ADAPT TO THE HEALTH AND BEAUTY RETAIL CHALLENGES EASILY

TURN THE CHALLENGES HEALTH AND BEAUTY STORES FACE INTO AUTOMATED ROUTINES AND PROFIT OPPORTUNITIES

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  Difficulties in managing a large share of promotions with a variety of promotional mechanics

  Health and Beauty/Drogerie stores have a highly competitive environment, and the share of goods in promotions can be as high as 80%. In addition to discounts, the 1+1 and 1+2 mechanics are widely used here, which requires a special inventory management approach. It is a tricky task for a retailer to calculate demand and orders so as not to generate overstock and ensure availability.
  
   How it is solved with LEAFIO:
  - Using AI algorithms, the system builds the most accurate demand forecasts for the upcoming campaign;
  - Automatic order generation and dispatch allows you to ensure the availability of goods in each store and at the DC exactly in amount and time for the start of the campaign;
  - By adapting the inventory level to the current demand and sales rates, the system allows to easily manage any mechanics (including 1+1, 2+1);
  - Not to form overstocks at the end of the promotion, the program gradually reduces the stock of promotional goods by regulating the deliveries quantity and timing;
  - The promotional calendar provides visibility of all past, current, and future promotions across the chain, categories, stores, and suppliers;
  - The analytical block allows not only to monitor the running of the campaign but to analyze its results for future adjustments.
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  Store employees can fail a promotional layout because of the large share and frequent changes in promotions

  Because of the frequent changes in promotional offers and the proportion of products in the promo, store employees fail or even forget to change the promotional layouts and price tags on time. This leads to a misunderstanding with customers and affects the success of promotional campaigns.
  
  How can LEAFIO help you? 
  - The system allows you to automatically create a promotional layout in a promotional fixture and monitor its effectiveness with the help of in-depth analytics;
  - The layout can be changed in a few clicks, you can leave recommendations to store employees on the placement of related goods and POS materials, and they can quickly implement changes after receiving them via a mobile app;
  - The promotional layouts are automatically replaced by standard ones at the end of the campaign, the changes can be instantly transmitted to all stores in the chain, and you can easily monitor their execution.
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  Striking a balance in managing such complex categories as slow movers, private label, and analog goods

  A large variety of assortment creates additional difficulties and requires expert approaches in the analysis, planning, and inventory management. Demand forecasting for slow movers needs a unique methodology, private label products require specific promotion, and identifying and managing analogs is an essential element in inventory management in this industry.
  
  The LEAFIO system enables you to:
  - Quickly analyze the product assortment, identifying slow-moving items and items with lost sales.
  - Based on advanced algorithms, predict future demand for slow movers and build the necessary inventory buffer without overstocks and with optimal availability.
  - Automatically identify analogs and substitute products and take them into account in inventory management.
  - Introduce new products into the assortment without risking dead stock, using clustering and product analogs.
  - Ensure the effective promotion of private labels and competitive conditions for their sales.
  - Build planograms considering ABC analyses to promote the products that will increase sales and margin, etc.
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  Timely adaptation of inventories to seasonal surges, given the large share of international suppliers

  Seasonality and holidays significantly affect sales and the need to adjust orders to meet increased demand. Due to the large share of imported goods, preparing for surges in demand becomes a particular challenge because there is the possibility of losing sales on a popular product if it is not ordered in advance from a supplier abroad. Or on the contrary, prudence can lead to surpluses. Therefore, it is vital to be accurate in the calculations.
  
  How LEAFIO helps solve this:
  - The system allows you to make forecasts with a horizon of up to 12 months to ensure timely and accurate orders for import suppliers;
  - Automatic replenishment takes into account expected demand, warehouse balances, lead times, goods in transit, supplier conditions, and schedules;
  - Seasonality factors for each product group are calculated and applied automatically;
  - The system has a set of scenarios that can be applied depending on the area, region, or market situation for maximum order accuracy;
  - You can quickly perform seasonal assortment rotation across the entire chain using the auto-facing feature;
  - All seasonal changes in planograms are instantly appointed as tasks to the store employees in charge.
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  Loss of online orders and customers due to irrelevant balances across the channels

  The share of online sales in drogerie, health, and beauty stores is often several times higher than in other industries. That's why it's crucial to monitor the availability of each product in real-time, as a shortage of one item can lead to the loss of an entire customer order.
  
  LEAFIO enables you to:
  - Automate the entire replenishment process, considering all channels from demand calculation to supplier order receipt;
  - Ensure transparent and efficient inventory management across all levels of the supply chain without any manual intervention;
  - Gain precise inventory visibility by tracking sales and product movement through all sales channels;
  - Ensure maximum availability of goods in all the channels and reduce the share of abandoned carts.
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  Observing the aesthetics of display and merchandise proximity in a wide assortment

  The specifics of drogerie, health and beauty stores include the need to pay special attention to the aesthetics of the display. With a wide assortment and intense brand competition, keeping product proximity and correctly filling impulse shopping areas are critical conditions for increasing sales.
  
  LEAFIO’s software allows you to:
  - Analyze hot and cold zones of the sales floor with macro spacing function to properly organize the customer flow.
  - Automatically create planograms for any equipment, display, and store format.
  - When creating planograms, consider the merchandise proximity, data on sales, profitability, balances, product turnover, etc.
  - Change the layout of products on the shelf in a few clicks and instantly implement these changes in store clusters with format planograms.
  - Send planogram tasks to store employees’ LEAFIO mobile app and then control the POS materials compliance, display aesthetics, and accuracy.
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  Observing space share agreements in a tough brand competition

  On the one hand, it is essential for the retailer to comply with agreements with brands and manufacturers regarding the space allocated for their goods. On the other hand, it is critical not to "overshadow" private labels and display goods according to their profitability. Keeping this balance is quite a daunting task for drogerie, health, and beauty stores.
  
  LEAFIO software helps:
  - Automatically fill planogram zones based on selected product attributes (brand name, distributor, etc.).
  - Zoning equipment and planograms, assigning a percentage of the shelf to a specific brand/group of products, etc., when creating planograms.
  - Use the data-driven deep analytics module to decide which brand/goods can be more widely represented on the shelves or, on the contrary, which ones should be reduced; follow recommendations of the system to increase sales or get better financial effect from the display.
  - Rotate the assortment and replace items throughout the chain in just a few clicks.
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  Risk of unprofitability due to limited space and low margins

  Drogerie, health and beauty stores are often limited in sales floor space. Therefore, the number of passive SKUs in the assortment should be minimized, and the presentation display should be created based on profitability and lead times.
  
  LEAFIO allows you to:
  - Form unique planograms considering the racks and product parameters. The store employee will see the detailed and precise instructions to follow when executing the display;
  - Analyze the layout in terms of profitability per meter/foot of shelf;
  - Identify passive SKUs, change the number of facings, or rotate the assortment within the shelves in a few clicks;
  - Form the layout considering the current stock and lead time so that there is enough product on the shelf until the next delivery;
  - Instantly communicate all planogram changes to each store in the chain: the store employee gets the task, fulfills it, checks the planogram (whether the price, photo, etc. are correct), and sends you the photo of the display.