LPP, a leading Polish clothing manufacturer, has chosen Google as its strategic digital partner. Thanks to the established cooperation, the company will be able to tap into the cloud’s potential to grow its online activity and support the digital transformation in the area of marketing.
The established cooperation focuses primarily on the introduction of advanced solutions, such as an analytical platform or data repository, but also the implementation of innovations in the technical infrastructure of e-commerce and the implementation of AI-based product recommendations. According to the plans adopted by LPP, the company intends to move to full service of e-commerce technical infrastructure with Google Cloud by the end of 2020.
The share of online channels in shopping, also in the clothing segment, has been growing steadily over the last few years. However, the changes that have taken place in the last few weeks in the shopping habits of Poles have led to an increased popularity of e-commerce channel which is used even more often. According to the data of the Polish Payment Standard, only in March online sales in the clothing category increased by 63%, as compared to February. This trend is likely to continue, making the development and investment in e-commerce necessary to meet current expectations of customers and ensure safe and comfortable shopping experience for them. – We are the leader of the retail industry in Central and Eastern Europe and plan to further increase the share of online sales in our revenue structure. Recently, our e-commerce revenue has increased by 129%, and in April alone it was as much as 270%. In order to maintain the effective development and growth of the Group’s digital channels, we have entered into a strategic agreement with Google Cloud, explains Arkadiusz Ruciński, E-commerce Director LPP. We have ambitious plans for the next few years, so we have decided to engage with an experienced partner who will provide us with both know-how, but also the infrastructure and tools to build and maintain e-commerce sites, he adds.
As part of the established cooperation, in addition to the implementation of Google Cloud technology, the Group will tap into Google’s knowledge and expertise in the fields of artificial intelligence, performance marketing, big data, and machine learning. Moreover, Google expert team supports LPP in its expansion into foreign markets.
– We started cooperation with LPP a few years ago, and in 2019 the company decided to move all activities related to Mohito brand to the cloud. Owing to Google Cloud tools, for the last year and a half the website has been gaining high efficiency and reliability, especially in periods of increased traffic. All promotional actions or current order processing are carried out smoothly and without any disruptions, as the system automatically scales to the number of visitors, also ensuring maximum efficiency. The result of these activities is cost optimization and providing the highest quality of customer service in digital channels, explains Dawid Papież, Industry Head in Google Poland.
– From our perspective, using the potential of the cloud is primarily about speed, security and flexibility. The very migration of the production environment of the Mohito’s online store to the cloud took only 6 weeks. At the same time, we obtained an online copy of the website, which, in case of a possible failure, will allow us to resume the store’s operation very quickly, minimizing the risk of losing business continuity, explains Marek Maciejewski, E-commerce Infrastructure and Security Manager in LPP. The cloud ensures great flexibility, as the size of the operating environment will be dynamically adjusted to the traffic handled. Cloud solution also means savings. On the one hand, the costs of infrastructure maintenance will be adequate to the actual traffic handled. On the other hand, dynamic scaling will significantly shorten the process of preparations for sales or periods of increased traffic, eliminating the need to dimension the machine park for traffic forecasts, buying servers or testing their configuration, adds Marek Maciejewski.
– The retail industry is extremely important for Google Cloud, so we are really pleased to continue our cooperation with the market leader in the region. We are glad that thanks to Google Cloud tools, brands such as Reserved, Cropp or Sinsay can develop even faster, responding to trends and consumer needs, adds Magdalena Zwierzyńska, Google Cloud team.
Over the last few years, the LPP Group has been preparing for the digital transformation through significant investments in the development of the online team and competence development in the analytical (using the Google Analytics tool), cloud (testing AI Recommendation) or performance dimension, responsible for online sales.
LPP decided to use Google Cloud solutions in the following areas, among others:
• Analytics – implementation of an analytical platform and data repository (the so-called data lakes, where a huge amount of unprocessed data is stored in the original format). Thanks to this, LPP will be able to gather all resources in one place and receive comprehensive reports in a short time, based on analysis from many distributed systems. This allows for data democratization – different teams can easily work with the collected information for sales, marketing and logistics purposes.
• E-commerce infrastructure – full optimization that ensures smooth and reliable operation of systems, even in the most peak periods such as the Christmas holiday season. This ensures cost optimization, also in the IT area, and increases system reliability.
About Google Cloud:
Google Cloud provides organizations with leading infrastructure, platform capabilities and industry solutions, along with expertise, to reinvent their business with data-powered innovation on modern computing infrastructure. We deliver enterprise-grade cloud solutions that leverage Google’s cutting-edge technology to help companies operate more efficiently, modernize for growth and innovate for the future. Customers in more than 150 countries turn to Google Cloud as their trusted partner to solve their most critical business problems.
LPP SA is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collection already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1700 stores with the total area of over 1 million sq.m. The online offer of the brands collections is available on 30 markets. LPP plays another important role as it employs over 25 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.