After launching in the Chinese market in August 2009, Orico turned its attention westward to the U.S. as its next key market. Due to barriers of entry such as finding the right distribution partners, negotiating favorable business terms, setting up an efficient logistic network, and establishing brand awareness, they needed to find the right partner with the right expertise.
Partnership & Growth
After three years of trying to build their business in the U.S., Orico decided to explore a partnership with Newegg. Together, they engineered a sales and marketing plan that addressed the barriers of entry in 3 phases—integration, marketing, and customer service.
The first phase focused on integrating Orico’s products quickly with no start-up cost. This allowed product exposure to Newegg’s DIY and tech-savvy audience. The next phase focused on maximizing Newegg’s robust marketing channels such as homepage vehicles and dedicated emails. They looked to marketing, merchandising, and category managers to co-develop go to market strategies, which not only further showcased Orico’s products, but also branded them as a legitimate manufacturer.
As demand for Orico’s products continued to grow, Newegg recognized the hurdles Orico faced when shipping products overseas. Timely delivery, while also controlling costs were two areas of focus. To address these, Orico turned to Newegg’s Shipped by Newegg (SBN) fulfillment services. Newegg helped store their inventory and would fulfill domestic orders placed with a quick turnaround time. As a result, SBN minimized costs, maximized revenue, and ensured quality customer service. Today, over 75% of Orico’s orders in the U.S. are fulfilled through SBN.
The three-pronged strategy developed by Newegg proved to be ground breaking. Seamless integration coupled with an emphasis on marketing and customer service allowed Orico to focus on selling. Since integrating with Newegg, Orico’s quarterly sales volume has quadrupled; they were able to not only enter the American market, but established and legitimized their brand while gaining incremental market share.