No more markdowns

Delta_V_Earth_Moon_Mars (1)Engineers build things to solve problems. They filter through effects to find causes so problems can be solved and lives can be happier. More importantly engineers speak up when they see something that’s deeply broken. We should all be engineers.

If an engineer’s mindset were applied to the fashion industry, there wouldn’t be markdowns. Markdowns are waste. If we looked at the core causes that create markdowns, the root cause would be too much product for too few customers. We don’t need enough fuel to get to Saturn, if we’re only going to Mars. An engineer’s mindset would look to eliminate waste, not create it.

Markdowns are a solvable problem. Let’s fix it.

Fashion industry leaders need more data intelligence

DataScientistJobDescriptionsSo many companies talk about how they are becoming more and more data driven. While I think that’s a good thing, I also think it could also be a very dangerous thing.

Being driven by something is much different than being intelligent about something. A person or company that is data intelligent is very different than a person or company that is data driven. Being driven means you are propelled by something. It’s not enough to say we use data to propel us forward. Using the right data with the wrong conclusion can be as detrimental as using the wrong data, or no data, at anytime.

Being intelligent, on the other hand, means you have a high mental capacity for something. It’s a process brought about by good judgement and sound thought. Driven is compulsion whereas intelligence is skill. Let’s work to make sure the fashion industry becomes data intelligent.

 

Know your customer.

Understand who your customer is and what they want from you. If you’re a brand and sell your products to other retailers, you need to know what their customers bought of your products. It’s completely irrelevant what you sold to the retailer. Likewise forward bookings, or orders from your retail partners, are useless. Just because you sold it to them, doesn’t mean you’ll sell it to me. If you want to build a brand that customers love, look only at what they’ve bought from you. If they didn’t buy it, they didn’t want it. That could be a function of the right product at the wrong time, or the wrong product at anytime. Your job is to figure out what your customers wanted and then make sure they can get more LIKE it at the right time in the future.