Why Digital Assortment Planning is Key To Retail Success
A few centuries ago, shopping and retail environment were totally different. Back then assortment planning was not that much complex. By every passing day, we are seeing innovation in almost everything. Same happened with the retailing department as well. Today it’s an era of e-commerce and people are now more focused to buy things across the border. Products are now being divided geographically and it brings a lot of complexity for all the retailers across the globe. If you are one of them and you are really worried about your business then please don’t. I am here to solve your issues by proving you some tips on digital assorting planning.
Digital Assortment Planning
Digital assortment planning is key to retail success. Its better solution, that provides better ideas and better assortment procedure that makes retailers work much easier. It doesn’t mean that the old spreadsheet and manual process is excluded, there still are many companies who work on the same method. But for sure it’s really difficult for them to expand their business and to divide products geographically in their stores. So everyone lets have a look at key factors of assortment planning.
So let’s start with the key factors that retailers need to keep in mind before dividing the products in different stores geographically. These key factors include Brand identity, its price range, category, and latest market trends. The information related to key factors help them out in knowing what products are popular among the customers and they want to buy them the most. The most important thing for any retailer is to know what the latest market trends are. As the market trends do show variations every now and then.
If you want to see the examples of website that has proper assortment planning team and they work perfectly. You can see well manages websites of Zara, Amazon.com etc. they have proper categories that have a perfect product mix according to the latest market trends and customers demands. See the figure below as an example
Digital Assortment Solution (DAS):
DAS (Digital Assortment solution) is designed that opens ups now ideas in the retailing environment. It is highly advantage-able for the retailers it provides new analytics, and flexibility. DAS includes seven key points in assortment planning that re clearly shown in the figure below.
This figure might help you to understand all these factors easily and how each factor is important and they influence each other.
3 Steps of Assortment Planning:
Well, Assortment planning process includes three important steps. Let’s have a look at them
- Assortment Optimization.
- SKU realization
- SKU Productivity.
Assortment optimization: Assortment optimization refers to proper measures of all the groups and the assortment together. These measurements further lead toward stores and merchandise planning. If your measurements are accurate of course you will end up having the best assortment planning. A little mistake in these measures can lead you towards more complexities. So be very careful through this process. As it is base of the whole digital assortment planning process.
SKU rationalization: It is the next and of course the important step. This step refers to the most important step in building an assortment.
SKU productivity: Moving towards the third and the last step of assortment planning. It is SKU productivity. This step basically measures the accuracy of the above two steps. This process involves different financial, analytical, strategic and customer experience expectations. In my point of view, this is a very sensitive step and it needs special expertise.
Final words: Why Digital Assortment Planning Is Key To Retail Success
So, in short, I can say that with new and better retail ideas, now retailers and brands can perform an investigation of items, their incomes and execution measurements in a more appropriate way. No matter how you look at it, just as item classes, to utilize the most recent data for future item dispatches. It’s an extraordinary help for spotting developing patterns before any competition and benefiting from the newly discovered upper hand.
That’s is all from my side. Please do let me know if this article is helpful for you. In case of any queries feel free to ask in the comment section.