Markdown Optimization for an Indian Apparel Retailer Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Siddharth Sinha is the CEO of an apparel retailer WE SELL STYLE (WSS). In 2015, they operated in all four areas of the state over 200 shops. They mainly focused on providing great quality fashion at a remarkably low cost. Markdown planning has been an important aspect of the clothing company. It truly is important to comprehend that the demand for fashion garments is not –influenced all year by current trend, variations in the seasons, festivals, and thus consequently are, difficult to estimate. A clothing retailer could go off target - by underestimating or overestimating the demand, with overestimating being widespread. The ordering-production-stocking cycle is readily a 6-month cycle before the selling really begins; with an expectancy to improve sales year on year, the procurement team purchases more, making a rise in the assortment of colors and styles to offer more to the consumer.

Yet, not all designs sell as expected, leaving higher than anticipated stocked inventory, which necessitates an impetus. The impetus in the business comes in the form of ''ending of season sale (EOSS)''. Decision on the percent of markdown for EOSS is one of the most crucial jobs for an apparel retailer. This task starts months ahead of the EOSS. The merchandise team and the preparation team sit together and think of an EOSS strategy at the style level. The crucial decision would be to quantify the level of non-performance of those designs, which did not sell as predicted and by how much to markdown for the EOSS.

PUBLICATION DATE: May 01, 2016 PRODUCT #: IMB561-PDF-ENG

This is just an excerpt. This case is about SALES & MARKETING