Wednesday, November 18, 2015

Category Management Series: The New Age of Merchandizing

Merchandizing is a key element of a category management strategy. It is at the cross road of several key departments, and interests:
  • The supply chain, in order to maximize its efficiency and lower the potential stoc outs
  • The product range, in order to set it up clearly for customers
  • The maximization of products expositions depending on their performances.
Merchandizing must evolve. We are living in the age of big data, and customization. Therefore, merchandizing must take advantage of the new technologies in order to allow retailers to set up fast planograms that suits the local clientele by adaptating the product range and organization fast.

Moreover, merchandizing is probably an element that needs to benefit from big data in order to take into account more closely some other key elements of retail performance. For example, by being able to understand better the supply chain problematic, in order to propose at all time the most efficient supply chain by taking into account the pace of orders of the warehouses for example.

New technologies are coming out. Especially 3D schemes allowing to better understand the impact of certain choices.

New customer interface in store is also possible, by using new mobile technologies, augmented reality for example. 

Merchandizing is already at the moment a difficult art. The number of products listed has skyrocketed over the last decade, about 30% of the product range change each year with a high number of innovations coming in. But merchandizing as a high potential to go beyond, thanks to big data and new software, which will allow to better serve customers.