CB/I Digital & Conative AI Transforms Chan Luu's Marketing

Chan Luu has spent nearly 30 years building hand-crafted jewelry, accessories, and apparel but in 2023, they faced a steep DTC challenge with a 20% drop in orders and a 25% drop in revenue year-over-year.

Digging deeper, we discovered a significant portion of the drop was caused by best-sellers being out of stock for nearly 3 months. Clearly, our marketing strategy also needed better inventory.

We reallocated spend from Facebook to Google, created a more segmented structure based on product types and price range, and implemented Conative AI, a tool we developed to help brands manage stock levels and provide a better understanding of their inventory process and product catalog.

By consolidating data from inventory, marketing and Ecommerce storefronts - at the SKU-level - Conative allowed teams across Chan Luu to finally make better Ecommerce decisions in sync.

Marketing knew which out-of-stock products to avoid, and monitored top-performers more closely. Conative’s deep, product-level insights also helped us choose which products to promote and where, and discover new high-potential, low-visibility products to target for additional spend.

Choosing better products helped marketing campaigns become more effective as Performance Max revenue grew 183% and new users increased from 60% to 80% of our audience.

Inventory also had a real-time view of which items were selling quickly, allowing them to act faster to prevent stockouts, and coordinate with marketing on upcoming promotions. This ensured campaigns always had enough inventory to support success.

Conative’s sophisticated AI projections allowed Chan Luu to anticipate their needs months in advance with greater accuracy than manual forecasting. Ahead of BFCM, they placed a larger order - covering two additional months of inventory.

This comprehensive, product-focused strategy took Chan Luu’s YoY revenue in 2023 from -3% in Q1 to +11% in Q4. And with the additional inventory, they maintained momentum in Q1 2024, achieving a 44% increase in revenue YoY.

By aligning marketing and inventory with Conative AI, Chan Luu became a bigger, healthier brand.