Tag: Retail inventory management

retail industry

The Reasons Behind Soaring Private Label Success in the European Retail Industry

In the European retail industry, there is currently an unprecedented prominence of private labels. According to our industry experts, the sales and market share of private label brands have climbed to an all-time high in countries including Belgium, Netherlands, Austria, Denmark, Poland, Sweden, and Norway. Our experts believe that some of the key drivers behind the success of private labels are the expansion of retailing around the world, the emergence of e-commerce, the success of discounters, and changing millennial shopping habits. Furthermore, Private labels allow companies in the retail industry to offer something distinct to their customers. With intensifying competition in the retail industry, private labels have grown to include exclusive products aimed at increasing brand loyalty.

Brands in the retail industry should always be on the lookout for opportunities to better serve their customers. Request a free proposal to know how we can help you capitalize on the right market opportunities.

retail industryThe rise of millennials

Millennials are expected to outnumber baby boomers over the next decade as the generation with the highest discretionary spending power. Millennials are known to be experimental in trying out new products and consequently, private labels are becoming increasingly popular among this group. They demand products that do more, provide greater convenience and offer a variety of lifestyle options and are known to undertake extensive research before buying products. Loyalty to established brands in FMCG cannot be expected from millennials. As a result, almost all major retailers in Europe have developed sophisticated private label programs that give tough competition to established FMCG brands.

Attractive and meaningful packaging

Modern retailers have realized the importance of attractive and meaningful packaging and generally, they have been succeeding in using packaging to get the right message across to shoppers. In the case of private label, it is mostly up to the retailer to set the specification, and there has been some heavy investment in packaging solutions. Apart from increasing the market share, private labels have also undergone stratification with the rise of premium and mid-range offerings besides the traditional bargain ones. Stratification has been in practice over several decades. Today, however, we can see stratification based on factors including organic, natural, gluten-free, and value-based.

Private label is a secret weapon for retailers today. To use it right and maximize its potential, experts at Infiniti can help you as it has done with many companies in the retail industry. Get in touch with us for more insights.

Health-conscious customers

The UK is a market where players in the retail industry use private-labels to reinforce an already-strong store equity position. The major supermarkets’ strategy has been to grow private-label sales. This can particularly be seen in fresh foods, while reducing the range of packaged goods. Retailers are gradually expanding their private-label brands to include healthier options, including for consumers with special dietary needs, and recommends looking for opportunities to remove, reduce or replace undesirable ingredients in their prepared foods. The benefits are also being prominently highlighted on packages and with in-store signage.

Ecommerce boom

Private labels are being disrupted on many various levels due to the rise of ecommerce. Several top ecommerce companies are fragmenting the path to purchase and opening new opportunities for private labels. E-commerce platforms are opening up many doors to expand the sales of private labels.

Learn more about Infiniti’s solutions for companies in the retail industry

Retail inventory management

Enhancing Customer Experience by 2X and Sales Rate by 33% for a Retail Firm – Retail Inventory Management Solution

Inventory Management Solution for a Retail Firm

Today, retail companies are under the pressure to effectively manage their stock, maintain an adequate level of inventory for the right products at each retail location, and minimize conditions of overstocks and stock-outs. However, retailers can overcome these challenges by leveraging retail inventory management solutions. Retail inventory management solution can help businesses to maintain an optimal level of inventory while dealing with fluctuating market demands.

With customers’ shipping demands growing each day, retailers are under the pressure to ship orders faster than ever. To succeed in the long run, retailers will need to leverage retail inventory management solutions. Request a FREE proposal today!

Business Challenge

The client is a retail firm based out of Central Europe. With the ongoing market changes, the company faced challenges in keeping the right amount of stock in- hand and planning for seasonal changes. In an attempt to meet the seasonal demand, the client purchased products in bulk. However, this resulted in product overstock, thereby increasing inventory holding cost for the company. Consequently, the company witnessed a huge dip in their profit margins.

The client, therefore, approached the experts at Infiniti Research to leverage their expertise in offering retail inventory management solution.

With Infiniti’s retail inventory management solution, the client also wanted to:

Enhance the accuracy of inventory orders – With Infiniti’s retail inventory management solution, the client wanted to accurately evaluate the amount of inventory on-hand to be kept. By doing so, they wanted to prevent product shortages and reduce storage cost.

Enhance retail warehouse management – By identifying the top-selling products, the client wanted to optimize their warehouse setup by placing those products together and in easily accessible places. With this, they wanted to speed up the packing and shipping processes.

Enhance inventory tracking – As the client had to deal with multiple locations, they wanted to develop a retail inventory management framework to coordinate supplies at each location.

Businesses who actively manage their inventory report 10-30% increase in sales and around 35% decrease in stock-outs. Contact us to leverage our retail inventory management solution.

Solutions Offered

To cater to the requirements of the client, the experts at Infiniti Research conducted a market intelligence study. This phase of the retail inventory management solution helped the client to gain detailed insights into the market landscape and forecast demand-supply shifts.

The experts also conducted a demand management study to help the client deal with issues relating to analyzing and estimating customers’ demands.

The inventory forecasting engagement conducted as a part of the retail inventory management solution helped the client to accurately forecast the product demand by taking into consideration the historical sales data of the company.

The last phase of the retail inventory planning involved conducting a competitive intelligence study. This phase of the retail inventory management solution helped the client to analyze their competitors’ supply chain management processes. Also, the client was able to understand the initiatives undertaken by their competitors to manage supply chain challenges. Furthermore, by analyzing the past sales data of the client’s key competitors, the experts helped the client to identify best-selling products in the European retail market.

Results Obtained

The insights obtained from Infiniti’s retail inventory management solution helped the client to accurately plan their inventory activities and develop a retail inventory management framework to enhance inventory tracking. Furthermore, warehouse optimization helped the client to speed-up the packing and shipping process, thereby enhancing the customer experience. Also, the client was able to plan for seasonal and unexpected market changes. As a result, the client was able to enhance their sales rate by 33% and CX by 2X.

Inventory Management Challenges

Inventory Management Solution for a Retail Firm

Want to know other benefits of leveraging our retail inventory management solution? Request for more information.