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Asian retailer increases revenue five-fold with tech stack

Asian online retailer Pomelo has increased its revenue five-fold by leveraging an in-house tech stack to support supply chain logistics.

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The tech stack, dubbed Henry after Henry Ford, who popularised the modern assembly line for mass production, provides data-driven insights and analytics on profit margins and customers’ purchasing behaviours.

The solutions stack gives the retailer full oversight of performance and enables it to effectively manage stock which is flying out the doors.

The tech is aimed at giving the brand the ability to manage complex logistical needs, giving it seamless management of a complex vertical supply chain across multiple locations and labels including PM, Alita and Beet.

Henry has been so successful in optimising the retailer’s supply chain that the retailer dramatically expanded its range across labels by more than five times and its total revenue by almost the same amount.

Lloyd Lin, Regional Vice President of Production at Pomelo said that technology has unleashed significant cost savings for the retailer.

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“Our competitors are still using spreadsheets and paper purchase orders to manage a highly complex system of product development, manufacturing, and omnichannel retailing. As a fashion company with tech DNA, we’re building, from the ground up, a brand-new tech stack for today’s digital world that incorporates the latest in machine learning, big data, and automation,” he said.

“We have always been focused on technology as a means to innovate key areas of the business, including our supply chain.”

The technology integrates all of the brand’s processes from design, manufacturing, content creation, retailing (in-app, online, and in-store) in a centralised control center, allowing them to quickly spot and troubleshoot inefficiencies in the supply chain, according to Mr Lin.

“It accurately manages profit margins and provides data-driven insights and analytics on customers’ purchase behaviors that simplify the design and purchasing teams’ buying decisions. Customer feedback in this form helps us to tweak the shopping experience for our customers and produce styles appealing to them,” he said.In these ways, the tech stack allows us to scale up the ability to track, develop and manufacture 340 styles a month across our labels, Pomelo, PM, Alita and BEET,” he said.

The retailer collects data about its consumers at various touchpoints in their journey, including click-through rates and bounce rates.

Vorada Hiransomboon, Buying & Merchandising AVP said that this data underpins the retailer’s management of its supply chain.

“This data allows our commercial team to identify areas of demand and we use this data to select the right product for the right market at the right time. We can then curate product lines targeted at specific consumer segments and markets,” she said.

Pomelo is set to continue building up its tech stack as it expands globally, with the brand saying tech is in its DNA.

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