This case study demonstrates how Nala, a new Australian underwear brand, successfully implemented innovative product bundling, increasing its customer base and revenue.

Explore how Nala used innovative bundling strategies to enhance customer experience and drive significant revenue growth within its first year.

Overview

Founded by Phil and Chloe in 2022, Nala combines comfort, affordability, inclusivity, and sustainability in its high-quality, accessible underwear products.

Four main principles of the Brand are non-negotiable: 

• Comfort that should be balanced with style. To feel bold, to feel sexy, to feel seen. 

• Affordable, but quality.

• A Brand for everyone - Nala is a brand that represents inclusivity. Gender. Race. Size. It doesn’t matter. 

• Sustainability - Nala team is continuously searching for more ethical innovations to update the offerings - whether it’s the product, packaging, or the people who are making them.

Problem

Nala needed to replicate the retail store experience.

They sought to stand out in a market with limited online bundling options, offering unique, mix-and-match packs that traditional online retailers were not providing.

Approach

Nala bundles are a bit different from what most MBC Bundles customers are used to.

If you go into a regular offline retail store, you'll often see underwear sold in packs, and you can mix and match and do all these fun kinds of things with it. And if you look online - there is almost no one doing that! So, Nala came up and used this opportunity to be able to give customers that same experience that they're used to in retail but bringing it online.

So in Nala came to use two types of bundles:

1. Hybrid Mix & Match: Creating mix-and-match packs, similar to in-store experiences, allowing customers to select varied designs and sizes.

2. Two Types of Bundles:

• Custom packs: Customers build their packs with multiple purchases for discounts.

• Product sets: Pre-defined product combinations giving added value.

With the custom packs, shoppers can build their own pack, and if they buy multiple pairs of underwear, three, five, or ten packs, they get a discount. And also Nala got a set where individual products are paired together.

Results

After implementing the Mix & Match bundling strategy, bundled orders showed a higher average order value (AOV) and profitability compared to non-bundled sales.

Nala's use of creative, flexible bundling strategies led to:

• 10% of sales included bundles, contributing to increased revenue.

• Higher Average Order Value (AOV) and profitability on bundle sales.

• Enhanced customer satisfaction with user-friendly online experiences.

"MBC Bundles App gave us the flexibility to get creative with customer journeys and experience. It's been a great experience for us, so I highly recommend it.” — Phil, Co-Founder, Nala