If you are looking for the right distribution channel to venture into, the Omnilytics Competitor Benchmarking module can help you to assess the performance of different distribution channels in the market. Learn how to identify the right platform with strong performance using these simple steps.
Step 1: Identify available distribution channels
Assuming you are a brand that sells denim, start by filtering for popular denim brands in the market to shortlist the brands with the largest stock. In this example, we selected Levi’s, J Brand and Calvin Klein Jeans. Immediately, we can see that Yoox, Farfetch, Selfridges & Co., The Outnet & House of Fraser are the top channels that carry these popular denim brands.
Step 2: Review the distribution channels
Once you have identified the top retailers, the next step is to analyse their performance to narrow down your options. To assess performance, expand the “Total Sell Out” chart to view the sell-out performance of the different retailers.
From here, identify the channel with a high sell-out rate at full price. In this example, Selfridges & Co shows strong performance for denim products as the sell-out rate is largely driven by full price. Jeans on Selfridges & Co performed well at full price at 74.72%, exceeding the sell-out rate for All Retailers at 68.30%. This indicates an opportunity to drive full price sell-outs for Jeans on this channel.
Step 3: Identify the pricing strategy of distribution channels
Understand how the pricing strategies differ on each distribution channel. From here, we can see that Selfridges & Co has a slightly higher median price than other channels with the majority of the products being offered at full price rather than on markdown.
Despite the high median price of GBP188.54, Jeans on Selfridges & Co was able to drive high sell-out at full price compared to other retailers. If your Denim products that fall within the median price at Selfridges & Co can be allocated to the channel to drive full price sell-out.
Identifying the right online distribution channel for your brand is crucial to ensure you are stocking the right products at the right sales channel. In turn, this will help maximise sales potential.
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.