While this would appear to signal that retailers as a whole… Merchandise Planning and Assortment Planning According to Kunz (2005), the general merchandise plan can be def ined as a revi ew of hi storical company data, The answer lies in key factors like brand identity, category weight, market trends, and price range. Chain Planner. Promote your products on the social, keep … A fashion forecaster predicts the colors, fabrics and styles that will be presented on the runway and in the stores for the upcoming seasons. Play to brand’s identity and hope it’s enough? Did you align internally on the role of your category? Topshop, the fast fashion brand, has a fairly odd combination of totes. Who is this document for? 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. Essentially, a product assortment strategy is a retail industry sales tool with the concepts of depth and breadth at its core. Fortunately, businesses within the online retail space are […]. What will I learn about? Smart assortment planning tools can give your operation an agility on par with Amazon, that lets you capture new sales very quickly and in the background. Other priorities like e-commerce and store operations win attention, while merchandising is presumed to be as great as it ever was. Also, the fact that the product development must eat into the cost they have to maintain a mix that looks ‘trendy’ doesn’t do J.Crew any favors. … 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. For others, there is a certain risk in trying to level the playing field – the risk of downgrading both brand’s positioning and identity. You can benefit by using SAP Assortment Planning for Retail to: Balance your assortment breadth and depth. 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 … Traditionally, product assortment is an intricate, time-consuming process that includes numerous variables. Stuck between appeasing to consumers and improving their sales, playing it safe with the mainstays, sticking to the tried-and-true formulae sounds tempting too. The information is also extremely useful for adapting the assortment mix to inevitable changes in the retail market. Competitive Benchmarking for Pricing and Assortment. Search for: SOLUTIONS. Typically, these tools are run by algorithms that crawl their competitors’ sites, collect price and product data, then makes decisions on the prices and mixes that their customers see. We’ve been recognized in Forrester’s Overview Of 23 Pricing And Promotion Providers. There are only 3 classic or neutral styles that round off the brand’s tote lineup. An assortment … Automated pricing efficiency and End-to-End Price Optimization Solution. Assortment planning is all about putting the right goods in front of the right customers to maximize your sales conversions. 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. Stuck between appeasing to consumers and improving their sales, playing it safe with the mainstays, sticking to the tried-and-true formulae sounds tempting too. Or, they can risk by pushing potential future winners. 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. That being said, older and basic styles that went out-of-stock received a 50% discount for the traditional summer clearance sale season. Assortment Planning – The Holy Grail of Merchandising. 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. Applying sophisticated assortment strategies is common within traditional retailing but sometimes neglected by ecommerce businesses. This consumer driven product assortment makes the retailer an ultimate preference to a consumer i.e. For retailers and brands, the saving grace is the real-time data analytics that helps with assortment planning. E-Commerce has made it possible to start a retail business without opening a bricks-and-mortar shop. 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. It would also be helpful to have a tech support from teams with expertise in the retail space, so you can have conversations on the same level. hbspt.cta.load(857779, 'a9500a5d-0796-4255-8539-36a67537347c', {}); Not all retailers need to use this kind of assortment planning software, however. It’s also about identifying what kinds of products get the best sales traction with your brand and other offerings. Each style poses a danger of failing to appeal to acquired tastes. There are too many data points to consider from different channels and geographies. With two opposite approaches adopted by Topshop and J.Crew, results are equally different. Considering how they tend to develop not more than 4 unique styles and offer them in different colors, Topshop’s assortment strategy cuts down a sizeable amount of time and risk right at the prototyping stage. An assortment can also include specific products and specific variants of products. With assortment planning, you can make informed decisions about which locations can sell certain items before you buy. You use assortments to identify the products that are available in each store. What kinds of items should you be selling – trendy, classic, posh? 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. Do you make thousands of dollars in sales each month? It’s made for professionals, so it … Automate pricing efficiency and End-to-End Price Optimization Solution. Within merchandise planning, we focused the Option Planning or Assortment Planning (AP) process, arguably the most important of […] Ecommerce businesses should not leave out any avenue for promoting their brand. 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. Do you employ more than 30 people, including a merchandise buying team? $38K-$63K (Glassdoor est.) How can your assortment be optimized to emulate your competitors’ gains or make gains when they’re losing? Competitive, standardized assortment data also helps you identify and correct gaps in your catalog to increase your conversion rate. With retail being largely driven by uncovering customer insight, the merchandising game plan changes dramatically. The ideal assortment tools, as mentioned before, run on intuitive, holistic data analytics so it can smartly ingest the data you need to inform assortment planning and make decisions that will help you move product at a steady clip. 