Background Information
If there is a growth opportunity in 2024, the phone case market might be a hidden goldmine. According to data from Beizhes Consulting, the Chinese phone case market reached 15.476 billion RMB in 2022, while the global market hit 99.911 billion RMB. It is projected that by 2028, the global phone case market will reach 129.068 billion RMB, with an estimated compound annual growth rate of 4.36%. However, due to the low entry barriers, the phone case category is highly competitive, characterized by a lack of strong brands, price wars, and severe homogenization.
In such a competitive market, one brand has not only managed to sell phone cases at prices exceeding 500 RMB but has also turned them into a fashion statement and a cultural icon for young people. This brand is known as the “Hermes of phone cases”—CASETiFY.
Founded in 2010, CASETiFY initially launched an app called Casetagram, allowing users to customize phone case designs with their photos. Although the initial project was highly popular, it was quickly imitated due to low technical barriers. In 2014, Casetagram officially rebranded as CASETiFY and rapidly rose to prominence through personalized product designs and collaboration strategies. In 2022, CASETiFY’s annual revenue exceeded 300 million, up from 120 million the previous year. To date, its business spans over 180 countries and regions worldwide, with a goal of achieving $3 billion in sales by 2025.
Global Sales Model
1. Global Reach and Localization Strategy
CASETiFY’s global success is closely tied to its extensive market coverage and localization strategy. Its business spans over 180 countries and regions, leveraging robust online sales channels and multiple offline stores. By combining online and offline presence, CASETiFY can quickly respond to different market demands and offer customized products and services.
2. Personalization and Collaboration Strategy
A significant part of CASETiFY’s success can be attributed to its personalized product designs and collaboration strategy. The brand collaborates with artists, museums, anime IPs, film productions, fashion brands, and more to launch limited-edition phone cases. This strategy not only adds cultural value to the brand but also attracts a large number of new users, enhancing its global recognition.
3. High-End Positioning and Premium Pricing Strategy
CASETiFY positions itself as the Hermes of phone cases, using Hermes as a benchmark to highlight its value for money. Despite the low production cost of phone cases, CASETiFY has elevated its prices to 60-100 through exceptional after-sales service and brand building. In the Chinese market, the average price of CASETiFY products is 350 RMB, with many items priced between 500-600 RMB.
4. Exceptional After-Sales Service
To support its premium pricing, CASETiFY has invested heavily in after-sales service. It offers a “ten-day unconditional return or exchange” policy and a six-month product warranty for all orders. If a case turns yellow or gets damaged within six months, it can be replaced for free. In offline stores, CASETiFY supports on-the-spot pickup and has set up charging and resting areas.
5. Environmental and Social Responsibility
CASETiFY enhances its brand value by adding layers of meaning to its products. The brand collaborates with the international non-profit environmental organization EARTHDAY.ORG, donating $1 for every sustainable product sold to plant a tree. CASETiFY aims to eliminate virgin plastic materials from its supply chain by 2030. Additionally, the brand focuses on women’s issues, social psychology, and other mainstream topics, continuously injecting spiritual value into the brand.
6. Celebrity Marketing and Scenario-Based Promotion
CASETiFY successfully stimulates consumer desire through celebrity marketing and scenario-based promotion. From sports stars to K-pop groups, from fashion influencers to movie stars, CASETiFY is omnipresent. Celebrities holding CASETiFY cases and taking selfies have gone viral on social media, leading to widespread imitation among users. The brand also designs specific scenarios, such as gifting a customized phone case to a boyfriend, to emotionally engage viewers.
Underlying Logic of Success
CASETiFY’s global success can be attributed to several key factors:
- Market Coverage and Localization Strategy: Extensive market coverage and localization strategy enable the brand to quickly respond to different market demands.
- Personalization and Collaboration Strategy: Personalized product designs and collaboration enhance the brand’s cultural value and recognition.
- High-End Positioning and Premium Pricing Strategy: Positioning itself as the Hermes of phone cases, CASETiFY achieves high premiums through exceptional after-sales service and brand building.
- Exceptional After-Sales Service: Providing high-quality after-sales service boosts consumer confidence.
- Environmental and Social Responsibility: Adding layers of meaning to products enhances brand value.
- Celebrity Marketing and Scenario-Based Promotion: Celebrity marketing and scenario-based promotion effectively stimulate consumer desire.
Through these strategies, CASETiFY has not only stood out in the highly competitive phone case market but has also successfully expanded globally, becoming the “Hermes of phone cases.” In the coming years, this rational application of the “lipstick effect” may be a key opportunity for brands seeking new growth.
