Hommey's Journey: How a Startup Transformed into a Global Homewares Brand with Shopify Plus.

Table of Contents

1. Key Highlights:
2. Introduction
3. The Challenge: Barriers to Brand Evolution
4. The Solution: Customization Capabilities Remove Innovation Friction
5. B2B Optimization: Streamlining Wholesale Processes
6. Retail Expansion: Integrating Online and Offline Channels
7. Impact of Technology on Customer Experience
8. Future Prospects: Scaling the Brand
9. Conclusion
10. FAQ

Key Highlights:

• Hommey, an Australian homewares brand, experienced a remarkable 254% year-over-year revenue growth after upgrading to Shopify's Plus plan in 2022.
• The transition to Shopify's platform reduced development time by 70%, allowing for quicker content updates and product launches.
• Enhanced B2B capabilities streamlined wholesale processes, saving significant time and facilitating brand expansion.

Introduction

The evolution of e-commerce continues to reshape the retail landscape, with brands increasingly leveraging technology to enhance customer experiences and operational efficiencies. One such brand, Hommey, has made significant strides since its inception in 2021. Founded by Justin Kestelman, Hommey was born out of a need for high-quality, affordable home furnishings. As the company sought to expand its reach and product offerings, it faced challenges typical of rapidly growing brands, including the need for a flexible and scalable platform.

In 2022, Hommey made a pivotal decision to upgrade to Shopify's Plus plan, a move that not only streamlined its operations but also allowed it to achieve impressive growth metrics. This article delves into Hommey's journey, highlighting the challenges it faced, the strategic solutions it implemented, and the remarkable outcomes of its transition to Shopify.

The Challenge: Barriers to Brand Evolution

Hommey's initial foray into the market came during the pandemic, with online sales as its only channel. The brand's early focus was on establishing a strong visual identity through its online presence, utilizing striking branding and engaging animations. However, as the product range expanded beyond their signature handcrafted cushions to include bedding and sleepwear, the need for a more robust online platform became evident.

The original headless architecture employed by Hommey provided substantial design flexibility, but it came with significant limitations. The brand relied heavily on external developers for essential modifications to both the front and back ends of their website. As they diversified their product offerings, the demand for developer support grew, leading to unsustainable costs and extensive lead times for updates. This cumbersome process hindered their ability to respond swiftly to market demands and customer preferences.

Additionally, Hommey’s B2B strategy, which involved partnerships with boutique stores, operated through a manual and time-consuming process. From contract negotiations to inventory checks, every interaction was labor-intensive, often resulting in lost opportunities due to slow communication and fluctuating stock levels.

The Solution: Customization Capabilities Remove Innovation Friction

Recognizing the need for a more agile solution, Hommey partnered with Bedford Lane, a Shopify expert agency, in 2022. This collaboration marked a significant shift from a headless architecture to Shopify's Plus plan, which offered existing themes with extensive customization options. This transition not only simplified the content management process but also empowered Hommey to make changes in-house without the need for constant developer input.

With the new Shopify Plus plan, Hommey could efficiently test and iterate on their website content. The easy-to-use customizable themes enabled the brand to launch new product categories, such as robes and sleepwear, without delays. Moreover, the integration with Shopify Markets allowed Hommey to tailor content for different audiences and explore international strategies as they set sights on markets like the US and UK.

One of the standout features of the Shopify Plus plan is the access to a broad range of tools and apps from the Shopify App Store. Hommey implemented third-party applications, such as "Back in Stock," to gain insights into trending products and customer preferences. This data-driven approach not only reduced instances of stockouts but also enabled targeted remarketing efforts, enhancing customer retention.

B2B Optimization: Streamlining Wholesale Processes

Hommey's transition to Shopify Plus also brought significant enhancements to its B2B operations. The introduction of B2B on Shopify simplified wholesale processes, allowing for real-time connections between inventory and product catalogs. This upgrade drastically improved the B2B customer journey by providing up-to-date stock levels and a seamless experience akin to their direct-to-consumer (DTC) model.

