Alain Afflelou

Predictive models used to support market expansion and closer management of individual store inventory

Published on 11-Nov-2013

"In the past we were always operating on financial figures from previous months, even previous years. We still use that data, but we now have up-to-the- minute views of exactly what is most popular and what will happen if we make small changes to price or promotion." - Ludovic Tassy, CIO

Customer:
Alain Afflelou

Industry:
Retail

Deployment country:
France

Solution:
BA - Business Analytics, BA - Business Intelligence, Smarter Planet

IBM Business Partner:
2B Consulting

Overview

Alain Afflelou is a retailer of prescription eyewear and sunglasses headquartered in Paris. The company employs on-site optometrists to meet the optical needs of its customers at more than 1,000 locations, primarily in France and Spain, but also in other countries throughout Europe. Alain Afflelou was founded in 1979.

Business need:
Alain Afflelou needed to be more proactive and predict sales in advance to adjust inventory and in-store strategies.

Solution:
Alain Afflelou now has unprecedented views into what styles are hottest in its 1,000 locations. Information is gathered from point-of-sale systems, inventory, market research and past financial performance to help the company understand the performance of more than 20 eyewear collections.

Benefits:
The company anticipates increased per-product margins, increases in sales and lower costs of product development and marketing campaigns.

Case Study

Alain Afflelou is a retailer of prescription eyewear and sunglasses headquartered in Paris. The company employs on-site optometrists to meet the optical needs of its customers at more than 1,000 locations, primarily in France and Spain, but also in other countries throughout Europe. Alain Afflelou was founded in 1979.

The Opportunity
Europeans are always in style, thanks to Alain Afflelou, an eyewear franchise with more than 1,000 locations and headquarters in Paris. Keeping the right looks on display in stores requires understanding what customers are looking for and at what price they will buy. But the retailer was making inventory and marketing decisions based on broad views of past financial performance. It needed to be more proactive and predict sales in advance to adjust inventory and in-store strategies.

What Makes It Smarter
Eyeglass wearers not only want to see well; they want to look good, too. Alain Afflelou now has unprecedented views into what styles are hottest in its 1,000 locations. Information is gathered from point-of-sale systems, inventory, market research and past financial performance to help the company understand the performance of more than 20 eyewear collections. Style and color trends are easier to spot, inventories are tightly controlled, and overstocking is practically eliminated by using predictive modeling to spot trends across the business as well as within individual regions and stores.

Instead of a few top-level managers having limited to access to information, today company managers throughout the organization, including those working remotely and using tablet devices, can access detailed information that pertains to their area of the business and see how their performance contributes to an overall effort. Marketing teams can create highly detailed, proactive plans that help the company create and shape trends, not follow them.

Real Business Results
• Anticipated increased profitability of stores as a result of tighter inventory control and higher per-product margins
• Expected increases in sales because of higher customer satisfaction and up-sell opportunities
• Anticipated lower costs of product development and marketing campaigns

Products and services used

IBM products and services that were used in this case study.

Software:
Cognos Business Intelligence

Legal Information

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