Komax S.A. starts an omnichannel revolution.
The South American fashion retailer used Magento Commerce to launch 17 webstores in just 14 months.
72%
YoY increase in Cyber Monday revenue growth
Products:
Objectives
Adopt a scalable e-commerce platform that could support 17 brands in two countries.
Improve the customer experience by adding omnichannel features like Buy-Online-Pickup-In-Store.
Boost online revenue and conversion.
Results
72% YoY increase in Cyber Monday revenue growth
15% growth total online revenue in 2018
70% increase in conversion rate
Multiple fashion brands — one powerful e-commerce platform
Established in 1990, Komax S.A. is a multinational retail group representing more than 15 international fashion brands in Latin America, including Banana Republic, Brooks Brothers, Gap, The North Face, Polo Ralph Lauren, Timberland and UGG. They currently boast 147 physical shops, including 114 in Chile and 33 in Peru. “We see ourselves as a collaborative platform where brands join the Komax team to provide a world-class service,” reads their mission statement. “We don’t care on which platform you interact with the brand, whether on our websites or [physical] shops, your Komax shopping experience must be consistent and excellent.” With that in mind, Komax S.A. recently appraised their e-commerce operation to improve their customer experience and boost growth.
For years, Komax S.A. had run on Spree Commerce, a smaller, open-source platform. But soon they realised it could not support their ambitious omnichannel growth plan. They needed to double the number of webstores and scale their e-commerce business, adding omnichannel features like express delivering, Buy-Online-Pickup-In-Store (BOPIS), Deliver-to-Store and Ship-from-Store — options that would delight their customers and improve their sluggish 0.7 per cent conversion rate. They needed a multi-site platform to support 17 brands in two countries. The answer was Magento Commerce 2.
“Magento is our key partner and cornerstone to achieving our ambitious omnichannel development plan in Latin America. So far, we have achieved an impressive growth in terms of number of websites and omnichannel capabilities and all this in record time.”
Mario Suazo
Komax E-Commerce and Omnichannel Manager, Komax S.A.
1.5 million SKUs — no problem
“We chose Magento for the technical and economic match with our omnichannel roadmap for Chile and Peru,” said Mario Suazo, Komax e-commerce and omnichannel manager. Local references from other businesses and glowing reviews by Gartner sealed the deal. But their project would not be easy. The combined traffic of these popular sites, demand peaks, shared actions between the sites and automation of promotion and price rules would create technical risks. The installation would involve 1.5 million SKUs. But the main challenge was in design and usability: each webstore needed to abide by the strict branding guidelines of such superbrands as The Gap. They soon enlisted their solution partner, Grupo Formax.
Formax started by integrating their Microsoft Dynamics AXE ERP and Omnix OMS with Magento Commerce 2, creating a multi-site structure on which to quickly develop the new sites. They added existing integrations for stock processes, promotions, order delivery and reverse logistics. They also enabled several out-of-the-box omnichannel functionalities, adding BOPIS in just two months and dynamic stock information and express delivering in less than a month.
More than 30 e-commerce extensions further tailored the user experience for each brand, including new filters, renderings and updates to the general look and feel of their shops. They added Welt Pixel, Amasty and Retail Rocket. Meanwhile, a responsive banner slider and owl carousel helped to display large fashion banners atop their webstores, making the shops easier to view on mobile. Amasty Special Promotions, Amasty Advanced Search and Amasty Automatic Related Products helped users to find the clothes and accessories they’re looking for, faster than ever.
In just 10 months, Komax S.A. migrated 8 existing sites from Spree Commerce to Magento Commerce. In a record 6 months, they launched 9 new branded sites in Chile and Peru, for fashion labels including The North Face, Andesgear, Banana Republic, Kivul, Timberland, The Gap, DC Shoes, Kipling, Kliper, Marmot, Brooks Brothers and Ugg.
Omnichannel in record time
The first development lasted eight months including all logistic integrations, inverse logistics, ERP and omnichannel features. In the following 6 months, Komax S.A. launched a staggering 17 new brand sites. For their existing sites, every migration was an opportunity to renew the frontend and optimise the checkout process. Magento Commerce helped them streamline their operations and improve their user experience — across dozens of sites.
The results were incredible. Overall, Komax S.A. enjoyed a sales growth of 15 per cent and an increase of 0.5 per cent in conversion (from 0.7 to 1.2 per cent). On 9 of the new sites, 20 per cent of deliveries are BOPIS and, thanks to Magento Commerce, their sites run faster than ever before. The proof was on Cyber Monday 2018, when Komax S.A. experienced a phenomenal 72 per cent year-on-year increase in revenue. Today, they’re working on launching even more Magento Commerce websites across South America, where customers are already demanding omnichannel as table stakes.
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