Zema powers up a new revenue channel using Oracle Commerce
Brazilian retail giant Zema Group was ready to give up on its ecommerce system—until it discovered Oracle Commerce.
“We saw much higher earnings than we had expected in the first year. We are satisfied with the Oracle partnership, and the positive side is that we are using a tool that can reach 200 km/h; yet, we are merely running at 90 km/h, for now.”
Business challenges
Zema Group is a Brazilian retail behemoth headquartered in the interior of the state of Minas Gerais that has 420 stores spread throughout six Brazilian states. During its more than 90 years of operation, the company has always sought to understand and attune itself to current market trends. In 2019, nearing to its centenary, Zema Group inaugurated an ecommerce platform.
The leap to digital commerce was marked by difficulties. The group sought some operational implementations for the online environment, but after investments and partnerships that were neither optimized nor aligned, Zema almost abandoned the project. In a possible last chance for attempting a digital transformation, Zema called on Oracle.
It worked. By adopting Oracle Commerce, Zema was able to launch its ecommerce platform. But having one online store was just the beginning: The company’s plan was to improve its services and customer experience regardless of the platform consumers used to make their purchases: website, teleshopping, or physical stores.
With Oracle Cloud, Zema succeeded in integrating its online and offline channels to meet its customers’ growing and changing demands for ecommerce.
One of the points that weighed in Oracle’s favor was its globally recognized platform. We knew we could bet on it because it has world-recognized delivery.
Why Zema Chose Oracle
After its frustrated attempts to debut in the ecommerce space, Zema saw Oracle as a trusted partner in the marketplace—a key factor in choosing Oracle for its continuing digital transformation.
Results
With Oracle Commerce, Zema launched its initial online store, but in the urgency to go live, the company launched the site without all the features it desired. The decision to go live proved to be a good one in the face of the challenges presented by 2020. Throughout that year, internet sales went from 1% of network revenue to 10%.
Even before the revenue jump, Zema’s ecommerce platform had already passed its first test—Black Friday 2019. “The site was launched in August 2019, and it was our first Black Friday online,” says Ferreira. “We had twice the traffic we expected and the platform behaved very satisfactorily. We had no big issues.”
In addition providing a stable platform, Oracle has improved other facets of the services Zema provides to its consumers.
For example, Oracle Responsys Campaign Management has brought significant improvements to both email open rates and conversion indicators. Zema also uses Oracle Service to provide cloud-based customer service. The company’s goal is to integrate Oracle Service with other areas of the organization, such as the ecommerce back-office and logistics department.
“Until then, many manual processes and contact between departments were made through email,” says Ferreira.
Both Oracle Service and Oracle Responsys are part of a second phase of Zema’s digital transformation. After a yearlong partnership with Oracle, the company has met its initial needs and sees opportunity for future benefits not yet explored.
Creating a commerce experience for customers was no small feat. Eletrozema needed to appeal to a wide variety of demographics and maintain its signature payment options while creating a simple yet efficient site. Oracle Commerce gave Eletrozema shipping gateways, simple and dynamic UI, and smart product suggestions.
More than 82% of Eletrozema’s ecommerce audience had no prior shopping experience at Zema. The site goes beyond inspiring brand loyalty. To date, the site has attracted over 10 million new customers. The public in Brazil has a general consensus on the site, with public reviews earning Eletrozema the prize of “Trustworthy Store” by Yourviews in 2020. Appearances and experiences go hand-in-hand; in a new frontier such as Brazilian online shopping, it can help set customer advocacy and brand loyalty.
Online revenue has seen a 902% increase when compared to the same time the previous year. The brand, once seen as traditional, has now paved the way for a new legacy of innovation. These efforts received recognition internationally. In 2021, Eletrozema was selected as a finalist for the 15th Annual Markie Awards for The Convert Award for Best Commerce Experience.