Master Performance Review with Data

Master Performance Review with Data

Master Performance Review with Data

The fashion landscape has seen drastic changes over the past few years.

Evidently, any fashion brand born in the 2000s’ will now have to brave not just stiff competition, but also new competition emerging from the high penetration of e-commerce brands. A Malaysian apparel brand was one of them – and they had two glaring issues that were hindering their brand from growth.

 

Problem #1: Trapped in an Overstocking Cycle

Being in the industry for 11 years, the brand constantly found itself in an overstocking cycle. Brand K typically launches a collection, re-stock, and then launches another without doing any form of performance review. 

 

Problem #2: Gut-feel Markdowns

When the brand does markdowns, it was always a guessing game. The discounts varied, without justification based on performance. This not only hurt sales but led to a greater contribution to Problem #1. 

With a massive overstocking issue, Brand K soon found itself cash tight while uncertain about producing new collections. This affected the newness launch, which in turn negatively impacted business traffic and branding. 

To combat this, it turned to Omnilytics. 

 

The Solution: Prioritising Performance Review

The brand knows it needs to clear aged and off-season stocks. To do so, the Operations team uses the Omnilytics Ageing Analysis to not only understand the brand’s ageing stocks but also to plan promotion and markdown strategies. 

 

ageing analysis

Brand K realised that most of their SKUs were within the 91-120 days range

 

The slow-movers from Brand K

 

With clear insights into its inventory levels broken down to standard aged-day ranges, the brand established a proper markdown strategy. It is now able to quickly identify slow-movers to act upon while in-season, decide when to launch thematic promotions and analyse how to group off-season stocks for a sale activation. Most importantly, it learned how to manage its inventory at an optimum level.

 

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