One of Topshop’s main strengths was stocking trend-forward styles that simply didn’t stick around much on the shelves. Maybe go with what the customers expect? SAP Assortment Planning for Retail is envisioned to take advantage of the SAP HANA platform, a real-time platform for next-generation applications and analytics, to rapidly determine optimal location clusters and speed up the assortment planning process. It’s about determining customer demand and ensuring decisions are made with the customer in mind. Competitive Benchmarking for Pricing and Assortment. It’s made for professionals, so it … AI-supported Planning for Omni-channel E-commerce. Check out our library … While there has been significant improvement with a customer-centric approach in the age of social media marketing and instant feedbacks, retailers are still fighting to make headway when it comes to merchandise planning- a set of interlinked decisions made months ahead of the collection’s preview. In the retail industry, product breadth refers to the scope and variety of products that a store offers. For example, developing an e-commerce website with over 5,000 items in product assortment using a SaaS solution, such as WooCommerce, will not get you anywhere. Topshop, the fast fashion brand, has a fairly odd combination of totes. 1.888.326.8579 | info@mi9retail.com. Online retail is an enormous and prospective market. An assortment … There are only 3 classic or neutral styles that round off the brand’s tote lineup. SKUs and Their Relevance in Retail Merchandising You sell a large number of products in your business. You can set up as many product assortments as you require. Within merchandise planning, we focused the Option Planning or Assortment Planning (AP) process, arguably the most important of […] When the buyer’s hunch results in too much product or not enough, retail sales suffer, resulting in financial difficulty for next season’s buy. To provide the seamless experience consumers are increasingly used to, firms have to engage in omnichannel assortment planning; coordinate all aspects of their assortment … (Oh, before you jump in, perhaps you’d like to hear from some e-commerce experts. While this would appear to signal that retailers as a whole… How they achieve that is up to them but they need to do it fast in order to cover as much ground as possible before someone else claims it. This is evidenced by the fact that 80% of J.Crew styles were trending, in-vogue styles of the season but the only two out-of-stock items were older basic styles. You can stop buying inventory for stores that can’t sell it, and make life a lot … Traditionally, product assortment is an intricate, time-consuming process that includes numerous variables. How can your assortment be optimized to emulate your competitors’ gains or make gains when they’re losing? The world’s largest retail dataset served on intuitive custom APIs. The J.Crew’s assortment doesn’t quite work in its favor because of the mix of single, unique styles. Assortment planning in the age of eCommerce is a tricky business. The assortment planning process begins with a concept. This SKU classification presents a methodical approach for assortment planning to maintain the most profitable portfolio. What proportion of your assortment should come from the different categories you have in stock? assortment here is diametrically different. Assortment planning is based on qualitative and quantitative data that together contribute to how products are purchased by retail buyers and how space is used to sell inventory. Specifically, you’ll learn how to: With the current state of the retail landscape, merchants everywhere would be wise to take a long, hard look at their business models.  Generally speaking, the reason for doing so is that values are shifting. Merchandisers are constantly inundated with strategic choices on assortments. Chain Planner. Connections to all source systems … Mega-retailers like Amazon and Walmart are constantly experimenting with their assortment mixes and price points, looking for the magic mixes and numbers that keep the throughput high and look for opportunities to increase sales whenever possible. Determining the ideal product mix and inventory width and depth, setting competitive prices, providing personalized experiences, and dealing with rapid lead times is just scratching the surface of what retailers need to do. Why? Before determining the product assortment … Take a peek into what these e-commerce stores are doing to succeed and see what you can apply to your online store. A Consider-then-Choose Model for E-Commerce Assortment Personalization 3 the problem of assortment planning or product display is \uncapacitated". You’ll also data that is holistic, accurate and intuitive, a platform that serves the data as quick, actionable insights, superb customer service, the flexibility of sorting features and analytics suited to your specific needs. This retail intelligence tool highlights the active approach in optimizing assortment in real-time, allowing immediate insights into the impact of increasing or decreasing certain products from the merchandise mix, managing their visibility in the marketplace and handling discounting when the times comes for it. Assortment planning is a cumbersome process most retailers dread, physical or digital, but it’s essential to the business and becoming more critical than ever as the e-commerce segment grows. Omni-channel sales requires channel-specific analytics and predictions. Although the basic rules of demand forecasting and inventory optimisation work independently of the particular channel in question, there are indeed a number of differences with traditional retail. Assortment planning gets major retailers