Fashion retail: leverage data to successfully improve sales
This blog post was originally written by Emily Steegstra, Fashion Industry Specialist at K3 Business Technologies, for K3's partner Hitachi Solutions France.
In a fiercely competitive sector, the challenge is to capture consumers by using all possible means. By carefully exploiting data and intelligent tools, unprecedented growth is possible.
A centralized ERP or nothing!
The world of fashion is no exception to this rule: declutter! It is impossible for online sales to be governed by a single system, inventory by another method, or for logistics to utilize just its own tools. So, how can you get a 360° overview of your business and a guarantee of growth and effective performance? It is essential that all data from all participants in the chain, right up to the final consumer, flows through a dedicated ERP and integrated PLM (Product Lifecycle Management) software. A single source of information that adapts its actions to the needs of the fashion industry.
Keeping an eye on sales to plan and produce better
Having centralised purchase information from a single tool is an invaluable aid at the pre-sales stage. It acts as a test of a collection’s popularity. Which items sell well? Where are the best sales made? With this data, we can adjust planning and launch products that follow trends as closely as possible.
And that’s how managing seasonal collections becomes (almost) child’s play. Businesses produce more successful pieces, limit the number of unpopular items, remove colours or add sizes... Ditto for the NOOS (never out of stock) items; with the sales analysis for these basics, restocking is guaranteed so we never run out of essentials.
Total stock visibility for a consistent distribution process
Can one hope to make good sales without knowing the exact state of one’s stock? The answer is no. RFID (Radio Frequency Identification) tags for each item are central to ERP providing complete, real-time visibility.
Each item can be tracked from its place of production, through the warehouse and on to the stores. Thanks to this information, multiple shopping experiences can be offered to the consumer, whether they shop in-store, online or whether they prefer to click and collect. Does my store have the desired item? Which is the nearest store for purchasing this item? Which is the most appropriate warehouse for distributing a web order quickly?
Distribution is flawless thanks to impeccable inventory and communications system. You can even balance stock between stores to focus on successful locations.
Fluidity, flexibility, more sales and customer satisfaction are the key!
The end of a season is no longer a problem
Thanks to centralised data, you always know where you stand with your inventory. At the end of the season this facilitates the automatic return of unsold items to a central warehouse, or the transfer of items to stores and other outlets where they are more likely to be sold. Proof that sales can be optimized right up to the final point.