,? he says. ?They had a secure, isolated area that
was perfect for open-box picking and packing.? WFDS also offered end-of-day eParcel pickup, which gives Hairhouse Warehouse an
extra two hours to get late parcels out. ?The 5pm pickup makes a
huge difference,? says Lithgow.
The new 3PL?s system integration with Hairhouse Warehouse ensures the website is automatically updated with current stock value information, meaning that Lithgow can provide the CFO with up-to-the-minute reports.
Bringing the store experience online
Hairhouse Warehouse has big plans for its e-commerce operations. It sees the website as not only an online retail outlet but also a space where customers can interact and share thoughts with their peers and hair-care experts.
?We will be replicating our in-store experience online, so we become the most trusted and relied-upon source of professional hair-care products and advice on the internet,? confirms Lithgow. ?Shop with Hairhouse Warehouse in-store or online and you know you?ll get the right advice and the right product.?
Useful tools and resources
- Hairhouse Warehouse is a one-stop shop for hair care, offering professional products, expert advice and in-store salon services.
- Expert source: David Lithgow is Hairhouse Warehouse?s e-commerce manager, with 10 years? experience in online retail.
The views expressed in this article are those of the author and the interviewees, and not of Australia Post.
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