Advanced merchandising strategies are critical to your retail brand staying competitive in its niche, no matter the saturation.
We know that without being able to show the right product to the right customer at the right time, your revenue will not reach its full potential. However, there is another key component of advanced merchandising that is costing your brand profits: Inventory optimization.
For merchandising and marketing managers to truly grow their online retail brands, they need to be able to both optimize for marketing KPIs but consider inventory KPIs as well. In other words, product sorting personalization is not enough, and without advanced merchandising, you’re setting your brand and teams up for failure.
This is precisely the challenge our client, Swarovski (IL), a big omnichannel jewelry retailer, was facing. They approached us at Kimonix to help them solve it.
Swarovski (IL) is an omnichannel retail brand under the umbrella of YALON – the official representative in Israel of the global Swarovski company. Their Swarovski store includes a high-traffic online store and seven brick-and-mortar locations around the country.
• Increase sales while reducing non-moving inventory
• Reduce non-moving inventory without disrupting conversion rates
• Implement an advanced storing strategy that takes multiple parameters into account
Swarovski (IL) needed to push their slow-moving inventory without decreasing exposure to bestsellers and disrupting their conversion rates and sales. However, their store is run on Shopify, so they could only use one parameter (out of a limited list) to sort their collections. Additionally, their sorting was being calculated over ‘all-time’, preventing them from optimizing their non-moving stock. Ultimately, they needed to shift their slow movers by pushing them to the top of the collections pages, without risking decreased exposure to bestsellers hurting their conversion rate and sales.
In a nutshell: Swarovski needed to shift slow-moving inventory without disrupting bestseller revenue and overall conversion rates.
To ensure Swarovski (IL) were able to move non-moving inventory while also increasing sales, we built a new, tailored sorting strategy for each of their collections. We used multiple advanced parameters simultaneously. They included sales, conversion rates, days to finish inventory, inventory, and margins. Every parameter was ranked based on the business goals of each collection. Creating a balanced, multi-parameter sorting strategy enabled Swarovski to display and expose both bestsellers and slow-movers. After this, we let our data-collecting AI and automation do the work to optimize these collections.
In a nutshell: We tackled their challenge in three steps:
1. Created a multi-parameter sorting strategy for their collections
2. Established the influence of each parameter based on the business goal of each collection
3. Used advanced AI to continuously optimize collections based on real-time data
After four weeks of using Kimonix’s Smart Collections for their entire Shopify store, Swarovski IL saw a 29% reduction in non-moving inventory and an 18% increase in conversion rate. This resulted in an 8% profit increase.
• 29% reduction of non-moving inventory
• 72% increase in daily sales rate of top 10% products by inventory volume
• 18% increase in overall conversion rates
• 8% increase in profits over a four week period