of being trend-forward or playing it safe. Who is set to win the 2020 grocery price wars? Even if you own a single small store, you still need […], The more successful you are in business, the more cutthroat the competition becomes. With SAP Assortment Planning for Retail you determine the assortment breadth and product depth in line with your strategic goals, and plan demand quantities for the upcoming season based on referenced historical data across product categories and selling locations. Following our definition of omnichannel assortment planning we discuss the strategic, tactical, and operational challenges that arise in this process. If you’re thinking of revamping your assortment (which you should be doing consistently), you need to know which brands are doing well in each category for your top competitors. An assortment … , retailers are starting to adopt systems rooted in big data analytics and artificial intelligence. There are too many data points to consider from different channels and geographies. A fashion forecaster predicts the colors, fabrics and styles that will be presented on the runway and in the stores for the upcoming seasons. Each style poses a danger of failing to appeal to acquired tastes. Search for: SOLUTIONS. Chain Planner. (Oh, before you jump in, perhaps you’d like to hear from some e-commerce experts. Merchandise Planning and Assortment Planning According to Kunz (2005), the general merchandise plan can be def ined as a revi ew of hi storical company data, But that’s okay because there’s no such thing as reward without risk. Its a tricky balance, but it’s entirely doable with the help of AI and assortment intelligence. This ebook will shed light on the strategies and technologies that will allow you to make smarter assortment decisions. A Consider-then-Choose Model for E-Commerce Assortment Personalization 3 the problem of assortment planning or product display is \uncapacitated". In the apparel and fashion sector, these challenges are also more complicated, because of limited time windows. It’s made for professionals, so it … AI-supported Planning for Omni-channel E-commerce. Before determining the product assortment … The data shows that trend-forward retailers are one step ahead of the rest. E-Commerce has made it possible to start a retail business without opening a bricks-and-mortar shop. Why? Considering that the average price for out-of stock items was $43 with an average discount of only $3, the brand had a pretty good June. Fashion retails teams need to ride the latest trends without making risky maneuvers that affect the bottom line. Let’s now dive into what assortment planning is, why retailers need it, and what an ideal assortment planning tool should do. The perception of high-quality remains intact, which only presses for the need to tweak the proportion of trending and classic styles that helps in assortment optimization. Do you have aspirations for scalable growth? Assortment planning is about making the right product picks and ordering the right quantities to match market demand. Like it or not, this is a representation of your offerings and total inventory, which means this is your first impression with the customers. As a sophisticated ecommerce platform, BigCommerce offers plenty of features. Assortment planning is a cumbersome process most retailers dread, physical or digital, but it’s essential to the business and becoming more critical than ever as the e-commerce segment grows. Specifically, you’ll learn how to: With the current state of the retail landscape, merchants everywhere would be wise to take a long, hard look at their business models.  Generally speaking, the reason for doing so is that values are shifting. Did you align internally on the role of your category? There are too many data points to consider from different channels and geographies. Retail intelligence, straight to your Inbox. Mega-retailers like Amazon and Walmart are constantly experimenting with their assortment mixes and price points, looking for the magic mixes and numbers that keep the throughput high and look for opportunities to increase sales whenever possible. Easy Integration Into e-Shop and Marketplaces. An assortment is a collection of related products that you assign to a commerce channel, such as a brick-and-mortar store or an online store. Competitive Benchmarking for Pricing and Assortment. : E-Commerce Retail Merchandise Planner Summary: This Ecommerce Retail Merchandise Planner will be part of team responsible for crafting compelling product assortments for the #1…They are a results-oriented merchandise planner that will help build merchandise and assortment … It’s about determining customer demand and ensuring decisions are made with the customer in mind. What kinds of items should you be selling – trendy, classic, posh? Assortment planning is all about putting the right goods in front of the right customers to maximize your sales conversions. The series will consider how to manage the unique challenges online retailers’ face, from assortment … This consumer driven product assortment makes the retailer an ultimate preference to a consumer i.e. Although the basic rules of demand forecasting and inventory optimisation work independently of the particular channel in question, there are indeed a number of differences with traditional retail. Whichever retail option you choose, you’ll need a business plan to get started and successfully manage it. Connections to all source systems … To get started, you might want to take a look at Intelligence Node’s assortment planning tools to see them in action. Assortment planning is another one of those areas which could use all the help it can get from big data. Assortment planning also runs deeper than merely presenting items with seasonal relevance or that are in current fashion. You use assortments to identify the products that are available in each store. Assortment planning in fashion and beauty tends to be more complex than other industries, because forecasting consumer demand and industry trends are largely based on the buyer’s intuition. How they achieve that is up to them but they need to do it fast in order to cover as much ground as possible before someone else claims it. Who is this document for? An SKU or a Stock Keeping Unit is a vital part of retail inventory management. Within merchandise planning, we focused the Option Planning or Assortment Planning (AP) process, arguably the most important of […] Assortment planning can be a tedious and difficult process, but by choosing the right software, you can gather, analyse and visualise data to assist you with correctly choosing the optimal set of products to … Essentially, a product assortment strategy is a retail industry sales tool with the concepts of depth and breadth at its core. There are only 3 classic or neutral styles that round off the brand’s tote lineup. Assortment planning Many e-commerce businesses suffer from “over assort-ment”. Retail intelligence, straight to your Inbox. While on J.Crew, the assortment here is diametrically different. Each style is represented in a unique iteration and 90% of the mix focuses on currently popular styles. Once inventory is all sorted out and ready to go, price is the only lever to change, needing to be adjusted in response to the competition’s out-of-stock gaps, hot sellers or inventory depths. What will I learn about? Features . Addressing these challenges requires an even more intimate connection between the marketing and operations functions of firms. Even if you own a single small store, you still need […], With retail transitioning into a consumer-driven business faster than ever, issues like determining the best product mix and inventory size are of strategic importance to a retailer looking to cash in at the e-commerce platforms. Burlington, NJ. An assortment can also include specific products and specific variants of products. 