ahead because they’re no longer reacting to the market—they’re driving it. $38K-$63K (Glassdoor est.) Is your retail business large enough to require assortment planning in the first place? Once inventory is all sorted out and ready to go, price is the only lever to change, needing to be adjusted in response to the competition’s out-of-stock gaps, hot sellers or inventory depths. The concept applies to not one, but all levels of the fashion industry including haute couture, ready-to-wear, mass market, and street wear. For a fast fashion brand, Topshop relied on a smaller number of trendy products, which, in turn, resulted in virtually non-existent discounts and sold at full prices, but had to heavily discount styles from older seasons. Protecting your Retail Brand Against the Growing Counterfeit Threat, 50 Statistics to Understand the Online Consumer in 2020 and Beyond, How to Optimize your SKUs and Enhance Sales with Online Merchandising, Assortment Planning – The Holy Grail of Merchandising, 10 Ways Inventory Management Software Increases Sales & Profit. Competitive Benchmarking for Pricing and Assortment. Partner with buying team to properly manage sku count through assortment planning and markdown strategies … 3.2. As a sophisticated ecommerce platform, BigCommerce offers plenty of features. Each style poses a danger of failing to appeal to acquired tastes. E-commerce was a standout for the company, with a record-breaking online performance during Cyber Week, McDonald said on the call. Burlington Stores. Accurate assortment planning is critical for large-scale retailers, but businesses tend to find the assortment planning process difficult and off-putting. Who is set to win the 2020 grocery price wars? How Assortment Strategies Work . Main / Blog / How to Plan and Manage E-Commerce Projects. Considering that the average price for out-of stock items was $43 with an average discount of only $3, the brand had a pretty good June. E-Commerce has made it possible to start a retail business without opening a bricks-and-mortar shop. But that’s okay because there’s no such thing as reward without risk. Do you employ more than 30 people, including a merchandise buying team? Let’s now dive into what assortment planning is, why retailers need it, and what an ideal assortment planning tool should do. Analyses retail; Gestion de merchandising New focal points are emerging left and right to challenge long-held beliefs about the way things ought to work. This has typically been done using pen and paper or spreadsheets, but it’s a process that is increasingly being managed by plugging in data beyond internal sales these days. 10d, Inc. team as a Chain Planner – Merchandising! Collection plans and assortments must be defined with an overview of the different distribution channels (physical network, e-commerce, s-commerce) with dynamic links between assortment, merchandising in-store and sales forecasts. And yet, too many companies fail to invest in assortment planning despite how important their assortment is. Ecommerce businesses should not leave out any avenue for promoting their brand. offering them exactly what they want. A fashion forecaster predicts the colors, fabrics and styles that will be presented on the runway and in the stores for the upcoming seasons. What kinds of items should you be selling – trendy, classic, posh? Assortment Planning – The Holy Grail of Merchandising. The brand sold the fashionable totes like crazy, and at full prices too. […]. With SAP Assortment Planning for Retail you determine the assortment breadth and product depth in line with your strategic goals, and plan demand quantities for the upcoming season based on referenced historical data across product categories and selling locations. It’s a great help for spotting emerging trends before the competition does and capitalizing on the newfound competitive advantage. Applying sophisticated assortment strategies is common within traditional retailing but sometimes neglected by ecommerce businesses. With Aptos, every plan – at every level – serves the business throughout the entire merchandise lifecycle as Aptos Merchandise Financial Planning feeds Aptos Assortment Planning, and both of these are … With the highly desirable real-time update in the background and careful analysis, there won’t be any FOMO. Automated pricing efficiency and End-to-End Price Optimization Solution. We argue that an e-commerce platform’s assortment capacity constraint comes from the consumers {they can only consider a small subset of all available products due to their limited time and cognitive capacity. SKUs and Their Relevance in Retail Merchandising You sell a large number of products in your business. And […], An SKU or a Stock Keeping Unit is a vital part of retail inventory management. Before investing time and money into buying these tools and deploying them, ask yourself a few quick questions first: If you’re answering yes to these questions, you should seriously consider investigating assortment planning tools and deploy one rooted in big data and artificial intelligence, one that’ll do the heavy lifting for your team and make it much more feasible to grow sales. hbspt.cta.load(857779, 'a9500a5d-0796-4255-8539-36a67537347c', {}); Not all retailers need to use this kind of assortment planning software, however. Do they turn to historical sales data? Who is set to win the 2020 grocery price wars? And, while its roots are in traditional retail, eCommerce is an animal all its own. That being said, older and basic styles that went out-of-stock received a 50% discount for the traditional summer clearance sale season. The information is also extremely useful for adapting the assortment mix to inevitable changes in the retail