For companies operating in the online space, having an advanced merchandising strategy is paramount to maintaining a competitive (and sustainable) edge. However, the prospect of selling non-moving inventory can be daunting, especially for brands that are already working to increase their overall conversion rates.
This requires a delicate balance between maximizing sales and keeping inventory levels to a minimum. It may be difficult, but with help from advanced product analytics and other tools, it's not impossible.
To help Davosa USA sell their non-moving inventory without negatively impacting conversion rates, the company approached Kimonix to develop an advanced merchandising strategy.
Davosa is a renowned Swiss watch brand that has been producing timepieces since 1881. The company has a long-standing history in the watchmaking industry and is known for its commitment to craftsmanship and quality. Davosa offers a diverse range of watches, including both mechanical and quartz models. Their collection encompasses various styles, including dress watches, sports watches, dive watches, pilot watches, and more. Each watch is meticulously crafted and incorporates high-quality materials and components.
Sell non-moving inventory without decreasing conversion rates
Segment products into 3 different categories
Execute a marketing strategy that balances promotion between each category
Though the Davosa USA team was consistently producing high-quality products and moving best-selling watches off the shelves, they were struggling to do the same with their non-moving inventory.
The team had attempted many different strategies to increase conversion rates, but none of them had proven effective.
As such, Davosa USA needed to move these items as quickly as possible in order to maximize margins. But there was one important challenge to keep in mind: they could not risk losing any sales.
Like any brand, the team was concerned about over-promoting problematic products, and therefore reducing the visibility of their best sellers in collection pages—which would reduce their overall conversion rates.
In a nutshell: Davosa USA needed a solution that would allow them to move the items that were not selling well, while also maintaining the visibility of their best-selling products.
To help Davosa USA strike the promotional balance they needed, Kimonix helped the company establish a multi-segment collection that differentiated and balanced 3 main types of products:
Best performing
Non-moving inventory
New items
Next, we executed a merchandising strategy that automatically alternated between the three types to create a balanced mix by exposing new arrivals, promoting best performers, and pushing slow-moving items.
Within each product segment, Davosa USA used a different sorting approach using unique parameters to ensure the right products were being boosted to the top of the collection page. As a result, the company developed an advanced merchandising strategy that maximizes sales velocity for every category.
Increase in Conversion Rates!
Decrease in Non-Moving Inventory!
In their first month using Kimonix, Davosa USA was able to dramatically increase sales for both their non-moving inventory and existing best performers.
With a properly-balanced merchandising strategy in place, the company achieved the following results:
Decrease the amount of non-moving inventory by 16%
Increase overall conversion rates by 32%!
