Merchandising

Customer Focused Product Curation

  • Shift towards customer centricity when making purchasing decisions
    • Responsive merchandising seeks to understand and attend to a customer’s wants and needs (preferably in-real time)
    • Predict customer preferences and recalibrate recommendations to create a more personalised customer experience

  • A customer’s experience should be guided by their preferences:
    • For example, in the digital merchandising, artificial intelligence tools can collect data, learn, and instantly tailor product recommendations.  
    • This is facilitated with robust data insights generation beforehand (both online and offline data channels)

DATA ANALYTICS DRIVEN DECISION MAKING

  • Utilising insights from data analytics to guide informed decision-making:
    • Customer profiling: leveraging customer data to draw insights on purchasing behaviour and preferences
    • Category management: use of insights gathered from customer profiling to guide the curation of products
    • Pricing strategy: use of market trends and customer buying behaviour to determine and tweak pricing decisions

INTEGRATED, REAL-TIME SYSTEMS

  • Integrating with all internal systems, and ensuring that information across all systems are amalgamated and accessible through a single point

  • Examples of these systems may be the Customer Relationship Management (CRM) system, Inventory Management System (IMS), Warehouse Management System (WMS), Point-of-Sale (POS) system

  • Systems should comprise real-time functionality to ensure information reflected is accurate and up-to-date, such as inventory levels, in order for the merchandising team to enact effective purchasing decisions

  • An integrated system will create a more robust database to support data analytics activities, allowing insights to be synthesised across multiple points of view and avoid information silo

TECHNOLOGY-ENABLED MERCHANDISING

  • Utilising technology and systems to direct purchasing decisions and budget management

     

  • For instance, retail merchandising software tools can be used for inventory plans right and strike the correct balance between categories and assortments. It also helps in setting financial targets to which merchandisers and planners have to work towards, allows for the review of target achievement and creates open-to-buy budgets

     

  • Technology and systems are also key support structures to facilitate data analytics
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