Avoiding overstock on declining trends: a case study in retail
The context: forecasting future demand to prepare product assortments
The plaid coat had been a best-selling trend last winter. Plaid was one of the hit trends of the last year, and had spread over the mass market. Our client was a regional merchandiser for a fast-fashion brand, he had to decide on the product assortment for his region during showroom buying, and he was not confident in investing as much in plaid coats as last year. He was wondering what would be the level of demand in the market he was in charge of in 6 months, in order to adapt the depth & the width of the offer for this style.
The challenge: find the right level of stock