market. In … Often, hitting the sweet spot for a brand gets tricky. Assortment planning is about making the right product picks and ordering the right quantities to match market demand. To ease the pain of assortment planning, retailers are starting to adopt systems rooted in big data analytics and artificial intelligence. Figuring out what products to sell and which to leave out of the assortment requires some fine tuning. These decisions affect both retailers and manufacturers supplying them. Automate pricing efficiency and End-to-End Price Optimization Solution. There are: The brand’s polarizing mix usually has 2-3 colorways of every new style, as seen below. Assortment planning is all about putting the right goods in front of the right customers to maximize your sales conversions. With the promise of making their assortment planning process scalable and useful in competing with the likes of Amazon and Walmart. If your business hopes to break free of the Amazon dependency cycle or scalably grow without sacrificing profits in the name of sales, you need to find the right ones that meet your needs and actually help your business. The right mix varies from brand to brand, situation to situation. Or an eCommerce website you can run from the comfort of your own home? … ASSORTMENT FASHION FORECASTING Fashion forecasting is a global career that focuses on upcoming trends. Retail intelligence, straight to your Inbox. These decisions affect both retailers and manufacturers supplying them. That’s simply the reality that your company must face, regardless of your industry. To get started, you might want to take a look at Intelligence Node’s assortment planning tools to see them in action. , retailers are starting to adopt systems rooted in big data analytics and artificial intelligence. Begin by setting goals to hold yourself and your team accountable, as well as evaluate progress over time. Of course, this doesn’t simply apply to brick and mortar shops – assortment planning for eCommerce retail Assortment planning is used to help retailers determine how their shoppers will interact with the product. We’ve been recognized in Forrester’s Overview Of 23 Pricing And Promotion Providers. What Good Assortment Planning Tools Look Like, Real-time analysis of your competitors’ catalogs, Simple, efficient interfaces that need little or no integrations, essentially plug-and-play modules, Product life cycle analysis of pricing and promotions, To get started, you might want to take a look at Intelligence Node’s, Competitive Pricing Strategy - See How Products Are Priced, 5 of the Best Penetration Pricing Examples, How to Use the Price Quality Matrix to Optimize Your Product Pricing, How Amazon Uses Six Sigma and You Can Too, 20 Interesting Facts You Didn’t Know About Shopify, How Data-Driven Assortment Optimization Empowers Online Retailers. Retail assortment planning is something which gets affected by multiple factors. Like it or not, this is a representation of your offerings and total inventory, which means this is your first impression with the customers. The data shows that trend-forward retailers are one step ahead of the rest. Competitive Benchmarking for Pricing and Assortment. We’ll paint you a picture with two seemingly different examples. That impacted … Sure, that means making some mistakes along the way, since not all new products are bound to be successful. The perception of high-quality remains intact, which only presses for the need to tweak the proportion of trending and classic styles that helps in assortment optimization. The series will consider how to manage the unique challenges online retailers’ face, from assortment … Which products to stock, which to sell together, these are the questions your planning … Which begs […], For many businesses, data analytics aren’t just useful tools to assess and shape the connection between a given company and its customer base. Assortment planning starts with: … Assortment planning is necessary for large retailers with merchandising teams and bigger budgets, though the principles apply to any retail environment. How Assortment Strategies Work . of being trend-forward or playing it safe. With assortment planning, you can make informed decisions about which locations can sell certain items before you buy. If they stock too much variety, they may lack focus and create confusion among their customers. Many companies think they do assortment planning. With advanced retail solutions, retailers and brands can perform analysis of product revenues and various performance metrics for different SKUs across the board, as well as product categories, to use the latest information for future product launches. With a product-centric approach deeply engraved in their nature, retailers are understandably having difficulty hitting the jackpot. Following our definition of omnichannel assortment planning we discuss the strategic, tactical, and operational challenges that arise in this process. With two opposite approaches adopted by Topshop and J.Crew, results are equally different. Fortunately, businesses within the online retail space are […]. What will I learn about? So if that’s interesting to you, read on. Automated pricing efficiency and End-to-End Price Optimization Solution. Even as ideas are being formed and fashion trends emerge, merchants need to begin by understanding customers and measuring demand. For retailers and brands, the saving grace is the real-time data analytics that helps with assortment planning. … DotActiv Team. An assortment can also include specific products and specific variants of products. Competitive Benchmarking for Pricing and Assortment. With retail being largely driven by uncovering customer insight, the merchandising game plan