AI-Powered Pricing Boosts Revenue and Profit for Retailer bonprix
Company Size
1,000+
Region
- Europe
Country
- Germany
- Russia
Product
- Luminate Platform
Tech Stack
- AI/ML-based technology
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Productivity Improvements
- Revenue Growth
Technology Category
- Analytics & Modeling - Predictive Analytics
Applicable Industries
- Retail
Applicable Functions
- Sales & Marketing
Use Cases
- Demand Planning & Forecasting
Services
- Data Science Services
About The Customer
Bonprix is an international fashion retailer and a part of the OTTO group company. The company operates online shops in Germany and 30 other countries, offering five house brands. The company was facing challenges with its antiquated pricing and promotion systems, particularly in the highly competitive Russian market. The high prices for many products were leading to rising costs and falling profits. To modernize its internal processes and meet the complex and changing market demands, bonprix needed an automated solution for consistent and granular price optimization with varying parameters for different countries.
The Challenge
International fashion retailer bonprix was struggling with outdated pricing and promotion systems, using rigid price-conversion tables. The company was facing high prices for many products in the highly competitive Russian market, leading to rising costs and falling profits. To modernize internal processes and meet the complex and changing market demands, the online German shop needed an automated solution to achieve consistent and granular price optimization with varying parameters for different countries. With five house brands in 30 countries, it was imperative the solution be seamless and effective.
The Solution
Bonprix piloted the Luminate Platform in Russia for a 4-month trial to evaluate software capabilities. Tests quickly proved that the AI/ML software algorithms improve themselves over time, without any manual intervention. As a result, while price optimization provided a measurable impact and return on investment in a short period, results are likely to improve even further. With a treasure trove of data, bonprix’s purchasing department can successfully optimize and manage price settings, allowing the organization to strategically steer each market. Today, bonprix has applied the Luminate solution to all relevant markets and has seen a positive difference when it comes to all key performance indicators (KPIs).
Operational Impact
Quantitative Benefit
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