FASHION
Anticipating market trends and rethinking product performance
Our expertise
Strategy, planning and execution: leverage data and artificial intelligence
The fashion industry moves to the rhythm of collections, purchasing behaviour and digital transformations. Brands are being impacted by innovation and artificial intelligence. Those that are slow to embrace the technological revolution will gradually disappear from shoppers’ baskets. There are many levers that can be used to boost competitiveness: refining the supply strategy, adapting the product mix, streamlining purchasing, controlling production volumes, challenging distribution channels, rethinking the promotional approach, and building global strategies that are adapted locally. With our expertise in demand modelling, pricing and go-to-market strategy, Veltys supports fashion brands in optimising the entire product life cycle, with a responsible ‘less but better’ approach.
OUR OBJECTIVES
Generating growth without destroying value
Increase revenue by strengthening the offering, maximising margins and limiting excess production to preserve resources.
Optimising purchasing and predicting sales
Use segmentation and predictive AI to make forecasts more reliable, objectify team insights and adjust volumes with precision.
Strengthen brand value
Build a pricing and promotion strategy aligned with profitability ambitions and inventory management objectives to skilfully preserve the brand image.
Data to protect your margins
We support retailers in reinventing their business model: moving from a push, mass-market model to a consumer-centric model based on client knowledge and behaviour prediction.
From strategy and performance management to implementation, Veltys works across the entire value chain. Our data-driven approach, complemented by an excellent understanding of the business, enables us to support all brands in a profound transformation of their practices: from structuring collections, volumes and pricing to optimising promotional policies and measuring the effectiveness of marketing investments. Your intuitions are objectified, resulting in faster decision-making and better performance control.
OUR BUSINESS CASES
Structure purchasing and store layouts based on actual demand to boost margins and sales outside of sales periods.
A retailer wants to streamline the business model for its own brands by purchasing and stocking each item according to its sales potential. Veltys conducts a detailed analysis of demand to predict potential and de-average purchase volumes.
Context
The retailer noticed a decline in sales and margins, offset by an increased reliance on sales. Purchase volumes were too uniform: the best products were missing from the shelves, while the least successful ones were piling up in stock.
The situation was complicated by a reduction in purchasing credits, more difficult sourcing, MoQ constraints and the lack of reliable management tools. Manual processes, which were prone to errors, did not allow the wealth of available data to be exploited. The actual heterogeneity of sales per item was not reflected in purchases.
Method
We analysed the performance and contribution of each product characteristic (colour, type, material, location) using an econometric model.
This model, fed by several seasons of sales data, enabled us to predict the expected sales volumes for each item, both during and outside of sales periods. The teams enriched the approach with their fashion and aesthetic expertise, which was integrated directly into the tool.
On this basis, we formulated precise recommendations for purchase volumes, calendar placement and store placement per item.
A customised collaborative tool was designed, linked to other tracking files (collection plan, etc.), enabling buyers to make confident decisions and reduce data entry errors.
Results
For six seasons, the brand has relied on this system for its purchasing. The results are tangible:
- +10 points in sales rate,
- +5% in turnover,
- +10 points in margin generated outside of sales.
The collaborative tool is used by all purchasing teams, facilitating work with product teams and offering significant time savings. The predictions are robust and integrated into the reality of the business: they combine the power of models with field expertise, enabling each item to be placed as close as possible to demand, at the right time and in the right place.
Optimising promotions in the fashion sector to achieve margin gains of 10% to 15% over 4 years
Veltys helped a multi-target fashion brand transform its sales strategy to balance stock clearance, margins and turnover in an international market context.
Context
In the fashion industry, sales are a decisive but risky moment. Too often, promotions result in excessive price reductions, which clear stock but significantly reduce margins. After lockdown, this tension became even more acute: the brand needed to boost revenue without sacrificing profitability. A major retailer with an online store and a network of several hundred shops offering more than 20,000 products called on Veltys to rethink its approach.
Method
We put data at the service of decision-making. Product performance analysis and econometric modelling enabled us to accurately estimate promotional elasticity. From there, we designed optimal markdown trajectories, re-optimised on a daily basis according to sales. Each operation was guided by concrete scenarios, ready-to-use rate lists for the brand, and enhanced management through field tests and simulations. Managers were supported every step of the way with intuitive tools to quickly integrate recommendations.
Results
The results speak for themselves after several editions: a 10% to 15% increase in margin at constant sales, 95% reliable predictions ahead of sales, and widespread adoption by teams (90% to 95% compliance with recommendations). In concrete terms, this has enabled rapid adjustments: changing the schedule, relaxing certain constraints, or activating targeted levers to maximise impact. The brand has gained in responsiveness and peace of mind, making its promotions a real performance lever rather than a constraint.
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