Product assortment could be optimised by stocking the top categories relevant to your market demand. It is crucial to analyse the ongoing trend movement of categories to decide the key categories to venture into.

This helps to build a strong collection, which increases total brand profitability in the long run.  

In this example, the Trade Insights module is used to identify which trending categories to explore. 

Step 1: Select the ‘Validate Trend Performance’ use case

The first step is to click on the Start Here button under Validate Trend Performance. Follow the guide by filtering to your selected market, brand and competitor, gender and date range.

Step 2: Understand the trend overview by category

After selecting your desired filter set, proceed to “Trend overview by category” to analyse the category performance. 

The price status filter and stock status filter have been fixed to ‘Full Price’ and ‘Out of Stock’ respectively to provide clearer insights of category performance in the market. Focus on uptrending categories with green trend lines, namely Tops, Dresses, and Outerwear. Among these categories, Outerwear was seeing a good opportunity with +1.4 score, then followed by Dresses at +1.2 score.

Step 3: Identify uptrending subcategories

Further clicked into the identified potential category, in this case Outerwear, to learn more on the contributing factor of the uptrending movement in the past quarter. In reference to the Trend Performance for Outerwear card, it is observed Outerwear has been uptrending vs all categories in the past quarter, where Knitwear and Sweats dominated Outerwear contribution at 52% contribution. This depicts the potentiality to focus on these subcategories under Outerwear.

Key Takeaways

With the trend movement insights of each category, you can decide on the amount to invest into the uptrending categories and subcategories taking into consideration your future assortment plans. 

It is crucial to analyse trend movement of categories prior to making decisions in category assortment planning. Given the tight competition online, retailers who offer products relevant to target demand and preference will hold a competitive advantage against competitors. 

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.

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