When it comes to deciding what product to buy or develop, how much, and when and where to allocate it, old business practices and complex technologies are limiting the speed and accuracy with which decisions can now be made.
All too often, brands and retailers rely on antiquated tools, ad hoc analysis and instinct to make critical assortment and inventory decisions. The resultant delays translate into lost sales, markdowns, devaluation of global brands, and higher COGS and SG&A. Reimagining merchandising brings HD clarity and speed to these critical actions.
Buyers and planners need a simpler way to understand their consumers’ demands and react to them faster. The answer? High-Definition Merchandising: the combination of consumer-centric business process and next-generation analytics that enables the modern merchant to make sharper, faster decisions required to respond to heightened consumer demand and thrive in today’s omnichannel world.
HD MERCHANDISING IS TO MERCHANTS WHAT THE SMARTPHONE IS TO CONSUMERS
High-Definition Merchandising combines new technologies with innovative ways of identifying actionable insights across consumer, channel, location and product dimensions and then communicating across stakeholders to take action in real time.
Kurt Salmon applies its 80-plus years of retail experience to help retailers and brands identify specific strategy, operations and technology opportunities and to successfully design and implement merchandising and planning process, organization and technology solutions that help them meet today’s heightened consumer demands.
We are partnering with technology providers and retailers to bring HD Merchandising solutions to life that provide merchants and business partners the ability to:
Visualize Products. Product images—not numerical codes—are tied to performance data so stakeholders can literally see each item and how it did or will perform in various contexts.
Guide Decisions. Data mining and automated and predictive analyses provide real-time actionable insights across consumer, channel, location and product dimensions so timely decisions are made.
Virtually Interact with Products. Dynamic, data-linked images eliminate the need to scroll through spreadsheets for statistics. Drag-and-drop images let merchants digitally manipulate assortment plans until an optimal product and financial mix is achieved.
Connect. Taking assortment planning, line reviews, business reviews and style-outs digital enables better collaboration, trend sharing and identification of cross-merchandising opportunities across geographies and functions. Internal and external crowdsourcing of product feedback reduces the odds of product “misses” and helps deliver more of the products consumers want.
Like the smartphone with consumers, HD Merchandising will become common-place with retailers and brands; those who wait to embrace it will see competitors stealing market share as consumers become even more accustomed to getting more of the product they want, where and when they want it.
SIDEBAR: UP TO 40% FASTER AND MORE PROFITABLE
A leading global apparel brand could not react quickly enough to consumer preference shifts, thus markdowns were deep and frequent. Kurt Salmon helped them drastically reduce lead times, but the brand could not convince retail partners to rebuy trending apparel. Sales were lost every week that orders were delayed.
Kurt Salmon and the brand then deployed HD Merchandising. Within a year, the more visual, guided, interactive and connected approach led to a 40% reduction in the lead time for the brand to confirm the retailer’s rebuy orders, 15% fewer hard markdowns and a 20% increase in inventory productivity.
SIDEBAR: CREATION THROUGH COLLABORATION
Kurt Salmon defined the vision and has since co-designed and piloted HD Merchandising with leading global brands, retailers and technology providers. Our approach to implementing HD Merchandising is collaborative. We bring our retail best-practice knowledge and experience to the table and work together with technology providers and retailers/brands to tailor, pilot and implement HD Merchandising—revolutionizing process, organization and tools.