Business Case Genomma Lab & Amazon

Selling online is no longer the future, but the present, and the pandemic has accelerated this new reality. Consumer habits have changed and their preference to purchase products and services through digital channels is growing. Today, digital sales have almost doubled in the past five years, representing 13% of all sales in the U.S.

There are hundreds of millions of items available on Amazon.com and companies such as Mexico-based multinational Genomma Lab have been successful selling their products on Amazon and reaching U.S. Hispanic customers with storefronts in Spanish language.

Currently, there are about 62 million Hispanics in the United States and by 2025, Hispanics will account for 12% of all U.S. buying power, and more than 75% of this demographic group will be using online retail channels. Within Amazon, U.S. Spanish language is a fast-growing segment. With this in mind, Genomma Lab decided to strengthen its presence on Amazon and work with Amazon’s dedicated merchandising team to drive sales of its Hispanic-affinity brands in the store.

Strategy

It all started with a clear goal: to sell $10MM a year. This was an aggressive target considering that sales in 2020 were about $2MM.

Initial analysis found that the most important online retail variables were not at an optimal level: the recommended quantity and quality of images were not enough, the titles, descriptions, and texts were not optimized for search, increased investment in visibility and marketing was minimal, and rich content (A+) had not been developed for most of the of the products. Additionally, Genomma identified other opportunities that could give them an advantage from an operational point of view such as increasing product inventory at Amazon’s distribution centers.

To tackle these challenges, Genomma put together a multidisciplinary marketing team with a clear objective in mind to identify and learn from the top products in their categories, and ultimately surpassing many of them. By working with Amazon, Genomma was able to significantly improve and transform the content of their product detail pages, while putting control systems in place to guarantee the best brand and product presence in its Amazon storefront.

To help bring awareness of their products, Genomma was also featured among several Hispanic-owned brands on a new events page for Hispanic Heritage Month, giving Genomma product broader visibility. Additionally, Genomma leveraged and invested in Amazon’s advertising tools to reach the new and existing audiences on Amazon. Amazon DSP is a demand-side platform that allowed Genomma to build programmatic campaigns that fostered awareness and accelerates sales of their products, while also providing metrics and insights to inform future strategies. Genomma also participated in the Born to Run program, which offered them the opportunity to launch products at an accelerated rate with healthy levels of inventory with the brand/product category.

Results

While there was uncertainty as to whether the company’s traditional model would be successful in a new world for Genomma, the results to date have been outstanding. On average, weekly sales are growing more than 400% vs. the previous year. Conversion rates have doubled, the number of ratings and reviews have increased exponentially, and today some of Genomma’s brands are in the top 5 or top 20 of the best-selling products in their categories. This is the case for Cicatricure® Scars Gel, which is currently the second best-selling treatment to reduce scars in Amazon’s store, or SueroX®, which is among the top 10 best-selling brands in the sports drinks category.

Since beginning its Amazon strategy in late 2020, Genomma quickly generated a strong return, becoming a success story where a $10M sales goal went from an ambitious approach to a reality. Genomma’s sales continue to increase doubling their sales from Q1 2021 to Q1 2022 (+99.7%).