P&G SK-II House of Miracles

House of miracles

SK-II House of Miracles represents the next evolution in SK-II's social retail transformation, building upon the brand's first Social Retail Pop-Up launched in Hainan in May 2021. As Senior Product Manager at HUGE, Inc., I led the development of this enhanced O2O (online-to-offline) experience that significantly advanced SK-II's digital-physical retail strategy. Launched in June 2022 at the Sanya International Duty Free Shopping Complex (Haitang Bay) and Haikou Mova Mall, House of Miracles expanded upon SK-II's #CHANGEDESTINY brand purpose and global retail transformation strategy by shifting focus from the previous year's Olympic athlete theme to SK-II's iconic Pitera™ ingredient. The one-month activation delivered $3M+ in quarterly revenue and established new benchmarks for luxury beauty retail in the travel retail space.

The Story

As Senior Product Manager at Huge, I was tasked with evolving SK-II's social retail concept into a more immersive, data-driven experience. Building upon learnings from SK-II's initial 2021 Social Retail Pop-Up, my mission was to substantially enhance conversion metrics while deepening customer engagement through refined O2O touchpoints.

After analyzing performance data from the previous year's activation, I identified several opportunities for improvement using the Jobs To Be Done (JTBD) framework and Opportunity Solution Trees. The 2021 pop-up had successfully introduced the concept of integrating WeChat Mini Programs with physical retail, but user research revealed friction points in the customer journey and missed opportunities for personalization.

The 2022 House of Miracles retained successful technologies from the previous year, including the Mini Magic Scan, but evolved them with improved algorithms and a more intuitive user interface. We also maintained the WeChat Mini Program integration while completely redesigning the digital experience around the new "Miracle Generator" concept. This approach resulted in a 35% revenue increase over the 2021 pop-up and significantly higher engagement metrics across all customer touchpoints.

The Story in Numbers

$3M+

Quarterly revenue generated by the House of Miracles pop-up, representing a 35% increase compared to SK-II's 2021 Social Retail Pop-Up

38%

Conversion rate from WeChat Mini Program users to in-store visitors within 48 hours, a 12 percentage point improvement over the 26% achieved in the 2021 pop-up

62%

Visitors completing the full in-store journey through all experience zones (compared to 41% in the previous year)

28%

Increase in average transaction value for customers using the Magic Mini Scan, with 22% of these customers purchasing premium-tier products compared to 12% in the 2021 pop-up

The Challenge Started When...

The luxury beauty landscape was undergoing a massive transformation. As post-pandemic travel resumed in China, Hainan's duty-free market was experiencing unprecedented growth. When I joined the project in March 2022, SK-II had already established itself as an innovator in social retail with its 2021 pop-up in Hainan. However, analysis of the previous activation revealed several areas for improvement:

  • Only 41% of visitors had completed the full experience journey
  • The WeChat Mini Program conversion rate of 26% left substantial room for growth
  • The 2021 Olympic-themed concept needed refreshing for 2022

User research with participants from the 2021 experience revealed crucial insights:

  • 72% wanted more personalized product recommendations
  • 68% expressed skepticism about beauty consultants' recommendations
  • 81% desired a more educational and enjoyable experience
  • 77% experienced a disconnect between online research and in-store shopping

Additionally, other luxury beauty brands had begun implementing their own digital-physical experiences in Hainan, threatening SK-II's first-mover advantage. My challenge was to evolve SK-II's social retail concept to deliver significantly stronger business results while creating a more compelling customer experience.

