ScS Group PLC has announced a premium new acquisition that could significantly enhance the company’s brand value. The group has acquired the brand, domain names, website, intellectual property and stock of SnugSofa.com.
Snug Shack Limited, the erstwhile parent company of Snug, was compensated with an amount of £875,000 ($1,064,424). The acquisition was done to bring in the strong online branding and marketing experience of Snug with the ScS Group.
ScS Group PLC
ScS Group PLC is one of the largest furniture companies in the UK. ScS, in the company name stands for Sofa Carpet Specialist. It has over a century worth of experience in the furniture business, being established in 1894.
The company currently has close to 2000 partners operating in the UK. However, it wanted to push further and increase its market share. One of the big hurdles regarding this was the absence of a web branding approach.
While researching the company I googled ‘ScS Group’ and the top result was scs-group.com, which is not a domain affiliated with it. This was the case when the search was in Google UK. Searching the same term in my country didn’t even it in the top 3 positions.
It has premium domain names like SCS.co.uk and SCSplc.co.uk, however the domain name SCS.com was taken by another entity.
Although ScS isn’t vying for the Global Market as of now. However, even in the UK it lacks a dominating online presence. Hence, in order to grow the company’s reach and market share association with Snug was strongly required.
Snug was a self-funded startup started in 2018. The company maintained a strong Online First policy and gained a substantial user base. However, the company was plagued with the same issues that brought down the mighty Made.com.
The company also faced rising inflation and meteoring transportation costs. You can only imagine what effect it would have had on the company that was instrumental in popularising the term ‘Sofa in a Box’. At one time, transporting costs had jumped to 700%.
Hence, the company was faced with an extremely tough decision of life and death. It chose to live under the guidance of ScS Group PLC.
ScS hasn’t just acquired the Intellectual Property Rights of Snug, it has also established a new subsidiary. Snug Furniture Limited is a new subsidiary of ScS now.
In the administrative deal, all the erstwhile employees of Snug Shack Limited have been retained into Snug Furniture Limited as well.
Adding to this, the original platform on the domain name SnugSofa.com would continue. Hence, this isn’t the case of a hostile takeover, but rather a one that will allow Snug to operate and develop without losing its identity.
The partnership would be beneficial for both of the stakeholders involved. Together with ScS strong fundamentals in the industry and Snug’s digital innovation and marketing, can they recreate the success that was once achieved by Made.com?
They sure do have our wishes!