The Hip Shop

Covid rescue plan turned explosive business expansion strategy!

Introduction

sector

E-Commerce

Fashion

The Hip Shop is a popular South African fashion boutique with a fanatically loyal, middle-aged customer base that they have been serving for close to two decades.

They have 2 physical stores: a flagship store in Jeffreys Bay and a Western Cape branch in Durbanville.

The business was well and thriving… And then Covid hit! Overnight, their footfall fell to 0 – and they were faced with existential questions about what would come next.

They turned to VANHA as a last resort – and what was intended to be a mere survival strategy ended up being a catalyst for explosive growth over the years to come: Adding an additional revenue stream and increasing awareness of the brand and business at scale – bolstering store traffic once the pandemic passed.

Solution

When Berinda launched the Hip Shop, she had a dream, not just to sell clothes – but to inspire confidence in women. She wanted to help women look and feel their best, through clothes.

She has always had a very enthusiastic and hands on approach, chatting to customers in-store and sharing styling tips to help women build stylish and practical wardrobes that make getting dressed as easy and fun as possible.

This has become the signature in-store Hip Shop experience – and so, it was crucial to extend it online as well.

Rather than focusing on individual styles, we now feature professionally styled looks that can be conveniently shopped in the click of the button.

This has added additional value for the customer while also increasing the average order value of each purchase.

Ad Creative

No items found.

Landing Page Build

Results

5.1x

Return on Ad Spend

VANHA was tasked with maintaining a ROAS (Return on Ad Spend) of 4x and this was not only achieved, but meaningfully surpassed. Running at an average 5.1x over the past 3 years.

49%

Increase in Average Order Value

Curating the creative around looks was a game changer, AOV increased by 49% allowing further scalability.

43%

Increase in 90 Day Lifetime Value

With value filled email content to segmented groups and creative with curated styling advice – the THS community grew stronger and this showed in Lifetime Value increasing by 43%.

Overview

THS began their advertising journey with VANH Ain March 2021.
During the first year, average monthly orders grew from 10 to 190.
Over the next 2 years, average monthly revenue grew by another 231%.
VANHA was tasked with maintaining a ROAS (Return on Ad Spend) of 4x and this was not only achieved, but meaningfully surpassed. Running at an average 5.1x ROAS – all whilst scaling ad spend over 200% over this period.
However, it was not only ROAS that we looked at, it was understanding THS’s contribution margin and CLV (Client Lifetime Value)and optimising our media budget around this that allowed us to know when and how much to scale.
Average Order Value: Curating individual styles items into ready-to-shop looks resulted in 49% increase in AOV.