With its eCommerce presence in the United States and many European markets well established, Calvin Klein chose SP Commerce to spearhead its entry into the Asia Pacific online shopping scene.
Kicking off with the launch of its Asia hub in Hong Kong, the global fashion label leveraged SP Commerce’s extensive logistics infrastructure and digital commerce capabilities to serve online shoppers in seven markets across the region. SP Commerce helped Calvin Klein achieve speedy times to market and cost efficiencies through institutionalized processes, localized and customer-centric web storefronts built on the Salesforce Commerce Cloud (formerly Demandware) eCommerce platform, and highly trained customer care teams that service multiple markets and languages.
Localized web storefronts and direct international shipping from out of its Hong Kong hub puts Calvin Klein directly in touch with its regional audience, giving it visibility into key indicators such as where customers are purchasing from, what they prefer and how much they are spending. This, in turn, gives it a way to test different markets and learn more about their shoppers before committing inventory to those markets.
“SP Commerce has given us confidence in the ongoing Asia expansion and our investments in the region. Through our partnership, we gain first-rate eCommerce capabilities, and a speedy, low-risk entry into this high-potential region.”
Head of eCommerce, Calvin Klein Asia
Despite Calvin Klein’s strong physical retail performance in Asia, the fashion label was well aware of the rising trend of Asian shoppers looking for apparel online – and the need to offer user experiences tailored to each market in order to effectively capture this audience.
However, the traditional distributorship model presented a concern. With such models, brands have visibility only into inventory movements, and limited ways to track buyer preferences and purchase patterns – which Calvin Klein needed to understand their online audience and better tailor sales and marketing strategies. A way had to be found to access this intelligence while also ensuring the intricacies of cross-border shipping – such as customs duties and product restrictions – were accounted for.
All this Calvin Klein needed to achieve on a scalable and cost-effective basis – and they needed to achieve it quickly.
Utilizing the Salesforce Commerce Cloud (formerly Demandware) commerce platform and local logistics infrastructure, SP Commerce worked with Calvin Klein to launch its Hong Kong eCommerce operations in October 2015. This served as the brand’s regional eCommerce hub, from which webstores were rolled out for 6 other Asia Pacific markets – each drawing inventory from the Hong Kong hub but presenting localized interfaces, currencies, and more.
These webstores were managed by SP Commerce’s store operations teams, ensuring that the day-to-day activities such as product cataloguing, content management and payments management were handled effectively. Post-sales support was provided by SP Commerce’s contact center teams across markets and languages, such as both Mandarin and Cantonese support for Hong Kong and Macau.
Calvin Klein benefited from SP Commerce’s agility and rapid turnarounds from development to launch. Flexible timelines and a single, dedicated point of contact helped Calvin Klein avoid the problems that accompany working with multiple partners and approvals.
The approach of fulfilling region-wide orders from one central hub proved both swift and cost-effective – doing away with the high costs and lengthy implementation times of fully localized logistics deployments, while giving Calvin Klein a clear picture of each market’s performance. Insight gleaned from consumers’ locations, preferences and spending power and patterns equips the brand to make informed decisions on cataloguing, promotions and more.
SP Commerce’s expertise with the Salesforce Commerce Cloud (formerly Demandware) platform proved valuable in helping Calvin Klein to take webstores live across multiple markets in a comparatively short time. Leveraging SP Commerce’s store operations and customer care teams also helped Calvin Klein scale across the region while keeping manpower and operation costs to a minimum.
In just three months, Calvin Klein began rolling out successful Asia Pacific operations and gained a significant competitive edge through business intelligence.
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