Partner Success with AWS / Consumer Packed Goods / Germany

September 2024
New Flag
Spryker

New Flag Generates 50% of Revenue from Online Channels with AWS Partner Spryker

Learn how New Flag leveled up its B2B customer experience with AWS Partner Spryker.

50%

of revenue generated through online channels

100%

of B2B orders processed through Spryker

One

month to launch in new international markets

Enhanced

B2B customer experience with tailored capabilities

Streamlined

order processing workflows and improved operational efficiency

Overview

New Flag, a trailblazer in beauty distribution and haircare brand building, has disrupted industry norms by embracing innovative digital strategies. Since its inception in 2010, New Flag has expanded its global footprint, reaching over 80 countries with a curated selection of renowned brands alongside its own iconic products. Collaborating with AWS Partner Spryker, New Flag accelerated its global expansion by overcoming operational inefficiencies and technological limitations. Utilizing Spryker's scalable architecture and tailored solutions, New Flag can enter new markets within a month, solidifying its position as a leader in the beauty industry.

Box goods transport using crane system at warehouse. Generative AI technology.

Opportunity | Disrupting the Hair and Beauty Industry with New Digital Paths

New Flag is a multinational brand building enterprise headquartered in Munich, Germany, with one goal: to be the first full-service brand building company in the beauty industry in Europe. Beyond just beauty products, New Flag aims to elevate everyday experiences and disrupt the industry through digital innovation.

Adapting to market changes, New Flag launched an online store to test the potential of ecommerce for its business. While this initial setup suggested that ecommerce was a good step forward, New Flag encountered challenges when it tried to expand its ecommerce portfolio across multiple brands and territories. This included data inconsistencies and inefficient data flows across its online platforms and backend systems that made it difficult to manage its product cohesively.

As a distributor, New Flag was aware that the traditional ecommerce functionalities typically found in B2C stores wouldn't adequately serve the needs of haircare professionals. These consumers have unique requirements such as restricted access to certain assortments and prices, the ability to switch between gross and net prices, individualized or group-specific pricing based on negotiated deals, and complex volume and cart discounts with detailed rules and restrictions. These specialized use cases necessitate a more tailored and robust ecommerce solution that effectively caters to a professional clientele. To address these gaps, New Flag sought a modular and adaptable software solution and technology stack that could scale with its international digital vision.

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Spryker’s scalable architecture has given us the power and speed to launch within new markets in just a month—and with less resources.”

Maximilian Mauthe
Director of Product, New Flag

Solution | Quick Rollouts Enable Global Expansion at Scale

New Flag worked with AWS ISV Workload Migration Partner (WMP) Spryker. Leveraging AWS, Spryker delivers tailored cloud-based ecommerce solutions effectively and securely. In New Flag’s case, Spryker’s API-first approach, headless commerce architecture with advanced features, and marketplace integration enabled New Flag to develop a sophisticated ecommerce platform of its own—one designed to handle its extensive range of beauty and hair products and the requirements for haircare professionals. “Spryker’s out-of-the-box features were good and easy to customize to our needs,” says Maximilian Mauthe, director of product at New Flag.

Spanning 105 availability zones within 33 geographic regions, AWS empowers New Flag to serve customers quickly and reliably. The New Flag platform utilizes several services and products from AWS. For starters, Amazon Relational Database Service (Amazon RDS) gives New Flag the flexibility, speed, and scalability to create and customize new databases in just minutes. For back-end computing, New Flag relies on Amazon Elastic Compute Cloud (Amazon EC2). Additional AWS services include Amazon Application Load Balancer, Amazon Elasticsearch Service, and Amazon CodePipeline. The latter service uses an automated continuous delivery pipeline for fast and reliable updates in the system.

“Spryker’s scalable architecture has given us the power and speed to launch within new markets in just a month—and with less resources,” explains Mauthe. Launching easily in several markets has been key for the expansion of New Flag’s professional stores. Additionally, Spryker’s B2B cloud-based commerce platform streamlines technology operations. The decoupled front-end and back-end architecture of Spryker's composable technology enables change management across all levels of the stack, making it easy to address business and operational challenges efficiently.

Outcome | Upgrading the Sales Team’s Tools

New Flag’s new streamlined operations have empowered employees with the visibility they need to elevate customer service. “Classic sales reps are the backbone of the company, and we need to give them the opportunity to link online and offline, not only to provide visibility on the orders but to see purchase history and engage better with customers,” says Nadine Wachter, director of ecommerce and performance marketing at New Flag.

The new benefits have been at the forefront including 50% of revenue generated through online channels thanks to 100% of B2B orders being process through Spryker. This enhanced B2B customer experience has come with tailored capabilities to provide an enhancement throughout the processes.

Establishing a robust foundation for global expansion with comprehensive data management, B2B capabilities, and seamless transaction processing has been a significant leap forward for New Flag. While nearly half of New Flag's revenue is now generated through online channels, this milestone marks only the beginning of its leadership in the professional haircare vertical.

About New Flag

New Flag, a manufacturer and distributor of professional beauty and haircare products, was founded in 2010 in Germany. Since its inception, the company has emerged as a global leader in the B2B wholesale channel, disrupting an industry that was previously highly fragmented.

About AWS Partner Spryker

Spryker, an AWS Retail Competency and ISV Workload Migration Program Partner, offers a cloud-first, API-based platform that accelerates B2B, B2C, and marketplace migrations to AWS. With over 100 percent year-over-year growth, Spryker provides enterprise-ready solutions that are used by sales teams, marketers, and developers around the world.

AWS Services Used

Amazon Elastic Compute Cloud (Amazon EC2)

Amazon Elastic Compute Cloud (Amazon EC2) offers the broadest and deepest compute platform, with over 750 instances and choice of the latest processor, storage, networking, operating system, and purchase model to help you best match the needs of your workload.

Learn more »

Amazon Relational Database Service (RDS)

Amazon Relational Database Service (Amazon RDS) is an easy-to-manage relational database service optimized for total cost of ownership.

Learn more »

Application Load Balancer

Application Load Balancer simplifies and improves the security of your application, by ensuring that the latest SSL/TLS ciphers and protocols are used at all times.

Learn more »

Amazon Elasticsearch Service

Elasticsearch is a distributed search and analytics engine built on Apache Lucene. Since its release in 2010, Elasticsearch has quickly become the most popular search engine and is commonly used for log analytics, full-text search, security intelligence, business analytics, and operational intelligence use cases.

Learn more »

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