The fashion retail industry has been transforming largely due to aspects like fast fashion and online retail. The transformation is mainly noticed when you see the gap between the red carpet and retail stores diminishing. The kind of outfit your favorite celebrity wore last week to a gala event will be available in online stores the following week. However, this feat was not achieved overnight but required a cohesive and rapid inventory management from retailers. The inventory analytics of a fashion retail store can rightly suggest the frequent changes in the fashion and style, but the industry-based trends are also very important to thrive in the market. To understand this massive wave of change, let’s look at the five major trends that are driving the fashion retail industry by the storm: Omnichannel Retailing The physical and virtual both storefronts of a fashion retailer carry equal value in today’s world. The customers are shopping both from the stores in their neighborhoods and online e-commerce applications in their phones. Fashion retailers have to make sure that their presence is strong at all possible sales channels to increase market penetration and brand reach. Here is where Omnichannel retailing comes into the picture. The use of an inventory management software can help establish with multiple channels easily from a single dashboard. Cross-Channel Trade The competition in fashion retail is rising all over the world and the brands that provide the best offers and features only thrive in the market. A cross-channel sale is done over both online and offline channels. In this, if a customer has purchased online and wants to exchange the product he/she should be able to exchange it on the nearby store. The inventory management software can help here as well in the integration of online and offline channels for cross-selling. Mobile Devices for Improved In-Store Experience Retailers are increasingly using mobile and other integrated platforms to improve the in-store customer experience. The IoT-enabled infrastructure and chat-based tools are used to provide shoppers with access to information, service support, and navigation assistance. According to a 2017 RetailDive study, 77% of shoppers use mobile devices to search for product information while shopping in brick&mortar stores, and only 35% are willing to consult an in-store salesperson. Brands will want to prioritize creating mobile tools for shoppers and associates that offer in-the-moment information to smoothen purchase decision. Mobile-scannable codes on the product can be used by customers to get product-related information. Store owners are utilizing Beacon & Bluetooth technology and digital signages that use data by approaching shoppers’ smartphones to create specific content messaging resulting in a more personalized experience, thus leading to more sales. Signals of the shift from e-commerce to m-commerce are bright. Big Data and Analytics Every piece of data related to customers is useful, which includes details like the number of visits in a month, amount of purchases, most and least purchased product, etc. Big Data – data obtained from millions of users in bulk – can be analyzed and used for improving the provision of the right products and services to the customers. Retailers are increasingly leveraging the power of Big Data for making accurate strategic decisions while enhancing customers’ shopping experience. Big Data analytics enables retailers to comprehend what their customers are looking for throughout their buying journey, while also predicting the customer demands so as to accordingly adapt to the market changes. Moreover, data analytics also enable retailers to determine product prices more accurately as well as predicting the right time to change the product pricing. Product Bundling The combo packs are available for everything in the market from chips and coke to shampoo and hair conditioner. The bundling of two products that are used or purchased together can help the retailers sell more, fashion retailers are also using this technique. The pairing up of matching trousers or skirts with a top-wear and offering it as a combo is a very effective technique to generate more sales. It is required that the combo offers are well advertised to reach the maximum customers and ensure maximum sales. Product Bundling has set its place as one such trending practice in the market right now. Through this strategy, profits can rise due to the collective purchase of more than one item. With the sale of more items overall, consumers enjoy decreased prices and businesses see a faster movement of inventory off their shelves. In Conclusion… The brands in the fashion retail industry have to follow current trends for staying ahead in the market and to boost their revenue. The trends like omnichannel retailing are already big in the market and can be implemented easily with the use of an inventory management software. Other trends like the use of smartphones for scanning product labels still have a long way to go, for making it to the mainstream market. Following these trends can not only help the fashion retailers in getting ahead in terms of sales but also in enhancing their brand image and customer loyalty on a large scale.
