Demand estimation in apparel retailing using modified maximum utility model and conjoint analysis

Abstract

Apparel retailing is the selling of apparel products to the end user. newlineIn the Indian retail scenario, the apparel sector is the second largest in terms newlineof value next to food and grocery. It is further expected to grow because newlineapproximately 300 international apparel retailers are planning to open stores newlinein India where, the apparel retail sector is still largely unorganized, and now it newlineis in the organizing phase. The organized retailers are doing business newlinesystematically but still they are facing few issues in accurate demand newlineestimation due to the diversity in customer preferences. Among the various newlineoperations like promotion, pricing etc., in an apparel retail business, newlinemerchandising is one of the most important operation due to its influence on newlinethe profit of the retail business. In merchandising, demand estimation is the newlinefirst step based on which all the other activities like production, promotion, newlinetake place. Demand estimation is the link between the level of demand and newlinethe influencing variables like price, color, etc. An accurate estimation helps newlinethe retailer in improving the profit by avoiding excessive inventory costs and newlinediscount sales. newline newline