Case Study: Fast Fashion Handbag Satchel Seller

By Constance Tan • 24 June 2019

Leather bags

He was a self-made success story

Jason (not his real name) has been running his handbag distribution business for the last 4 years. Every quarter, he makes his week-long trip to China to make stock orders of several hundreds of leather bag models. He sits down with his suppliers, turning over the samples to ensure the quality is up to par, and haggles on wholesale prices that would protect his razor-thin margins.


Jason competes aggressively for the wallet share of a massive but price sensitive customer base in India. He distributes his goods to several offline-store partners and sells the majority of his stock on 3-4 online channels. Over the years, he worked his way up from a small storefront, to being one of the top 200 sellers on Myntra and other channels by offering better varieties, price-points, and consistency in quality.


But very soon Jason faced big challenges.

In the last year, he has reached a plateau in his business, facing challenges brought on by his own success. With each new sales channel he's expanded to, he's catering to a different audience with different demand patterns. He often finds one handbag model constantly out of stock on one channel, and not selling at all on another. With each passing month, his inventory began to pile up, and he’s constantly on the chase to find which models have become dead stock. With the addition of eCommerce platforms, he now has to handle product returns, which have become a major logistical problem he was not prepared for in his earlier years.


Jason tries to actively use his sales data to make sense of his top line, but he struggled to handle the inflow of data and reports from each channel, which sport their own data formats. He got his lean team to manually enter the orders day in, day out, but they were often behind by days or weeks. As a result, every quarter he was forced to order most of his stock by gut feel rather than numbers. His sales campaigns consisted mostly of a single discount number applied across all his channels, because it was too work-intensive to analyze how each individual product performed against discounts. The fire-fighting that ensued on a daily basis was overwhelming, and after trying a number of different data solutions with little success, he almost gave up.


Jason decided to try Konigle

He was intrigued by a solution that was able to extract and analyse all the data in all his sales channels, no matter what form they took. He had years of PDFs, Excel sheets, and information in all kinds of database formats. All Jason had to do was drag and drop the data into the Konigle folder, without any initial data preparation.


After the initial ingestion of his historical data, Konigle began generating reports automatically on outliers of his business. Here are just some of the discoveries he made:

  • He was able to identify specific products that initially had consistent sales but dropped significantly in the last 3 months. He was then able to retrace his steps to identify the reasons why it happened, found errors in his ecommerce platforms, and fixed them.
  • He found popular product combinations, and how they were different between the different store outlets. He used this to change his marketing campaigns for each of his sales channels, which increased the sales he got from each channel.
  • He uncovered slow-moving stock that had a shelf life 3 times (or longer) than his fast-moving stock, and ran a clearance sale with confidence he was selling only his slowest moving stock, saving inventory costs.


These insights were unique to Jason's business, and they came to him conveniently by email or his mobile app, and he checked the web portal for deeper details. Jason didn't have to configure anything before starting to use Konigle, or replace any software he was already using. Without knowing any technical jargon or complicated metrics, Jason was able to understand the top line performance of his business within seconds. 


The difference was night and day

Jason was finally able to see a clear overview of all his sales channels. He was armed with the data required to act more strategically on his sales and marketing efforts. For the first time ever, Jason was able to make his trip to China with a full list of product orders that corresponded directly to the demand for his goods. As he gained increased visibility of his business, he began to ask Konigle additional questions like "how has discounts impacted my sales for category A satchel bags?", or "How did rainy weather impact my sales for the last 3 months?". With the answers Konigle provided after a couple days, Jason was able to take even more aggressive sales strategies, knowing that he has concrete numbers to back his decisions.


Best of all, Jason was able to do all this without changing his software, and is able to spend most of his time actually improving his business instead of manually digging through overwhelming amounts of data manually. He did not need to change the software he had been using, or spend time retraining all his staff to a new data analytics tool he did not understand, or have time to configure. Even if he changed to an ERP or used a new POS system in the future, he would still be able to use Konigle the way he does today.


"It's affordable and super useful, and I've been looking for a solution like this for a very long time."


We hope to help more businesses run well, and start their data analytics journey in a way that's meaningful to them. Share your SME struggle stories with us here, or get in touch to learn more about Konigle.