Deciding on what products to carry that will appeal to your consumers and drive conversion is one of the vital decisions that drives successful retailing. Merchants get their cues or signals from a myriad sources … vendors, blogs, field trips, competitor sites, etc.
With the rise of the digital consumer several merchants have begun spending time researching on the internet to find out what’s hot, what is likely to appeal to their target customer? This research is often manual, not exhaustive, not comprehensive and not undertaken systematically. Could there be a better way? With the explosion of democratic data and new analytics tools could merchants leverage these e-demand signals to drive better assortment decisions?
We strongly believe there is a better way that can “aid” merchants in their decision making. Here’s an example …
Recently, I was required to help the bar cabinets merchandising team of a leading US premium furniture retailer. As you all would figure, this category is one dominated by private label, curated products. After understanding the categories, and attributes, we uncovered patterns from some e-demand signals like search, product reviews and ratings, social signals, etc. to recommended some very meaningful and actionable insights that helped our client drive specific decisions.
Bar cabinets are grouped in various categories / styles (see image)
The analysis uncovered (see chart) "expandable bar cabinets" as by far the most popular bar cabinet. So if you are furniture retailer and carry bar cabinets, make sure you carry this style.
We uncovered several more interesting insights, which I have covered in my next post. Cheers …
Savino Lobo is an AVP at Ugam and is part of its retail analytics solutions team and oversees the assortment intelligence solution. He is passionate about leveraging democratic data to help retailers make better assortment decisions. Savino has over 12 years of experience developing research and analytics solutions. Outside of work, Savino enjoys traveling and trying cuisines from around the world besides spending time with his twin 3 year old boys.