ORICO Technology effective US market penetration through Newegg turnkey solution

Company OverviewA R&D manufacturer based in Shenzhen, Orico Technology specializes in DIY storage, mobile accessories, and connectivity peripheral products. Behind the principles of original design and innovative concept, coupled with competitive price points, Orico successfully became a leader in the Storage Device market in China just one year after its entry into the Chinese market. Today, company’s sales volume of storage devices exceeds 100M units.

Challenges After initial success in launching its brand and capturing the Chinese market shortly after its inception in August of 2009, Orico turned its attention westward to the United States as its next key market. Like most other manufacturers specializing in contract manufacturing, R&D, and OEM/ODM services, the task of entering into a brand new market with limited resources and high expectations on return seemed a monumental one, if not impossible.

Finding the right distribution partners, negotiating favorable business terms, setting up an efficient logistic network, establishing brand awareness through limited market development funding, all surfaced as early challenges for Orico.

The solution: Newegg’s Global Seller Program – First From Asia.

Solution & OutcomeShortly after connecting with Newegg in 2012, Newegg “FFA” Project Manager was able to assist Orico to realize their vision and launched its seller store on Newegg.com in July of 2012.

With easy integration interface and no start-up cost to Orico, other than the resources required to setup and maintain its presence on Newegg, Orico was able to enter the US market quickly, and immediately connect with their core “DIY, tech-savvy” audience.

      CASE STUDYGlobal Seller Program

     

Orico  has  shown  steady  growth  in  the  U.S.  since  launching  in  2013  with  Newegg  Marketplace.  

      CASE STUDY

Solution & Outcome (continued)With expert and tailor-made Marketing & Merchandizing tools and professional staff ready to answer the call, Newegg delivered creative campaigns and strategically allocated digital real estates to “Spotlight” Orico’s brand and core product assortment.

On the supply chain side, through careful evaluation of cost-effectiveness by both parties, Newegg’s “Shipped by Newegg” fulfillment service proved to be the recipe for success for lowering overall logistical cost and increasing delivery speed and accuracy. Today, over 75% of Orico’s products in the U.S. are fulfilled through Newegg’s SBN service.

As of today, Orico is one of Newegg’s key brand partners in the Storage category observing quarterly sales volume over four times since its launch on Newegg, and successfully establishing its brand and market share in the U.S. not limited to just Newegg.com.

Through its successful partnership with Newegg, Orico successfully penetrated and established its brand in the U.S. despite limited resources.

Featured  Product  on  weekly  e-­‐blast  to  9M  subscribers  

Featured  Brand  on  “First  from  Asia”  homepage    

Global Seller Program

     

“With  the  help  of  Newegg  Marketplace's  Support  Team,  we  learned  the  demands  of  North  American  consumers  and  its  market  condiFons.  This  enabled  us  to  tailor  products  to  meet  their  needs.      Newegg  Marketplace  is  really  easy  to  setup  ,  adverFse  products,  and  brand  to  the  North  American  Clientele.  I  strongly  recommend    starFng  with  Newegg’s  marketplace  if  you  plan  on  expanding  in  the  U.S.”                                                                -­‐  Ivan  Mei,  Senior  Sales  Manager                                                                  ORICO  Technologies  Co.,  Ltd