Other brands and retailers that have recently signed on to use First Insight’s predictive analytics technology includes Diane von Furstenberg, Helzberg Diamonds, David’s Bridal, Dick’s Sporting Goods, Caleres and At Home, among others.
By tapping into consumer preferences for color, style and other product attributes, First Insight said its solution can not only improve sales and margins, but also help brands and retailers win over new shoppers.
Alex Del Cielo, chief executive officer of the Camuto Group, said that with First Insight’s solutions the company now has “an effective and scalable way to bring the voice of the customer into our new product decision-making process.”
“By identifying top and bottom products early in the development process, we are reducing our sampling and inventory costs and increasing our hit rate on winning new products by more than 50 percent,” the ceo added. “Armed with customer input on new styles, we optimize our offerings to our key retail partners and reduce markdown exposure. We expect this to drive a significant margin improvement in our business.”
Reducing markdown exposure has emerged as a top priority for many retailers and brands — especially after last year’s lackluster holiday shopping season, which left many companies with bloated inventories. This past year, companies are turning to tech firms such as First Insight and others to help mitigate exposure.
What’s been challenging is that consumers are demanding new products to drive sales and traffic. In a recent research note, analysts at Telsey Advisory Group described “product newness” as an “essential sales driver.” For apparel, accessories and footwear, this means offering new looks and collections as well as licensed products that trigger a “must-have” impulse within the consumers.
For companies using First Insight, the technology helps inform the product launch, which means putting goods into the market that shoppers want.
Greg Petro, ceo of First Insight, said the “fundamental problems facing brands and retailers today stem from one root cause — they aren’t clearly matching their products and supply chain with customers’ changing demand.”
“From early identification of winning new products to inventory and markdown management, our solutions enable retailers and brands to know their customers firsthand, allowing them to reduce risks on new products and determine optimal price points,” he said.