Fast Fashion Retailer’s Data-Driven Inventory Reduction & Hot-Style Boost
Trend & Demand Analysis: The retailer struggled with 30% of inventory being slow-moving (e.g., outdated prints, ill-fitting basics). We integrated data from three sources: ① Google Trends (tracking UK fashion keywords like “matte satin dresses” and “cropped cargo pants”); ② TikTok/Instagram trend hashtags (e.g., #CoquetteAesthetic, #CargoPantTrend); ③ Historical sales data (identifying that UK shoppers preferred size 12-14 over size 6-8 for bottoms). We then compiled a Seasonal Trend Report recommending 12 high-potential styles (e.g., ruffled satin mini-dresses, high-waisted cargo pants in neutral tones).
Inventory Adjustment & Fast Response: The retailer shifted 60% of its production budget to the 12 recommended styles, with small-batch runs (500 units per style) for initial testing. For slow-moving inventory (e.g., neon-colored tops that didn’t align with the season’s neutral trend), we launched a “Trend Bundle” promotion: pairing neon tops with hot-selling cargo pants at a 30% discount, and promoted the bundles via Instagram Reels showing “how to style neon for subtle trends.”
Results: The retailer’s overstock rate dropped from 30% to 18% (a 40% reduction) in one season, and the 12 recommended hot styles accounted for 55% of total sales (up 120% from average styles). The “Trend Bundle” promotion cleared 75% of the neon top inventory within 2 weeks, and the retailer’s overall profit margin increased by 8% due to reduced inventory waste.