Inventory Optimization

Challenge: In-store jewellery purchase decisions are a function of assortment and merchandising. A fine balance between inventory and assortment to manage costs and maintain customer appeal. A leading jeweller approached idstats to optimise stock holding with these parameters for its chain of 24+ stores across Singapore and Malaysia.
What we did: idstats conducted qualitative focus group discussions to identify how consumers segment designs. Analysing emergent consumer drawings and records for the past 18 months, we derived a hierarchical cluster that highlighted the different niches that each outlet occupied for certain types of jewellery. This allowed for individual stock planning for each outlet.
Results: Average duration of un-cleared inventory decreased by 25% over a 6-month time period.