Conquering Asia Pacific from a Central Hub
Months to Launch
With its eCommerce presence in the US and many European markets well established, Calvin Klein chose SP eCommerce 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 eCommerce’s extensive logistics infrastructure and digital commerce capabilities to serve online shoppers in 7 markets across the region. SP eCommerce helped Calvin Klein achieve speedy times to market and cost efficiencies through institutionalized processes, localized and customer-centric web storefronts built on the Demandware eCommerce platform, and highly trained customer care teams that service multiple markets and languages.
Local 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.
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 Demandware commerce platform and local logistics infrastructure, SP eCommerce 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 eCommerce’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 eCommerce’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 eCommerce’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 eCommerce’s expertise with the Demandware platform proved valuable in helping Calvin Klein to take webstores live across multiple markets in a comparatively short time. Leveraging SP eCommerce’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.
Head of eCommerce, Calvin Klein Asia