Sports Apparel Pricing Analytics: A Quantzig Success Study

Aug 30, 2018

Sports Apparel Industry Overview

A walk down any lane today and you are guaranteed to see people who look like they are headed to a spin class, yoga studio, or a gym. This is a part of a trend in which sports apparel is becoming a fixture in mainstream fashion and apparel. The increasing acceptance of sports apparel is being driven by a variety of demographic and social factors, beginning with greater health consciousness. Also, more and more people in the U.S. are attuned to their physical well-being, while the middle-class population in the developing nations is signing up for gymnasium memberships and enhancing sports participation. The growth of sports apparel is also being stimulated by product innovations, such as the use of advanced materials, better form-fitting, and enduring specialization in which consumers buy activity-specific sports apparel.

Strategic Pricing Analytics Benefits

Strategic pricing analytics is broadly regarded as one of the top ways industrial and consumer products companies can drive profitability. Strategic pricing analytics can help a company look at a multitude of customers through a variety of different approaches in the marketplace regardless of the channels or a sales force responsible for certain geographies. Furthermore, pricing analytics helps companies forecast price changes, quantify customer preferences for product features, and predict market acceptance of a new product.

Continue reading to know about the scope of this pricing analytics engagement or request a free proposal for personalized solution recommendations.

About the Client

The client- is one of the largest sports apparel brands in the world based out of Maryland, the U.S. The company manufactures footwear, casual, and sports apparel.

Client’s Challenge

The client earlier used historical merchant intuition and sales data to drive its pricing strategy and markdown decisions. As a result, prices were not confined or adapted to market conditions; thereby, creating an excessively aged inventory. Additionally, the sports apparel manufacturer wanted to identify and quantify the financial impacts of existing markdown practices and minimize the negative impact on margins. With the help of Quantzig’s pricing analytics, the client also wanted to increase their sell-through velocity and extend their solutions globally.

To know more about our pricing analytics solutions for sports apparel manufacturers, request more info.

Business Outcome

The sports apparel manufacturer increased sell-through of its clearance merchandise by more than 10% and expanded the number of markdown levels with the help of Quantzig’s pricing analytics. This empowered the client to decrease its tendency to impulsively offer the steepest markdowns and capture lost margin while increasing the average unit retail. Furthermore, the sports apparel manufacturer significantly reduced the effort, time, and workload required to effectively manage markdown pricing.


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