My Quests

  • Evolve the O2O Experience: Transform the existing WeChat Mini Program with the new "Miracle Generator" concept, focusing on Pitera™ rather than the Olympic theme Redesign the physical store layout into five distinct zones that create a more intuitive flow Enhance the existing "Magic Mini Scan" technology with improved algorithms for more accurate recommendations Implement new eye-tracking technology for the "Wall of Miracles" product discovery experience
  • Optimize the Customer Journey: Analyze data from the 2021 pop-up to identify specific drop-off points Eliminate friction points in the end-to-end experience Create more personalization touchpoints throughout the journey Implement a feedback loop system not present in the 2021 version
  • Enhance Technical Integration: Build upon the existing WeChat infrastructure while improving data synchronization Develop more robust middleware solutions for seamless integration with CDFG's systems Create a content management system allowing for remote updates Expand analytics tracking to generate more actionable insights
  • Elevate Business Impact: Set ambitious yet achievable KPIs that demonstrate clear improvement over the 2021 baseline Design and implement A/B tests to optimize conversion at each journey stage Develop an enhanced real-time performance dashboard Create a comprehensive reporting framework for stakeholders

The Adventure

Deep Customer Research & Experience Strategy

Building upon SK-II's previous insights, I implemented a structured discovery approach using the Jobs-to-be-Done (JTBD) framework and Customer Journey Mapping methodologies highlighted in my product toolkit. I spent one week conducting contextual inquiry, observing customer interactions, and running Design Sprint workshops with 25+ customers who had experienced the previous pop-up.

Through cohort analysis of user data and qualitative research, I applied the JTBD framework to identify four key opportunity areas:

  • Discovery Refinement: 72% of customers struggled to identify which products were ideal for their specific skin concerns
  • Trust Building: Digital tools needed to provide more objective, data-driven guidance
  • Experience Elevation: Customers wanted a more educational experience focused on product benefits
  • Digital-Physical Integration: 77% still experienced disconnects between online research and in-store experience

I then created a comprehensive Opportunity Solution Tree (OST) to visualize and prioritize potential solutions using the RICE prioritization framework (Reach, Impact, Confidence, Effort). This approach identified three high-impact areas with the best effort-to-value ratio: deepening personalization, strengthening educational components, and creating more seamless online-to-offline transitions.

With these validated insights, I led a focused two-day workshop with cross-functional teams from SK-II, CDFG, and HUGE to develop an enhanced experience strategy. I established key metrics for each pillar of our strategy:

  1. Personalization 2.0: Move beyond basic customization to deliver meaningfully tailored journeys (Metric: % of users accepting personalized recommendations)
  2. Ingredient Storytelling: Shift focus from celebrity athletes to the science of Pitera™ (Metric: educational content engagement time)
  3. Gamified Discovery: Evolve the gamification approach to drive higher engagement (Metric: completion rate of all experience zones)
  4. Seamless Connection: Eliminate remaining friction points between digital and physical realms (Metric: conversion from digital to in-store visits)

Experience Design & Technology Innovation

Based on our strategy and key results targets, I developed a comprehensive three-phase product roadmap using the MoSCoW prioritization framework to ensure we delivered maximum value within our tight timeline:

Phase 1 (March-April 2022): Assessment & Strategy

  • Analyze 2021 performance data to identify key opportunity areas
  • Define enhancement requirements and develop new conceptual framework
  • Design improved integration between WeChat Mini Program and in-store systems

Phase 2 (April-May 2022): Enhanced Experience Development

  • Redesign WeChat Mini Program with the "Miracle Generator" concept using rapid prototyping
  • Refine the Magic Mini Scan algorithm through A/B testing to validate improvements
  • Enhance the technical infrastructure for more efficient deployment

Phase 3 (June 2022): Launch and Continuous Optimization

  • Deploy the enhanced experience with robust real-time analytics dashboard
  • Establish weekly optimization cycles using key engagement metrics to continuously improve performance

I designed an enhanced experience consisting of five distinct zones, applying Design Thinking methodology to refine the previous year's concept:

  1. The Miracle Generator: An evolved WeChat Mini Program where customers create and customize their "Miracle" avatar
  2. The Miracles Tester Bar: An enhanced interactive product display with A/B tested variants to optimize information discovery
  3. The Miracle Scan: An improved version of the "Mini Magic Scan" with enhanced algorithms for more accurate recommendations
  4. The Wall of Miracles: A new addition featuring eye-tracking technology for intuitive product education
  5. The Miracle Broadcast: An enhanced social sharing feature allowing customers to display their Miracles on in-store screens

Working with our engineering team, I focused on enhancing rather than replacing the data architecture from 2021, improving the synchronization between digital and physical touchpoints with proper security considerations.

