Pricing of Wellness Products - Reference Case
500.000 € more profit in the first 12 months alone
How a health and wellness eCommerce retailer improved their profitability and made 500.000€ in profit in the first year alone with Sniffie.
Hyvinvoinnin Tavaratalo
Hyvinvoinnin Tavaratalo is a Nordic Wellness Ecommerce store with +5M€ in yearly turnover. The company sells a large amount of Nordic and other wellness products.
The company was founded in 2004 and is the biggest health and wellness Ecommerce store in Finland. Their assortment carries over 400 brands and 5000 products. Hyvinvoinnin Tavaratalo is well known for their extensive product categories in vitamins, natural cosmetics, organic food, organic cosmetics, sports nutrition, weight loss products and ecological cleaners.
Their main focus is naturally good quality products, carbon neutral deliveries and being genuine and ethical.
Hyvinvoinnin Tavaratalo
Hyvinvoinnin Tavaratalo is a Nordic Wellness Ecommerce store with a +5M€ in yearly turnover. The company sells a large amount of Nordic (and other) Wellness products.
The company was founded in 2004 and is the biggest health and wellness Ecommerce store in Finland. Their assortment carries over 400 brands and 5000 wellness products. Hyvinvoinnin Tavaratalo is well known for their extensive product categories in vitamins, natural cosmetics, organic food, organic cosmetics, sports nutrition, weight loss products and ecological cleaners.
Their main focus is naturally good quality products, carbon neutral deliveries and being genuine and ethical.
Wellness and Health market
Better health, better nutrition, better fitness and better wellbeing. The wellness industry has grown fast in the recent years. According to a McKinsey study, the entire market can reach a potential of up to 1.5 trillion USD. Although wellness and health products are a small segment of this market it is still up to a 20 billion USD market globally.
Big cosmetics Ecommerce players and markets are creating an extremely hard competitive environment. The competition in the market includes also specialised companies such as Lyko, Cocopanda, Kicks and general retailers such Prisma, ICA or COOP in the Nordics.
The challenge in the market
How to keep the pricing of wellness products profitable with automatic pricing automation and not follow the market unnecessarily.
Wellness and Health market
Better nutrition, better fitness and better well-being. The wellness industry has grown fast in recent years. According to a McKinsey study, the entire market can reach a potential of up to 1.5 trillion USD. Although wellness and health products are a small segment of this market, it is still up to a 20 billion USD market globally.
Big cosmetics Ecommerce players and markets are creating an extremely hard competitive environment. The competition in the market also includes specialised companies such as Lyko, Cocopanda, Kicks and general retailers such Prisma, ICA or COOP in the Nordics.
The challenge in the market
To keep the pricing of wellness products profitable with automatic pricing automation and not follow the market unnecessarily.
Real Results
Between 2016-2018 the company’s turnover decreased by 19% and EBIT by 14%. In 2018 especially, the pricing of wellness and health products was taken into focus, and Sniffie was taken into use. After taking Sniffie into use: turnover grew by 8% in the first year alone, and EBIT became positive.
After analyzing their pricing, the seasonally adjusted unit sales decrease flattened out, and better pricing meant a growth of marginal value, which turned the business positive. The first year result with Sniffie was +500K€ in turnover.
The company has kept on a good growth path since then and is a happy Sniffie user and a reference customer for our upcoming customers to talk to.
Turnover growth
Turnover growth
Return on investment
Products in automation
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How to improve pricing of wellness products and increase profits
Hyvinvoinnin Tavaratalo is long-time Sniffie customer. They started using Sniffie’s price monitoring to focus on their pricing in wellness products. Focus was especially in Europe and how market pricing was affecting their sales and profitability.
After understanding the market price was the time to automate the pricing. Hyvinvoinnin tavaratalo automised their pricing with flexible market based strategies. That way the company was faster to react on market changes and made sure their marketing was always on point. No lost conversions due to failed pricing, no disappointed customers.
With the use of automated strategies they were also able to utilise bigger product categories and offer a wider selection for each customer.
Hyvinvoinnin Tavaratalo is one of the first companies to develop Sniffie’s AI together with the Sniffie team. Currently they have automated their pricing with extensive price monitoring and market based strategies.
4 key points on the case
Shopify
Hyvinvoinnin Tavaralo uses Shopify as their Ecommerce platform.
Tools used
Hyvinvoinnin Tavaratalo use price monitoring, pricing automation and price optimisation.
+5000 products
More than 400 brands and +5000 wellness and health products.
Results
Hyvinvoinnin Tavaratalo received a 500.000 € improvement in the first year alone.
What is Data-Driven Pricing? Learn how Artificial Intelligence can be used in pricing.
500.000€ improvement in profitability in the first year alone.
Hyvinvoinnin Tavaralo improved their profitability by 500.000€ by using Sniffie. The results were achieved by understanding the market pricing of wellness and health products and making sure the price elasticity of their products was used in an optimum way.
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Customer testimonial
The results with Sniffie have been fantastic. We have secured significantly more sales and profit. I am super happy with Sniffie as a SaaS service.
It is a strategic tool for us, that we are eager to develop with Sniffie team. I’ve been teasing the CEO that our strategic co-operation is on that importance, that as outdoor people, we should make a planning trip to Lofoten islands. In conclusion, I can say that we have been very satisfied with the platform and its development, and I can warmly recommend it to other ecommerce owners as well.”
Tomi Kottonen, Founder, Hyvinvoinnin Tavaratalo
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Customer Testimonial
The results with Sniffie have been fantastic. We have secured significantly more sales and profit. I am super happy with Sniffie as a SaaS service.
It is a strategic tool for us, that we are eager to develop with Sniffie team. I’ve been teasing the CEO that our strategic co-operation is on that importance, that as outdoor people, we should make a planning trip to Lofoten islands. In conclusion, I can say that we have been very satisfied with the platform and its development, and I can warmly recommend it to other ecommerce owners as well.”
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