Case Studies > Women’s Apparel Company Case Study

Women’s Apparel Company Case Study

Company Size

1,000+

Region

America

Country

United States

Product

First Insight

Tech Stack

Direct-from-consumer valuation data

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Customer Satisfaction
Productivity Improvements

Technology Category

Analytics & Modeling - Predictive Analytics
Functional Applications - Inventory Management Systems

Applicable Industries

Apparel
Retail

Applicable Functions

Product Research & Development
Sales & Marketing

Use Cases

Inventory Management
Predictive Replenishment

Services

Data Science Services
System Integration

About The Customer

The customer is a Women’s Apparel Company facing challenges in aligning customer demand with product selection. The company struggled with a low forecast accuracy rate of 48% for new dresses, leading to heavy markdowns and slow inventory movement, which negatively impacted their margins. Their current in-store testing method was expensive, time-consuming, and potentially biased, as sales associates pushed new dresses harder than usual, skewing sales forecasts. The company needed a faster, more cost-effective way to accurately test new products to select the right inventory that resonated best with customers, achieving higher full-price sales and reducing markdowns.

The Challenge

A Women’s Apparel Company’s Senior Management Team engaged with First Insight to improve their product development and selection processes. The company had a low forecast accuracy rate of 48% when introducing new dresses, leading to heavy markdowns and slow inventory movement, which negatively impacted margins. The in-store testing method was expensive, time-consuming, and potentially biased, as sales associates pushed new dresses harder than usual, skewing sales forecasts. The company needed a faster, more cost-effective way to accurately test new products to select the right inventory that resonated best with customers, achieving higher full-price sales and reducing markdowns.

The Solution

First Insight provided investment guidance that enabled the Women’s Apparel Company to make more accurate buying decisions based on direct-from-consumer valuation data. The speed and scale at which First Insight could generate preference and pricing information on products showed a measurable improvement over the company’s current testing methods. In as little as 72 hours, the company could gain an accurate, forward-looking view of the most profitable dresses to source and bring to market. This new approach allowed the company to select the right inventory that resonated best with customers, achieving higher full-price sales and reducing the dependency on markdowns.

Operational Impact

Improved test accuracy by 13%, leading to a decrease in markdowns.
Enabled faster and more cost-effective product testing.
Provided a forward-looking view of the most profitable dresses to source and bring to market.
Allowed the company to make more accurate buying decisions based on direct-from-consumer valuation data.
Achieved higher full-price sales and reduced dependency on markdowns.

Quantitative Benefit