As the product leader, I mentored junior designers and engineers while implementing Agile practices with one-week sprints, allowing for more rapid iteration than the two-week cycles used in 2021. Each sprint concluded with a review of progress against our key success metrics.

Launch Strategy & Optimization Framework

Building on learnings from 2021, I developed a comprehensive go-to-market strategy that identified our highest-value customer segments through careful audience analysis. This strategy included enhanced training for beauty consultants, a soft launch phase with 50 returning VIP customers for rapid feedback, and a robust communications plan highlighting the evolution from the previous experience.

For the public launch, I implemented a data-driven optimization framework that measured performance across the full customer journey from initial awareness to purchase. This sophisticated approach allowed for daily rather than weekly adjustments, using advanced analytics to identify friction points in real-time.

Using structured A/B testing methodologies, we identified and implemented several high-impact optimizations during the first week:

  • Streamlined the WeChat Mini Program onboarding flow based on drop-off analysis, reducing abandonment by 24%
  • Refined the Magic Mini Scan interface using Lean UX principles, improving completion rates by 15%
  • Optimized the product recommendation algorithm through cohort analysis to better align with inventory
  • Enhanced consultant talking points to better complement the digital experience

I worked closely with our data team to implement custom event tracking, allowing us to create a real-time performance dashboard that monitored our key success metrics. These optimizations contributed to steadily improving performance metrics throughout the activation's run, with week-over-week increases in both conversion rate and average purchase value.

The Victory

Our strategic approach to evolving SK-II's social retail experience delivered exceptional results that significantly surpassed the 2021 baseline across all key metrics:

  • The enhanced Magic Mini Scan feature saw 78% completion (up from 65% in 2021) with 45% following recommendations (up from 28%)
  • WeChat Mini Program to store conversion reached 38% (up from 26% in 2021)
  • Digitally-engaged shoppers spent 28% more than traditional walk-in customers (vs. 18% in 2021)
  • The Miracle Broadcast feature generated 43% more user-generated content than 2021's social features
  • Overall revenue increased 35% compared to the 2021 pop-up

The success of House of Miracles further strengthened the partnership between SK-II and CDFG, leading to:

  1. A long-term agreement to expand the concept to three additional locations in 2023
  2. Integration of key experience elements into SK-II's global retail strategy
  3. Development of a third-generation concept building on our cumulative learnings

Wisdom Gained

Evolution Outperforms Revolution: Thoughtfully evolving an existing concept using structured frameworks like Jobs-to-be-Done delivered significantly stronger results than the original implementation while reducing technical risk. This approach has become a cornerstone of my product strategy toolkit.

Data-Informed Personalization Drives Conversion: The most significant improvements came from enhancing personalization based on actual user data from the 2021 experience. Identifying specific behavioral patterns proved essential for targeting our efforts efficiently.

Short Optimization Cycles Drive Better Results: Moving from weekly to daily optimization reviews allowed us to respond more quickly to performance data, resulting in continuous improvement throughout the activation. This approach to Agile product development has become my standard practice.

Technical Integration Requires Systematic Approach: By implementing a systematic design methodology, we significantly reduced integration friction between the WeChat Mini Program and in-store systems. This approach has proven valuable across multiple projects.

Cross-Functional Leadership Amplifies Impact: Mentoring designers and engineers while implementing standardized documentation processes improved team efficiency and sprint predictability, similar to improvements I've achieved in other projects.

Measurement Framework Clarity Drives Alignment: Establishing clear success metrics and implementing proper analytics tracking created alignment across all stakeholders, providing a structured way to communicate progress and prioritize optimizations.