The main takeaways from our Overstocked Webinar.
“We are coming back to a slightly different world. Sitting on stock, fewer customers, the need to convert our inventory more efficiently and improve bottom line margins.”
Stuart Rose, Chairman, Dressipi
At Dressipi we are holding a new series of webinars looking at how data and technology can help to solve some of fashion retailers’ biggest problems. Our first webinar focused on the issue of overstocked products. Stuart highlighted just how different the world of retail is as we come out of lockdown and stressed that it is now essential for retailers to optimize processes.
Due to store closures as a result of COVID-19, the overstocked product issue is particularly pertinent. However, regardless of COVID, every season’s requirement to shift clearance stock eats into retailers’ cash/profit. We estimate that clearance stock typically costs the UK fashion retailers £2.2bn a year but likely to cost £4.5bn in 2020. This is a lot of cash for an industry to lose!
This webinar outlined smarter, data-driven solutions for shifting overstock product. If you would like to watch a video of the webinar then please get in touch and we can send you a link. In the meantime, we have pulled out the 3 main takeaways:
1) Advances in Data Science and Machine Learning / AI Technology make the previously impossible possible
These advances allow retailers to clean, structure and process the huge volumes of data so that it is consistent and all in one place. Additional fashion specific data can be added to spot the patterns and trends so unique to this industry.
These models can be trained to respond in real-time which is more important than ever with rapidly changing consumer behavior and as we come in and out of lockdown.
This allows retailers to show a completely personalized edit to each customer with only garments they are likely to buy and keep. This includes personalized discounting which leads us onto our next point.
2) The clearance problem needs to be redefined as one of optimum distribution rather than blanket discounts to all customers
Due to the advances in Machine Learning and AI outlined in the point above, retailers can get a deeper understanding of each customer and product. This enables them to more effectively distribute products to customers to significantly improve the chances of a product being bought and kept.
A simple example is illustrated in the webinar, you can watch the video here.
Offering different products to different customers in each phase of discounting will increase the probability of purchase and have a huge impact on your contributed margin.
3) Dressipi has won an Innovate UK grant to accelerate fashion retailers’ access to these products
“Our primary objective is to maximise the cash for our retail partners to ensure their longevity.”
Sarah McVittie, Co-Founder, Dressipi
Dressipi is here to support fashion retailers and maximise their cash position. Our passion to solve the inefficiencies that exist in retail with better data and more robust models was evident throughout this webinar.
Innovate UK recognises us as one of the leading, cutting-edge technology companies in the UK and we welcome retailers to get in touch to see how we can help.
Thank you Stuart and Sarah for your thoughts on this topic and for giving us an inspiring webinar with takeaways that can be executed today.