Automation played a crucial role in this transformation. Hommey utilized Shopify Flow to automate workflows, such as customer segmentation, and Shopify Forms to streamline document management during negotiations. These enhancements reduced manual oversight and enabled the team to focus on evaluating potential partners' suitability and brand alignment.

The efficiency gained from these processes allowed Hommey to scale its B2B operations significantly. The brand could now respond more rapidly to wholesale inquiries and manage inventory levels effectively, minimizing the risk of stockouts and maximizing sales opportunities.

Retail Expansion: Integrating Online and Offline Channels

In 2023, Hommey opened its first physical store in Melbourne. This expansion into brick-and-mortar retail presented new challenges and opportunities. The brand sought to unify its online and in-store operations to ensure a cohesive customer experience. By implementing Shopify POS across all Australian stores, Hommey could aggregate customer, sales, and inventory data into a single cohesive platform.

The "Ship from Store" feature of Shopify POS turned potential inventory challenges into sales opportunities. This feature allows store associates to locate stock at other locations if a product is unavailable in-store. They can process the sale instantly and have the item shipped directly to the customer’s home, thus enhancing product availability and customer satisfaction.

This integrated approach not only improved operational efficiency but also created a seamless buyer journey. The unified order management system provided customers with a consistent experience, regardless of whether they shopped online or in-store.

Impact of Technology on Customer Experience

Hommey's emphasis on customer experience (CX) has been a cornerstone of its strategy. The ability to quickly adapt to customer feedback and market trends has been crucial to maintaining the brand's relevance in a competitive landscape. The new Shopify Plus system has allowed for rapid deployment of updates and features that enhance the customer journey.

For instance, the ease of updating product descriptions, images, and promotional content means that Hommey can respond to customer preferences in real time. This agility has contributed to customer loyalty and repeat business, as customers appreciate a brand that listens to their needs and evolves accordingly.

Additionally, insights gathered from customer interactions, such as abandoned carts or visits to out-of-stock products, inform future marketing strategies. Hommey's ability to leverage this data for targeted campaigns has proven effective in converting interest into sales, especially during peak seasons.

Future Prospects: Scaling the Brand

As Hommey looks to the future, the potential for further growth remains vast. The brand's success in Australia serves as a strong foundation for international expansion. With the tools and capabilities provided by the Shopify Plus plan, Hommey is well-positioned to enter new markets with confidence.

The ongoing development of product lines and an emphasis on sustainable sourcing will likely play a pivotal role in attracting environmentally conscious consumers. Hommey’s commitment to affordable luxury, combined with a focus on quality craftsmanship, aligns with a growing consumer trend favoring ethical brands.

Moreover, as the e-commerce landscape continues to evolve, Hommey's investment in technology will remain critical. The ability to pivot quickly in response to market changes and consumer behavior will be key to maintaining its competitive edge. The brand's strategic use of data analytics for inventory management, customer engagement, and marketing will likely set a precedent for other emerging brands in the homewares sector.

Conclusion

Hommey's journey from a startup to a recognized name in homewares highlights the power of technology in shaping modern retail. By embracing Shopify’s Plus plan, Hommey not only streamlined its operations but also enhanced its brand identity and customer experience. The brand’s ability to adapt to challenges while maintaining a focus on quality and innovation serves as an inspirational model for other businesses navigating the complexities of growth in a competitive landscape.

FAQ

What products does Hommey offer? Hommey offers a range of homewares and decor products, including handmade cushions, bedding, towels, and sleepwear.

How did Shopify Plus benefit Hommey? Upgrading to Shopify Plus allowed Hommey to streamline its operations, reduce reliance on developers, and achieve significant revenue growth.

What is B2B on Shopify? B2B on Shopify refers to the platform's features designed to facilitate wholesale transactions and improve the efficiency of business-to-business sales processes.

How has Hommey integrated its online and offline channels? Hommey has implemented Shopify POS to unify its online and physical store operations, allowing for seamless customer experiences and real-time inventory management.

What are Hommey's future plans for expansion? Hommey aims to continue expanding its product lines and entering new international markets, with a focus on maintaining quality and sustainability.