Channel Pacific has had the good fortune of working with Sena Cases through the major growth phase of their company in helping them with business development, channel marketing and sales. Recently, as reported through media outlets like all things digital, Sena Cases was acquired by Targus Inc., a $500M accessories company. This begs a question: why would an accessories company with over $500M in revenue need to acquire a small case company with $20M in revenue? What could have Sena Cases have created that was so valuable to an industry behemoth? Lets take a closer look.
What lead to Sena Cases success?
1. They took care to always position their brand as premium and built premium products. No compromises.
2. They built high quality leather products that considered the use case needs and style of a mobile accessories consumer. Function and fashion.
3. They focused on developing only premium channels like Apple retail. Leveraged the “Apple halo effect”.
4. They cut strategic licensing agreements with premium fashion labels like Michael Kors to drive revenue and add premium product lines to their portfolio, making them a more valuable vendor to retail partners.
5. They built a flexible infrastructure to be fast to market in everything they did. Focused on customer service.
A Lesson Learned
Sena had the ability to craft wonderful cases and bring them to market fast to support premium channels but really had very little intellectual property. This a lesson for early stage companies – competitive differentiation is important (Intellectual Property is optimal) but this is not the only motive in acquiring a company, expansion into hard to access channels or targeting new market segments can also be significant reasons for acquisition.
Nice to see all the hard work has paid off – congratulations Sena!