Billion Euro think tank: BCG big data retail localization
Chinashop will be held in Kunming from November 1st to 3rd
Here are some of the main elements of localization and some data analysis methods that retailers can use to improve these elements.
Floor space
When allocating floor space, retailers can use big data to assess specific details at the transaction level and reveal potential connections to use that information to boost sales. These details and links include collocation sales, which are the additional purchases made by the customer in the category they are planning to purchase, and the future sales resulting from the purchase of such products. Big data can also reveal another implicit connection, the allocated distribution cost, which is often obtained after the cost of the entire store is allocated to a specific item.
To get the best floor space allocation method that can maximize profits, retailers need to use analytics technology to adjust sales data, which shows the differences in the product mix of each store, what is the reason for the shortage, and what seasonality commodity.
Categories
The products purchased by the store and the brands, styles and types of each item on the shelves together constitute the classification of the goods they operate, or the combination of goods. Retailers try to create the best combination of products, maximizing the long-term profitability of all their stores.
Number of customer transactions
In addition, retailers can use customer transaction data to evaluate incrementals, which is how much an increase in sales and profits is compared to a similar item. Taking chicken as an example, from the customer’s purchase data, it may be found that providing diced chicken can help the overall sale of chicken. Removing or providing more of this packaging will affect other chicken products.
Adjacent placement
Proximity optimization of the merchandise display throughout the store is complex. When retailers are mining neighbors, they can use store-level data to find the best way to place products in the past.
Other elements
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