Clear Demand’s platform, architected on Big Data and delivered as a Cloud-based Software-As-A-Service (SaaS) solution, can now support markdown pricing for apparel (softlines) and general merchandise (hardlines) across the retail enterprise (online, in-store).
Markdown pricing technologies establish the depth, timing and location for pricing on seasonable or short-life cycle products in order to maximize margins. Clear Demand has published a thought leadership article entitled "Markdown Optimization Demands a Seasonal Facelift" to provide more detail on the innovations now available to retailers.
“Our team of pricing specialists were involved in the development of three of the prevailing markdown optimization solutions of the last 10 years and as such understand what is required to innovate for markdowns today,” said Jim Sills, President and CEO for Clear Demand.
“Much has changed in 10 years, including technology, competition and shopping behavior. We believe it is time to bring current technologies to bear on markdown pricing so retailers can compete more effectively.”
Clear Demand’s omni-channel retail pricing solution addresses the complete lifecycle of pricing from everyday price through promotions and markdowns and uses innovations for competitive and rule-based pricing in combination with optimization to deliver value. Some of the innovations delivered specifically within the Markdown Pricing module include:
Continuous Markdown Pricing:
Clear Demand models store-SKU elasticity across the entire product lifecycle (introduction, in-season, clearance) online and in-store and recommends markdown timing and depth, according to demand. A “demand-based” markdown schedule permits more flexibility over traditional fixed “time-based” markdown schedules. Mapping markdowns more directly to demand improves sell-through and margin capture. This same localized understanding of customer demand also provides important benefits for allocating inventory online and across stores.
Enterprise Omni-Channel Rules Architecture:
Clear Demand’s enterprise rules architecture allows the development of granular markdown programs at any level within the merchandise hierarchy. Integrated for softlines and hardlines across stores and online, reporting is also available that allows “roll-up” or “drill-down” at any level as necessary.
Clear Demand processes competitive pricing data from any source (online, in-store) at any frequency, compares this with the retailers’ pricing rules and provides daily alerts for merchants when prices are out of compliance with rules.