Salvatore Decker, a mechanical engineer with a passion for sustainable living, founded Pandoo in 2016 to offer eco-friendly alternatives to fast-moving consumer goods or FMCGs. Inspired by witnessing widespread deforestation during his travels, in Maylasia’s biggest rainforest – Taman Negara, Salvatore envisioned a brand that utilized bamboo as a sustainable material. After initially launching on Amazon FBA, Pandoo transitioned to WordPress and Woocommerce around 2016 and switched to Shopify in early 2018,to diversify its product range and sales channels, aiming to reach a wider audience.
Pandoo faced a unique challenge in selling fast-moving and everyday consumer goods online, particularly products such as toilet paper and cotton buds that were traditionally purchased in physical brick and mortar stores. Salvatore recognized the need to target a specific customer group, focusing on individuals with limited time but a desire for environment friendly alternatives and sustainable living. The solution was a subscription model that aimed to turn households into sustainable ones!
II. Appstle Implementation
Appstle entered the scene as the chosen app or software tool to facilitate Pandoo’s subscription model and recurring deliveries of its sustainable products. Salvatore explains that the decision was based on Appstle’s native connection to Shopify and Shopify Plus, state-of-the art and highly user friendly features, and grass-roots credibility and positive reviews from ‘000s of ecommerce stores worldwide.
“Appstle looked the best for me just based on reviews and the Shopify App Store and then I tried it out and was happy from the first day as it worked exactly as I wanted it to. We implemented Appstle two years ago, and we should have done it earlier.”
The implementation of Appstle proved seamless, aligning with Pandoo’s vision to offer a subscription box service tailored to the needs of environment conscious consumers.
Navigating Supply Chain Challenges
Despite the eagerness to implement subscriptions, Pandoo faced supply chain disruptions during the COVID-19 pandemic. High demand and supply chain delays hindered the initial plans. Salvatore recounts the challenges of ensuring stock availability, especially for high-demand products such as toilet paper. We all remember the toilet paper fiasco during the peak of covid! Offering its products as a subscription, a model that brings with it a strong grip on inventory and delivery forecasting, helped Pandoo overcome supply chain and inventory obstacles.
III. Results & Impact
The implementation of the subscription model, facilitated by Appstle, had dual benefits for Pandoo. Firstly, it greatly improved supply chain efficiency through better forecasting and planning. Secondly, the subscription model significantly enhanced customer retention and customer lifetime value (CLTV), with a focus on consumer products that require regular replenishment. Pandoo achieved a stable supply chain and a reliable subscription service business model, allowing them to provide sustainable alternatives to a niche market.
Salvatore emphasizes the importance of customer lifetime value for a brand such as Pandoo that operates in a niche but fast growing space. The subscription model not only ensured regular AND AUTOMATIC product renewals but also created a steady channel for customer engagement. With Appstle’s support, Pandoo established itself as a reliable partner and source for environmentally conscious customers, providing convenient and sustainable alternatives to everyday products.
Pandoo’s journey from a vision of sustainability to a successful and highly revered consumer brand with Shopify and Appstle Subscriptions showcases the adaptability and innovation necessary for businesses in the fast-moving consumer goods industry. Salvatore Decker’s commitment to eco-friendly alternatives, combined with strategic decisions like transitioning to Shopify and implementing Appstle, has positioned Pandoo as a coveted and competitive player in the market. As Pandoo continues to grow, the subscription model remains a key driver of success, highlighting the symbiotic relationship between sustainability, technology, and customer-centric strategies.