HORIZON INTERNATIONAL CASE STUDY
A Small Consumer Electronics
Start-Up Company

The client was a small consumer electronics start-up company. They have subsequently grown significantly and now turnover c. USD $80m p.a., with Horizon International supporting their growth and new market entry throughout.

Customer Challenge:

Their initial production run in Southern China was the result of a highly successful crowdfunding campaign through Kickstarter. Their initial Kickstarter target was to raise $100,000, however their final achieved funding hit $1.5million – 15 times their original projection.

‘Therefore, they had to produce 15 times as many units and deliver these directly to 15,000 consumers around the globe.’

The client’s concern was that they wanted the end customers to experience a frictionless delivery, with no customs involvement or payments of duty/tax etc. They were also keen to ensure that the correct duty classifications were applied to avoid customs issues.

 

Our Solution:

  • After performing a thorough analysis, we presented the client with alternative solutions to consider. Each solution was clearly presented and accompanied with a cost per order, a risk analysis, service outline, taking into consideration the end-customer experience.
  • The solution involved moving all UK/EU orders in bulk to the UK by oceanfreight – and similarly, all North American orders to Los Angeles by oceanfreight.
  • On arrival at UK and US port, all orders were customs cleared in bulk – attracting single customs brokerage fees.
  • Deliveries were made using fully tracked courier services, with “signature on glass”.
  • All order and inventory data was managed through Horizon’s enterprise supply chain system hiCloud Store – giving the client complete visibility of order status through to receipt and signature by their end-customers.
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Customer Benefit: 

  • The entire project was managed seamlessly from the point that completed product was collected from factory door – all the way through to individual delivery to final end-customer’s hands.
  • 15,000 individual orders were delivered in total.
  • All customs formalities were planned, managed and executed with little/no input from the client – and absolutely no involvement from their end customers.
  • All end clients received email notifications with order tracking details, all triggered directly from hiCloud.
  • This Kickstarter launch is still referred to by crowdfunding experts as one of the most successful campaigns to ever take place.

Since this launch in 2013, Horizon have continued to support the client and have assisted them in establishing their own footprint in both the US, UK and Hong Kong – as well as handling their transition  from being solely a B2C eCommerce seller into a solid B2B supplier, selling through multiple retail channels in 4 continents. Horizon’s solutions and supply chain consultancy has proven to be able to keep pace with the client’s rapid growth and we remain an integral partner to them.

 

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