Fashion Retail Analysis

Project Objective:

This project involves an in-depth analysis of customer and purchase data from May 2019 to the end of 2020. The aim is to understand customer behavior, identify key growth opportunities, and develop targeted marketing strategies to enhance customer retention and support international expansion.

Key Observations:

1. Financial Growth:
   • Net Order Value: Increased by 203%, outpacing the production cost growth of 189%, indicating effective scaling of the business.
   • Average Order Value (AOV): Grew by 11.2%.
   • Average Consumer Lifetime Value (LTV): Increased by 17.4% from 2019 to 2020.
2. Geographical Expansion:
   • Customer Origins: Expanded from Italy to 10 countries, including Saudi Arabia, USA, and several European countries.
   • Sales Distribution: Most sales still originate from Italy, but the USA shows the highest average sales values, suggesting significant potential for growth in the US market.
3. Customer Purchase Patterns:
   • Single Orders: 92.16% of consumers made only one order.
   • Repeat Purchases: Almost 70% of repeat customers make another purchase within four months of their previous order.

Recommendations:

1. Targeted Marketing for High-Value Markets:
   • Focus on the USA: Allocate more marketing resources to the US market, given its high average sales values. Tailor marketing campaigns to the preferences and behaviors of US consumers.
2. Customer Retention Strategies:
   • Encourage Repeat Purchases: Implement a loyalty program to reward repeat customers and encourage repeat purchases. Offer incentives such as discounts, exclusive deals, and early access to new products.
   • Review and Campaign Analysis: Explore consumer reviews to identify pain points and areas for improvement. Launch targeted marketing campaigns to address these issues and enhance customer satisfaction.
3. Timing of Engagement:
   • Critical Window: Focus on targeting newly active customers within four months of their first purchase. Use personalized email campaigns, special offers, and reminders to convert first-time buyers into repeat customers.