Randa Accessories - you own their product and most likely you’ve never heard of them. Randa is the world’s largest men’s accessories company. Spanning 11 countries and boasting a portfolio of more than 50 brands, the company sells everything from belts and ties to slippers, bags and luggage. With brands including Levi’s, Tommy Hilfiger, Columbia Sportswear and Dickies they have developed a name consistent with compelling products, particularly for the major department stores they serve which include Nordstrom, Walmart, Macy’s, El Corte Ingles and more.
As Randa’s retail and brand clients look to them to keep a pulse on what’s happening in the industry and to deliver winning products every time, the company has found a data-driven, consumer-insights approach to be one key to continued growth and success. But that wasn’t always the case.
As a licensed-brand wholesale business, Randa’s data and KPI’s had historically originated from its retail and brand partners, which Chief Marketing Officer David J. Katz viewed as a barrier between Randa and the consumer. According to Mr. Katz, Randa needed to find solutions that would enable them to speak directly to their numerous partners’ customers, while predicting how items would perform across the board. Growth required a shift from a B2B focus to a consumer-centric focus.
Mr. Katz initiated a consumer insights program, using in-house and third-party quantitative, qualitative and predictive data analysis that included First Insight. The data from this program was used to inform decisions regarding new product development, Point-of-Sale marketing, pricing, go-to-market execution, assortment planning and the purchase of new products with no sales history.
The consumer data platform further allowed Randa to segment consumer data by purchase behavior, demographic information, interests and more - ultimately ensuring Randa was giving consumers more of what they want, when and where they want it. From First Insight, Randa received insights within 24-48 hours of surveying with predictive indicators of how each product would perform.
Randa was able to use this knowledge to increase speed-to-market, accurately forecast inventory needs, increase average unit retail, and improve profitability. Through the use of First Insight, Randa has been able to shorten time to market in long-lead categories, including luggage and headwear by 24 weeks, an up to 80 percent reduction.
Randa has used the First Insight solution to enter new categories with confidence and minimized risk. For example, in 2016 they launched into a new style of headwear known as “Dad Hats.” By leveraging First Insight results, they learned that women were purchasing these hats, and had specific preferences regarding color and phrasing. Randa adjusted the sayings on the hats and the colors to align with the survey results. Retail partners have purchased nearly 500,000 units for spring 2018.
Randa also used consumer shopping data to inform a dramatic redesign of the in-store experience for neckwear at a major retailer, resulting in a more than 40 percent increase in revenue, a 25 percent higher AUR and faster turn.
“We are dedicated to making our partners successful. Offering the right assortment through the right channel at the right price is critical for growth - and that requires timely and accurate information,” Mr. Katz commented in a press release announcing the partnership with First Insight last year. He went on to note that working with First Insight enables the company to elevate the discussion it has with retail and brand partners, make more informed recommendations based on direct feedback from consumers and drive better business results and increased consumer satisfaction.
Given the rapid success, First Insight’s customer-centric, data driven program has been expanded to include the newly-formed Randa Digital Labs to test new products, designs, packaging and go-to market models for the accessories market.
Interested in learning more? Watch our webinar with Mr. Katz.