Arkana Decor is a manufacturing company and an e-commerce brand for soft wall panels operating in the EAEU market.

The founders faced a critical business problem: for 9 consecutive months, the company was unprofitable. Marketplace commissions, logistics, returns, defects, and personnel costs consumed 90–95% of turnover, rendering growth economically meaningless.

Their own website showed low efficiency: conversion 0.8–1.1%, high and unstable lead cost, lack of a managed acquisition funnel, weak retention, and low repeat purchase share. Scaling within the EAEU was impossible—the model “broke” as order volume increased.

The task was to reconstruct the economic and product model, optimize costs, create a proprietary sales channel, increase retention, and prepare the business for scalable growth.

I acted as a Senior Product Manager focused on economy, product, and operational transformation, responsible for rebuilding the business model end-to-end: from product strategy and e-commerce to supply chain, marketing, retention, and unit economics.

My Approach

1) Product Analysis and Development Strategy

Conducted an in-depth analysis of the Home Decor market in the EAEU: consumer behavior, price segments, demand structure, repeat purchase scenarios, competitive advantages, and industry bottlenecks.

Based on the data, I developed a brand product strategy, target audience segmentation, collection structure, and assortment positioning.

2) Creation of Proprietary E-commerce Infrastructure

Developed and launched a proprietary e-commerce site with marketplace logic: catalog, cart, convenient ordering, upsell/bundle mechanisms, automated order processing, and post-purchase scenarios.

The transition to a proprietary sales channel allowed us to:

• reduce dependency on external platforms by 83%;

• eliminate commission burden (0%), leaving only operational and logistical expenses;

• gain full control over the funnel and unit economics.

Result:

• site conversion increased from ~1% to 3.4–3.8% (+250–320%);

• lead cost decreased more than 4.5 times.

3) Acquisition and Marketing Strategy

Built a B2C acquisition funnel: optimized landing pages, catalog structure, quizzes for collection selection, content, and partner channels.

Result:

• lead conversion increased by +185–210%;

• CAC/CPA reduced by –75–80% while maintaining stable CR across the funnel;

• the developed GTM strategy (SEO, content, visual positioning) ensured organic traffic growth by 18–24% monthly.

4) UX, First Session, and Activation

Redesigned the site UX and user journey from first contact to order completion.

Result:

• conversion from site to order increased by +250–320%;

• first session drop-off decreased by –34–38%;

• time-to-value accelerated by –40–45%;

• initial activation (viewing collections, adding to cart) increased by +28–32%.

5) Retention, Repeat Purchases, and LTV

After stabilizing acquisition, focused on retaining and bringing back customers.

Revamped post-purchase UX, assortment logic, repeat order scenarios, and upsells within collections.

Implemented CRM communications (email/messengers).

Result:

• repeat visits and orders increased by +30%;

• cohort retention growth: short-term +12–15%, mid-term +18–20%, long-term +22–25%;

• cohort analysis led to a reduction in early churn after the first purchase by –25–30%;

• consistent LTV growth through repeat purchases and bundle logic.

6) Cost Optimization and Supply Chain

Conducted an audit of suppliers, logistics, production cycle, packaging, and returns.

Implemented shifts in contractors, redistribution of production tasks, updated packaging, and proprietary delivery agreements.

Result:

• overall costs reduced by 28–35%;

• constant losses in the chain (defects, returns, logistics) reduced nearly 2 times;

• order processing speed increased by +35–40%.

7) Final Profitability Model

If prior total losses reached 95% of turnover, after transformation, up to 75% of the company's funds began forming net profit, directed towards product development, expanding assortment, increasing production capacity, and customer retention.

My Priorities

Reducing Costs and Sustainable Unit Economics

Profitable model within the EAEU.

Own Sales Channel

Control over the entire funnel, no commissions, predictable growth.

Retention and LTV Growth

Repeat purchases as the foundation of business sustainability.

Transparent Product Logic and Brand Architecture

Collections, positioning, unified visual code.

Scalable Operational Model

Growth without critical expense increases.

Key Issues and Their Solutions

1) Marketplace Commissions (up to 85–87% of expenses)

Solution: proprietary site → 0% commissions → margin growth over 3 times.

2) Unprofitability for 9 Consecutive Months

Solution: supply chain optimization → costs –28–35%.

3) Low Conversion and Expensive Lead

Solution: new UX and e-commerce logic → conversion 3.4–3.8%, CPL –4.5x.

4) Lack of Retention and Repeat Purchases

Solution: post-purchase UX, CRM, and assortment → retention and LTV growth, early churn –25–30%.

5) Non-scalable Operations

Solution: process standardization → stable operation with increased order volumes.

6) Weak Organic Presence and Lack of Marketing Strategy

Solution: strategic marketing → organic growth 18–24% monthly.