How to Use 11.11 Sales Record to Prep for 12.12 and 2021
In the span of just one year, the Covid-19 pandemic has changed the retail landscape in unprecedented ways. With less spending power amid recessions, consumers reacted conservatively with their purchases, seeking the most value out of each transaction. Shopping patterns have changed in response to this shift in priorities and are one of the most puzzling questions retailers are seeking answers to.
Omnilytics recently joined the leading e-commerce retailer in Southeast Asia, Lazada, in its Lunch & Learn session for sellers to answer this burning question. The session was hosted by Lazada Singapore’s Head Of Seller Engagement, Chua Weilun, with Omnilytics CEO Kendrick Wong providing data insights into the 11.11 sale and how retailers can use findings from the event to plan for 12.12 and 2021.
The session also covered how retailers can access retail insights at no cost through the Digital Resilience Bonus (DRB) from Singapore’s Infocomm Media Development Authority for Singaporean retailers. The DRB is an offer for eligible SMEs in the retail sector to receive a $5000 payout to use Omnilytics for one year, essentially at no cost.
Retail Performance Recap of 2020
Bain & Company’s holiday shopping forecast showed that the e-commerce sector is set to continue its growth through the year-end. Meanwhile, sales for many non-store categories including fashion plummeted as stores closed during lockdowns.
While physical retail has faltered, the e-commerce market is booming as consumers turn to online shopping. From home & living, electronics and fashion, there has been a shift in how consumers are spending.
For this reason, the main topic from the Lunch & Learn session is how to figure out where what and why consumers are spending now. While the examples used in this session were in the fashion industry, retail insights can also be applied to other verticals.
Here’s how a retail market insights tool like Omnilytics allows you to tap into the burgeoning online market by optimising sales, pricing, distribution and trend validation.
#1 Use Data to Validate Consumer Demand
Data from the most recent sales events have become a more accurate reference for assortment planning than historical sales data. Most retailers faced the puzzling issue of historically top-performing categories failing to drive sales amid Covid-19. This is where competitive retail insights come in to show what categories performed well in your market. At the same time, it allows you to identify the weak points in your assortment.
In the overview above, we can see the performance of women categories on Lazada in the week leading up to 11.11. Tops, activewear, ethnicwear and dresses were some of the trending categories, while sales for bags, shoes and accessories went down. Brands that are still stocking these categories can target promotion to slow movers ahead of the new year.
A deeper dive into the trending categories revealed that activewear charted strong full price sell-out at 42%. By validating consumer demand with sell-out performance and studying the top product attributes, brands can design best-selling assortments with trending colours, patterns and materials.
Steps to take for 12.12 and 2021:
- Dig into your competitive segment to understand what consumers are buying.
- Target product categories that show demand or are selling.
- Ensure designs are aligned with market demand.
- Design products based on trends validated by demand.
#2 The Importance of Exploring Product Sell-out
Once trends have been validated, the next step is to understand the strategies that drive sales at a product level. With a plethora of sales events to participate in, it’s also important to determine if a similar campaign would increase sell-out. Explore product positioning against its performance to determine the optimum price or discount range. This exercise is also conducive to spotting opportunities to boost margins.
The above chart depicts Lazada’s trade movement in the week leading up to 11.11. Increased sell-out rates that correspond with a surge in discounted products indicate that sales events are effective at encouraging purchases.
Brands can explore the trade analysis from 11.11 to help with assortment planning for 12.12 and beyond. Looking at the tops category, it’s clear that T-shirts are the best-selling subcategory with full price potential. Meanwhile, shirts’ low total sell-out rate that was mostly driven by discounts poses more inventory risk.
Steps to take for 12.12 and 2021:
- Understand how categories of products are selling-out across different timelines.
- See what consumers are buying and how pricing and discounts affect buying decisions.
#3 Further Analyse Your Discounting Strategies
Discounts can quickly eat into your margins if you’re not careful. Deep markdowns that occur too often teaches consumers to only shop during big discounts.
The best way to limit losses is to explore product sell-out and identify the tactics that contribute to higher sales. Some of the key areas to dive into are which discount ranges resulted in the most sell-out. Additionally, brands should look into what subcategories performed best and how much did sell-out rates increase following a promotion launch.
Study the sell-out rates of different discount ranges to identify the subcategories and prices that resonate with consumers. In the above example, we can see that there is an opportunity to improve margins by discounting Shirt and A-line dresses at a shallower rate. The subcategories sold well within the 30-39% range, which indicates that brands need not discount any deeper to drive purchases.
With accurate insights on demand, brands can plan an assortment and discount strategy which has the highest chance of selling out.
Steps to take for 12.12 and 2021:
- Understand how discounts engage consumers and move products.
- Explore competitors’ discount breakdown to see where your discounts should sit.
- Compare discounts across categories to come up with a strategy that keeps you competitive.
- Ensure not to undercut your margins and still keep customers coming back.
#4 Uncover Competitor Promotions
Observing competitor promotions provide further insights into the messaging and promotions that resonate with consumers. Website homepage, newsletters and social media platforms are some of the marketing channels brands can analyse to understand how competitors are positioning themselves in the market. A retail insights platform like Omnilytics simplifies this task by surfacing all of the information on one page.
In Singapore, marketing for 11.11 started in late October but only took off completely in November. In a more aggressive direction, Adidas’ 40% sitewide offer appeared across different pages on the website.
At the same time, Adidas offered additional perks exclusively to its Creators Club members through its newsletters.
Understand how marketing messaging differs across different channels to determine what works for you. For some brands, steeper discounts or hidden sales exclusively for customers fosters brand loyalty. Meanwhile, others prefer to focus on marketing to potential customers.
Steps to take for 12.12 and 2021:
- Analyse how competitor brands are messaging around holiday seasons.
- Are they directly showing discounts or being more discrete?
- What fits best with your brand?
Understand What Moves Retail for Free
With access to data and retail insights, brands have a competitive edge over trends tracking and understanding market demands. In a market rife with volatility, quick reactions can make or break a brand. Speed can be achieved with accurate retail insights.
Connect with our retail experts here to find out if you are eligible for the DRB payout. Understand what’s moving retail and start selling smarter today.
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