From strategy to results: 60% lift in contribution margin for Johannes Fog
Focused growth initiatives have increased business: Revenue +40%, contribution margin +60%, basket size +6%, number of in-store visits +24%, and many others in just one year. See all results here.
A strategy must be fit for the market and the situation you’re in.
The House & Garden market is tough. Competition is fierce. The need for market consolidation and growth is ever-present.
Johannes Fog, one of Denmark’s longest-running wholesalers, is feeling that – but also acting on it, and succeeding with it.
Growing 60% on contribution margin in a market like ours is truly crazy. We are very pleased with all the results, and we will continue the work with IMPACT Commerce to get more results like these.
5 initiatives: Capture and convert more customers online
Together with Fog, we developed a bold strategy. One that addressed the immediate challenges and set the foundation for long-term growth.
The key: To focus on business acumen and commerce.
For competitive reasons, we can’t mention all initiatives, but here are five examples:
We’ve helped FOG be more relevant and competitive with digital, dynamic pricing. By introducing Priceshape.io, we now scrape the market for competitors’ and resellers’ prices, stock status, shipping prices, etc. That way Fog is always able to make prices competitive. Revenue is up 40%, and contribution margin is up by 60%.
When customers don’t get the information they need to buy, they don’t. Implementing a new PIM system from Struct, we’ve enriched and aligned product data and information significantly across all channels. Results: Better user experience, better conversion rates, and shorter time-to-market. Basket size is up 6%, and conversion rate has risen by 49%.
With sooooo many products, customers need help to get an overview and clarity. To do so, we introduced more related search results, better auto-suggest, and a better overview of brands. Dynamic product bundles were introduced to offer greater value and lift basket size. And it worked.
Little streams make big rivers: More add-to-cart possibilities on product cards and in search. When people are ready to click, you should be too. More clickable campaign elements, including splashes. More focused brand and product boxes are made as coloured bands across the website to stand out. Important USPs are shown in the top bar.
When you end up not earning money on several products because media buying or discounts eat your profit, it does make sense. But it’s often difficult to get the insights. We’ve built a new setup for profitable media buying.
What is the correct time-in-market?
While timing drives impact, time-in-market does, too.
Giving initiatives time to mature and deliver results is as important as the strategy. No efforts work overnight. However, the incremental value of activities will show over time.
This approach secured Johannes Fog first place in the House & Garden category in the Omnichannel Index 2024 – Europe’s most comprehensive omnichannel analysis.
Together with Johannes Fog, we’ve tailored digital strategies and plans to align initiatives with customer demand cycles, which has amplified the effect. Look at the numbers below.
Lifting key business results
The numbers are YoY, 2024 compared to 2023:
- Revenue 2024: Index 140
- Contribution margin 2024: Index 160
- Average basket size: Index 106
- Rise in in-store traffic: Index 124
- Lift in conversion rates: Index 149
- Black Week: Index 204
- Growth in December: Index 197
We are proud of these results. But we are even happier for the great people of Johannes Fog, who worked hard to achieve these results.
Efficiency through automation and real-time inventory management
By integrating PIM, ERP, CMS, and commerce into one streamlined ecosystem, product and inventory management have become far more efficient for Johannes Fog.
Automated product enrichment and real-time inventory updates have reduced manual work, freed up internal resources, and lowered operational and support costs.
From a customer perspective, the real-time integration between stock, webshop, and physical stores ensures that customers always find updated product information and stock status.
Furthermore, smart rule-based dynamic pricing has improved profit margins and strengthened Johannes Fog’s competitive position, while the fully automated setup saves thousands of hours annually on price monitoring and adjustments.
IMPACT Commerce is a pragmatic partner that truly understands our business and helps us make the right decisions - now and in the future. Their expertise has enabled us to optimize our digital operations, ensuring short-term stability, long-term scalability, and strong profitability.
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