Case Study: How Valyou Furniture Scaled Profitably Across the US with an Impressive 8x ROAS

Client: Valyou Furniture
‍
Industry: E-commerce (Furniture)

Valyou is a modern, stylish furniture provider known for its high-quality products at affordable prices. As a major online retailer, Valyou operates with the aid of four showrooms across the United States.

The Challenge & Objectives

Launching a new business in a highly competitive industry is no small feat. Valyou Furniture, a budding furniture retailer, approached us with the hefty challenge of not only establishing their brand presence in the highly competitive market of Hawaii but also planning to expand to California and ultimately, the whole of the USA.

Valyou's distinctive blend of high-quality, affordable designer furniture had potential, but their lack of brand recognition and historical performance data posed significant hurdles. We needed to generate immediate, profitable sales in Hawaii to establish their brand and secure the resources necessary for future growth.

Our objectives were clearly outlined, yet intricate:
Brand Introduction & Positioning
Introduce Valyou Furniture to the competitive market in Hawaii. Position them as a provider of high-quality, stylish furniture at affordable prices, aiming to secure a strong foothold.
 Immediate Sales & Profitability
‍Drive immediate sales with profitable advertising to establish the business and provide a foundation for future growth and expansion
Strategic Expansion
Carefully manage a phased expansion plan — from Hawaii to California, and then to the entire USA — while maintaining profitability at each stage.
 Demand Forecasting & Stock Management
Assist in the logistical challenges presented by a rapidly growing online business. We needed to work closely with Valyou's logistics team, providing them with data-driven insights to help manage stock levels based on the online performance of individual products.
Competing Against Industry Giants
Last, but by no means least, was the need to compete against industry giants. As Valyou expanded, they'd be coming up against well-established, household-name brands. We needed to ensure they were equipped to not just compete, but to flourish in this intensely competitive landscape.

Our Approach

Understanding the high user intent in Google Ads, we decided it to be the primary channel for Valyou. We kicked off with a general shopping campaign for all Valyou products to establish a baseline and determine the best-selling products.To support the main shopping campaign, smaller search and display campaigns were launched. Our plan was to slowly diversify the general shopping campaign into smaller, product-specific campaigns as we discovered the brand's best-sellers.

Knowing that short-term profitability was critical for this young company, we carefully evaluated each tactic based on its probability of immediate success and the required investment for testing. Less risky tactics were prioritized.

 The Results

Our approach saw immediate success, with the campaigns turning profitable from day one. This immediate profitability allowed Valyou to accelerate its production levels, which set the foundation for its expansive growth. Within the first year of our partnership, Valyou established a second showroom and an on-island warehouse in Hawaii, a feat made possible by its rapid and significant brand recognition in the region.
The successful scaling in Hawaii, boasting an impressive 25x ROAS, set the stage for the next phase of our expansion strategy: California. Within just two years, Valyou had spread its wings to California and soon after, to the entire US, opening new showrooms in LA and Las Vegas in the process. Even during this aggressive expansion, the campaigns maintained an impressive average ROAS of 14x in California and 8x across the entire US over the past few years.Valyou's faith in our approach was mirrored in their marketing budget, which saw an increase of 400x over the past five years, significantly outstripping the initial forecasts.

Now, Valyou Furniture stands as one of the leading furniture brands in the US, in an industry marked by fierce competition.

‍ Key Achievements:
Immediate profitability of the campaigns from day one.
Rapid expansion to California and the entire US within two years.
Achieved an impressive 25x ROAS during Hawaii scaling, 14x during California scaling, and 8x ROAS across the entire US over the past few years.
Valyou's 400x increase in marketing budget over the past five years reflects their trust in our strategy.

Client Testimonial

"Marketify has been a critical partner since our early days. Their hard work and dedication are unparalleled, and their knowledge of Google Ads is simply incredible. There are very few companies that can do what they do, especially at this scale.

We now let them run our ads as they see fit, fully confident that our success is their top priority."

Ready to achieve similar success for your business?
Let's start discussing how we can help your company scale profitably.
‍Fill out our contact form to get started.
Get started