The New In vs First Discount Chart available on the Trend Performance module allows you to analyse product launches against first-time discounts for a selected category. Learn how you can analyse the New In vs First Time Discount chart available on Trend Performance with these simple steps.
Analysis 1: Spot seasonality for a category
For certain categories, stock intakes can be highly driven by seasonality. In this example, we observe that outerwear experienced a spike in new launches in December, which coincides with the drop in temperature.
At the same time, a high number of first discounts for this category indicate that retailers are equally mindful that the weather will soon get warmer and will need to move outerwear quickly. To do so, they are capitalising on the clearance of the year-end sale, marking down products that are less in-demand.
If you are producing outerwear, the month of December will be crucial in your calendar. To capitalise on this season, start planning for your winter collection at least two to three months ahead to ensure you are able to launch at the right time.
Analysis 2: Determine the trend life cycle
Aside from spotting seasonality, the New In vs First Time Discount chart allows you to identify trend life cycles. In this example, we are looking at the activewear trend in the UK market.
In the three-month period between June to August, the activewear category saw an increase in demand as observed by a high number of intake in July and fewer discounts launched compared to the previous month.
Focusing on August, there were over 2.69k products launched (Aug 1st – Aug 16th) with much fewer products put discount, signifying demand for activewear remains strong in the UK. The patterns observed in the new-in chart allows you to predict the optimum launch month/dates for the trending category.
Identifying fashion trends using data-backed analysis helps brands anticipate consumer demand as well as understand the lifecycle of a trend. By analysing the product intake against first-time discounts, you can gain a high-level overview of market demand changes and spot trends as it takes off or tapers out. With these insights, you will be better positioned to avoid launching too early or too late and minimise overstock risk.
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.