Fashion Retail Analytics: Shaping the Way Businesses Take Informed Decisions

1. Fashion Retail Analytics: Shaping the Way Businesses Take Informed Decisions Technology has enhanced the overall customer experience. Consequently, leading fashion houses are looking at various ways to use emerging analytical technologies in fashion retail. For instance, fashion giant Zara has a data processing centre which is open 24/7 in addition to a team of designers who design clothes. Most retailers struggle with limited supply, which is due to the time passed between order and distribution. Zara resolved this issue by adopting a data-driven supply chain management. Instead of ordering in bulk, Zara orders a small quantity of merchandise. Once this merchandise hit the stores, they gather sales data and examine each Stock Keeping Unit’s sales against the supply. This helped them keep only an optimum amount of merchandise in their stores while ensuring that the sales are not reduced. These clothing chains are increasingly relying on fashion retail analytics solutions to keep pace with the trends and client needs. In addition to making sure a short turnaround time from ramp to stores - retailers must also price the items appropriately and know when to lower them, stock enough of the right colors, styles, sizes, and fabrics and ensure that their stores are well stocked and operate efficiently. Here are some ways data analytics for fashion is shaping the way retailers are making informed decisions: •Upselling and cross-selling through personalization: With advancements in technology combined with the flood of data, firms across verticals are leveraging low-cost technologies to examine large amounts of customer data, comprehend patterns and personalize their offers to customers thereby out-thinking and out-doing the competition. •IoT devices in the fitness segment: Health and wellness have become a fashionable choice for several people, especially with the introduction of wearables. Smart technology today is being incorporated into sportswear, clothing, trackers, and shoes. When the information gained from these sensors is combined with contextual data retailers will gain useful and interesting insights. •Manage seasonal fluctuations: Fashion retailers struggle to capitalize on unexpected opportunities and seasonal fluctuations. With real-time insights, fashion retailers can cut seasonal cycles to fulfil changing customer preferences. This can negate irregularities in customer demand and lower losses. Through analytics, fashion retailers can gain flexibility in their responsiveness. Greater precision can be also be enabled through modern analytics solutions. •Predicting future trends of fashion styles: With analytics, retailers can aggregate sales data and fashion trends from different sources globally and make it accessible in real-time – across women’s wear, menswear, accessories, and children’s apparel. Additionally, with the ability to combine external and internal data sources, users get access to the context that eventually leads to better decisions.

2. In addition to trends in pricing and assortment, fashion retailers must stay on top of the forces that are influencing customer shopping experience. Visual search is one major trend in retail now that naturally suits how people approach their shopping experience. Customers often do not know how to lucidly articulate what they wish to have, and it can be hard to do so without an actual image. In the past, data analytics was used to analyze sales information. However, today one major aspect which has changed is the way data is available, in the form of apps, social media sites, and other online websites and the amount of data available from non-sales sources. Retailers today are even using programs that mimic the functions of the human brain and stimulate the thought process to learn more about what customers may want. Even a two-week jump on trend prediction can prove to be valuable for retailers in this extremely competitive industry. Data analytics can also help improve the management and design of department stores and shops.