In my last blog post, I outlined how expandable bar cabinets were by far the most popular with consumers and if you are a furniture retailer, you will want to carry this design.
When we studied the bar cabinets assortment across retailers, analysis of composition of the assortment by key attributes (like design, style, price & brand) revealed possible strategies being adopted and potential white spaces. For example consider the composition by design (see chart below)…
While Pottery Barn had a relatively large count of bar cabinets, they had a major white space as they didn’t carry a single expandable cabinet. Crate & Barrel on the other hand, had a high proportion of expandable bar cabinets but didn’t have any Home Bar Counters. Wayfair was the only one to carry all designs of bar counters, but while they had no white spaces, they were carrying several very similar products.
Even Crate & Barrel who was carrying the popular expandable cabinets Systematic Assortment Intelligencevariety had a ‘mini white space’ as they didn’t carry a smaller, more compact type of expandable bar cabinets (see image) – whose dimensions were much smaller and the product was at half the price larger expandable cabinets.
Of course, not all white spaces need to be plugged and merchants/buyers need to balance breadth with variety so that they have enough variety to appeal to their target consumers but not too much where they get stuck carrying items that don’t sell enough.
Systematic, comprehensive and timely competitive assortment intelligence can reveal possible ‘white spaces’ to guide smarter merchandizing decisions.
Next time… some more interesting insights.
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.