Why Category Management Strategy?
The growing competitive pressure in the fashion retail industry poses major challenges for players in terms of effectively handling different categories to drive profitability. This makes it necessary for them to rethink their approach to targeting customers. A category management process supports in-depth analysis and assessment of the supply market. Category management helps in assessing sourcing destinations, monitor supplier performance, and facilitates an overall powerful category planning cycle. Moreover, category management strategy lays focus on distinct areas of expenditure and gives key insights to the companies to readjust their procurement model as well as select suppliers who befit their procurement budget.
Trends Outfitting the Fashion Retail Industry
From online shopping to aspiring customers, the fashion retail industry is encountering a slew of developments that will reshape the landscape for good. During the last five-year period, the fashion retail industry encountered reasonable growth in revenue. Although the industry has fared well in some years, growth has been volatile at times. Switching from one of the biggest economic downturns in the U.S and at the notion of fast-paced technological changes and consumer choices, fashion retail industry is facing an ever-changing landscape. Increasing saturation among players and products is increasing competition; so, to stand out and come out on top, fashion retailers must be aware of and conform to ongoing and upcoming current trends.
About the Client
The client is an American multinational retail-clothing firm, known for its fashion clothing for men, women, teenagers, and children.
Interested to know more about SpendEdge’s category management process or on how our category management strategy helped a fashion retail industry client? Continue reading or request a FREE proposal.
The client, a leading fashion retailer with business units spread across the globe was facing difficulty in achieving growth and addressing margin problems. They wanted a structured approach to manage each category and sub-category of spend holistically, identify the need to improve the contribution of procurement delivered to the business and obtain insights into ways of making significant changes while operating in a fast-paced and extremely competitive environment.
To help the fashion retail industry client remodel their procurement, improve savings, quality, and efficiency of their services, SpendEdge’s category management specialists tailored a comprehensive research methodology, which included primary research coupled with qualitative and quantitative data collection procedures.
With the help of category management strategy solutions, the fashion retail firm identified supplier relationship management, strategic sourcing, and procurement transformation. The category management strategy further helped their category managers to focus on conducting an in-depth market analysis to entirely leverage their procurement decisions on behalf of the organization. Moreover, the category management process supported the client build better stakeholder relationships in the business and achieve savings of $6 million over a 12-month period.
For more than 15 years, SpendEdge has been assisting clients across various industries with the best-in-class procurement and supply market intelligence solutions to drive sourcing and procurement excellence. Our procurement solutions have assisted procurement and sourcing professionals from the top 500+ organizations to gain actionable insights for better decision making.
To know more about our category management process, Get in touch today!