New Albany, Ohio – Abercrombie & Fitch is using a consumer-driven predictive analytics solution from First Insight Inc. to help the retailer make faster and more accurate design, buying and pricing decisions, thereby reducing markdowns and mitigating risks associated with new product introductions.
Through online social engagement tools, First Insight enables Abercrombie & Fitch to gather real-time consumer preference and pricing data on candidate new products, months before products are launched in the market. This data is filtered through First Insight’s predictive analytic models to determine which products present the greatest opportunity.
First Insight’s solution is now enabling Abercrombie & Fitch to test new candidate products in every product category, every week, throughout the merchandising organization and the product development lifecycle (design, selection, pricing, and buy depth). Abercrombie & Fitch is also leveraging the technology to execute on its strategy to decrease promotions and increase average unit retail prices.
“First Insight will be a critical element in the transformative changes to our business,” said Gillian Galner, general VP of Abercrombie & Fitch. “By using First Insight to identify more winning products and price them appropriately, we are increasing speed to market with the right styles which will yield increases in sales and margin. After evaluating the solution for an extended period, we have confirmed the solution will deliver a strong return on investment.”