changes dramatically. I’m often asked how online retail affects supply chain planning and how RELEX can help retailers improve their e-commerce operations. Retailers should be looking to fill their inventory with a carefully selected assortment that avoids items with high discounting rates and instead fill their shelves with low discounting rate and high replenishment goods. Whenever customers visit your store, either the physical or the online one, they encounter a sampling of your inventory, on a rack or a store page. Le site DigitalTrends en a compté plus d'une douzaine ! Of course, this doesn’t simply apply to brick and mortar shops – assortment planning for eCommerce retail Assortment planning is used to help retailers determine how their shoppers will interact with the product. Assortment planning is about making the right product picks and ordering the right quantities to match market demand. It answers some very important questions: Retailers often face the dilemma of being trend-forward or playing it safe. Assortment planning perhaps plays an even bigger role today than ever with ever-shortening lead times, personalizations, and year-round discounts. Some features you need to look for when picking an assortment tool: With these functionalities, your assortment mixing can be automated, saving your staff hours and hours of work every cycle and enabling you to change the assortment on whatever frequency you desire, instead of the monthly or quarterly cycles you might be using now. In our last blog, we spoke about the primacy of merchandise planning for any retailer, and how focusing on improving this core function can help retailers stay ahead of the competition in the fast-moving fashion retail industry. Inventory management for an e-commerce store – whether as a stand alone or as part of a multi- or omni-channel operation – is a process that affords retailers the pleasing opportunity to offer customers a vast assortment, as not everything needs to be in your own warehouse. If so, check out our post on the best e … If you want to see DotActiv’s assortment planning software in action and how you can improve your inventory management, click below. Retail intelligence, straight to your Inbox. By setting up an assortment, you can assign thousands of products to your channels at that same time, in any combination that your stores require. This thought leadership article is written for professionals in retail organizations in a variety of verticals who are involved with retail technology solutions, particularly in the area of assortment planning. Assortment plan considerations• Store size• Store characteristics (walkways, pillars, stairs)• Available fixtures• Complementary merchandise (balance eg laptops/cases)• Profitability of … But having too many different products in too many categories can be confusing and cause shoppers to have too many options where they freeze up. Assortment planning is about using data to guide the creative process. In the apparel and fashion sector, these challenges are also more complicated, because of limited time windows. Do you have aspirations for scalable growth? However, the risk is well worth taking as the opportunity for any trend-led retailer who enters this environment is huge. With retail transitioning into a consumer-driven business faster than ever, issues like determining the best product mix and inventory size are … If you’re thinking of revamping your assortment (which you should be doing consistently), you need to know which brands are doing well in each category for your top competitors. Assortment planning in the age of eCommerce is a tricky business. For others, there is a certain risk in trying to level the playing field – the risk of downgrading both brand’s positioning and identity. Learn more about the minds behind Intelligence Node. If the product mix is too narrow, there is always a looming risk of losing customers to large players that cater to many tastes and preferences. Simply put, the strategies for inventory assortment are meant to help business owners understand the what, where, when, who, and how much of sales. Assortment planning focuses on choosing the right breadth (product categories) and depth (product variation within each category) for your retail store at a given time, keeping market demand in mind. Learn more about the minds behind Intelligence Node. It’s also about identifying what kinds of products get the best sales traction with your brand and other offerings. You use assortments to identify the products that are available in each store. An assortment is a collection of related products that you assign to a commerce channel, such as a brick-and-mortar store or an online store. Competitive, standardized assortment data also helps you identify and correct gaps in your catalog to increase your conversion rate. The DotActiv team comprises of multiple category management experts, all lending their years of retail experience and knowledge to create well-researched and in-depth articles that inform readers of DotActiv’s retail blog. Celles-ci permettent notamment aux livreurs d'accéder au domicile des clients en leur absence. This may include senior executives, information technology, merchants, finance, and more. 5 Simple Strategies to Optimize Your Assortment Based on … With retail transitioning into a consumer-driven business faster than ever, issues like determining the best product mix and inventory size are of strategic importance to a retailer looking to cash in at the e-commerce platforms. Assortment Planning During Covid-19 Retail spending is up, as reported by the Guardian, and rose 12 percent in May over the previous month. Who is this document for? 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