Happy House

• CS_Happy House_web.pdf

CS_Happy House_web.pdf

Happy House began as a fresh, dynamic, Australian based design house in 1995. The company’s unique designs and marketing savvy, together with the expanding market for teenage and tweenage girls has, since then, driven phenomenal growth. Today Happy House enjoys global commercial success, its products being distributed to more than 40 countries.

Happy House has become a brand synonymous with fresh, contemporary product that has developed a strong following around the world. Happy House designs now permeate many product ranges, covering everything a teenage or tweenage girl could desire: from clothing, watches, fashion accessories and bags, to bed linen, gift items, plush toys and stationary.

The Opportunity

The continued expansion of Happy House product lines has created an exciting opportunity: the development of Happy House retail stores.

By February 2004, 35 Happy House concept stores were established around Asia. The first Australian company-owned store opened in June 2003.

The Happy House retail store facilitates direct marketing and merchandising to its target customer. Happy House can now control the market perception of its brand, presenting a unified image and total product offering to the teenage and tweenage girl.

Happy House stores are genuine experiential stores, with an effective Customer Loyalty Program: Happy House Fab Friends, in store web access for web-savvy teens, in store animated displays, dedicated gift wrapping and packaging concepts, funky staff uniforms and staff training programs to project the Happy House culture.

The Happy House retail store in Adelaide has demonstrated the power of the brand in a dedicated store. Happy House are now clearly focused on establishing the retail network across Australia.

The Challenge

 Having successfully established one retail store, the challenge for Happy House was how to establish a national network of stores to control their branding throughout Australia.

With such a unique product offering and a lucrative, hungry market, presenting the brand in a consistent manner to build market presence was essential.

 Expansion: To build a strong presence nationally, while retaining brand control, requires a carefully tailored strategy. 

 Happy House faced the challenge of replicating the success of the initial store over an entire network nationwide. Critically, Happy House recognised its ambitions for a rapid growth strategy and a desire to ensure strong brand management.

 A further challenge was the consideration of the international strategy for the retail network and incorporating any relevant issues into the Australian network strategy.

 The Solution

Happy House sought advice from DC Strategy, specialists in business development strategy.

DC Strategy worked with Happy House to develop the optimal expansion strategy. Consideration was given to the objectives and critical issues with the Happy House brand and customer service, which pointed toward the development of a franchise program.

The process of developing the expansion strategy involved evaluating the economic feasibility of franchising, developing a detailed Business Plan, analysing the commercial issues and instituting optimal policies for the Happy House network. The business format-franchising model was identified as an economically viable strategy to include within the retail expansion strategy.

Franchising: The optimal strategy for expansion that ensured control and maximised value for all stakeholders was found to be a network of franchised and company-owned stores.

In addition, DC Strategy documented a comprehensive Operations Manual for Happy House, to both allow franchisees to replicate the successful pilot store, and Happy House to ensure a consistent customer experience in each store.

The Outcomes

Happy House is well positioned to drive the growth of a retail network of franchised and company-owned stores across Australia. The core focus of Happy House includes:

• Developing its existing culture across the network as an exciting, fun and vibrant environment to be involved in
•  To be recognised as an “Employer of Choice”
• Attracting committed, well capitalised, and passionate Franchisees to deliver the customer service and performance in stores

Happy House is an exciting business with an opportunity to be recognised as a successful international brand.

And now The Happy House retail network will allow teenagers and tweenagers all over Australia to enjoy the unique experience and products Happy House provide.

DC Strategy, business growth specialists.

Level 5, 530 Collins Street,
Melbourne VIC 3000 Australia
growth@dcstrategy.com
+61 (0)3 8102 9200