E-commerce Case Study

E-commerce Case Study

How Culto optimized revenue and volume through pricing with catalan.ai

How Culto optimized revenue and volume through pricing with catalan.ai

9.2%

Higher Revenue

13.3%

Higher Units Sold

About the company

Culto is a D2C retailer of sports clothing in Mexico. They are a lifestyle activewear brand with quality and functionality at its core principles. Designed for active performance and training, the clothes are thought of as daily fashion pieces as well.



"Catalan is a tool that harnesses the vast world of data, a realm we, as humans, can't analyze comprehensively. It enables us to leverage this data to its fullest potential, merging it seamlessly with our resources to achieve our objectives."

Emmanuel Cailleaud
General Manager

"Catalan is a tool that harnesses the vast world of data, a realm we, as humans, can't analyze comprehensively. It enables us to leverage this data to its fullest potential, merging it seamlessly with our resources to achieve our objectives."

Emmanuel Cailleaud
General Manager

About the company

Culto is a D2C retailer of sports clothing in Mexico. They are a lifestyle activewear brand with quality and functionality at its core principles. Designed for active performance and training, the clothes are thought of as daily fashion pieces as well.



The Problem


Traditional pricing processes in ecommerce


Emmanuel Cailleaud, GM of Culto Apparel, navigated the complex world of pricing with traditional techniques. For Culto, determining the right prices was more of an art than a science, relying on traditional practices that lacked the precision needed in today's dynamic market.


Traditional pricing methods left Culto facing numerous challenges. Pricing decisions, full of uncertainty, often led to questions about whether their prices were too high, potentially hindering sales. The process of setting prices was not only time-consuming but also lacked data-driven insights, causing delays and inefficiencies.


Emmanuel and his team were far from confident that they had unlocked the optimal pricing strategy. The inherent limitations of traditional pricing methods kept them guessing, leaving their potential untapped.



The Solution


Dynamic pricing in sports clothing


In search of a solution, Culto Apparel embarked on a transformative journey with catalan. A one-month pilot program encompassed 105 SKUs, marking the beginning of a new approach to pricing. The overarching goal was simple: to boost revenue by optimizing prices. Using a dynamic split-testing method, Culto switched between catalan-Priced Days and Culto-Priced Days, each setting prices on specific days. This strategy helped maintain stable prices and prevented wild swings by setting minimum and maximum price limits for each SKU. The selection of days for each pricing approach was random, ensuring fairness and avoiding any potential bias.


During the pilot, catalan orchestrated approximately 50 price changes. Prices were carefully adjusted, resulting, on average, in reductions for 74 SKUs and increases for 31 others, all in pursuit of maximizing revenue.



The Results


Revenue and volume increases with catalan.ai


The results spoke volumes. On Catalan-priced days, Culto Apparel experienced a remarkable 9.2% boost in revenue, underscoring the power of dynamic pricing. Units sold surged by an impressive 13.3%, reinforcing the positive impact of data-driven decisions on customer behavior.


Emmanuel shared his perspective on catalan's impact, stating, "Catalan is a tool that harnesses the vast world of data, a realm we, as humans, can't analyze comprehensively. It enables us to leverage this data to its fullest potential, merging it seamlessly with our resources to achieve our objectives."


In the ever-evolving landscape of retail, Culto Apparel found a dynamic partner in catalan. With data-driven pricing, they are forging a path towards efficiency, growth, and greater confidence in their pricing strategies.



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Set pricing on auto-pilot with catalan

Set pricing on auto-pilot

with catalan

Set pricing on auto-pilot with catalan