Customer Segmentation and Churn Analysis: A Case Study on a Global Fashion Retailer
Authors
Killoran, Nicola
Issue Date
2024-05
Degree
HDip in Data Analytics
Publisher
Dublin Business School
Rights holder
Rights
Abstract
Emerging in the 1990s, fast-fashion is a business model characterised by offering affordable clothing to the mainstream consumer that follows the latest trends or imitates designer brands. Key features of this business model include; affordable pricing, frequent product turnover and regular purchases of low- to medium-value. Rising population, increased disposable income and technological advancements are some key market drivers.
However, in recent years, this industry has faced mounting criticism regarding unethical manufacturing practices, textile waste and overconsumption (Joy et al., 2012). Most global fast-fashion retailers have therefore incorporated sustainability initiatives in an effort to mitigate their environmental impact. The industry also faces growth constraints due to heightened competition and market saturation. Namely, ultra-fast-fashion companies like Temu and Shein have grown in popularity in recent years.
In the context of this project, understanding the purchase behaviours of customers, and the customer segmentation and churn analysis that follows this, is crucial to devise innovative customer retention strategies to maintain growth.