The Category Contribution card on Competitor Benchmarking allows you to compare the category allocation between retailers and how are they performing against each other. Analysing brands or retailers’ category contribution helps you to optimise your stock mix and capture potential categories in the market. Here’s how you can easily analyse the category contribution.
Step 1: Compare category contribution between retailers
Focus on the overall category allocation by retailers or brands in the market. The category contribution allows you to identify the differences of category allocation by brands or retailers in the market. In this example, we have selected the category Tops and Outerwear to compare. From here, we can see that Zara, Mango & H&M stocked up most on Tops as compared to Outerwear in the last 3 months.
Recommendation: Select 2 or more of the top categories by each brand or retailer to compare the differences of the stock allocation.
Step 2: Deep dive into subcategory contribution
To deep dive further on the contribution of subcategories for each category, click on the expanding on the “+” button to further analyse the difference in key contribution for each retailer.
You can identify the different subcategories that brands are betting on. For instance, we can see the second top subcategory for H&M is blouse, whereas T-shirts are the second top subcategory for the brand Mango & Zara. From here,
Step 3: Analyse category/subcategories performance
The category contribution also allows you to monitor the sell-out rate and the sell-out contributions of the category or subcategories to identify if there is any potential category worth to invest more. The sell-out contributions help to further validate the performance of the respective category. From here, we can see that Knitwear & Sweats on H&M saw a potential with a positive sell-out contribution at 73% higher than the product contribution at 66%.
Recommendation: Once you have established the potential category analysed using market insight, remember to cross analyse the performance of the potential category against your internal performance of that category, to assess how much you should be investing in that particular category. This is to ensure you are investing in the right category in line with your brand alignment.
Analysing the category contribution of brands or retailers allows you to further understand the differences of category mix offered by different key players in the market. Validating the performance of these categories or subcategories is now imperative than ever to ensure you are able to determine the potential categories with significant demand in the market. With a data-driven approach, you will be able to plan for an appropriate category mix for your brands in line with the market demands.