5 Essential Consumer Research Studies for Brand Marketers
Even though the fashion retail industry has fared well in some years, market growth has been volatile at times. Growing consumerism, inventory management, sustainability, millennial buying behavior, and entry of new players have increased challenges for fashion retailers. This has pressurized companies in the fashion retail industry to leverage a consumer research study to learn more about customers’ needs, intents, and preferences.
A well-known fashion retailer was struggling to improve sales and better sell their products to target customers. Their inability to target millennial customer segments and analyze the purchase trends and channels preferred by millennials, resulted in a decline in their sales rate. This radical decline in the sales rate compelled the client to leverage Infiniti’s consumer research study to better analyze the millennial customer segment. By leveraging Infiniti’s consumer research analysis solution, the client wanted to assess customers’ purchase behaviors. Also, with the help of a consumer research analysis, they wanted to gain in-depth insights into the impact of demographics on millennials’ attitudes, various barriers to purchase, and potential solutions to overcome barriers.
Top Challenges Faced by the Fashion Retailer
Problem Statement 1: Growing consumerism
Today, as customers turn to the internet for information and shopping, to smartphone applications for price comparisons, and to social media for opinions, the industry’s response has become more price sensitive. Additionally, consumers demand variety and novelty. This has increased complications in the supply chain, product development, planning, and production processes.
Problem Statement 2: Inventory planning
Customer preferences change fast, which speeds up inventory turnover requirements. This compels suppliers to improve turnaround time and exhibit excellence in stock visibility. By leveraging Infiniti’s expertise in offering consumer research solutions, the client wanted to exhibit excellence in stock visibility, operations planning, and inventory intelligence.
Problem Statement 3: Discounting and competition
Fashion retailers are increasingly relying on discounts to drive sales. It is challenging for players in the fashion industry to maintain a healthy margin, when competitors are offering heavy discounts.
Solutions Offered and Value Delivered
To help the client tackle challenges in the industry, the experts at Infiniti Research recommended a consumer research study.
Phase 1: Customer survey
With the help of in-depth qualitative interviews with customers belonging to different segments, our market research experts helped the client assess their customers’ purchase behavior. Additionally, by tracking trends, analyzing, and interpreting consumer behavior, the client was able to understand target consumers more effectively.
Phase 2: Inventory forecasting
Our expertise in offering inventory forecasting solution helped the client avoid excess inventory. We also helped them identify stock levels that are required to meet the rising demands for apparels.
Phase 3: Competitive analysis
By analyzing top competitors in the industry, our experts helped the client understand discounting strategies used by their competitors. The consumer research study further helped the client to offer better discounts for their customers, while maintaining healthy profits.
In a span of nine weeks, the client saw clear advantages from this consumer research engagement. The client gained a clear understanding of the customer’s purchase behavior, especially the millennial generation. The consumer research engagement further helped the client assist sales and support product teams. With Infiniti’s consumer research analysis, the client realized a savings of 11% in a year.
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