From the hottest nightclubs in Ibiza to New York, Pacha has established itself as the world’s leading nightlife brand. Known for their wild parties, house music, and world-renowned DJs, Pacha’s affairs were always sold out and at max capacity. Pacha founder Ricardo Urgell knew how to monetize on its popularity: by turning the nightlife brand into a fashion brand! To do this, he partnered with Recode, the leading nightlife design and marketing agency, to handle Pacha’s design and merchandising needs with pachacollection.com.
Although collections always sold out in the club, Ricardo quickly realized that shipping globally from the island of Ibiza was difficult and hard to scale. Their business grew to millions of Euros from merchandizing in their first four months in Ibiza alone. However, as they expanded with their initial courier, they quickly ran into a huge problem: they were losing money on every order because shipping cost more than the product. Being located in Ibiza meant that they had to rely on old warehousing and a single carrier solution, making the business unviable.
“The first five years of sales were done from the island. Sales were good, logistics were a nightmare!” said Ricardo Porteus, founder and CEO of Recode Media. “Without Shipwire, the business would have never grown.”
The challenge was that Pacha wanted to build a global brand, not just add revenue through merchandise. Pacha and Recode wanted to ship directly from their suppliers to Shipwire warehouses in the UK and US. This meant that they could fill online orders from pachacollection.com, as well as resupply their retailers and distributors.
Shipwire’s technology is what really impressed us. It’s very refreshing to be able to focus on running the company instead of worrying about logistics. They were even able to accommodate our needs like specific gift wrapping styles.
Thanks to Shipwire’s multiple e-commerce application integration capabilities, Recode could focus on becoming a full-out agency and leave order fulfillment and logistics to the pros. While most of their sales are European-based and Shipwire’s UK warehouse has helped them serve this market, Pacha is looking to expand globally and is using Shipwire to power this growth.
“With Shipwire, we’re putting together a multi-year plan where we’re going to use them for all our global distribution. This lets us free up time to move away from merchandise and turn the Pacha brand into a fashion line,” said Ricardo.
Since implementing Shipwire as their fulfillment provider, their sales numbers have doubled and revenue has increased by 100 percent. With these types of numbers, Ricardo Porteus and the teams at Recode Media and Pacha have even more reason to dance and celebrate!
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