Customer Driven Assortment Plan

Customer Driven Assortment Planning

Are you a retailer – looking for ways to maximize your profit without much of a stretch? Well, if you are then this page is for you. You being here can only mean one thing: you have noticed a significant drop in your sales, and you want to do something about it.

The need to improve assortment planning for apparel retailers.
Are you a retailer – looking for ways to maximize your profit without much of a stretch? Well, if you are then this page is for you. You being here can only mean one thing: you have noticed a significant drop in your sales, and you want to do something about it.

Maybe you’ve had a lot of luck in the past retailing products to your customers through your current strategy, or you are just trying to wrap your head around assortment planning. It doesn't matter. What matters, is that assortment planning as you know it is changing and to maximize financial results in your retailing business. You’ll need to change with it.

As it appears, customers in this day and age don’t like to waste time sorting through a retail store when they have a lot of options out there. In fact, most customers won’t spare a minute in your store unless you catch their attention in the first five seconds of them visiting your store. That’s why you need to improve your old methods and transition into something new.

So what is wrong with your current assortment planning strategy and why do you need to improve it?

Why looking within a company’s past sales won’t get you your desired results in your retail business?
While it is almost expected that you would have devised or adopted an assortment planning strategy for your retail business, you still need to ensure that you are getting the best results possible with your assortment planning strategy. As it appears, most retailers who use assortment planning for their retail business, do so by looking within companies past sales. However, this might not be the most effective assortment planning choice for your business. This approach has a few deficiencies that if left on unchecked, can cost you a great deal of profit in your retail business.

When it comes to apparel retailing, a company’s past sales might not give you a clear picture of what your customers want at the moment. Keep in mind that new fashion trends pop up on the internet every single day and no trend is guaranteed to endure till the end. In light of this reality, you would be limiting the profit generation potential of your retail business when you rely on a company’s past sales. In fact, you might end up with a pile of products that nobody wants and lose significant amounts of money in the process.

So what can you do to improve your assortment planning strategy?
With regards to assortment planning strategies for retail outlets and businesses. The only thing you can do to guarantee long term and short term success is to look within the market for the latest fashion trends.

From day one, retailers have always been concerned with optimizing store layouts and item choice within that store. That’s why the ancient apparel retailers in brick and mortar stores put their trendiest apparels on mannequins and display them for everyone to see. This way, potential customers would see the mannequins, and they'll be attracted to the store. When they come into the store, the retailer will have an array of trending products for the customer to browse. This strategy is called visual merchandising. However, even before you start with visual merchandising, it is important to source products that will be in fashion, when it is displayed on the floor.

In today's world, it is what we call Customer-centric assortment planning strategy. This is your golden ticket for maximizing profit and meeting sales forecast in your retail business. This approach will focus on your customers; Putting them at the epicenter of all your assortment choices, including the grouping, pricing, and stocking of your products.

Customer-centric assortment planning for apparel retailers
In the past, retailers boost sell-through for their retail outlets through the evaluation of companies past sales; using the obtained information to forecast future sales. While this may seem like an effective strategy for boosting sell-through, it is not an effective strategy for your new age retail outlet. In fact, as an apparel retailer, you ought to avoid strategies and processes that focus data instead of your customers. Though, you need past data to help you figure out your area of needs, using company past sales to forecast future sales will set you up for negative sell-through results.

It is simple, really: past sales data cannot generate new results. As they say, you cannot expect new outcomes with the same old strategy. If you want to boost your sell-through rates and maximize profit in your retail business, you need to adopt effective strategies for your business. Which implies that you need to adopt a Customer-Centric assortment planning strategy for your retailing outlet.

Unlike your current assortment planning strategy that requires you to explore companies past sales to stock your product, Customer-centric strategy provides a much more profitable approach. When you adopt a Customer-centric assortment planning strategy for your retailing business, you look out into the market to see the most recent apparel trends. As a result, you’ll have a pretty good idea of what your customers want and what you should have in your store. Ultimately, this will improve your see-through rates, and you’ll be able to maximize your financial results.

Since the only way to satisfy customers is to give them what they want, where they want it, and when they want it. Customer-centric assortment planning is your safest bet for maximizing profit and remaining relevant in a competitive environment.

Why you should look outward into the market for your assortment planning strategy?
Fashion is an ever-evolving beast, and if you want to make significant profits with your apparel retailing business, you must learn to exploit this ever-evolving fashion trends for your benefit. In this way, you would be able to stock your products based on the current needs of your customers. Also, you’ll stay one step ahead of your competitors and customers at all times.

On the other hand, a customer-centric assortment planning strategy is not so easy to achieve. You need help to look outward into the market and focus on your customer's needs. You need creativity, intuitiveness, and skill to see what apparel products are trending and how to use this information for the benefit of your store. That’s where Neural Trend comes in.

Why choose Neural Trend for your apparel store’s assortment planning?
There are many reasons to choose Neural Trend for your apparel store’s assortment planning. However, the most obvious among them is the fact that it offers customer-driven assortment planning solutions. To put this in plainer words, it means that you’ll be able to group your products (apparel) based on your customer's local preferences. At the end of the day, you’ll have the capacity to boost your retail outlet’s sell-through without stressing your budget.

Neural Trend will not only plan your retail store’s products assortment with the most recent customer-driven data, but it’ll also build your brands identity. Unlike the vast majority of cloud-based platforms that offer similar services as Neural Trend, Neural Trend uses state of the art artificial intelligence to generate effective solutions.

In the event that you are looking for ways to improve your current assortment planning strategy for your retail outlet, Neural Trend can help you with that. You would find everything you need at Neural Trend.