Choosing a product mix is not a random task, retailers have to consider many factors to decide which products they should sell and whether a deep assortment or wide assortment should be applied to sell successfully. There are some recommended tips to achieve the best product assortment strategy that you many consider as below:
Understand your business goal and images
Recognize who you are and what your brand represents to your target clients as the first step in having an effective product assortment. Besides, you also have to define who your clients are, how they know about you, and for what purpose. These questions will assist you in determining the appropriate product breadth and depth to deploy.
Analyze your inventory data carefully
While sales and inventory statistics are most useful for determining how many units to order and stock, they can also contain other information that might help you create your product assortment strategy. Examine your sales data and pay particular attention to what’s selling, then utilize that information to determine whether your assortments need to be expanded or deepened.
Observe shopping habits and patterns
Consumer shopping habits and patterns can have a huge impact on how you decide your product assortment strategies. For example, during the covid-19 outbreak in 2020, purchasing habits completely changed. People were more cautious with their spending. During this time, according to mckinsey.com, demand for necessary products such as groceries and household supplies increased significantly around 40% compared to the previous years. As a result, the company that sold those necessary things grew quickly. Therefore, it is necessary to pay attention to customers’ shopping habits both online and offline since it can help you realize which product line should be expanded. By looking at customer shopping habits, you will know which products they are looking for, which products they are purchasing together. Just by actively observing, you can gain an advantage over your competitors with a wider product range and belonging to customers’ demands.
Observe market trends
Not just observe customer purchasing habits, you also need to look at market trends that can influence purchasing behavior. Consumers’ fashion preferences also shift with the seasons, and where they shop shifts with time. Failure to incorporate changing consumer tastes into your assortment could damage your business in the long run. Retailers who can modify and create wide or deep assortments based on customer demands will easily stand out in the competition.
Identify the right suppliers
Product quality will become increasingly important as you start to make consistent sales. The higher the quality of your products, the fewer returns you will get and the more trust your business will get. Customers will desert you quickly if your products are inconsistent, defective, or otherwise undesirable. When deciding on a vendor, make sure to look over a complete batch of products they’ve supplied you. It is also needed to consider how long demand fulfillment will take for vendors outside your country. It doesn’t matter how long or short it is, but how consistent it is. You can sell without fear if you use a normal demand time.
Build your assortment with product families