By Matt Laukaitis, SAP
Large retailers and consumer product manufacturers need to plan close to a year in advance when getting new fashion into markets. If fashion trends change during the planning cycle retailers historically don’t have the supply chain agility to get to market with new fashions or ideas in shortened cycles. For those brands still struggling with supply chain efficiencies or who feel disconnected from their consumers, now is the time to fix any breaks in the supply chain and manage the hundreds or thousands of locations and thousands of items at each location.
With consumers now fully in charge of what, when and where they will buy, retailers and manufacturers have been put in a reactive role. But it’s possible to move back to a proactive stance, using consumer sentiment and insights to drive what brands develop in the first place.
To test how well this works, SAP ran a social sentiment analysis to track global consumer conversations around the fashion trends they’re eager to see this summer season. Integrating these consumer insights into supply chain processes can help optimize product availability and costs and move the right products to distribution or retail locations at the moment when consumers will make online or in-store purchases.
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Here’s an exclusive look at the insights we found. Download the full report for the complete picture.
Build Loyalty By Listening
Whether they’re out on the town or just running errands this summer, consumers care about the materials they’re wearing. Our analysis shows that denim covers the globe. With almost double the percentage of mentions than any other material, denim has consumers around the world clamoring for any and all products made with the sturdy fabric.
On a regional level, denim is still a popular choice among central European consumers, but their top preference is fur and feathers.Aligning insights like these to the supply chain can create the optimal mix of products ready to launch this summer.
Align stock to distribution centers across regions accordingly to ensure the styles local customers seek are in stock. By sending the right products to the right markets, you’ll build customer loyalty and reduce inventory costs.
Respond Profitably To Demand Signals
Consumers are exploring fun graphics this summer season, and animal prints appear to be hugely popular right now. No matter which market, consumers are excited about taking a walk on the wild side this summer. What are they not interested in? Stripes and plaid, according to our social media analysis. In North America, exotic prints and floral patterns are other favorites, while consumers in central Europe are eager for floral prints and polka dots.
Understanding global consumer nuances when it comes to fashion trends can help you determine how best to distribute products. Insights into consumers’ global print preferences enable you to forecast more accurately and respond more quickly to demand signals, resulting in maximized sales and reduced costs.
Increase Customer Satisfaction By Planning For Demand
Footwear styles are even taking a new turn as consumers show off their kicks. The big trends in shoes? Leather, and boots and booties, even for summer. This held true around the world, according to our analysis of consumers’ social conversations. The outliers were Latin American consumers, who strongly favored lace-ups. Consumers aren’t chatting about a lot of these wilder trends we saw on the runways, such as chunky heels, T-straps, fringe, and animal and reptile prints, which proves when it comes to predicting fashion looks, retailers and brands need to listen to both fashion industry insiders and consumers.
Real-time insights into customer buying behaviors around the world can help brands put their best foot forward when it comes to offering consumers the styles they want. With an agile supply chain fueled by predictive analytics, you can manage inventory accurately across locations and optimize the entire supply chain network, from planning to order fulfillment.
Streamline Your Promotions For Success
Every season has its colors, and this summer, it appears black and white, blues, reds, and metallics are hot this summer. While North American consumers prefer black and white, those in the Greater China region are overwhelmingly embracing reds. Understanding the shifting shades of the season can help you optimize promotions, prices, and markdowns that are tailored to your customers’ preferences, helping increase inventory turnover and boost customer satisfaction.
Real-time analysis of consumer buying behaviors and attitudes is critical to keeping up with their increasing shopping demands and expectations. Comprehensive customer data combined with detailed supply chain information can help you anticipate demand and fine-tune your supply chain to find the best possible fit for every region you serve.
Matt Laukaitis is Senior Vice President and General Manager, U.S. Retail at SAP. His primary focus is on customer success and satisfaction across all aspects of SAP’s Retail business in the US. Matt has been a leader with SAP Retail for over a decade, and has worked hands-on as a strategic partner to SAP customers helping to solve their most critical retail business challenges from the start.
