Fashion, Apparel & Accessories

How Komax S.A. Boosted their Growth with Magento

The South American fashion retailer launched 17 new stores in just 14 months – starting an omnichannel revolution.
Omnichannel - Komax
+72% Cyber Monday YoY revenue growth
+15% Total online revenue growth in 2018
+70% Conversion rate

Multiple Fashion brands. One powerful eCommerce 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 stores, 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] stores, your Komax shopping experience must be consistent and excellent.” With that in mind, Komax S.A. recently appraised their eCommerce operation to improve their customer experience and boost growth.

Omnichannel - Komax

For years, Komax S.A. had run on Spree Commerce, a smaller, open source platform. But soon they realized it could not support their ambitious omnichannel growth plan. They needed to double the number of web stores and scale their eCommerce business, adding omnichannel features like express shipping, Buy-Online-Pickup-In-Store (BOPIS), Ship-to-Store, and Ship-from-Store – options that would delight their customers and improve their sluggish 0.7 percent 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 eCommerce & 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 eCommerce & 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 1,500,000 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 AX ERP and Omnix OMS to 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 shipping, and reverse logistics. They also enabled several out-of-the-box omnichannel functionalities, adding BOPIS in just two months, dynamic stock information and express shipping in less than a month.

Omnichannel - Komax

More than 30 eCommerce extensions further tailored the user experience for each brand, including new filters, renderings, and updates to the general look and feel of their stores. 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 stores 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 ten months, Komax S.A. migrated eight existing sites from Spree Commerce to Magento Commerce. In a record six months, they launched nine 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 six 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 optimize the checkout process. Magento Commerce helped them streamline their operations and improve their user experience – across dozens of sites.

Omnichannel - Komax

The results were incredible: Overall, Komax S.A. enjoyed a sales growth of 15 percent, and an increase of 0.5 percent in conversion (from 0.7 to 1.2 percent). On nine of the new sites, 20 percent of shipments are BOPIS, and, thanks to Magento, their sites run faster than ever before. The proof was on Cyber Monday last year, when Komax S.A. experienced a phenomenal 72 percent 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.