Case Study

How KJM Cosmetics increased their conversion rate by 30% with fulfillment by Locad

Key Metrics:

  • 100% increase in D2C sales volume since Locad

  • 30% increase in conversion rate on Shopee with Locad

  • 2x increase in conversion rate on Lazada with Locad 

  • 69% savings in shipping fees with Locad

 

About KJM Cosmetics

KJMCOSMETICS® is a local indie beauty brand based in the Philippines that is widely known for developing high-quality beauty products that are affordable, approachable, and accessible. With beauty products made from top-tier and natural ingredients, KJM Cosmetics fulfills its advocacy of sustaining clean cosmetics. 

 

 

“The story behind KJM starts with my sister’s love for makeup,” shared Janine, Director of IT Operations. She explained the origin story of their timeless best-seller CHEEK. LIP, which now comes in 10 shades. “Some time in 2015, she wanted to buy one of those cheek + lip tints from Korea but they were more on the expensive side since they were imported. So that’s when she decided to create her own.” 

 

Established and built in 2015, KJMCOSMETICS® aims to make beauty feel effortless for everyone. “Our products are on the more affordable side, compared to other cosmetics brands,” said Janine. Each and every product is conceptualized with an ardent love for makeup in mind, and a vision to highlight Pinay beauty by heart. Made to match every Pinay skin tone and skin concerns, KJM CHEEK. LIP. is the brand’s breakthrough product that embodied the much coveted “no make-up, make-up look” and is now well-loved and adored by every Filipina locally and across the globe.

 

The battle against expensive shipping fees

“Since we’re based in Davao, shipping fees are a big problem for us considering most of our customers are from Luzon,” Janine explained. The logistical challenges of shipping from Davao to cities in Luzon hindered their ability to provide better service to 80-85% of their customer base. “Before Locad, our conversation rate was really low - we would get a lot of visitors on our online stores and many would add to cart but they do not proceed to checkout because of the shipping fee.” 

 

Similar to the trend observed by KJM Cosmetics, a study conducted by Forbes reveals that limited and lackluster shipping options are the top reason consumers abandon their carts. 

 

“When we were fulfilling orders from Davao, our customers were charged Php130 for shipping.” With the brand’s products ranging from Php129-Php333, the expensive shipping fees triggered their customers to second-guess pushing through with their order. This caused the brand to lose out on a lot of potential D2C conversions and in turn, they relied mostly on resellers and distributorsaccounting for 70% of their sales before the pandemic. 

 

Searching for the right fulfillment partner

“It was important to partner up with a fulfillment provider that allows us to manage and keep track of operations as convenient as possible,” said Janine.

 

Being based in Davao, an area that’s significantly far from where her customers are, the ability to easily and seamlessly monitor the status of their orders was crucial in their search for a fulfillment partner.

 

With expensive shipping fees being their brand’s core problem in D2C conversions and sales, Janine was searching for a partner that could match their needs for affordable shipping. “We also looked for a fulfillment provider that is economical for our business,” she said. “There were some providers that we just cannot afford and others that were [fairly priced] but lacked important features such as inventory management.”

 

 “Other providers do not have an all-in-one dashboard for managing inventory and fulfillment,” she explained. And with the inclusion of the Locad Control Tower - an all-in-one integrated dashboard for real-time analytics - Janine and her team became more convinced that they had found the right fulfillment partner for them. 

 

“Locad is flexible and we like that we can now manage all of our store operations in just a single dashboard,” said Janine.

 

Optimizing nationwide fulfillment and distribution

Start date with Locad: 3/11/2021  

Since working with Locad, Janine considers her problem with shipping fees solved as they moved a large majority of their stocks and inventories in a Locad warehouse in Metro Manilawhere most of their customers are. “Once we partnered with Locad, customers can avail of shipping at only Php40 and we could also cut down on costs for internal manpower to handle fulfillment.” Accessing preferential rates through fulfillment with Locad allowed Janine and her team to cut down shipping costs by 69%.

 

The Davao-based cosmetics brand benefited from being within a closer proximity to their customers in more ways than one. Not only were they able to lower their shipping fees but they were also able to provide faster shipping, which positively impacted the customer service they are able to offer to their target market. By optimizing the distributed fulfillment network that Locad had in place, KJM Cosmetics was able to make itself more accessible to a wider reach in Luzon, Philippines where their demand is the strongest. 

 

Having found a solution that addresses the concerns of their online customers, KJM Cosmetics experienced a drastic change in the way they do business as they became more D2C-centric. The balance shifted as their sales became mostly fueled by direct-to-consumer purchases—a complete turnaround from before the pandemic.

 

As a way to expand their eCommerce reach, the brand has also set up storefronts in popular marketplaces Shopee and Lazada. “Since we switched to Locad, our sales have increased and more importantly, so have our conversion rates even on both Shopee and Lazada,” said Janine.On Lazada, she witnessed their conversion rate double while there was a 30% increase on Shopee due to the lower shipping fees and shorter delivery lead times. 

 

Apart from the end-to-end fulfillment services, Locad also provides KJM Cosmetics with the advanced tools to track their logistics operations both on a macro and micro level. With the Locad Control Tower, Janine is also able to conveniently monitor and see an overview of their business across all storefronts. She shared that she finds the dashboard useful and user-friendly, especially when it comes to tracking their inventory levels. 

 

"Since partnering with LOCAD, our business could focus less on the fulfillment process and more on other aspects. As a result, there is an increase in our sales and conversion rate right away,” said Janine.

 

She also attributed this significant eCommerce growth to her dynamic and relationship with Locad’s Customer Success Managers Bertrand and Nina. “When we have concerns, [Bertrand and Nina] get it settled right away. They put in the extra mile to address our concerns and that has also helped us grow faster with Locad,” Janine shared. 

 

Want to take your eCommerce business to the next level? Experience hassle-free eCommerce fulfillment with LOCAD!

LOCAD is a logistics, warehousing, and fulfillment company that aims to empower brands and retailers of all sizes by providing an easy and affordable way to manage your products from picking, packing, and shipping your orders to planning the future of your business. We also provide safe and efficient fulfillment centers to organize your stock, manage your inventory, and ship these at affordable and preferential courier rates. And no, that’s not the best part, you are also able to easily keep track of your products all in the palm of your hand on the LOCAD Control Tower—our exclusive cloud-based software. 

LOCAD is here to help take care of your fulfillment for you. Being an integrated solution for your business needs, we make sure you’re ready to take the next step to growing your business online. Learn more about us at www.golocad.com or get in touch with our team to discover the best logistics and fulfillment solutions for you at growth@golocad.com.


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