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If we were about to describe the fashion business in one
word we would certainly choose the word "Dynamic".
Fashion is definitely the most dynamic retail environment.
Most of products are not replenishable. New products appear
every season. Most of the new products are not a substitution
for an existing product. They come in new styles and colors.
Every style and color is offered in multiple sizes.
Many products in fashion are seasonal and have a short life
cycle. Moreover, fashion products react differently on price
changes and on promotions. While demand for some products
immediately increases with 20% markdown, others would not
be as responsive even to a 40% discount.
When making a seasonal buy in advance, it makes it difficult
to find the best compromise between the assortment depth and
diversity, and a big portion of the fashion products have
very sporadic sales.
All this makes it very difficult to forecast demand and optimally
plan sales, margins and inventory targets.
Dynamic environment requires dynamic decisions - the best
decisions are made at a real time based on the behavior of
the products in all your stores.
So if you have 100 stores and 500 styles in a few colors
and several sizes you better be able to make millions of decisions
on the constant basis in a constantly changing dynamic environment.
Tough decisions.
You must react fast to competition and e-competition, market
shifts, and other macro-environmental factors; additionally
you must recognize early signals of increasing demand and
slow-downs in sales.
Your ultimate goal is to allocate the merchandize to where
the demand would be and price it so it would bring maximum
gross margin and sell the inventory by end of the season to
free-up shelves and budgets for new merchandise.
These decisions are so important; it would be irresponsible
to leave it to guesswork.
A lot of challenges. One solution. Retalon solution for intelligent
retailing.
Built specifically for your environment. Accounts for your
desires and policies. Delivers the maximum possible return
on your investment in inventory.The solution that is essential
to have in fashion business.
Fashion Essentials from Retalon.
"Without it, you're naked."
price management blog:http://www.retailpricemanagement.blogspot.com/
inventory management blog: http://www.inventorymanagementsolutions.blogspot.com/
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