How this footwear company quadrupled its black friday sales

Assignment Help Operation Management
Reference no: EM132262596

Learn How This Footwear Company Quadrupled Its Black Friday Sales (Questions to answer at end)

When it was preparing for Black Friday two years ago, FitFlop didn’t know if its website would be able to handle the volume of online consumer traffic.

“We didn’t have the confidence that we could drive the sales through it,” said Kevin O’Brien, Global IT Director for the UK-based footwear company. “We didn’t have the flexibility, the scalability, or the reliability.”

But come 2017, the company had a new technology infrastructure in place to support its growing B2C business. “Black Friday weekend was incredible for us. If you look at the increase in sales that we had over the previous year, it was four times as much,” O’Brien said. The revamped e-commerce solution boosted the company’s confidence to handle holiday traffic — and all the sales since then.

FitFlop started out making and selling sandals 11 years ago. Now it markets all kinds of footwear globally and has experienced strong growth in the past 18 months. The company has also been busy shifting its business model, selling directly to consumers rather than only through distributors like Bloomingdale’s and other high-end retail outlets.

But getting closer to customers around the world meant FitFlop needed to beef up its digital presence. The company needed a technology infrastructure which could provide customers with a great omnichannel experience, change quickly to support new trends and promotions, and respond to consumers’ growing demands.

Denise Fender, the Global General Manager of Digital at FitFlop, said, “We knew we wanted to internationalize and had a growing dot com channel. But we were predominately a wholesale brand.” She explains that it was a long, arduous process to build campaigns or reach customers directly on the company’s previous platforms. “We were held back by our technology and weren’t able to develop or work in an agile way.”

Fender and O’Brien searched for a technology solution that could represent the brand in a visual way across multiple channels. “We had a growing digital arm that needed to be supercharged,” Fender said. “We didn’t just want a technology that would sell product. We wanted a technology that would give us the ability to present our product in a way that was different for every market – a solution to help us visualize products that appealed to a more fashionable, trendy consumer.”

That solution was developed using SAP Commerce Cloud, a solution that provides personalized support to customers shopping via multiple channels. Working with Tacit Knowledge, an SAP systems integrator partner, FitFlop was able to create and launch their new ecommerce platform in six months - and achieve ROI in just three.

“We selected SAP for a number of reasons. First, was scalability, reliability and most importantly the ability to internationalize very quickly. SAP gave us all those abilities,” said O’Brien. Second, he was impressed by the reports from customers who were already using the SAP Commerce. Finally, he was convinced that Tacit Knowledge was the right partner to help the company launch, customize and maintain the SAP solution.

The results exceeded FitFlop’s expectations. According to Fender, the SAP commerce solution allowed the company to handle between four and five times more Black Friday traffic in 2017 than the previous year. In addition, FitFlop’s conversion rate doubled overnight.

“We could see on the site that we were getting a lot less customer churn, and that customers who added products to the basket were going through to conversion,” she said. Mobile conversions, in particular, jumped from 27 percent to 67 percent year-on-year, further boosting fourth quarter revenue and profit.

As an additional bonus, the management team can now add new front-end functionality quickly and easily. And this can be replicated across the company’s regional websites without impacting customer experience. Changes implemented on digital channels often now take weeks instead of months. “The fact that we can do releases every two weeks means we’re able to bring newness to our customers – and the digital trading team gets the functionality they need to optimize every new promotion or sales campaign,” said O’Brien.

Since going live with SAP, there’s been a paradigm shift within the company – a new approach to how employees work, think and behave that stretches from the CEO’s office to the factories in Asia. “It’s been an amazing change to see happen in such a very short space of time,” O’Brien said.

Similarly, Fender believes the new technology infrastructure has been the catalyst for a cultural change and helped transform the business to become ‘digital first.’ “I feel the SAP solution has given us a different path,” she said. “I believe we’re ahead of the curve doing things that perhaps our bigger competitors can't do. Life before SAP Commerce was darker. We didn’t really see a future where we could grow quickly, but since then we know that the sky is the limit.”

1) Briefly describe article

2) How do they gain competitive advantage?

3) Critically analyze and evaluate the company’s strategy or actions and make recommendations based on analysis.

Reference no: EM132262596

Questions Cloud

What are uses of transformational leadership : What are uses of transformational leadership. Explain the scheduling system operation please ?
Announced major strategic overhaul and capital raise : Deutsche Bank Just Announced a Major Strategic Overhaul and Capital Raise
During diversity management session : During a diversity management session, a manager suggests that stereotyping is a necessary part of working with others.
Duff prefers not to fire and hire employees : Product Strategy Duff has always followed a level production strategy because Duff prefers not to fire and hire employees.
How this footwear company quadrupled its black friday sales : Learn How This Footwear Company Quadrupled Its Black Friday Sales
What is meant by the term empowerment : What is meant by the term empowerment? Does empowering a subordinate necessarily mean that the person granting the power is losing power?
Explain the challenges posed by managing and working : Explain the challenges posed by managing, and working within, a diverse team.
Benefits and challenges that manager has when developing : Explain benefits and challenges that a manager has when developing, leading, and motivating virtual teams and how those challenges are unique to virtual teams.
Create management efficiencies : Discuss how Visualization technologies can create management efficiencies.

Reviews

Write a Review

Operation Management Questions & Answers

  Explain in detail what is meant by non-contractual promises

Explain in detail what is meant by "non-contractual promises" (enforceable and unenforceable).

  Define insider trading under section

Define insider trading under Section 10(b) of the Securities and Exchange Act of 1934, and provide an example. You should create your own hypothetical example, and not cite to actual examples such as the Martha Stewart case.

  What is the benefit of this theorist ideas

Select a second business thinker, summarize their ideas. What is the benefit of this theorist’s ideas?

  What could you do to resolve this communication problem

What could you do to resolve this communication problem, given the time and resource limitations nearly all organizations have?

  Production process consists of three-step operation

A production process consists of a three-step operation. The scrap rate is 14 percent for the first step and 8 percent for the other two steps.

  Define code of business conduct

Define “code of business conduct”. Discuss businesses should concern themselves with developing a code of business conduct? If so, what variables should be included? If not, how would the business ensure that their employees were following ethical bu..

  Identify a recently formed alliance

Using an Internet search engine, search for "strategic alliance" and identify a recently formed alliance. What is the goal of this alliance?

  What are some of the differences in companies target market

What are some of the differences (if any) in the companies' target market? In your opinion, what are some of the strategies implemented by each company to help them to successfully reach their target audience?

  Remedies of parties to security agreement

Discuss the priorities among various parties who may have competing interests in collateral and rights and remedies of parties to security agreement.

  Create annual fundraising plan with timetable

Create an annual fundraising plan with a timetable, including actions and activities, as well as a staffing plan.

  What is the break-even point for each proposal

What is the break-even point for each proposal? If the expected self-checkout volume is 98000 customers, which alternative should be chosen?

  About the legal jurisprudence of corporations in america

After reading this book review, are you interested in reading Adam Winkler's book or learning more about the legal jurisprudence of corporations in America?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd