In a previous series of articles, we detailed the concept of new retail, from:Overall overview, index system construction, three major solutions (stores, products, members).And in-depthNew retail store management solutions, presenting readers with a lot of rich and excellent solutions.
Review of previous articles: In the new retail era, promote the comprehensive upgrade of smart retail! Overview of new retail stores, commodities, and membership operation management indicators! New Retail's store management plan sharing, everyone can be a good store manager! In this series, today we will continue to dig deeper into the second important solution of the three major solutions of new retailNew retail merchandise management solutions.
The content of this article focuses on:
Pain points in merchandise management in traditional retail.
What data products does the new retail merchandise management solution use to support its strategic framework?
The landing effect and practical application scenarios of the new retail commodity management solution.
The solution in this article relies on the reporting tool finereport!
Pay attention to Finefine, we will continue to explain data analysis methods and tools and solutions for enterprise digital transformation
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Before we start the article, we need to understandLifecycle management of productsThe whole process consists of four major stages: namely:Introductory period, growth period, maturity period and decline period.
As shown in Fig
According to the different stages of the product life cycle, retail merchandise management can be divided into:The following major links:
PlanningProduct selection, test marketingandTest marketing resultsAssessmentNew arrivals, personalized products**andMarketing monitoringReasonable takedownandEfficient liquidation。This comprehensive management process plays a key role in the retail industry, directly influencing the performance of products in the market and the overall operation of the business.
The whole process of product planning.
The solutions introduced in this article also start from these major links, analyze the pain points of traditional commodity management one by one, and propose targeted response solutions.
At every stage of commodity management, the management of traditional retail industries such as FMCG, catering, footwear and apparel industry, and supermarkets is facing a series of challenges.
By summarizing most of our customers' problems, we will take theseThe dilemma of traditional commodity managementIt can be summarized as follows:
Product selection stage: Many traditional retail industries still have a deep empirical theory of product selection
Commodity selection relies on subjective judgment and historical data, and although there are few factors to consider, there is a lack of forward-looking planning based on data. This makes the newThe match between the product and the consumer demand is low, unable to meet the changes in the market and the needs of customers to the greatest extent.
Test marketing stage: There is often a lack of data analysis and visualization, and it is impossible to quantify the indicators in the test marketing stage
In the trial marketing stage of new products in stores, there is a problem of insufficient data analysis and visualization, which leads to the evaluation indicators of the trial marketing linkIt cannot be fully quantified。The lack of a data analytics platform further exacerbates this problem, resulting in the performance of new product test launchesIt is difficult to make a comprehensive and objective assessment, which may existPotential risk of commodities turning positive
When a new product is launched, the traditional retail industry may also faceLimited means of marketing and promotionand insufficient monitoring of sales data after the introduction of new products. This makes it difficult to adjust the strategy in time to adapt to market feedback in the process of new product promotion, which affects the market performance of new products.
Commodity maturity stage: data presentation is not intuitive, inventory risk; Lack of abnormal monitoring, it is difficult to accurately and timely detect problems
After the product enters the maturity period, it is troubled by the poor timeliness of the sales report, the sales data is not intuitive, and the data penetration analysis is difficultThe supply and marketing links are separated, so thatInventory risk is difficult to effectively control。The analysis of commodity anomalies only stays at the superficial indicators, lacks process anomaly monitoring, and cannot accurately locate specific departments and responsible persons, and then cannot follow up and deal with abnormal indicators in a timely manner, which increases business risks.
During the period of product removal and replacement: the capital and inventory costs are highly occupied, and the underlying data resources are idle
There is a lag in commodity replacement: commodity elimination decisions are usually considered when the commodity is unsalable and the inventory is too high, resulting inThe tie-up of capital and inventory costs is severe。At the same time,The problem of idle underlying data resources is also prominent, failing to make full use of historical eliminated commodity data to formulate effective commodity elimination rules, further increasing the waste of resources.
Through the analysis of the above problems, our optimization direction is already obvious:
Selection——Establish a core element analysis system around consumers.
Test marketing——Build a whole-process commodity performance monitoring system.
Marketing——Create a technology-enabled personalized operation model.
Sales——Create a whole-process commodity performance monitoring system, which can only track and locate problems in real time.
Substitution——Top-down planning, efficient management, and improved iterative analysis capabilities.
Core ConceptIt is based on putting the consumer at the center of the businessBuild product branding, and implementFine management of new retail commodities
The essence of this philosophy is to deeply understand and meet the needs of consumers, and to make customer experience and satisfaction a key guiding principle for business decisions. PassedConsumer-centric, businesses are able to build closerBrand-customer relationshipto achieve a more effectiveBrand building and business management。This refined management method not only emphasizes the quality of products and services, but also pays more attention to each stageDeliver a personalized, high-quality experienceto continuously consolidate and expand consumer loyalty.
Based on the above commodity management problems and optimization direction analysis, we need to start the construction of the new retail commodity management program framework.
At the beginning of the construction of the program, we need to ask a few questions:
What are the roles that define the category?
What is the operating income of the store category?
Who are the customers of the business?
What are the customers of the enterprise consuming?
What do customers buy at the business?
How to meet the needs of customers?
Does the category need to be replaced and updated?
With these issues in mind, we need to get to work: Formulation of category roles and management principles, segmentation and positioning of consumer groups, store segmentation, formulation of category strategies, category review and performance evaluation, and optimization and iteration of categories.
1.Development of category roles and management principles
At this stage, we will delve into the roles and characteristics of each category and develop the corresponding management principles. Through the review of different categoriesDemand, sales characteristics, and market trendsAnalyze and develop business strategies for each category to best meet consumer expectations.
2.Consumer group segmentation positioning:
Segmenting and positioning consumer groups in a more granular manner is a key task for us in the next step. By digging deeperDifferences in preferences, shopping habits, and needs of different consumer groups, we are able to provide personalized products and services in a more targeted manner, thereby increasing consumer satisfaction and loyalty.
3.Store grouping:
Store segmentation is to respond more effectively to the needs of different geographies and consumer environments. Through a detailed study of the location, surrounding environment and customer flow characteristics of the storeWe categorize our stores and develop management and operational strategies to ensure that each store maximizes its potential and improves operational efficiency.
4.Develop a category strategy
An important step in ensuring the success of the individual product categories in the market. PassedIn-depth analysis of market trends, competitors, and consumer demands, we are able to formulateStrategies that align with the characteristics of the category, including product positioning, pricing strategies, and promotional tools to maximize the category's market share and profitability.
5.Category review and performance evaluation
It is a key link in continuous optimization. Through an in-depth evaluation of each category's sales data, customer feedback, and market performance, we are able to identify strengths and areas for improvement. This not only helpsReview the effectiveness of your category strategyIt also provides a strong basis for further optimization.
6.Optimization and iteration of categories
It is a continuous cycle process in brand management. On the basis of performance evaluation, we are able to identify areas for adjustment and improvement, so that we can formulateNew category strategy and strategic direction。This iterative process allows brands to adapt to market changes in a timely manner and keep improvingHigh category competitiveness and adaptability.
Through this series of work, we will focus on consumers and dig deep into the needs of all aspectsAccurately formulate category management principlesSegment consumer groups in detailwithScientific group storesto achieve more refined management and a higher level of brand building. This will lay a solid foundation for enterprises to stand out in the fierce market competition.
The architecture of the new retail commodity management scheme is designed as follows:
Looking at the whole, businesses can go through the following:Fourth, big data application support
Sophisticated data integration platform
Enterprise-grade web reporting platform
BI self-service analytics tool
Data visualization multi-terminal (PC and mobile) display large screen
Based on this, companies are able to carry out comprehensive product managementStrategic planning, business strategy, operational analysis and business guidance
——Data integration, providing a strong data foundation
Establishing a sophisticated data integration platform is a critical step in enterprise data management. This means that it is possible to use finedatalink to set theData from different departments and systems is integrated into a centralized platformto ensure data consistency and accuracy. This integration capability is:Category retrospectives provide a comprehensive data baseto give businesses insight into key information such as sales performance, inventory status, and market feedback for each category.
Generate, share, and customize a variety of reports
By building an enterprise-level web reporting platform, enterprises can conveniently:Generate, share, and customize a variety of reportsThis platform can provide real-time monitoring of category performance, as well as flexible report display, so that decision-makers can quickly obtain key indicators and conduct in-depth analysis of category reviews.
——Self-service category analysis and personalized analysis report
Business intelligence (BI) self-service analytics tools empower business users to explore data without relying on a technical team. By using these tools, not only can youConduct a more in-depth category retrospective analysis, but also rootsGenerate personalized reports and dashboards based on actual needs。This flexibility helps uncover valuable information hidden behind the data.
——Data visualization multi-terminal display screen:
In order to ensure that the results of the category review can be found in the enterpriseFully shared internallyIt is very important to establish a large-screen system for data visualization and multi-terminal display through finereport. This can be a set of both supportsThe PC side also supports the mobile terminalof the platform, throughIntuitive charts and graphs show category performanceto enable the entire team to understand more intuitively and in real timeCategory reviewresults, resulting in faster decision-making.
Through the application support of these four big data, enterprises can achieve it in business activities such as category reviewMore efficient and intelligent data management and analyticsto provide strong support for the strategic adjustment and optimization of the brand.
1. Dismantling and analysis of indicators for commodity management
The commodity management indicators of the retail industry are broken down into the following sub-indicators:
The main indicator content and analysis dimensions are:
(1) Store commodity structure indicators:
Comparative analysis is carried out from stores, products, the number of preferred SKUs, the number of dynamic sales SKUs, the proportion of preferred SKUs, the contribution of preferred commodity sales, the number of categories involved, and the dynamic sales categories, so as to help enterprises optimize the product mix according to different store types and locations, and improve the sales efficiency and customer satisfaction of stores.
(2) Category analysis indicators:
Analysis of the upper and lower limits of the number of SKUs in the category:
Analyze the number of stores, categories, preferred products, total number of dynamic products, structural coefficients, upper limit of category SKUs, and lower limit of category SKUs to determine the reasonable upper and lower limits of the number of SKUs required for each category to avoid too much or too little inventory.
Product Growth Rate Analysis:
Analyze the sales volume of different categories from the dimensions of sales volume, sales growth rate, category, etc., and understand the changes in market trends and consumer preferences. Guide companies to invest and allocate resources in different categories to ensure that more potential categories receive more attention.
(2) Customer spending power index:
Average order value analysis:
Analyze the average customer value, study the average amount of customers spend per purchase, and reveal the shopping habits and payment ability of customers.
Analysis of the number of SKUs in the customer order:
Analyze the average number of SKUs a customer buys per purchase to reveal how broad they shop.
(3) **Sensitivity indicators:
*Amount Analysis:
Analyze the proportion of **amount and non** amount, understand the impact of different ** activities on sales, and evaluate the sensitivity of customers to **.
*Consumption Frequency Analysis:
Analyze consumption frequency analysis and non-consumption frequency analysis to understand their response and participation in **.
2. Application scenarios of retail store management solutions
Application scenario 1: product selection - product planning
Product selection is a key link in commodity planning, which is directly related to the product portfolio and market performance of enterprises. At this stage, companies need to carefully consider and plan each category of products to meet the needs of different consumer groups.
In the initial stages of merchandise planning, businesses can pass:In-depth market research and analysisDecode consumer behavior, understand how your competitors are performing, and stay on top of industry trends。Based on this information, the core positioning of the corporate brand and the characteristics of target consumers are formulated, and the guiding principles are provided for the selection of products.
For each category, enterprises need to define the procurement and sales framework and clarify the direction of product planning. This includes gMV oriented, focusing on maximizing sales; Profit-oriented, focusing on improving product profits; Width guided, the pursuit of the breadth of categories; Depth oriented, focusing on improving the depth of the category. Through these planning directions, enterprises can determine the selection strategy of each category in a targeted manner.
Application scenario 2: trial marketing - test marketing of new products and evaluation of positive products
Test marketing is a key activity in merchandise management, which involves the introduction of new products to the market, consumer feedback, andUltimately, the decision of whether to include the new product in the official product line。In this process, the use of reporting tools such as FineReport and some BI analysis tools can provide strong support for enterprises.
Enterprises can track the performance of new product test sales at any time. This includes:Sales trends, regional differences, consumer feedbackand other aspects of data to provide timely and accurate information for enterprise decision-making.
Among them, finereport's visual report platform can generate intuitive and clear reports, which will be newThe key indicators of the trial marketing stage are presented in the form of charts。This includes the growth curve of sales, the proportion of sales in different regions, and the comparison of sales in different channels, etc., so that decision-makers can more intuitively understand the market performance of new products, and enterprises can dig deeper into the effect of new product test marketing. Comprehensive analysis of sales data, market feedback, activities and other dimensionsProvide a comprehensive assessment of whether the new product is turned into a positive one.
After the end of the test market, use finereport to generate a comprehensive new product test marketing report for the test marketing stageSales, market performance, and consumer feedbackMake a comprehensive summary,Conduct new product success rate assessment。This provides strong support for business decision-makers to make decisions about whether or not to turn a new product into a positive one.
Application scenario 3: operation framework design
Integrate data from different sources into a single platform. PassedReal-time monitoring dashboard, businesses can do it in real timeTrack key data such as item sales, inventory status, purchase progress, and moreto ensure a comprehensive view of the health of your products, and to generate detailed reports on your product sales, including:Sales, sales channels, popular productsand other information. With these reports, businesses are better able to:Understand merchandising trends, so as to make more accurate demand**, and adjust the inventory and **chain in a targeted manner.
via finereportInventory management reportsEnterprises can monitor the inventory levels of various warehouses in real time**Inventory turnover to avoid excessive slow-moving inventory or out-of-stock situations。Based on this data, intelligent strategies can be developed to ensure the timeliness and effectiveness of goods.
Application scenario 4: Replace the frame design
Integrating inventory data and sales data, FineReport generates a comprehensive assessment report to help companies understand which goods have overstock and which goods sell well in the market. This can help you decide if you need to eliminate items that have high inventory or are selling poorlyto identify the end SKU, list the obsolescence, and replace it.
With the above data-driven strategies for retail merchandise management, businesses can achieve consumer-centricitySmart selection, brought to the enterpriseMulti-level valueThrough accurate consumer positioning, companies can gain in-depth insight into the shopping preferences of different groups, so as to achieveA more targeted merchandising strategy。The optimization process of intelligent product selection is based on in-depth analysis of data such as sales and market feedback, so that companies can understand the performance of goods in the market more comprehensively and accuratelyEffectively avoid unsalable goodsto avoid inventory backlog and improve capital turnover. This not only helps to increase the flexibility of the business, but also enables the company to be more agile in responding to market changes.
That's all for this articleIntroduction to the solution of smart new retail commodity operation and managementI hope this article will help you in the process of digital transformation in the retail industry!
Feel free to share your views on the new retail merchandise management solution with us in the comment area!