As the lines between digital and physical shopping experience blur in the retail industry, retailers need to offer a consistent buying experience across channels, both online and offline. Also, as trends change rapidly, retailers who do not have an in-depth understanding of the recent trends in the market can fall behind. Considering that fashion retail businesses run mostly on trends, fashion retailers must leverage market trend analysis. Today, successful retail businesses rely on latest trends and key shifts to make key business decisions. Market trend analysis solutions help organizations to not only identify the changing market trends but also to stay ahead of them.
Business Challenge
The client is a fashion retailer based out of the United Kingdom. With the business world moving faster than ever before, the client faced several challenges when it comes to keeping up with the evolving market trends. Also, with their inability to understand the key shifts in the industry, the client encountered an unexpected quarterly drop in sales. Even the foot traffic fell as customers started moving to different retailers that offer online shopping options and lower cost offerings. With this rapid decline in the sales rate, the client had to close stores in Southern parts of the UK and they also faced a social media backlash. The company encountered nearly £ 4.7m of losses in the profit margins.
To tackle the industry challenges, the client approached Infiniti Research for a solution. With Infiniti’s market trend analysis solution, they wanted to identify future market trends and capitalize on new acquisition targets. Also, by leveraging Infiniti’s market trend analysis solution, the client wanted to innovate their product offering to meet the market demands and make up for the lost sales.
Solutions Offered
To help the client tackle the industry challenges. the experts at Infiniti Research conducted a detailed analysis of the fashion retail industry and the key competitors of the client. Also, the experts helped the client prepare a well charted out comparison between their product offerings to that of their top competitors. The experts also provided the client with a detailed report on all the market trends in the fashion retail industry.
With Infiniti’s market trend analysis solution, the client was able to compare their performance with the industry averages. Also, the client was able to analyze how their competitors were using the latest market opportunities to their advantages. Analysis of the latest market trends helped the client make better decisions on their product positioning and marketing strategy. The client was also able to analyze the statistical market data and customer buying patterns over a definite time period in order to generate valuable insights for strategizing and forecasting future business plans.
Business Outcome
With Infiniti’s market trend analysis solution, the client was able to:
- Enhance foot traffic by providing discounts and offers
- Enhance their sales rate within one year
- Meet quarterly sales target and enhance their profit margins
- Innovate their product offerings to enhance customer experience
- Improve the count of their social media followers by 67%
What is market trend analysis?
Market trend analysis deals with analyzing statistical market data and behavior over a definite time period. Market trend analysis helps businesses gain valuable insights for strategizing and forecasting future business plans. Also, by understanding how a potential growth driver has developed over time and how is likely to develop in the future, businesses can determine market opportunities and customer preferences. Furthermore, it also helps predict the direction that the market will take in the future.
Importance of Market Trend Analysis
Trend analysis plays a vital role in improving business by:
- Identifying areas where the business’s performance exceeds expectations so that success can be duplicated
- Identify and analyze areas where the business is underperforming so that necessary and timely action can be undertaken to bring the performance on the track
- Acting as evidence for informed decision making
