Launching NEXTBASE in the US
Powerplay Rep Group
At the beginning of 2019, NEXTBASE was the EU market share leader for dashcams, but had essentially no brick-and-mortar or online retail business in the USA. As NEXTBASE’s primary US partner, Powerplay led a successful, full-chain release at Best Buy and placed NEXTBASE models into 4,100 Walmart stores and on Walmart.com.
Key Issues Faced
- Best Buy was over-assorted from a SKU and vendor standpoint. ASPs were declining, and BestBuy had no premium brand with the value proposition to halt this slide
- Similarly, the dashcam segment at Walmart was highly competitive due to private labels and multiple competing brands. Walmart wanted entry-level units, meaning sales volume would need to make up the difference in margin
- NEXTBASE had no experience dealing with US retailers or any US entity that could transact with Best Buy or Walmart
- With no Walmart.com presence, NEXTBASE had no experience with uploading images or optimizing content to improve search results
- Slotting fees and display costs outside of normal vendor agreements made the cost of doing business very high in the dashcam category
Implementation
- In January 2019, Powerplay Retail facilitated a meeting between NEXTBASE and the Best Buy leadership and buying team
- A dedicated team at Powerplay focused on the Best Buy launch, introducing the Best Buy buying team to a variety of interactive and static display options
- Meanwhile, Powerplay dealt with multiple Walmart buyers to “sell in” the idea of placing a 2-foot display to showcase unique elements of the NEXTBASE brand and the accolades it had received
- Powerplay facilitated interactions between NEXTBASE, Walmart, and the distributor Microsel to address critical returns issues
Results
- Powerplay Retail negotiated a favorable program for NEXTBASE, including $80K in-kind funding from Best Buy
- In less than 5 months (May 2019) Best Buy launched 3 dashcams and 5 accessories at all its stores, including two 2-foot displays and two 1-foot displays at multiple in-store locations. Powerplay Retail maintained 100% in-stock of all products
- The NEXTBASE 522 launched in June 2019 and was Best Buy’s #1 selling dashcam for the year
- NEXTBASE was Best Buy’s best-selling dashcam in both units and revenue for the week of Black Friday and Cyber Monday 2019
- After NEXTBASE helped significantly raise ASPs in FY 2020, Best Buy agreed to add 3 more SKUs for FY21, and Best Buy foresees NEXTBASE being their best-selling dashcam in 2021
- Powerplay placed two NEXTBASE SKUs in 4,100 Walmart stores and on Walmart.com
- Walmart awarded Powerplay/NEXTBASE a 2-foot display for these items plus accessories for its Spring 2020 modular
- The original September 2019 Walmart shipment was 12,000 units, with replenishment orders each week
Powerplay Distribution
Powerplay Distribution successfully launched NEXTBASE at Best Buy with a full-chain release in 2019, and continues to be NEXTBASE’s primary distribution partner for other US retailers.
Key Issues Faced
- With no US entity and no experience fulfilling and distributing in America, NEXTBASE needed Powerplay Distribution to serve as the US warehouse and support US retailers like Best Buy
Implementation
- Powerplay negotiated the agreement and set up the supply chain to fulfill Best Buy’s national launch of NEXTBASE dashcams
- Powerplay started working with NEXTBASE at the end of March, 2019, and launched the brand at Best Buy in May
- Powerplay continues to manage the Best Buy relationship and daily business needs
Results
- Powerplay Distribution supported a successful launch at Best Buy in May 2019 with no operational issues
- We delivered on all SLAs and maintained operational excellence, while supporting continued growth of the Best Buy program
- NEXTBASE was Best Buy’s best-selling dashcam in both units and revenue for the week of Black Friday and Cyber Monday
- Powerplay continues to be a key partner driving growth at other US retailers in 2020 and beyond
