11.6 Study Competitors’ Markdown Strategy
The next step for your discounting and markdown strategy is to compare against your competitor’s strategy.
It is always a good practice to be conscious of your competitor’s move so you can assess their game plan and also discover opportunities or gaps from your own brand. This keeps your own strategy aligned with the current market.
From the example above, we compared the difference in performance between ultra-fast fashion disruptors, Boohoo and Missguided for the period of 5 months. Boohoo had a significantly larger SKU of 61,062 compared to Missguided. Boohoo also had a higher discounted items percentage, as well a higher discounted sellout rate.
However, their overall sellout percentage remains lower than Missguided. Missguided, on the other hand, despite offering a smaller total discounted item percentage and lower discounted sellout rate, reaped in a total sellout of 86.7%. Boohoo’s higher volume of discount failed to boost their overall sellout percentage in comparison with Missguided.
Upon analysing Boohoo’s higher volume of discounts and lower sellout rate, we dived deeper into some of the discounted assortments that still remain in stock. A brief run-through of the poorer performing assortments gives you an idea on what to avoid bringing in new stock for your brand.
Try it out!
Go to this link on the Omnilytics dashboard.
- Select the retailers of your choice to benchmark against each other.
- Select the other filters of choice.
- Next, decide upon the desired timeline to analyse and compare between your selected retailers.