Black Friday: Who Will Be the Winners and Losers?November 16, 2018
It looks like turkey and pumpkin pie won’t be the only things retailers gobble up this holiday season! NRF is expecting 2018 holiday sales to climb between 4.3 and 4.8% over 2017. That’s up to a total of $720.89 billion for hopeful retailers who are getting ready for the most chaotic time of the year.
There’s even more good news for apparel brands and retailers. According to Deloitte’s 2018 Holiday Retail Survey, 53% of shoppers plan on buying clothing as gifts. However, despite the retail industry’s progress, this Black Friday will be more important than ever for brands and retailers to stay ahead of the major players without sacrificing margins. So, what can apparel brands and retailers do to prepare their supply chains for the mad holiday rush?
Speed, Speed, Speed
Speed to market is already an important priority for retailers throughout the year, but it is especially necessary when millions of shoppers are eagerly purchasing popular items for sale during the Black Friday weekend. As we mentioned in our latest white paper, time is arguably the biggest risk factor in the supply chain. Consumers want what they see now, and it’s unlikely they’ll wait for an item to go back in stock.
The losers this year will be retail and fashion supply chains who are disconnected, siloed and slow-moving, limiting a company’s ability to have the information needed to quickly make important decisions. On the other hand, the winners will be companies who invest in digitizing the supply chain, enabling companies to make faster decisions and reacting quickly to the products that are selling. In order to move fast in response to popular items during the holiday rush, companies must improve internal collaboration and digitize the supply chain.
Synchronized Supply Chain
Another essential key to becoming a winner on Black Friday is to synchronize every aspect of supply chain optimization, planning and execution throughout the supply chain network – bringing together previously disparate disciplines, departments, vendors and technologies into a single ecosystem that ties everyone and everything together.
It’s often difficult to estimate which products will sell out quickly. With a synchronized supply chain, companies will closely forecast their raw material requirements, place commitments with multiple suppliers, and draw down the commitments as POs are issued and materials are consumed. This process will reduce the risk of holding too much or too little inventory to meet changing demands during the holiday rush.
Become a Winner with NGC Andromeda
NGC’s Andromeda Cloud Platform® is enabling apparel brands and retailers to be winners during Black Friday and throughout the entire year by helping companies react with speed and agility to rapidly changing market trends. With Andromeda, retailers can tap into consumer insights and quickly react to demand with a synchronized digital supply chain.
To learn more about how NGC Andromeda can help your brand become a winner, request a demo here.