Case Study: Empowering Growth and Strategic Savings for the Hair & Beauty Market Leader

Who is Haibu?

Haibu is a leading (online) wholesaler in the hair and beauty industry, catering to both professionals and beauty enthusiasts. With nearly 200 brands and more than 15,000 unique products, Haibu has established itself as a market leader in the Netherlands. Beyond their online store, Haibu also operates a physical location in Amersfoort, the Haibu Experience Center.

What sets Haibu apart is their focus on business clients, offering exclusive benefits and added services, while also providing their broad assortment to consumers. With well-known brands such as L'Oréal, Olaplex, and Schwarzkopf, Haibu is a one-stop shop for everything from tools and styling products to professional hairdressing supplies.

The Challenge

Haibu was looking to reduce costs and lay the groundwork for sustainable growth. Multiply, their marketing agency, led the charge by analyzing Haibu's product assortment in great detail, taking into account external market factors such as competitive pricing alongside Haibu's own data on margins and stock levels. Their goal was to develop a strategy that could optimize Haibu's ad spend while positioning them for future growth.

Multiply’s Approach

Multiply identified that price competitiveness was a crucial factor in Haibu's online sales success. Products priced significantly higher than competitors were not performing well, causing inefficiencies in automated bidding strategies. Multiply realized that these campaigns, driven by historical data, often continued promoting overpriced products, which in turn negatively impacted Haibu’s Return on Advertising Spend (ROAS).

To tackle this, Multiply developed a smart strategy: using real-time data from Bigshopper’s Price Monitoring Tool to automatically exclude non-competitive products from advertising campaigns. This approach allowed them to direct the ad budget towards products more likely to convert into sales.

Bigshopper provided the real-time pricing data, enabling Multiply to feed this directly into Haibu’s Channable setup. This allowed them to compare prices with competitors and adjust campaigns dynamically, ensuring that only products priced competitively remained in the ad campaigns. Through daily price monitoring, Haibu gained the ability to react swiftly to market fluctuations, avoiding wasted ad spend on low-performing products.

The Results

Thanks to Multiply’s strategic use of Bigshopper’s price monitoring, Haibu achieved significant cost savings. Year-on-year, their advertising costs decreased by 30%, all while maintaining the same level of revenue.

This cost reduction gave Haibu the opportunity to reinvest in other marketing channels, lessening their reliance on paid advertising and shifting focus towards organic growth. By reallocating resources and refining their advertising strategy, Haibu is now better equipped for sustainable growth and diversification across new marketing avenues.

With Multiply’s expertise and Bigshopper’s real-time data, Haibu now operates with a more efficient, data-driven marketing strategy, positioning them for continued success.