CASE STUDY

How has boosted contribution margins by 105% without any additional marketing expenses.

CASE STUDY

How has boosted contribution margins by 105% without any additional marketing expenses.

About Gottex

Gottex is a global leader in swimsuit manufacturing

The problem

Reached diminishing returns on ad spend – where marketing spend doesn’t yield the great results it used to yield.

Marketing Saturation and Stagnant Growth

During the COVID-19 pandemic, Gottex’s online store experienced exponential growth. However, by 2023, growth had stalled. The usual strategy, scaling up ad spend on Google and Meta —was no longer working as before. Despite increasing marketing budgets, the return on investment eroded.

Gottex tried every available solution: improved campaign management, checkout optimization tools, email and SMS marketing for existing customers. But the impact on growth and profitability was marginal. They were stuck.

The Solution

Step One

Analyzing the Relationship Between Media Spend and Products Conversion Rate


The first step was to understand how different products respond to ad spend.
Using Bark AI, the Gottex team discovered that increased media spend was actually driving conversion rates down for certain products and categories. In fact, while the store remained profitable overall, some categories were quietly losing money.
It became clear that Gottex needed to break down performance at the product level.
Bark AI analyzed the data and identified clusters of products that required specific actions in one or more areas:

  • Price adjustments
  • Product views – increasing or reducing exposure
  • Inventory decisions – restocking or discontinuing
    The goal was to find the right balance between marketing spend, product exposure, pricing, and inventory strategy.

Step two

Modify, Monitor, and Repeat

Gottex selected three key categories to focus on and applied Bark’s recommended changes at the product level.
Once pricing and exposure adjustments were implemented, the team used Bark AI to monitor results in real time.
Within a couple of months, the impact was clear:

  • Revenue started growing again, without increasing media spend.

The way the company approached store management, inventory planning, pricing, and marketing completely changed.
As Anat Katz, CRO at Gottex, put it:

“There’s a clear ‘before Bark’ and ‘after Bark’ period. It completely transformed how we run our business.”

Now, every decision, whether in merchandising, marketing, or pricing, is backed by data and Bark AI insights.

The result

Breaking the Cycle of Diminishing Returns

With a clear, data-backed strategy in place, Gottex is now expanding into new marketplaces, including Amazon US and Amazon Europe, applying the same methodologies that helped transform their direct-to-consumer business.

The results speak for themselves:

The Takeaway 

1

Ad spend is a part of a holistic sales funnel, and the cost of media can’t be separated from the store’s conversion rate and the profit generated from sales



2

Pricing, inventory, and exposure needed to be adjusted on a category and product level rather than treating the store as one unit.



Want to see how Bark can help you increase revenue and profits without increasing marketing spend?