PROJECT COMPLETED BY PACKHELP

Lovato stayed on top of bumper growth and slashed their average unit costs by 67% with Packhelp

Flexibility and comprehensive support in their supply chain were key for the Irish scented candle supplier to keep up with demand. Add in a production line split between 52 designs, and the team had their work cut out for them.

In the end, Lovato reduced their average packaging unit costs by 67% and consolidated their warehousing costs – not to mention gained a stunning product box that became a new product line in itself.

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Objectives

Streamline packaging

Cost-effective solution

Flexible and efficient fulfilment

Results

Two box sizes to fit 26 products & 52 designs

Average unit costs reduced by 67%

On-demand fulfilment by Packhelp’s inhouse logistics hub

An age-old tradition ripe for an omnichannel disruptor

Since setting out in 2016, Lovato founder Jason Hamilton-Foott has turned a university side-hustle into an award-winning omnichannel brand, with a distribution network covering Ireland, the UK and Europe. Driven by the e-commerce boom, the producer of handmade candles and diffusers capped off its rise with a bumper 2020.

Lovato has been riding high on the back of a booming global scented candle market, which is expected to register 5.8% annual growth over the next three years. The European market accounts for two-thirds of global sales, which puts the Ireland-based company in the box seat to continue its growth trajectory.

Lovato and other local EU suppliers, however, face increasing competition from low-priced imports, mainly from China. The market share of imports grew from 17% in 2015 to 20% in 2019.

But an even bigger challenge may be one from within. Like other startups experiencing rapid growth, Lovato needs to stay on top of their growing business needs. This means maintaining an efficient supply chain, especially when it comes to product packaging.

Material

350gsm Arktika cardstock with custom wax seal.

Construction

Snap-lock enclosure and pre-glued seams for easy assembly.

Add-ons

Metallized cardboard with glossy UV Spot varnishing.

Lovato’s packaging demand grew considerably in 2020 and this year it is projected to double.

With the next online rush always just around the corner, a quick turnaround in packaging production and supply is essential for Lovato. This could mean a two or three week lead time from order placement and production to delivery.

The next challenge concerns the product itself. The quality of Lovato’s product boxes needed to match the high standards of their artisan candles, organic principles and a design brief that’s both minimalist and distinctive. In fact, their packaging is a product in itself with a gift range of Candles in Luxury Box.

Being both a D2C brand and wholesaler, their product boxes also need to capture the eye of both high-street and online customers.

Lovato sells 13 different fragrances across multiple product types (e.g., candles and diffusers), all with different shapes and dimensions. They each come with black and white options. In terms of packaging, that works out to be 52 different designs.

With this amount of complexity, attention to detail and quality control was key.

Lovato and Packhelp have, in many ways, grown together.

The relationship between Lovato and Pakckhelp’s team of packaging engineers, account managers and logistics experts has evolved over the years. Such a close and hands-on collaboration ensures that Lovato always receives a custom packaging solution finely tuned to their needs.

For example, the Packhelp team delivered a signature product box with metallized cardstock and UV Spot varnishing in time for the holiday rush.

But first, let’s take a closer look at Lovato’s core packaging range delivered by Packhelp:

A custom Product Box in two different sizes and 52 designs for 13 products.
Constructed with a snap-lock enclosure and delivered flat with pre-glued seams for easy storage and quick assembly.
Made from premium 350gsm Arktika cardstock in black and white with a custom wax seal.
High-quality offset printing with white ink on black and black ink on white.

But where Lovato may have gained the most was in process optimisation.

With 52 designs at play over a series of production batches, a simple DTP check was never going to cut it.

The stakes were raised even higher by the fact that each design varies in small details, and each order needed to be split by design.

The team set up a quality-control system for each production batch, which involved three levels of checks between the DTP team, Lovato and the production team. With such a solid and well-oiled system, the reordering process was sped up without increasing the risk of mistakes.

On the business side, Lovato reduced their average unit costs by 67% and consolidated their warehousing costs with a fully-customized Packhelp Plan.

A Packhelp Plan does just that: it allows Lovato to plan out their supply needs for the year. This way they can lock in pricing, volume discounts, order flexibility and supply chain certainty.

Lovato also uses the services of Packhelp’s in-house storage and fulfilment hub.

By committing to an annual production cycle, they receive the maximum volume discounts associated with bulk orders while enjoying flexible ordering and payment terms over the year. This provides a huge pressure release on cash flow.

The order quantities are not fixed, so they can change their numbers just a few days in advance. This on-demand model is invaluable for any e-commerce outfit unsure when the next sales rush will hit.

RESULTS

67%

An annual order and payment plan meant Lovato could enjoy the volume discounts of bulk production without cash flow pressure. This brought down the unit price for their small candle box by 65% and by 69% for their larger diffuser box.

Packhelp’s in-house storage and fulfilment centre covered all their logistics needs, helping to consolidate costs and speed up turnaround times.

The Packhelp team streamlined Lovato’s packaging with two product box sizes to fit 13 different products in two different colours.

Highly complex production requirements called for a comprehensive quality management system to give Lovato peace of mind.

Jason Hamilton-Foott founded Lovato Candles in his home town of Bandon, County Cork, in 2016 while only 20 years old. In 2019, his wife Sarah joined him in running the business. Since then, this homegrown company has come on leaps and bounds with Lovato Candles sold in Ireland’s most renowned retailers and online across Europe.

Hand-made using only 100% natural wax and the finest blends of fragrance oils, Lovato Candles boasts a truly unique collection of products. Inspired by life in Ireland, Lovato Candles’ collection consists of a variety of luxurious scented candles and diffusers that come in 14 gorgeous fragrances. →Learn more about Lovato.

About Packhelp

Packhelp is a custom packaging provider which operates in more than 30 countries across Europe. We believe in solutions developed through a collaborative process with our customers. We have worked with brands like Google, Uber, Bolt, L'oreal and Revolut, as well as thousands of small e-commerce companies.