New pricing decision allows Index to gain more during clearance:

The Brand 🤎

Index Living Mall (ILM) is Thailand's largest furniture and home goods retailer, managing operations from manufacturing to retail. ILM is the top-selling furniture brand in Thailand. ILM never stopped inventing to offer designs and functions of furniture and home decorations in new forms, in line with the ever-changing passage of time. The brand is committed to providing excellent products and services to all customers and meeting the needs of every consumer's lifestyle.

The Pain 💥: Over the decade of experience relying on manual processes and human expertise, the company hit the limit of manual price optimization.

With almost 30 years of experience, the company relies on systemized human expertise and business intuition. The work is a manual process of reviewing and analyzing historical data before making a decision. It was a learning process based on learning and experience overtime. There were both bad results and good results, but no breakthrough.

ILM has its data team and has been experimenting to improve the precision of its data model so it can help the teams to automate, de-bias, and fine-tune their pricing decision.

The team faced growing challenges in optimizing prices to maximize profit and in clearing inventory efficiently.

The Cure 🧪: Differs AI complies all the learning and experience from the team and transforms the pricing decision process for breakthrough performance.

Differs' platform analyze ILM's historical sales, inventory data, and customer behavior to recommend optimal promotional pricing strategies tailored to the objective.

ILM journey with Differs starts from a clearance sales campaign, namely how to clear as much stock as possible while balancing gross profit and stock cost reduction (volume x COGS). The platform allows ILM to set priority on both inventory clearance and margin impact and suggests an optimized promotion price accordingly.

Taking on bolder pricing with confidence

The Results ✨: Gross profit uplift of +48% while reducing stock cost by 116%

Finding the sweet spot between price and sales volume for each product is not easy. During live A/B testing. Differs AI crunches through the data and recommends an optimal promotional price, surpassing ILM's previous method. This new promotional price helped ILM break through its performance limit.

Following Differs' suggestion on pricing, ILM hits a new record of +48% increase in gross profit while reducing stock cost by 116%.

Final thought: Making bold pricing decisions with confidence

A heavy discount is not always beneficial. Previously, the team was walking a tightrope; the need to clear stock outweighed the importance of profit uplift.

With Differs, the flexibility allows the team to fine-tune their pricing closer to the limit and find the sweet spot for pricing balancing objectives and constraints.

Differs in three words? User-friendly. Optimization. Efficient