Fashion professionals have acknowledged the importance of data in improving their sales, consumer targeting, and profitability. According to studies, nearly 85% of luxury brands’ sales come from customers registered in their database. With analytics, luxury fashion brands can now connect and identify with their affluent customers, thoroughly understand their purchase behaviors and lifestyle, and build long-lasting relationships. In this article at McKinsey, Sandrine Devillard, Holger Harreis, Nicholas Landry, and Carlos Sanchez Altable explain how fashion data helps leading firms gain market share and create lasting value.
With the Rise of Fashion Data, Industry Will Never Be the Same
“Fashion and luxury companies that have integrated data into their planning, merchandising, and supply-chain processes have seen tangible results,” say the authors. Furthermore, information-driven decisions around store optimization and stocks have helped fashion companies boost their sales by 10 percent. Industry experts believe fashion data has enabled luxury brands to offer personalized content and connect with customers.
How Can Leaders Integrate Data Analytics in Business Strategy?
Successful luxury fashion brands often start with small, focused projects with a clearly defined scope. For example, utilizing data to learn and improve the conversion rate of items in customers’ shopping carts can help business leaders measure the brands’ success.
Here are some techniques to start a focused fashion data:
- Collect inputs from customer feedback, social media, and sales and retail departments.
- Leverage data analytics tools, techniques, and services to gather more information about pricing techniques, customer needs, target audience, geographics, and trends.
- Set achievable targets for each project and measure its return on investment and success.
- Improve day-to-day processes such as supply chain, sales, customer experience, and store layout with available information.
Since luxury buyers want a premium experience throughout their purchasing process, companies must now move beyond being digital aware. Fashion and luxury industries must drive change and digitally transform their enterprises by embracing new technologies. To read the original article, click on https://www.mckinsey.com/industries/retail/our-insights/jumpstarting-value-creation-with-data-and-analytics-in-fashion-and-luxury.