U.S. Fashion Firm Surpasses Legacy Buyers, Sets Flexible Pricing2 min read

U.S. Fashion Firm Surpasses Legacy Buyers, Sets Flexible Pricing2 min read

Reading Time: 2 minutes

Company Profile

A large global fashion company partnered with Vue.ai’s INTURN tool to diversify its buyer base. This designer, marketer, and distributor of lifestyle products (apparel, accessories, footwear, and fragrances) operates worldwide with over $6 Billion in annual revenue. This fashion label with 450+ retail stores and 600+ concession-based shops globally realized significant margin recovery improvement on multi-category inventory by working with new buyers.

Challenge

The fashion company faced three main challenges when it came to its liquidation strategy:

1. A legacy relationship with one off-price retailer including pre-set, non-negotiable discounts (85% off MSRP) limited the brand’s excess profitability.
2. The pool of excess inventory was growing annually due to a challenging retail landscape.
3. A linear sales model inhibited the brand from creating a diverse off-price retailer network. The brand would only offer inventory to second-tier retailers after closing transactions with their legacy relationship.

Solution

Vue.ai’s Excess Inventory Management solution enabled the brand to strategically address their off-price challenges:

1. The brand leveraged Vue.ai’s INTURN tool network to expand and diversify its buyer base to achieve higher recovery.
2. INTURN tool’s allocation capabilities enabled the fashion label to easily split available inventory and curate assortments for multiple buyers at once, moving from a linear to a competitive go-to-market model.
3. The fashion company utilized the INTURN tool’s flexible negotiation settings and pricing tools to set custom resale restrictions to avoid saturation.

Results

By implementing Vue.ai’s Excess Inventory solution, the brand saw powerful results in its off-price process:

1. New buyers bought 1.6X more than previous buyers
2. Overall recovery increased by 44 %*INTURN introduced the brand to three new buyers, all of whom offered better prices than the legacy partner.
3. Women’s apparel and accessories recovery increased by 67%
   *All categories achieved higher recovery.

How could a diversified buyer base improve your off-price business? Get in touch here.