Data-driven product buying: boosting sell-through and inventory efficiency in fashion

Effective category and product management are crucial to the fashion and apparel industry, directly impacting sell-through rate — a key inventory management KPI and a major driver of overall sales. Optimising sell-through and minimising excess inventory begins with the product buying process.

However, this process currently relies heavily on subjective judgement informed by brand guidelines (prioritising key push products) and merchandiser experience (estimating future performance based on past sales).

While this approach may suffice for “carryover products” — classic items that are regularly replenished — it is far less effective for new launches, such as runway or showroom collections.

Overcoming data gaps in fashion buying decisions

The new launches pose significant challenges as they lack historical sales data but still require buying decisions to be made approx. six months in advance. Key obstacles include:

  • Difficulty in identifying accurate references from previous launches.

  • Limited ability to timely analyze historical performance of similar products to support buying decisions.

  • Challenges in estimating sales potential holistically and reasonably.

RISE: Revolutionary AI-Powered Solutions

Leveraging our deep expertise in the Fashion and Apparel sector, Artefact introduces the proprietary RISE framework, accompanied by our AI-powered solution suite. Together, they empower brands to navigate the complexities of new product launches and seize commercial opportunities.

Here’s how RISE revolutionizes your product buying and launch process:

1) Recognize Similarity: Powered by our AI “Launch Library”, this tool uses a robust product similarity model to swiftly identify historical products comparable to new launches in various dimensions.

2) Identify Potential Top-sellers: Our “Launch Indicator” AI model predicts the sales potential of new products, enabling you to prioritise high-potential SKUs and allocate buying resources effectively.

3) Synthesise 360 Product Insights: Through the “AI Launch Lab”, gain a comprehensive, intuitive view of all product insights, including new and similar products’ features and historical sales trends, with clear rationales for why certain products have strong sales potential.

4) Evolve Buying & Allocation Strategy: Continuously refine your strategy throughout the product lifecycle. Our AI tools support both pre-launch and post-launch phases, allowing agile adjustments to maximise sell-through based on real-time market feedback.

Unparalleled data enabler: transforming AI with 360-degree product data catalogue

Data is the backbone of any AI solution—it can make or break success. Product data, in particular, can be complex due to its diverse and often unstandardized nature. Artefact’s “Product Feature Catalogue” integrates 360-degree product data sources, providing a strong foundation for advanced analysis and modelling, reusable across various applications beyond New Launch Buying.

Reference and implementation

Artefact has a proven track record of empowering leading global and local brands with “RISE”.

Our “RISE” AI Solution Suite is typically delivered first through a tailored 9-12 week Proof-of-Concept (POC), customised to your specific business needs and data infrastructure.

RISE to commercial excellence!

If you feel interested in Artefact’s “AI for New Launch Product Buying”, welcome to contact Kenn Liu or Shirley Li for further information.