Craft an Effective Markdown Strategy

Craft an Effective Markdown Strategy

Craft an Effective Markdown Strategy

Retailer E is the official distributor of an eco-friendly footwear brand in Singapore and Malaysia. The company functions in a typical push-based supply chain model, where it has little control over product design, intake or price. 

The Problem: Lack of Know-How in Markdowns

Retailer E does have full control over its markdown executions including promotions and sale to suit the local markets it serves. With no influence over product assortment mix, it is therefore critical to establish a correct markdown strategy to optimise sales and profitability.

The Solution: Understanding Competitors’ Markdown Activities

1. Identifying the depth and timeline of first-time discounts 

Omnilytics data helps Retailer E analyse when a competitor first launches a markdown activity, how deep discounts are and on which products.

Retailer E now refers to Omnilytics data to gain insights on competitors’ markdown strategies.

2. Determining the markdown mechanism

Retailer E is able to map the analysis against the relevant competitor’s promotion or sale tactics using Omnilytics, to view how the tactics are being communicated and presented visually online. 

By having a comprehensive understanding of its competitors’ markdown activities, Retailer E is able to develop its own markdown strategy with ease, for effective executions and continuous improvisation.

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