Summary
WINNING BACK-TO-SCHOOL WITH KIDZSTATION.ASIA KidzStation.Asia, a renowned kids' toy retailer in Indonesia, sought to elevate its online presence. Performics stepped in to help with clear-cut objectives: to establish KidzStation.Asia as a trusted source of school supplies while capitalizing on the back-to-school trend, targeting parents seeking competitive deals. With an omnichannel approach powered by offline-to-online intelligence, we achieved remarkable results on D2C website growth and marketplace visibility. KidzStation.Asia witnessed a rise of 186% in digital sales.
Challenge
KidzStation.Asia, a prominent chain in the Indonesian market for kids' toys, boasts an impressive network of over 120 retail stores in the country. Despite being a popular offline retailer in the Indonesian market, KidzStation.Asia could not replicate its success online. Additionally, the chain's range of school supplies remained largely unknown to the masses. Consequently, KidzStation.Asia was missing out on the potential of the back-to-school season, which is the biggest shopping event for parents and retailers globally. With schools reopening after a two-year closure in the pandemic, back-to-school season in June-July'22 presented a promising opportunity with the potential to boost sales. The excitement of returning to bustling corridors, school-bus rides, and shared lunchboxes was at an all-time high. In 2022, Performics formulated a strategy to address the shortcomings of KidzStation.Asia's previous back-to-school campaigns and grow online sales by increasing reliance on its range of school supplies. We aimed to increase this category's sales contribution beyond 50% with the right assortment strategy, unmatched discounts, and a comprehensive omnichannel approach supported by offline intelligence.
Objective
With 120+ retail stores across Indonesia, KidzStation.Asia is home to global toy brands like Lego, Hasbro, Barbie, and Hot Wheels. Despite the chain's offline success, online turnovers remained a challenge and dominated by toy brands only. Moreover, Smiggle - a globally renowned school supply brands - was largely unknown to be a part of KidzStation.Asia's online inventory, reflecting missed opportunities during back-to-school season. In June-July 2021, Smiggle accounted for just 19% of revenue, highlighting the need for improvement.
Strategy
KidzStation.Asia adapted to shifting trends to devise an omnichannel approach with four key strategic pillars: ASSORTMENT STRATEGY Recognizing the importance of offering products that resonated with the target audience, we struck a partnership with popular school supply brand, Smiggle. The extensive range of vibrant and appealing products played a pivot role in our assortment strategy. COMMUNICATION AND MEDIA KidzStation.Asia pushed compelling, incentive-based communication highlighting Smiggle products, tying them to our assortment strategy. For further amplification, we conducted multiple social media contests, email and WhatsApp blasts, and paid marketing campaigns. AUDIENCE EXPANSION We leveraged the booming B2C commerce space in Indonesia, where online marketplaces were thriving. On-site and off-site marketing solutions were implemented on KidzStation.Asia's official stores on Shopee and Zalora. SMART INTEGRATION OF OFFLINE-TO-ONLINE Lastly, the most ingenious aspect of our strategy was leveraging KidzStation.Asia's strong offline database and integrating to online activities: - Increasing online assortment and fulfilment capability using offline inventory, - QR-codes in offline stores to transition customers to D2C using first-time purchase vouchers, - Customer acquisition using 1st party audience, - Promoting offline best-selling SKUs via paid campaigns Through this cohesive approach, we successfully created a sense of continuity, driving conversions from new and existing customers.
Data
The omnichannel approach paid off, with sales skyrocketing to record levels. KidzStation.Asia and Smiggle emerged as a household name for back-to-school supplies, with a nearly 420% surge in search volumes as compared to previous year. While our approach involved multiple marketing channels, the two innovative areas that stood-out were: - By involving existing loyal customers, we generated user-generated-content and valuable social proof that encouraged potential customers to choose our products. Sales from new visitors on the D2C website surged with an unprecedented 311% increase, marking the highest growth ever recorded. - Smart integration of offline intelligence to online campaigns helped optimize conversion rates, and utilizing offline stores for increased demand fulfilment improved sales, to the extent that offline stores fulfilled 68% of digital sales. The increased awareness and sales validate the success of our approach, but the ultimate testament to our success came from happy customers, both parents and kids.
Solution
Results
By leveraging consumer behavior during the back-to-school season, and ensuring media presences across channels, KSA's visibility improved and so did the sales: - Sales from new visitors on D2C increased by 311% (June-July'22 vs ‘21) - New subscriber base grew 16x, strengthening the newly initiated CRM efforts for months to come - Search volumes for "Smiggle" and "KidzStation" related brand-terms increased by an average of 420% Multi-channel approach, coupled with offline intelligence improved performance: - Feeding campaigns with 1P offline audience and offline best-selling SKUs improved conversion rates by 1.5x. - Digital sales fulfilled by offline stores (O2O) increased from 16% to a whopping 68%. This helped us achieved the following wins (June-July'22 vs '21): - KidzStation.Asia's digital sales recorded in Back-To-School'22 was the highest ever since inception, with 186% growth - School supplies revenue contribution increased from 19% to 58%, validating KidzStaion.Asia as a trusted source and one-stop shop for kids' needs. The client was convinced to continue investing in omnichannel strategies to enable its long-term advantage of customer acquisitions leading to up-sell, cross-sell and repeat purchases. KidzStation.Asia's school supplies brand Smiggle continues to be the highest sales contributor till date.
