After a turbulent 2020, what’s on the mind of many Zalando partners’ is how to plan a successful 2021. To answer this question, Robert Reid (Director Merchandising Men, Zalando) and Nichole Strydom (Director Buying Men Textile, Zalando) caught up virtually with Marcus Meyer (CEO Central and Northern Europe, Lacoste) and Jan-Philipp Wintjes (Senior Director eCommerce, PVH Corp.) to discuss how they leverage Zalando to inform decision-making and drive their digital strategies – from seasonal planning and forecasting to assortment strategies and product design. Find out how:
- Lacoste and PVH Corp. leverage Zalando tools and metrics for successful business planning
- Lacoste adapts quickly to market changes
- PVH Corp. uses sales data and consumer insights
- Lacoste and PVH Corp. plan for a successful 2021
- You can grow your brand on Zalando
Lacoste and PVH Corp. leverage Zalando’s assortment strategy and customer KPIs for successful business planning
The fashion industry is ever-changing and consumer buying behavior is evolving with it. Therefore, PVH Corp. – the company which owns, among others, Tommy Hilfiger and Calvin Klein – relies heavily on consumer insights for business planning and demand-driven replenishment. Collaborating with Zalando enables the company to analyze growth opportunities not only on a seasonal but on a day-to-day basis. In addition, PVH Corp. leverages Zalando’s ZMS Insights team for business and assortment planning.
Similarly, Lacoste uses various Zalando business models and platform services, all the while integrating the data provided by Zalando into their internal planning processes. Speed to market is a key success factor for the company, hence having the necessary data to move quickly plays a major role.
Want to know how they do it? Check out the video below for more details:
Jan-Philipp Wintjes (Senior Director eCommerce, PVH Corp.)
For sure, we use Zalando consumer insights data for our business and assortment planning quite heavily.”
Lacoste uses sales data, forecasting, and consumer insights, to quickly adapt to market changes
Production at Lacoste is based on a combination of seasonal forecasting, customer feedback, and the number of initial orders from customers. Therefore, Zalando’s wide consumer base serves as an important indicator for trends, consumer dynamics, and potential for growth. These consumer insights, combined with customer digital feedback and production forecasts, are used extensively by the company for testing and planning their assortment range on Zalando. For example, by looking into sales and forecasting data on a daily basis, Lacoste is able to be more flexible in their production process, and keep inventory levels lean, whereby they can then easily relocate stock on a European level and send inventory to the best performing market in the fastest way possible.
Sales data and consumer insights lead the way for PVH Corp. to offer a stronger, more customer-centric assortment
At PVH Corp., consumers are the starting point for everything they do. As consumers on Zalando increasingly demand products that live up to their values in terms of diversity, inclusivity, and sustainability, PVH Corp. didn’t miss a beat and followed suit. Together with Zalando, PVH Corp. was able to build and broadcast a more sustainable plus size and unisex assortment. By joining efforts with Zalando to create the best possible products and content to meet this customer demand, the company was able to successfully convey their values as a brand and connect with customers.
At PVH Corp. and Lacoste, digital acceleration is center stage in their planning efforts for 2021
When looking ahead to 2021, PVH Corp. is going all-in on digital. In fact, due to Coronavirus, the company’s original mid-term digital vision was moved 3-5 years ahead of schedule. Therefore, digitalization, automation, and efficiency, as well as having the right digital expertise in-house are key components of the company’s business plan for 2021. As consumers’ preferences are changing and they are looking for more storytelling, excitement, and brand connection, PVH Corp. is putting a stronger emphasis on strong digital expertise within their teams, as well as digital tools and assets.
Similarly to PVH Corp., Lacoste is strongly focusing on digitalization for their business planning for next year. For the company, this is a two-step approach: internal digital enablement, such as digital setup and remote working capabilities, combined with market digitalization, for example digital showrooms, digital content, and strengthening online demand.
If you want more insights into Lacoste and PVH Corp. business planning for 2021, watch this video:
Jan-Philipp Wintjes (Senior Director eCommerce, PVH Corp.)
We need to focus more and more on digitalization, speed, automatization, efficiency and most importantly on having the right expertise in-house.”
So, how can you grow your brand on Zalando?
Zalando plans brands holistically across all business models
Planning for success on Zalando starts with looking at the potential brands have across the whole platform. Instead of looking at each business model in isolation, we take a holistic view of the brand’s potential in order to make sure we offer the best choice and availability for our customers.
There are four sales channels to take into consideration – Wholesale, Partner Program, Connected Retail, and our offprice business Zalando Lounge. By reviewing the opportunity across all these models, we establish an overall potential for a brand and we start diving deeper into performance.
Zalando assesses the full potential of your brand
To bring out the full potential of each brand on Zalando, we look across all data points available – from financial performance to customer data insights. For example, for Wholesale partners, stock performance is crucial, while for Partner Program partners, we consider various KPIs, such as assortment width, availability, and growth potential for further expansions to new markets.
To better understand the biggest drivers on a more detailed level, we dive deep into the assortment dynamics across models. Factors such as category and commodity group performance, price range performance, and differences between basic and seasonal assortment help us create a clear picture of the brand. We also review the profit contribution of each brand and model, as well as the impact of some of our key strategic assortment initiatives, such as sustainability, size inclusivity, and unisex.
All this in-depth information gives us a very sound understanding of how a brand is performing from a commercial perspective, which we then enrich with multiple data points from a consumer perspective to help the brand grow further.
Zalando uses consumer insights to help partners grow, create financial plans and an assortment strategy that covers all growth opportunities
The strongest tool in Zalando’s toolbox to help partners grow? Most likely consumer insights! We look across multiple data points, such as number and type of customers that purchase your brand, how often and how much they shop your brand, and what other items are in their basket. Another interesting factor to consider is ‘discovery’ or how consumers find your brand on Zalando, as well as customer lifetime value.
In addition, local relevance plays a huge role for brands looking to grow their business on Zalando. Brands often perform differently across markets, hence the in-depth knowledge about local preferences and buying behaviors that Zalando provides is the secret sauce to many brands’ success on the platform.
Finally, we review availability and assess any missed demand. Alongside availability KPIs, we use additional data points, such as back-in-stock notifications to better understand the scale of that missed opportunity, to avoid such situations in upcoming seasons.
After analyzing all these data points, we develop a financial plan and an assortment strategy. As a fast-changing fashion business, we are constantly reviewing and updating these plans as new trends emerge.