The fundamental structure of the fashion industry has always been based on the fact that brands produce the majority of goods only after retailers have placed their preorders. This means that the risk of actually selling the goods was mainly lying on the retail side, with the exception of concession areas and various other cooperation models. However, like in so many other areas of the industry, there is currently a major change taking place. We are observing a gradual shift of risk from retailers to suppliers – meaning; retailers only want to buy the goods they really need and are able to sell, instead of placing the entire order months in advance. This is where in-season-management comes into play.
In-Season Management as an opportunity for the industry
Many brands are rather skeptical about this change and regard the shift as problematic. However, this is not the case when doing efficient in-season-management. This phase of the order cycle is becoming increasingly important. With good in-season-management the “risk” on the supplier side gets turned into a great opportunity. Therefore, Fashion Cloud offers various digital solutions for efficient in-season-management. Starting with digital reorder via the web platform, on to automated reorder recommendations and direct reorder of individual items on the shop floor – there are numerous use cases in which targeted in-season management is of great benefit.
Order recommendations via the Fashion Cloud platform
Since the beginning of 2020, in addition to the exchange of marketing material and product data, the Fashion Cloud web platform also enables digital order placement. A clear highlight on the brand side is the reorder recommendations feature. Sales managers use a dashboard on the platform to analyze retailers’ inventories. This allows them to identify demands and send individual reorder recommendations to their retailers. Retailers review the recommendations, maybe slightly adjust them to their needs, click on confirm – and just like that, the order is initiated. For NOS articles, these recommendations can even be sent out completely automated. The intelligent order system recognizes the missing socks and generates a reorder automatically. So far, the automated recommendations feature has been successfully introduced to the BeNeLux market, for the DACH market the launch will follow shortly. Participating brands have already been able to increase their sales by up to 20%.
No individual out-of-stock situation remains unsolved
Despite intelligent order solutions that are designed to identify demands on time, perfect merchandise management will probably never be possible. Clara, the sales assistant-app from Fashion Cloud, represents the perfect solution for this. With Clara, missing articles are directly reordered during a sales conversation and arrive in the store within 2-3 days. Participating retailers report additional sales of 5% thanks to the Clara app.
Are you also looking for intelligent order solutions to make your in-season-management more efficient? Feel free to contact us for more information, we are looking forward to talking to you about our order solutions.