How to Protect Sales in a Crisis (Bonus Video)
As the Covid-19 outbreak rages on, we have had to come to terms with its implications for fashion retail. In our recent report, Fashion Retail & The Covid-19 Crisis, the Omnilytics team outlined the hardest-hit areas of retail and the most vulnerable aspects of businesses.
We’ve also listed Crisis Response Actions to help retailers regain a foothold in a rapidly changing market. One of the key areas to tackle in this critical time is sales. It is now more crucial than ever to strengthen and secure sales to counteract the effects of Covid-19 on retail.
When One Door Closes, Another One Opens
Government-mandated quarantines and lockdowns have resulted in store closures – cutting off a fundamental sales channel for many retailers. However, there is a silver lining. Mass digitisation is growing, as most populations are instructed to remain indoors. Consumers exist almost exclusively online for work, socialisation and entertainment.
Naturally, they are turning to online shopping more than ever. Studies show a 40% increase in online engagement since the pandemic reached a global scale. In light of this change in consumer behaviour, retailers should be focusing all of their efforts on online channels.
Navigating the online space can be tricky, especially in times of uncertainty. To make the most out of this opportunity and to prevent further losses, it is crucial for retailers to align with shifting demands and determine exactly what their consumers are buying.
Data and market insights can guide retailers through analysing the performance of their competitors. This subsequently helps them determine their own brand position in the market. Greater visibility and deeper understanding will decisively inform retailers’ re-strategising and re-forecasting exercises.
How to visualise all this information? The Competitor Benchmarking tool on the Omnilytics dashboard allows you to do just that.
Analyse the Performance of Competitors
The Competitor Benchmarking tool on the Omnilytics dashboard allows retailers to dive into the nitty-gritty of competitors’ performance analysis. Retailers can select from over 75,000 brands in 49 countries and monitor the performance of their direct and indirect competitors at a granular level.
In this example, we will be looking at several brands in the Australian market to determine their performance in the Dresses category.
The dashboard provides a bird’s eye view of your competitors’ assortments. Crucially, it allows visibility into items sold at full-price, most replenished items and their stock status. Retailers can gain insights on how certain products performed in the market.
Through this breakdown of brands’ assortments, retailers have a complete picture of what consumers are spending their money on based on the top-performing styles, silhouettes, colours and materials. This is vital information to determine trends within a market in order to develop assortment offerings that meet consumer demands.
Furthermore, the Competitor Benchmarking tool proves useful in identifying the right online channel or marketplace for brands to partner with. Many retailers are adopting an omnichannel distribution strategy to maximise margins. Omnilytics can help brands identify which platforms are worth considering by monitoring sell-throughs on marketplaces and e-commerce sites.
Optimise Pricing Strategy
Another major factor to consider in this crisis is price strategy. The Competitor Benchmarking tool lays out an in-depth view of retailers’ price summary, price breakdown and the products that fall in different price ranges. By studying competitors’ pricing strategies, retailers can identify the right price architecture to implement, best suited to the current market conditions.
Additionally, retailers can rigorously monitor competitors’ promotional schemes on the dashboard. Knowing when, what and how much their competitors are discounting means that retailers can acclimatise quickly with tactical price reductions and promotions.
The retail landscape is rapidly changing, and retailers have to adjust just as quickly in order to stay afloat. At this stage of the Covid-19 outbreak, the online space is a direct link to consumers.
With the Omnilytics dashboard, retailers can use real-time data to align with market demands and maximise margins.
Download our latest report for a comprehensive breakdown of Covid-19’s impact on retail and the key actionable steps retailers can take to protect their businesses from further losses.
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