Merchandising Analytics: A Case Study on How an Apparel Industry Client Optimized Markdowns and Projections

Feb 9, 2018

The Business Challenge

The client, a leading apparel industry manufacturer with business operations spread across the globe, wanted to differentiate its in-store offerings and cater to the changing customer preferences. The client also wanted to understand how customer behavior is impacted by product replacements and further wanted to optimize their merchandising tactics to improve shopper loyalty. With the help of Quantzig’s merchandising analytics, the client also wanted to seek ways to gain predictive insights on the sales, returns, and pricing effectiveness and efficiently bridge the demand-supply gap with their customers.

The Solution Benefits

Quantzig’s merchandising analytics helped the apparel industry client identify optimal product combinations based on customer preferences and profile and target potential customers with the help of category planning. The engagement also helped the client reduce their spend due to better inventory planning and increased customer retention.

Predictive Insights

With the help of Quantzig’s merchandising analytics, firms in the apparel industry space can efficiently manage merchandises and maintain price competitiveness. Additionally, firms can optimize their storefront assortment, inventory, and efficient forecast demand planning across their operations.

Gain data-driven insights to deliver profitable results by leveraging Quantzig’s analytics solutions. Request a free proposal!

Apparel Industry Overview

The global apparel industry includes a varied range of establishments manufacturing full-lines of ready-to-wear and custom apparels; apparel service providers, accomplishing cutting and sewing operations on materials owned by others; jobbers executing entrepreneurial functions involved in apparel manufacturing; and tailors, manufacturing tailored garments for individuals. The apparel industry is one of the most in-demand businesses due to the emergence of new trends and production of fashionable clothes. Moreover, the apparel industry plays a critical role in developing a nation’s economy in terms of creation of employment and revenue generation. The rise in disposable income, fluctuations in consumer behavior, the substantial shift toward branded apparels, and promising demographic factors have fueled the growth of the global apparel industry.

However, a few factors are expected to influence in the apparel industry. These factors include:

  • Increasing competition: Today, staying ahead of the players in the apparel industry is becoming increasingly challenging for companies as the threat of new entrants is relatively high. Therefore, to remain ahead of the competition, leading establishments are facing the need to have seamless and agile processes across their business units.[spacer height=”20px”]
  • Online retailing: Consumers today are looking for convenience, authenticity, and creativity in their shopping preferences. With the online players increasing their focus on customer satisfaction, the customers are more likely to move to online retailing platforms.

Many such factors are compelling firms in the apparel industry space to leverage the use of merchandising analytics. Merchandising analytics help companies track new product performance, optimize markdowns and promotions, and improve overall profit margins. Additionally, companies can rely on merchandising analytics to enhance their merchandising effectiveness and store performance.

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