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. Many ret… To ease the pain of assortment planning, retailers are starting to adopt systems rooted in big data analytics and artificial intelligence. Product assortment planning requires understanding consumer profile, their purchase history, what do they exactly browse about, which eventually helps you to understand the intrinsic desires of a consumer. Addressing these challenges requires an even more intimate connection between the marketing and operations functions of firms. Because website builders provide users with a limited amount of space on their servers. Or an eCommerce website you can run from the comfort of your own home? With such a combination, there is too much risk. This is the first article of a six-part series about supply chain planning in online retail by Tommi Ylinen, our VP Product. Maybe go with what the customers expect? The product mix appears to be more decisive and focused on propelling forward the brand image while keeping revenues steady. Competitive Benchmarking for Pricing and Assortment. Assortment planning also runs deeper than merely presenting items with seasonal relevance or that are in current fashion. Like it or not, this is a representation of your offerings and total inventory, which means this is your first impression with the customers. Since there is no crystal ball in retail (except as a product, maybe), how can brands and retailers know what products customers will want? Even as ideas are being formed and fashion trends emerge, merchants need to begin by understanding customers and measuring demand. Fashion retails teams need to ride the latest trends without making risky maneuvers that affect the bottom line. This may include senior executives, information technology, merchants, finance, and more. Merchandisers are constantly inundated with strategic choices on assortments. What are the ideal price ranges for making sales? Le service existe déjà depuis plusieurs années chez Amazon, sous le nom de “Key”. They combine pure creativity and careful analysis to create concepts and styles that satisfy customer demand, financial goals, and dozens of other requirements. That means figuring out the right balance of trend-forward items and older classic models that are mainstays. 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. 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. Assortment plan considerations• Store size• Store characteristics (walkways, pillars, stairs)• Available fixtures• Complementary merchandise (balance eg laptops/cases)• Profitability of … Assortment planning perhaps plays an even bigger role today than ever with ever-shortening lead times, personalizations, and year-round discounts. With the promise of making their assortment planning process scalable and useful in competing with the likes of Amazon and Walmart. 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. Not all assortment planning tools are created equal. There are: The brand’s polarizing mix usually has 2-3 colorways of every new style, as seen below. While on J.Crew, the assortment here is diametrically different. Each style is represented in a unique iteration and 90% of the mix focuses on currently popular styles. Assortment planning in fashion and beauty tends to be more complex than other industries, because forecasting consumer demand and industry trends are largely based on the buyer’s intuition. 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. Assortment planning is necessary for large retailers with merchandising teams and bigger budgets, though the principles apply to any retail environment. 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. With retail transitioning into a consumer-driven business faster than ever, issues like determining the best product mix and inventory size are … Figuring out what products to sell and which to leave out of the assortment requires some fine tuning. 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. These decisions affect both retailers and manufacturers supplying them. Check out our library … Assortment Planning During Covid-19 Retail spending is up, as reported by the Guardian, and rose 12 percent in May over the previous month. Learn what's involved in starting and operating an ecommerce business, including lining up suppliers, finding web hosting, setting up a website, processing transactions, and fulfilling orders. In the apparel and fashion sector, these challenges are also more complicated, because of limited time windows. However, the risk is well worth taking as the opportunity for any trend-led retailer who enters this environment is huge. It’s a great help for spotting emerging trends before the competition does and capitalizing on the newfound competitive advantage. There are too many data points to consider from different channels and geographies. To provide the seamless experience consumers are increasingly used to, firms have to engage in omnichannel assortment planning; coordinate all aspects of their assortment … , retailers are starting to adopt systems rooted in big data analytics and artificial intelligence. As a sophisticated ecommerce platform, BigCommerce offers plenty of features. 5 Simple Strategies to Optimize Your Assortment Based on … (Oh, before you jump in, perhaps you’d like to hear from some e-commerce experts. In this post (and accompanying infographic), we’ll dive into 10 ways eCommerce merchandising is different from that of traditional retail. Connections to all source systems … Learn more about the minds behind Intelligence Node. 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. 1.888.326.8579 | info@mi9retail.com. 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