The new omni-channel consumer demand patterns are shifting across geographies from Japan, China, Europe, and America. Translating these consumer insights—their preferences, demand patterns, regional differences, and seasonal shifts—into assortment mix and merchandise allows planning 12-18 months ahead of time. “This deciphered information is an engine to make sure your merchandise and assortments are what the consumers want,” reasons Ma.
A leading outdoor apparel, footwear, and accessories company, had their global distribution via their own brickand- mortar stores, eCommerce websites, domestic wholesale, and many international franchise operations. The lack of demand visibility into all channels and regions placed constraints on the corporate’s ability to conduct merchandise, sourcing, and production planning in advance, in order to secure the best price for factory, labor, and greige goods.
Leveraging on the advantage of 7thonline’s Cross-Channel Demand Planning Platform, the corporate gained visibility into total global demand and was able to collaborate with regions on planning and understanding of local opportunities to stay on top of in-season trends. “On an average, we help retailers drive down markdowns (up to 30 percent,) decrease lost sales (up to 1-3 percent), increase full-price sell-through (up to 5 percent,) and increase inventory turns (up to 3X). Our customers see great ROI, so that the solution platform is able to pay for itself in a short period of time,” claims Ma.
We help retailers drive down markdowns, decrease lost sales, increase full-price sell through and increase inventory turns
7thonline’s Size Optimization service helps retailers arrive at optimal pack configurations and size profiles for stores to reduce lost sales and markdowns due to mismatch between supply and demand of sizes. Through proprietary algorithms, the analysis of historical data accounts for missed sales potential from sizes that were out of stock early, as well as margin losses, from overstocked sizes that were sold at discounted prices. Their assortment optimization lends a fresh pair of eyes going through all of the client’s important product and location data to generate optimal category, class, SKU breadth, and depth down to door level.
In the company’s continued quest towards their clients lasting success and healthy revenues, their cloud based solutions and the ensuing implementation process ensure successful user adoption. On the strategies ahead, Ma says, “We are working on a cutting edge allocation platform which will address challenges unique to the fashion industry such as fast-turns, dynamic local demand, and new product introduction. This will bring significant value for the retailer.” The company is set to introduce certain business applications based on mobile technology, leveraging trends in mobile commerce to empower enterprise users to conduct business and make data-driven decisions on-the-go.