Discover What Sells Online with Retail insights
The pace of change in the fashion market today has necessitated deep retail insights to help brands make faster and assertive decisions, especially with the Covid-19 pandemic still hovering over us.
Omnilytics recently held a webinar with the largest e-tailer in Southeast Asia, Zalora. Our CEO Kendrick Wong and Zalora’s Head of Commercial Projects, Livia Leal came together to discuss the importance of data in navigating the rapid shifts in the market today and how brands can gain access to retail insights for free.
Zalora being a data-first company and fashion company second, believe that our suppliers can get value out of the platform’s industry and consumer insights and are proud to introduce Omnilytics to you.Livia Leal, Head of Commercial Projects at Zalora
We have teamed up with Singapore’s Infocomm Media Development Authority to offer the Digital Resilience Bonus (DRB) to Singaporean retailers. The DRB is an offer for eligible fashion SMEs in the retail sector to receive a $5000 payout to use Omnilytics for one year, essentially at no cost.
Here’s how brands can grow their business with retail insights from the Omnilytics dashboard.
Validate Ideas with Retail Insights
We assist designers in validating design ideas against market performance to determine commerciality. If there are design attributes such as materials or colours that the market is demanding, Omnilytics highlights them for brands to incorporate into their collections.
In this example, we can see the top materials and colours used for flats listed on Zalora Singapore. Along with the price spread, brands trading on the online marketplace can use this information as a benchmark when developing assortments and be the first in demand fulfilment.
The list of top brands provides a starting point for a deeper dive into flats’ performance. Brands can analyse their main competitors’ assortment down to the SKU-level and drill down on the style, colours, materials and sizes that are pushing sales. This method can be replicated for every subcategory to answer any design conundrum.
Tailored Colour Composition
Colour composition requires a localised approach as consumers in different markets have their own preferred colour schemes. Retailers often make the mistake of homogenising their colour offerings in different markets. The western market, with its seasonal colour schemes, differs from tropical regions like Southeast Asia, where colour trends are less predictable.
Even within Southeast Asia, colour trends vary by country, which calls for a tailored approach. The following chart depicts Zalora’s colour composition for the dresses category in different Southeast Asian markets.
Singapore shows a stronger demand for black and blue than in other markets. The opposite is true for Indonesia, which boasts a more evenly distributed colour composition chart with no single dominating shade. Meanwhile, Malaysia and the Philippines have more greyscale products than the other two countries. However, the latter has a wider selection of seasonal colours, with more varying hues of red, orange, green and brown.
The Right Price
Discounts get a bad rep in fashion retail, but is essential in driving sales and maintaining healthy inventory levels. The key to maximising margins through discounts is to identify the price points consumers are willing to pay for and not exceeding that threshold.
Retailers should avoid blanket discounts at all costs. Instead, each product should be evaluated based on its own merit to determine the optimum discounting percentage.
Discounting calls for some trial and error, as shown in the above example. The Mango shirt’s price was reduced to USD $42 from USD $63 after nearly two months to accelerate sell-out. Zalora revised the product to its initial price but brought it back down to USD $42 until the product sold out.
This product’s lifecycle revealed that Zalora’s consumers are not willing to fork out more than USD $42 for a product with a similar style, colour or material, an insight other brands can adapt for their own assortment to avoid over or under discounting.
The above chart is another example of how pricing plays a part in accelerating speed-to-sellout. A week after launching the Warehouse top, Zalora increased its price to USD $25 as the product was performing well. Shortly after, the price was hiked up again to USD $35 to improve margins. Zalora finally reduced the price to USD $25 when the performance stalled, the point at which the product sold out.
Retail insights on other competitors with the same product attributes bypass the trial and error phase. Brands can immediately apply the right prices and discount range to their assortment with the findings.
In fashion retail, businesses are always trying to one-up each other. It can be tempting to counter your competitors’ offers with a better one, but not before uncovering the full scope of their promotions.
Brands can use the Omnilytics dashboard to detect new promotions by their competitors and consequently track the performance.
During the recent 10.10 sale, retailers were aggressively promoting deep discounts on their websites, newsletters and other communication platforms. Pomelo Fashion was one of them, offering discounts of up to 70%. However, insights on the promotion’s outcome revealed disappointing results.
The massive 70% discount offer was meant to draw consumers in. However, data revealed that only 11% of the total assortment had such steep markdowns. Most of Pomelo Fashion’s assortment during the 10.10 sale sat between the 20-39% discount range. Critically, the 70-79% discount range did not translate to sales, indicating a missed opportunity in the assortment offered.
Sell Smarter with Retail Insights
Having access to data and understanding retail insights allows you to stay ahead of trends, adapt to market shifts and cater to your customers’ needs. Crucially, retail insights empower brands to tick these boxes at a fraction of the time. Connect with our retail experts here to find out if you are eligible for the DRB payout and start selling smarter today.
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