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Adding a personal touch to any product makes the customer feel connected to the product and increases the chances of its sale. Currently, the majority of customers of fashion retailers are millennials who are more inclined towards products that resonate their thoughts or interests (also, they can act as a cool conversation starter!). This is so because of the increasing economy of instant gratification and fast fashion. Millennials want what they like and not what they are offered. Also they are highly influenced by the style of their favorite celebrities. The future of clothing is complete customization of the products as per the taste of the consumer. This concept was very much seen when it comes to specialized boutiques and fashion designers. But, in the retail business, the same merchandise was offered to all the customers. The times are changing the retail giants are time and again introducing personalization in clothing to acquire larger market share. The introduction of a proper retail analytics software can largely help fashion retailers of all sizes in providing customized clothing to their customers. The trend of personalization was studied by Deloitte, and the results of the research are:
Personalized Clothing and Small Retailers Not only big names like H&M, Uniqlo and Zara but also small retailers can use personalization to make the most out of their investment. Customers agree to pay more not just because of the personalized product but also the personalized experience that they receive. The big brands mostly provide a personalized experience through machine-made products and computerized systems. The small-scale businesses, on the other hand, can provide a personal touch. As they are mostly the local stores knowing the customers in the neighborhood. As suggested above, many customers are willing to pay a higher price for a personalized product. So, in terms of personalization, small retailers do not have to compete with retail giants on the price. Before some years, personalization by small retailers was limited up to alterations in terms of size and minor changes in embroidery, etc. These days order processing software enabled with technologies and Artificial Intelligence that can largely facilitate the provision of personalization products. These technologies also can help in studying inventory analytics and implement personalization accordingly. Analytics are largely helpful in customization as they represent the patterns of purchase of the customers and can largely identify the scope of personalization in a product. The hottest selling products can be sold as they are but the products with fewer sales can be put up for personalization. This software can be deployed cost effectively and largely support in providing quality service and a delightful experience to the customers. Customized Inventory Management Software for the Customized Clothing Business A customized software like Orderhive Plus facilitates its users with customized inventory management software that offers high-volume features and workflow. It offers accurate data aids retailers in archiving and optimizing inventory effortlessly. With precise BI analytics and tools, optimizing inventory has never been easier. It also helps you in cutting down costs, saving a fortune on labor costs and helps in managing products efficiently across multiple channels. In Conclusion… The purchase of personalized clothing is often observed around festive occasions, movie launches, and a spike in customer phenomenon. Contrary to large brands, growing startups do not need to worry about large-scale production, which enables them to experiment and invest in futuristic technology. Furthermore, they can have the upper hand in customization due to their exclusive approach and attention to every customer. The use of a proper retail analytics software will help small and medium-sized retailers in providing efficient customized clothing solutions to their customers, ensuring long-term loyalty. Setting up an multi-channel business is a challenging task, as you are not operating from one store, or one location, or one city, state or country. The logistics of it are daunting. Despite of the problems, the challenges can be overcome with the help of specific software that takes care of most aspects that would otherwise have to be done manually while also saving your precious time, money and resources. The most important aspect of an multi-channel business is maintaining inventory levels at an optimum level. Challenges Faced in Multi-Channel Inventory Optimization Fragmented Supply Chain Processes: If you have a physical store and are setting up an online one as well on different platforms, then you may find it very difficult to maintain a proper supply chain to keep your outlets well-stocked. You have to predict demand at various points, allocate inventory and keep replenishing it as per changing demands. Any breach in your supply chain can result in big losses, not only in monetary terms, but also in the loss of loyal customers -- present and potential. Maintaining A Safe Level of Stocks: Maintaining safety stocks are a complicated issue. Running out of stocks in certain circumstances can be back-breaking for your company. Therefore, companies tend to overstock sometimes, which can also become a burden, as they consume warehouse space, and ultimately lead to higher holding costs. So, to strike a right balance in the level of inventory you maintain is of utmost importance. In the end, if your inventory problems persist, you may have to go in for distress sales, clearance sales, or even returning the product to the suppliers. Single- And Multi-Level Inventory Control: Single-level inventory optimization is as important as multi-level optimization in such a business model. Single-level inventory control concentrates on inventory management for a single channel in your supply network. Multi-level inventory control takes a more holistic approach which concentrates on inventory levels across your whole sales network. Small companies would obviously function on a single-level inventory optimization model. As the business grows and more tiers are added, inventory management becomes more and more complicated and difficult to manage. This is where multi-channel inventory management software comes in, as it can solve most of these logistic problems of maintaining optimum stock at various points. The Importance of Returns Policy: If you have a proper returns policy in place, it will make your customers feel confident in repeatedly buying from you. If some customer happens to receive a product in a damaged condition or not as per the specifications they had ordered, they should be able to return it and get the desired product within least amount of time. Surveys have found that roughly 30% of online-ordered products are returned, in comparison to nearly 9% for brick-and-mortar purchases. So, when you are operating on both channels, it is important for you to know that the same survey also indicated that more people are likely to make their purchases online if they are confident that their returns will be accepted without any hassles. However, returns also have a direct impact on your inventory levels, and therefore you have to demand quality from your suppliers, as well as wisely choose your shipping partners, and only deal with those who are reliable. The bottom-line is that a flexible and transparent returns policy creates trust in your customer base, which in turn leads to higher purchases, loyal customers, and sustainably profitable business. Multi-Level Inventory Optimization : When you are operating your business on a multi-tier system, you have to maintain your inventory adequately at every level in your supply and delivery chain. This makes coordination between all points in your business all the more important, as even a slight deviation from the inventory levels can cost you a great deal. You will need to follow what is called the multi-echelon inventory optimization (MEIO) system that ensures interoperability at every point in your supply and distribution network. There are two ways of achieving your MEIO targets: Firstly, you will have to optimize on a geographic basis, which would involve infrastructure facilities, labor and inventory management. Secondly, you will have to take a tactical view of your business, which would involve aligning all your operational processes, and also analyze your data with the metrics and targets you have set. To Sum Up…The solution for all these inventory management problems of multi-channel retailers is to integrate all your operations with an order management software that provides a suite of tools for each of your order management needs. |
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