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Case Study: Optimizing Assortment for an Underserved Market

Issue
A children’s clothing manufacturer’s sales were slowing at the same pace as total industry year-over-year declines. It would have been easy for the manufacturer to justify the sales declines on changing market conditions. However, the insights team wanted to know if there were untapped opportunities.

Insight
As a first step, the manufacturer began digging into NPD clothing sales data by gender and age groups. The manufacturer discovered that clothing sales for boys ages 4-12 were up. On the other hand, girls’ and infants’ clothing sales were down. For years the manufacturer had focused most of its efforts on the girls market. To ensure they understood what moms wanted in boys clothing, they decided to conduct a custom study. They learned that moms would like to buy more clothing for their sons, but were often unhappy with the selection available at major retailers.

Action
Historically, retailers dedicate significantly more space to girls’ and infants’ clothing. Using the insights the manufacturer found in the NPD data, the manufacturer will be able to demonstrate the potential sales their retailer partners can gain by dedicating more of their assortment to boys’ clothing. The manufacturer and retailer may also be able to generate more loyalty by meeting the needs of an underserved consumer group.

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