It can be costly for any serious fashion business to ignore BI tools now and risk playing catch-up later. It is no secret that data analytics are useful tools in making business decisions – in predicting future trends.
So, increasingly more fashion businesses now have their hands on BI tools that help them run with greater confidence rather than relying on guesswork.
As Business Intelligence tools use in businesses become more common, more players in the fashion industry will embrace the technology.
But you may be wondering what ways exactly can BI, and data analytics be used in the fashion industry?
Ways that BI can be applied in the fashion Industry
Discovery of features that customers demand most
If you can have the attention of customers in any business you are sure to thrive and remain in the business. This is the power that BI can provide.
With business intelligence tools, fashion brands can gain insights into what customers love most in designs. For example, brands will likely sell more if they have insights into data about the trendiest colors, styles, and even the sizes in men and women’s clothing.
This can be the basis for other key decisions like how to target advertising, future stocking, and dealing with competition.
Aid in Predicting Trends
As long as you have access to data sets, it is possible to confidently predict future trends under your control. For example, if you notice a change in sales of a particular item, it will help to estimate the success should a similar design be made.
Knowing key fashion business trends in design and styles can make planning intentional and increase revenue.
Control Manufacturing to Distribution Networks
Ideally, sales outlets can have input in the way that dressmakers produce particular clothing. By using BI tools in monitoring some live data, future orders from manufacturers can be made in real-time.
A possible use case of the business intelligence tool would be making orders from manufacturers based on how present sales data match with the predicted model.
All things being equal, it is possible to tweak the process of manufacturing and product delivery to the final consumers in a way that will cut the extra cost of storage.
E-Commerce businesses are already using similar BI tools but brick and mortar fashion stores can apply this model in their business as well.
Improve sales in real-time
Future opportunities for improving sales by providing more business intelligence powered customer information could be possible but OLAP BI tool is an example of success in fashion and business intelligence. It is on record that this BI tool made 20% sales revenue from fashion show dresses alone!
In this case, customers who attended a fashion show were later targeted with informed advertisements from a database.
Guides Designers and Customers on Supply and Buying Decisions respectively
When Designers know the ongoing trend and the predicted trends, it can help them to adjust to what customers want.
Also, business intelligence tools can be used to shape shoppers’ experience, especially online customers. With business intelligence tools, customers can expect to easily find more personalized results of their searches.
BI is not magic; it’s based on data analytics to make predictions that can be useful in everyday business decisions.
Simple or complex, data analytics can be applied to fashion businesses to increase profit.