Jeweller - April Issue 2018

MARKETING & PR
TRENDS: MEASURE THEM OR MISS OUT
IN-STORE DATA CAN SHOW RETAILERS THE NEXT EMERGING TRENDS, PROVIDING THEY KNOW WHERE TO LOOK. IT’S A SKILL
THAT’S WORTH LEARNING, EVEN IF IT MIGHT SEEM LIKE A CHORE IN THE BEGINNING. DAVID BROWN REPORTS
These days, business is all about big data;
the industry is inundated with hordes of
information that was never available to
retailers from previous generations.
Although this information can be invaluable
for its ability to shape the decision-making
process, the sheer quantity of it might
overwhelm retailers.
Using the information that comes from a POS
system can be a helpful way of spotting the
trends a business is encountering, enabling
that business to react ahead of competition.
The fashion industries are experts at trend
spotting; top designers will spend thousands
of dollars sending experts all over the world
to find trends.
It’s said that the fashion industry is capable
of predicting what styles consumers want to
wear before consumers even know it!
This early insight is essential due to the
constantly changing nature of their product.
Although aspects of the jewellery industry’s
product lines are consistent year-to-year
– diamond ring designs don’t change as
quickly as clothing choices – there are still
trends that shape what customers like to buy
and these change over time.
How does trend spotting work for a business
owner? The amount of information available
in the average store might be surprising,
especially when this information can help
retailers to spot current and upcoming
trends in their businesses.
From sales reports to inventory-ageing
and stock-imbalance statistics, there is a
sumptuous array of reports that can improve
a retailer’s ability to spot trends.
So much information, in fact, that those
retailers who aren’t spotting trends are
possibly not using their data effectively.
A deep curiosity is necessary for any owner
who wants to play the role of trend spotter
but it’s a skill that doesn’t come easily to
STOREOWNERS
CAN’T MANAGE
WHAT THEY’RE NOT
MEASURING. IT’S
DIFFICULT TO SPOT
TRENDS USING
ONLY BAD DATA
AND IMPOSSIBLE
TO SPOT TRENDS
WITH NO DATA
DON’T OVERLOOK POSITIVE TRENDS
everyone. Here are some common mistakes
to be avoided to ensure the best possible
chances of spotting trends early on.
LACK OF A GOAL
It’s one thing to look at a line on a graph
and say, “Hmm, this seems to have changed
course slightly.” It’s another to say, “This was
expected to move toward 25 per cent and
it’s only at 15 per cent.”
Having an expectation makes it easier to
identify when a trend has changed. This is
especially important in the case of negative
movements; retailers who don’t recognise
these might be late to make stock changes,
costing them time and money.
If it’s a positive trend that is overlooked,
retailers might record opportunity costs
because they didn’t capitalise immediately
upon emerging styles.
BAD INFORMATION
Storeowners can’t manage what they’re not
measuring. It’s difficult to spot trends using
only bad data – and impossible to spot
trends with no data.
Make a commitment to getting the data you
need to know how the business is doing
on all fronts and then create a roadmap to
establish a reliable stream of information.
Determine the necessary reports that
will provide the business with the key
information it needs.
WEARING BLINKERS
All retailers have different orientations to life
and this reflects in the expectations they
set their businesses. These expectations can
create biases that affect the way retailers
interpret and/or pick up on trends.
What biases might you bring to the way you
interpret your data? Are you an optimistic
person?
If so, you may want to complement that
perspective with someone who has a
different view so that you are looking for
trends with a well-rounded perspective.
After all, it’s very difficult to see that which
you are not seeking.
Trend spotting should be a part of every
store’s employee feedback loop. Regularly
collecting information from the sales team
can provide valuable feedback into what
customers are buying and what items no
longer interest them.
Combining data with anecdotal opinions
from the sales floor can help businesses to
stay ahead of the competition and keep
product lines on trend for much longer.
Retailers that can avoid the mistakes above
and bring a healthy dose of curiosity to big
data will be amazed by what they uncover
about their businesses.
Stores already have access to a mine of data
that will provide owners with the answers
they need. i
DAVID BROWN is
co-founder and business
mentor of Retail Edge
Consultants. Learn more:
retailedgeconsultants.com
April 2018 Jeweller 35