We love being the X factor in a company’s change of fortunes.
Problem | OPPORTUNITY
Internet competition was eating away at the profits of Best Buy, with consumers using the stores as showrooms for Amazon online purchases.
Defined and developed a private label brand, featuring an end-to-end design solution that was meaningful to its consumers, increased profitability, reduced waste, and virtually eliminated online competition.
Best Buy was able to realize 11% domestic revenue growth and reduce waste by 20%.
Brand Strategy, User Research, Consumer Insights & Trends, Digital Design, Product Design, Packaging Design, Communication Design
Best Buy is a leading big box retailer known for offering a wide selection of electronics and mobile accessories.
Internet-based competition was eating away at their profits by offering the same products for less, and Best Buy stores were basically functioning as showrooms for Amazon. Customers would go there to do research and then buy the same products online. This buying behavior was so prevalent that it actually had a name: “showrooming.”
Ziba was engaged, in part, to help Best Buy revive and consolidate their house brands. What consumers really wanted, and part of the reason they were showrooming in the first place, was more flexibility and personalization. So, Ziba created Modal, Best Buy’s private label brand with a line of accessories and a packaging system that provided customers with the freedom to create their own customizable mobile accessory ecosystem. The brand identity was evocative of the classic candy store: bright, fun, almost good enough to eat (not recommended).
Modal invited customers to engage with Best Buy in a totally new way. Modal phone and tablet cases.
Modal bluetooth speakers and headphones. All exclusive to Best Buy, and not available online. Translation: no showrooming. By controlling distribution, Best Buy was able to realize 11% domestic revenue growth. Ziba’s solution also helped them reduce waste by 20%. These are not insignificant numbers. The reality was that Best Buy was on the ropes prior to this shift, and bold initiatives like bringing in Ziba and launching Modal were key to them coming out of their slump. Today, Best Buy is as vital as ever, leveraging their close proximity to millions and millions of consumers.