Blue Yonder Case Studies AI-Powered Pricing Boosts Revenue and Profit for Retailer bonprix

Edit This Case Study Record

	AI-Powered Pricing Boosts Revenue and Profit for Retailer bonprix Blue Yonder

AI-Powered Pricing Boosts Revenue and Profit for Retailer bonprix

Blue Yonder

Technology Category	Analytics & Modeling - Predictive Analytics
Applicable Industries	Retail
Applicable Functions	Sales & Marketing
Use Cases	Demand Planning & Forecasting
Services	Data Science Services
Challenge	International fashion retailer bonprix was struggling with outdated pricing and promotion systems, using rigid price-conversion tables.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. Read More
About 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. Read More
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). Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Predictive Analytics

Applicable Industries

Retail

Applicable Functions

Sales & Marketing

Use Cases

Demand Planning & Forecasting

Services

Data Science Services

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.

About 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.

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).

Impact #1	Bonprix can now simply and centrally adjust prices from day to day in individual markets.
Impact #2	The AI/ML software algorithms improve themselves over time, without any manual intervention.
Impact #3	Bonprix’s purchasing department can successfully optimize and manage price settings, allowing the organization to strategically steer each market.

Impact #1

Bonprix can now simply and centrally adjust prices from day to day in individual markets.

Impact #2

The AI/ML software algorithms improve themselves over time, without any manual intervention.

Impact #3

Bonprix’s purchasing department can successfully optimize and manage price settings, allowing the organization to strategically steer each market.

Benefit #1	Increased sales by a double-digit percentage.
Benefit #2	Increased gross profit per article (after costs).
Benefit #3	Growth in new customer base.

Benefit #1

Increased sales by a double-digit percentage.

Benefit #2

Increased gross profit per article (after costs).

Benefit #3

Growth in new customer base.

Download PDF Version

Overview

AI-Powered Pricing Boosts Revenue and Profit for Retailer bonprix

Operational Impact

Quantitative Benefit