Reviewing your competitor’s trade performance year on year allows you to have a quick understanding of your competitors business and changes in its positioning in the market. It also acts as a benchmark for your brand to compare to and spot business opportunities.
Learn how to analyse your competitors trade performance year on year using the Monitoring Competition and Spot Opportunities use case available in the Trade Insights Dashboard.
Step 1: Select brands and date range
The first step is to click on the Start Here button under the “Monitor Competitions & Sport Opportunities” use case.
Follow the guide by filtering to your selected market, brand and competitor, gender and date range. It is important that you select your set of filters in relevance to your analysis goal at the start of the analysis. For this example, we have selected Pretty Little Thing and Missguided in the United States.
When selecting the date range, remember to select “Previous Year” under the “Compare To” function. It will then automatically filter the same date range that you have selected but in the previous year. For instance, we have selected July to December 2020 and would like to compare it with the performance of July to December 2019.
Step 2. Analyse trade performance.
As shown in the trade movement chart, the total products for both brands combined increased by 18% with Pretty LittleThing’s total product count increasing by 41% compared to last year. While the combined sell-out rate increased by 56%. Now, it is important to understand what drove the growth of sell-out rate for the respective brands.
Step 3: Brand analysis
Looking at the performance for each brand, the total sell-out rate for Pretty Little Thing in the current year is at 70% with 90% contribution from discounted products. Missguided on the other hand registered a slightly lower sell-out rate at 65% with a similar contribution of sell-out by discounted product. This indicates to us that both brand’s performance in 2020 were highly reliant on discount.
Next step is to understand the sell-out performance for both brand in the previous year. Duplicate the same tab but change the date range to July to December 2019 instead.
As shown below, both Pretty Little Thing and Missguided registered a lower sell-out in 2019 at 50% and 56% compared to 2020. Additionally, sell-out contribution by discounted products are 81% for Pretty Litte Things and 85% for Miss guided.
With the brands’ sell-out information gathered from 2020 and 2019, it highlights to us that the sell-out growth is mainly due to the fact that more products were also sold at discount.
Step 4: Analyse category performance
In the below chart, Tops registered a 279% increase in products sold at full-price for Pretty Little Things. For Missguided, Dresses is the top category though there was no growth.
Then click on the expand icon next to tops to analyse subcategories performance. Pretty Little Things tops were highly driven by crop tops with a 39% contribution and a growth of 451%. This indicates crop top is doing well for Pretty Little Thing. Click into crop tops to view the product list.
Based on the visuals, it looks like grayscaled products are most popular for crop tops.
In conclusion, both Pretty Little Things and Missguided had a growth in sell-out in 2020 because more products were sold at discounted. Then diving down into Pretty Little Thing full-price trade in 2020, tops were a core contributor with great acceptance for crop tops.
With the insights gathered from such analysis, you would have a better gauge of whether your competitors are facing business growth or challenges surviving in this volatile market. Such analysis also provides you with a gateway to understanding their business strategy whether they are focusing on a full price or discount business model.
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.