Challenges And Solutions
Markdown And Inventory
Markdown is one of the undesirable effects of the gap in supply and demand caused by mismatches in either the quality of product selection or the quantity. A prudent way to reduce markdown is by addressing both the assortment decision and the quantity decision. Stylumia customers are able to reduce markdown by discovering winning product ideas, validating their own ideas and getting their product selection consumer-right. They also get their future selection graded and predict demand at style color level.
Using traditional retail intelligence techniques, unwanted retail inventory arises in fashion retail from two key mismatches. First one is choosing designs that do not match with the consumer taste. Second is making more than what the consumer demand is for a particular style. This calls for addressing the quality of selection and the quantity bets placed on styles to reduce inventory. Our customers are able to forecast both quality and quantity to reduce inventory in a laser-sharp fashion using a suite of Stylumia solutions.