One of the ways in monitoring your competitors is to review their assortment mix strategy. Periodic and timely review of your assortment mix strategy against the market is important to uncover demand opportunities and to ensure you are producing the right products for the right customers.
Learn how to review your competitors’ assortment mix strategy by following a few simple steps using the Omnilytics dashboard.
Step 1: Establish the goal of the comparison
There are multiple analysis tabs and cards within the Omnilytics Competitor Benchmarking module. Therefore, it is important to start by establishing your intention for reviewing your competitors’ assortment mix.
To begin your analysis, you can start by Overview level or choose to drill down analyses on either
(i) Retailer level
(ii) Product level
Each of the options within the dropdown menu represents a different analysis. You can access the Support Centre article here to learn more about each of these analyses and its key takeaways.
We have selected “Product Analysis: Category Composition” to illustrate this example.
Step 2: Set the date range
The review is usually done on a periodical basis. Depending on the goal of the analysis, we recommend reviewing it on monthly or quarterly intervals to monitor category movements.
Click into the first filter at the top right corner to access the date range filter. The default date range is set for the last 90 days but you may change the timeline according to the timeline of your choice or based on seasonality. Typically, retailers select between 3-6 months when reviewing the assortment mix. In this example, we will limit the finding to the last three months.
Step 3: Analyse brands/retailers’ assortment mix selection
From this card, you will be able to compare the difference in the assortment mix between all the selected retailers/brands. In this example, we have chosen to monitor Missguided, Boohoo, Pretty Little Thing from the United Kingdom market.
For the purpose of this analysis, pay attention to the top three to five categories of each retailer/brand to identify the main categories being catered to meet market demand. Here, we can observe that dresses, tops, and outerwear are the top three categories being offered across these competitors, indicating strong demand for their collective target customer audience.
But before a decision is made, further analysis should be done on the individual category level to ascertain a clearer picture of their performance.
It is important to analyse category performance to validate category opportunities in the market. The categories in an assortment mix should vary according to the seasons. For example, if it was taken from winter, one of the largest categories would be outerwear. Buyers typically set a top: bottom: dress ratio in their assortment plan based on historical sales information for each category. You can change the timeline according to each season to see how the assortment mix changes.
You can also filter down to subcategories to understand the different styles of products offered. Under their biggest category which is Tops, you can see which style is being stocked the most. This should give a deeper understanding of how the retailer spreads their assortment by gender, categories, subcategories/styles.
Understanding the strengths of your assortment and the assortment offerings of your competitors is important to take advantage of the gaps and opportunities in the market. Identifying missing opportunities would not only help to effectively plan an assortment mix strategy and improve your brand’s market share.
Hope you found this article helpful! If you have any questions or would like to explore the Omnilytics dashboard further, feel free to reach out to your respective Client Success Manager.