The fashion industry is so dynamic that there stands a very thin line between a fad and a trend. It is impossible to know which style will set the fashion world on fire, and which great designs would not work out. The field is highly influenced by celebrities, movies, shows, and social media, making it difficult to identify which style will go viral. But amidst all such uncertainties, major fashion retailers are still able to profitably run their business by accurately forecasting stock levels and fashion trends. They are certainly not relying on black magic to do so. Fashion retailers are using data analytics to analyze trends, purchase stocks, mark up prices, choose styles, and distribute stocks. They are turning towards new technologies in data analytics to improve their profitability. Here are some of the analytics trends in fashion retail:
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Digital and Social Media Analytics
Social media is a catalyst for driving sales in retail sectors throughout all stages in a sales funnel. The data obtained from social media can guide the strategy formulation process by understanding the customer sentiment and social behavior. Advanced analytics systems can track customer activities right from information search to final purchase to boost the conversion rate. Social media listening can enable the company to track the customer conversation in social media, blogs, chat forums, and other channels to identify customer preferences and track conversion.
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Cross-selling and Upselling through Personalization
People getting emails from e-commerce retailers for the launch of new collections, ‘items you may like,’ and ‘inspired by your browsing history,’ ‘your cart item is on discount,’ and ‘extra 20% off on similar styles’ is not uncommon these days. By leveraging massive amounts of customer data and analyzing recurring patterns, fashion retailers can personalize offerings and cross-sell and upsell products. Companies can increase customer loyalty and engagement by leveraging data analytics to create effective acquisition and retention campaigns.
Managing Seasonal Fluctuations
One of the biggest challenges facing fashion retailer is that of managing seasonal fluctuations. Retailers like ZARA are relying on real-time insights to shorten seasonal cycles to meet the changing customer preferences. Digital analytics provides the fashion retailers to have more flexibility in their supply chain responsiveness.