How AceTurtle grew Puma India’s online sales by 6X over one year
29 Dec 2017 How AceTurtle grew Puma India’s online sales by 6X over one year
PUMA is one of the world’s leading sports brands, designing, developing, selling and marketing footwear, apparel and accessories. For over 65 years, PUMA has established a history of making fast product designs for the fastest athletes on the planet.
PUMA offers performance and sport-inspired lifestyle products in categories such as Football, Cricket, Running, Training & Fitness, Golf, and Motorsports. It engages in exciting collaborations with renowned design brands such as Alexander McQueen and Mihara Yasuhiro to bring innovative and fast designs to the sports world.
PUMA India came to us with a list of specific problems. They are listed below.
- Stores with a high number of walk-ins often stocked out of popular products despite the fact that there was enough inventory of those products in other stores across the country or in the warehouse.
- The inventory was distributed in silos across each store, each online marketplace they were selling on and their flagship eCommerce store.
- Online sales channels had different prices for the same product and this resulted in a significant amount of customer dissatisfaction.
- The product descriptions across marketplaces were not as the brand wanted them to be.
- The combination of online sales and lower sell through rates led to a sharp decline in the numbers for the brick and mortar stores.
We deployed our proprietary platform Rubicon which enabled them to see a single view of inventory (at an SKU level) across all channels. This enabled them to get an order from any channel (online or offline) and fulfill it from any stock point (stores or warehouses). A detailed list of the benefits is given below.
- Single Inventory Feed: Their entire warehouse inventory was now available for each of the online marketplaces to sell.
- Global Inventory: The flagship eCommerce store had access to not only the entire warehouse inventory but also the sum total of the inventory of the physical stores.
- Ship from Store: Orders from the flagship eCommerce store were allocated to the closest brick and mortar store from the delivery address requested and fulfilled by the store.
- Endless Aisle: Products which were not a part of the store’s range or were out of stock in that particular sale were now made available for purchase on tablets placed inside the store which allowed users to visit the flagship eCommerce store.
- Control over pricing & online presence – Using Rubicon’s catalogue management system, we standardized the pricing and product descriptions across all online sales channels.
Now the important part – the results.
- The average number of styles available for sale per channel grew by 4.67 X while the total units available for sales across each channel grew by 21 X.
- The improved product availability and inventory utilization across all online and offline channels resulted in a higher sell-through rate and a reduction in lost sales resulting from stock-outs. This resulted in an overall online sales growth of 6X.
- Reduction in shipping distances and time brought down the logistics costs from 12% of overall order value to 8%.
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