Skechers has carved a significant space in the global footwear market, but its journey to becoming one of the top 1000 e-retailers was not without challenges. In 2024, the shoe and apparel giant is projected to achieve online sales of $320.65 million, demonstrating the effectiveness of its revamped e-commerce platform. Eric Cheng, the director of e-commerce architecture at Skechers USA Inc., shared essential insights during his presentation at Salesforce’s Dreamforce conference, revealing how the brand navigated its transition towards a robust digital framework.
Founded in 1992, Skechers has evolved significantly over the decades, selling its products in over 180 countries. According to Cheng, the brand connects hundreds of millions of customers through its retail stores and a comprehensive e-commerce platform. Each market presents unique demands, making it crucial for Cheng’s team to adapt swiftly to various needs. In Digital Commerce 360’s ranking, Skechers is categorized as an Apparel & Accessories retailer, currently sitting at No. 273. However, reaching this status did not occur overnight; rather, it required strategic planning and execution.
Cheng pointed out that Skechers faced several hurdles as it sought to enhance its online presence. He identified three critical areas of focus: content management, scalability, and customer experience. According to Cheng, the legacy systems that were in use lacked the necessary tools for efficient content delivery. These inadequacies included challenges in workflow management and localized content, making it cumbersome for the team to preview scheduled content. The inefficiencies were more apparent when multiple countries were involved; managing marketing launches for just one or two countries was feasible, but extending that to 17 countries posed a substantial challenge.
To tackle these issues, Skechers partnered with Astound Digital and gradually began implementing solutions that would optimize its operations. Cheng and Kyle Montgomery, senior vice president of commerce at Astound, discussed how the integration of Salesforce Service Cloud and Manhattan Active Omni provided Skechers with reliable order management systems. The key objective was to unify operations—combining supplies, workflows, and scalability on a single platform.
Moreover, the adoption of Salesforce’s Page Designer allowed for the flexibility needed in design and content adaptation across different markets. Skechers also tapped into resources available in Salesforce’s AppExchange for translation solutions, which addressed some of the localization friction that had previously hampered their marketing efforts. The integration of tools from Thomson Reuters for text services and CyberSource for payment processes further streamlined their e-commerce operations.
The positive impact of these technological upgrades became evident in three specific areas highlighted by Cheng. Firstly, the improvements in content creation and localization tools led to an operational efficiency increase of more than 500%. This leap in productivity highlights how leveraging technology can transform workflow processes. Secondly, Skechers was able to significantly reduce the go-to-market timeframe, bringing it down from five months to just a few weeks. Such acceleration is critical in the fast-paced retail environment where customer expectations evolve rapidly.
Lastly, following the implementation of their new e-commerce platform, Skechers experienced a notable 24.5% increase in its direct-to-consumer sales during the first quarter of 2023. This spike is not merely a number; it signifies the effectiveness of the strategic changes made and the resonance of Skechers’ brand with its customers. These tangible results underscore the potential success that can stem from addressing foundational challenges and investing in the right technological solutions.
The story of Skechers is a powerful example of how brands can navigate the complex landscape of e-commerce and digital marketing. By addressing core challenges in workflow and content management, and investing in the right technological partnerships, Skechers successfully redefined its customer experience. The brand’s journey offers invaluable insights for other retailers aiming to enhance their online operations and reach diverse markets effectively.
For retailers looking to thrive in the competitive landscape of e-commerce, it’s essential to recognize the importance of technology and strategic partnerships. Companies that take the initiative to analyze their needs and adapt accordingly will not only improve operational efficiency but will also enhance their overall market presence.
As we look ahead, businesses across the retail spectrum must remain agile, continually refining their e-commerce strategies to keep pace with consumer demands and technological advancements. The lessons learned from Skechers’ transformation can serve as a roadmap for any organization determined to capitalize on the vast opportunities within the digital marketplace.