Case study

Gross margin increase for cosmetic brand with POS unification in 50+ countries

Global cosmetics retailer increases growth margins with seamless POS unification across 50+ countries

Brief

Multi-brand cosmetics retailer reduces costs, complexity and accelerates digital transformation by unifying multiple POS systems to a single upgraded solution.

About the client

The client is a global leader in prestige beauty – delighting consumers with transformative products and experiences, inspiring them to express their individual beauty. With a diverse portfolio of 25+ brands, they are the only company who focus solely on prestige makeup, skin care, fragrance and hair care. They operate over 1500 freestanding stores and 1,700+ E/M-commerce sites in 50+ countries.

Challenge | POS unification across 50+ countries

Most of the client’s 25+ global brands had become a part of the client’s portfolio through various acquisitions. This meant that most of the brands provided independent in-store experiences with different underlying CRM and POS systems. The diverse in-store systems meant high maintenance costs, complex license management and vendor agreements. Small changes to the system required complex planning to cascade through the overall landscape.

The client also found it difficult to roll-out promotions or omnichannel capabilities globally. The systems also hampered the client’s ability to introduce critical initiatives such as BOPIS (Buy-Online-Pickup-In-Store) and BORIS (Buy-Online-Return-In-Store). All of this could impact the client’s charter to delight consumers with transformative experiences.

Solution | Ensuring continued seamless omnichannel experience

The solution was to migrate different brands, retail stores in various countries and disparate content to a consolidated in-store experience underpinned by a single POS solution with minimal disruption.

SkillNet started the engagement by harmonizing the global code base. The harmonization was intended to create a baseline system for all the brands and geographies while maintaining those components that had reuse value. SkillNet’s multidisciplinary agile teams and DevOps engineering helped automate and accelerate different stages of the project. The SkillNet solution also addressed the regulatory and fiscal requirements required by various countries. As a result, customizations across geographies were reduced and the delivery cycles shortened across brand silos.

During country wise implementations, a flexible design was created for extensions and services. This enabled reuse across different geographies. The global code base provided multiple layers of functionality which were applicable across regions, specific geographies, store formats and brands. The core functionality for omnichannel capability is being delivered globally. The solution also enabled BOPIS (Buy Online Pickup In Store), BORIS (Buy Online Return In Store) and OOFIS (Order Online From In Store) features. These have been introduced at country and brand level with minimal disruptions.

The roll out has been completed successfully for a majority of countries across Asia, Europe and North America.

The solution includes the implementation of Oracle Xstore POS and Oracle Retail Customer Engagement.

Results | Digital Transformation supports growth margins

Since its introduction, the client has reported robust growth in sales and growth margins due to the seamless omnichannel experience.

The unified POS solution allows the store associates to spend more time with customers on sales floor and this provides them with opportunities to cross sell and upsell products. Since the solution is being driven by services and base configurations, it has also increased customer engagement time and enabled cost savings.

The single global code base solution has also helped streamline vendor licensing, software upgrades, maintenance costs and provide system support from one single location. Faster release cycles have also helped accelerate the client’s digital initiatives.

SkillNet received the “Best Drive in Innovation and Process Transformation” award for its contribution to the client’s digital transformation.

All product names and trademarks are property of their respective owners.

SkillNet gets an award for Best Drive in Innovation from a leading cosmetics brand
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