A global corporation that houses several iconic fashion brands worked with INTURN to improve margin and sell-through on off-price inventory. As one of the world’s largest multinational apparel companies, this corporation does business in more than 25 countries and sees $9 Billion in revenue annually. This company is a designer, marketer, retailer and wholesaler of women’s, men’s and children’s branded apparel, accessories, cosmetics and furnishings. By partnering with INTURN, the corporation saw significant margin enhancement on multi-category inventory with its existing retailers.
INTURN collaborated with the company to solve its three problems with liquidation strategy:
- Unable to provide complete product information and images to buyers, resulting in lower perceived inventory value as well as longer transaction periods—buyers took weeks to negotiate deals and submit purchase orders.
- Order entry and reconciliation processes were very manual and error-prone for both the brand and buyers.
- Limited transaction data was captured during negotiations, leaving the company with minimal analytics for business assessments.
Taking these challenges into account, INTURN’s solution helped the corporation overcome these hurdles and optimize their off-price process:
- Displayed products with INTURN’s automated content-rich offer view, creating an ecommerce-like experience for buyers.
- Leveraged INTURN’s negotiation capabilities, enabling users to easily track products and categories, view negotiation history, and calculate optimal offer pricing. This ultimately led to business insights and improved decision-making.
- Utilized INTURN’s customized PO export format, which allows for bulk order entry and eliminates the manual entry process.
These solutions led to two impressive results that improved the company’s off-price business performance:
- Recovery Enhancement: More product bought at the best margin
Of the company’s existing buyers, the buyer offering the highest price purchased 25% more units than what was historically bought due to better product information and images. Product margins went from 4.9% to 9.1%—an 85% increase!
- Efficiency: Duration of transactions greatly reduced
The overall transaction time was reduced by 88% due to INTURN’s automated data upload, offer exports, and negotiation tools. This also decreased other related costs, including warehousing and financing costs.
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