10d, Inc. team as a Chain Planner – Merchandising! With assortment planning, you can make informed decisions about which locations can sell certain items before you buy. A good selection of merchandise is key to attracting and keeping customers, no matter what type of products you sell. Customers browse desktop sites in their kitchens over morning coffee and continue reading via smartphone as they travel to work on the train. Ecommerce businesses should not leave out any avenue for promoting their brand. The J.Crew’s assortment doesn’t quite work in its favor because of the mix of single, unique styles. The assortment planning process begins with a concept. Switch to Agile Assortment Planning . This has typically been done using pen and paper or spreadsheets, but it’s a process that is increasingly being managed by plugging in data beyond internal sales these days. Assortment planning is about using data to guide the creative process. Rather, the information systems put in place to gather key figures and other salient reports are invaluable to the long-term success of a company. We’ve been recognized in Forrester’s Overview Of 23 Pricing And Promotion Providers. Accurate assortment planning is critical for large-scale retailers, but businesses tend to find the assortment planning process difficult and off-putting. You can learn what inventory your customers expect from you and make adjustments to sell popular products when your competitors are out of stock. Product assortment planning requires understanding consumer profile, their purchase history, what do they exactly browse about, which eventually helps you to understand the intrinsic desires of a consumer. Determining the ideal product mix and inventory width and depth, setting competitive prices, providing personalized … The ideal assortment tools, as mentioned before, run on intuitive, holistic data analytics so it can smartly ingest the data you need to inform assortment planning and make decisions that will help you move product at a steady clip. Applying sophisticated assortment strategies is common within traditional retailing but sometimes neglected by ecommerce businesses. With the highly desirable real-time update in the background and careful analysis, there won’t be any FOMO. This ecommerce platform is made for big enterprises and stores with a large range of products, or else small stores planning an imminent expansion. With such a combination, there is too much risk. While Topshop succeeded with trend-forward styles and cleared some old stock in the summer sales, J.Crew had to work harder to sell the hot trends, emphasizing their challenge in getting the brand perception at par with their assortment mix. These decisions affect both retailers and manufacturers supplying them. With SAP Assortment Planning for Retail you determine the assortment breadth and product depth in line with your strategic goals, and plan demand quantities for the upcoming season based … Smart assortment planning tools can give your operation an agility on par with Amazon, that lets you capture new sales very quickly and in the background. Let AI help to understand your assortment and performance to optimize demand planning. Considering how they tend to develop not more than 4 unique styles and offer them in different colors, Topshop’s assortment strategy cuts down a sizeable amount of time and risk right at the prototyping stage. In our last blog, we spoke about the primacy of merchandise planning for any retailer, and how focusing on improving this core function can help retailers stay ahead of the competition in the fast-moving fashion retail industry. Maybe go with what the customers expect? Retailers should be looking to fill their inventory with a carefully selected assortment that avoids items with high discounting rates and instead fill their shelves with low discounting rate and high replenishment goods. Competitive Benchmarking for Pricing and Assortment. It’s also about identifying what kinds of products get the best sales traction with your brand and other offerings. Often, hitting the sweet spot for a brand gets tricky. In 2021, its value is going to reach $4.5 trillion.To receive more profit, many offline retailers want to invest in e … Not all assortment planning tools are created equal. The answer lies in key factors like brand identity, category weight, market trends, and price range. Essentially, a product assortment strategy is a retail industry sales tool with the concepts of depth and breadth at its core. Les “smart doorbells” facilitent la livraison Tendance phare (et inattendue) de cette année au CES : les serrures connectées couplées à des caméras. The product mix appears to be more decisive and focused on propelling forward the brand image while keeping revenues steady. In a With retail transitioning into a consumer-driven business faster than ever, issues like determining the best product mix and inventory size are … Fashion retails teams need to ride the latest trends without making risky maneuvers that affect the bottom line. However, the risk is well worth taking as the opportunity for any trend-led retailer who enters this environment is huge. The world’s largest retail dataset served on intuitive custom APIs. Topshop, the fast fashion brand, has a fairly odd combination of totes. While there has been significant improvement with a customer-centric approach in the age of social media marketing and instant feedbacks, retailers are still fighting to make headway when it comes to merchandise planning- a set of interlinked decisions made months ahead of the collection’s preview. Many companies think they do assortment planning. Their mindset is clear – focus on being more integrated with inventory planning and demand forecasts. Effective assortment plans help companies optimize their offering to sell the variety, quality and designs shoppers want. They combine pure creativity and careful analysis to create concepts and styles that satisfy customer demand, financial goals, and dozens of other requirements. It’s a great help for spotting emerging trends before the competition does and capitalizing on the newfound competitive advantage. What Good Assortment Planning Tools Look Like, Real-time analysis of your competitors’ catalogs, Simple, efficient interfaces that need little or no integrations, essentially plug-and-play modules, Product life cycle analysis of pricing and promotions, To get started, you might want to take a look at Intelligence Node’s, Competitive Pricing Strategy - See How Products Are Priced, 5 of the Best Penetration Pricing Examples, How to Use the Price Quality Matrix to Optimize Your Product Pricing, How Amazon Uses Six Sigma and You Can Too, 20 Interesting Facts You Didn’t Know About Shopify, How Data-Driven Assortment Optimization Empowers Online Retailers. Assortment plan considerations• Store size• Store characteristics (walkways, pillars, stairs)• Available fixtures• Complementary merchandise (balance eg laptops/cases)• Profitability of … Assortment planning starts with: … How Assortment Strategies Work . 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