Is there such a thing as knowing your consumer “too” well? With the advancement of Artificial Intelligence, technology is transforming every human action into a source of information. This information is known as data insights.
Every single consumer interaction has now become a data source.
Still, as BoF rightly stated, the fashion industry is becoming overwhelmed by the amount of data available. Managing and interpreting all the data can feel like “too much of a good thing.”
Without the right strategy, data can remain as just pretty numbers. Nonetheless, the retailers who have invested resources into strategically using this vast source of information are being richly rewarded.
If technology continues at this rhythm, the industry will have infinite forms of utilising data. But as of today, one of the principal benefits is assortment planning.
Left: Victoria Beckham Fall 23
This article explores how brands and data teams can leverage Heuritech predictive trend data and seize all the benefits of a data-driven mindset based on three fundamental principles: empower, integrate, and accelerate.
Empower: Reduce Uncertainty with Data-Driven Insights
Ultimately, even with its creative nature, the fashion industry is a business like any other, with its success depending on smart decisions.
Right: Data from Heuritech’s market insights platform
Data is the ultimate tool to combat uncertainty in the fashion industry.
Relying on data became the sweet spot between creativity and business-oriented decisions. For instance, providing your collection teams with Heuritech’s data insights on more than 2000 trends in diverse markets nurtures more straightforward decision-making relying on solid facts rather than just gut instinct.
An example of how Heuritech data can be utilised was demonstrated for FW20 by the brand Wolverine. By leveraging Heuritech’s data, the brand launched a new colour combination on an existing shape in just 90 days, making it a successful Christmas capsule launch.
Looking at the Winter 2020 season predictive data, Heuritech’s experts spotted the top five growing colours for boots and sneakers. Based on these insights, the design team designed the suggested styles in 3D to adapt the colour ways to the fabric and shape of the line.
The selected colour way, named Windsurfer, outperformed all existing colours, including black, with a 100% sell-through in just ten days, with 70% of consumers being first-timers for the brand.
This level of market awareness empowers creators with a solid ground for experimentation, backing up their intuition and confirming whether betting on a trend is the right move for their consumers. And for merchandisers and buyers, a successful trend means high demand, resulting in the ultimate goal: sell-through.
Forecast market demand through consumer data
Integrate: Enhance Forecasting and Pricing Models with Comprehensive Data
In addition to empowering collection teams and their creativity, brands can enhance their forecasting models by integrating an extra layer of data from predictive trend insights. This can provide a full-picture view of consumer demand, enabling brands to forecast sales better, optimise inventory levels, and reduce overstock or stockouts.
And what’s better than going directly to the source? Social media is a mine rich with consumer data related to their behaviours, both past and future. Platforms such as Instagram, Weibo and TikTok are now the number one place where consumers interact with brands and seek inspiration.
With predictive trend insights, data analysts can enhance their internal data by incorporating a layer of external data obtained directly from social media, where consumers express themselves.
Right: Data from Heuritech’s market insights platform
Heuritech understands the power of this and analyses social media through artificial intelligence to provide data-backed market insights, coming directly from the source: the consumers themselves.
By integrating Heuritech’s predictive trend data into their forecasting models, brands can make more accurate predictions about which products are likely to perform well and which may face challenges in the market and adjust their inventory levels.
The right pricing matters.
Furthermore, predictive trend data can provide insights into purchasing behaviours and price sensitivity. Brands’ data teams can leverage this data to optimise their pricing and promotion strategies.
For example, if the data indicates that consumers are more price-sensitive for a particular product, brands can adjust their pricing strategy accordingly to attract price-conscious consumers. Similarly, if the data suggests that certain products are in high demand at specific times, brands can strategically plan promotions or discounts to drive sales and clear inventory.
Left: Data from Heuritech’s market insights platform
Data also provides geographic specifications.
Temperature, weather forecasts, special cultural gatherings, holidays, etc., can drastically affect consumer behaviours from one market to another. Katia Walsh, Levi’s senior vice president and artificial intelligence officer, stated that the slight temperature differential between Rome and Milan, often of just one degree, is enough to affect shopping behaviour in those cities.
Furthermore, with the help of its predictive demand data, Heuritech’s fashion experts are able to differentiate and analyse trends based not only on climate changes but also on cultural events.
Global brands face the challenge of accommodating assortments relevant to each consumer segment; this means catering to diverse cultural and economic nuances. Achieving this requires a strategic balance between offering various options that resonate with local consumers while maintaining a cohesive brand identity.
It is not the same consumer behaviour for U.S. retailers during Thanksgiving festivities as for retailers based in other countries. But, graduation season may not vary so much between markets. Understanding these differentiations is vital for accurate promotion and pricing strategies and succeeding in diversified markets, and this deep level of demand planning is only possible with the help of data.
Accelerate: Embrace AI Across The Value Chain
As a data analyst, you already know the value of data-driven decision-making. However, for a fashion company to truly harness the power of data, it’s essential to foster a data-driven mindset in all teams across the entire value chain.
This means building a culture where everyone, from designers to marketers to supply chain managers understand the importance of data and uses it to inform their decisions.
When all teams work with a data-driven mindset, it becomes easier to identify patterns, make predictions, and respond to trends in real time.
Ultimately, fostering a data-driven mindset across the entire value chain can lead to significant cost savings and increased profitability over time.
Right: Data from Heuritech’s market insights platform
However, only some teams are already accustomed to this mindset. In order to achieve this, data analysts within fashion companies need to invest in their team’s data analysis skills and make this data accessible to all.
Heuritech’s predictive trend platform provides access to data insights that are easy to interpret and use, improving collaboration between teams and fostering a culture of innovation and experimentation.
By making data accessible, companies can ensure all employees can leverage the information they need to make informed decisions.
In conclusion, Heuritech’s predictive trend data can be a powerful tool for brands in the fashion industry to build a better product assortment and seize all the benefits of a data-driven mindset.
By empowering collection and data teams with data-driven insights, integrating predictive trend data into forecasting models, and accelerating their AI capabilities across the value chain, brands can optimise their product assortment, reduce uncertainty, and stay ahead of the competition in today’s dynamic fashion market.
Left: Chloé Fall 2023
Heuritech demand forecasting solution utilises market and consumer data to assist brands in producing only what is needed. Our data provides precise predictions and quantifications of what consumers will wear next, significantly enhancing sell-through.
Getting results with AI can be challenging and labour-intensive. Nevertheless, investing resources in data-driven strategies is more critical than ever as these technologies continue to get more advanced every time, and their advantages also continue to grow.
