Customer Segmentation in the Fashion Industry in Bangladesh

The Opportunity

In 2016, one of the largest retail stores in the fashion industry in Bangladesh was in need of proper customer segmentation. Being in business for over three decades, their values have remained the same, but consumers have evolved dramatically. To understand the current customers, the product line, and future plans, LightCastle conducted a survey of the brand’s customers. The survey was to gauge consumer preference and reasons behind their continued loyalty towards the brand.

Our Approach

LightCastle mobilized a team of 15 enumerators in Dhaka, 5 enumerators in Chittagong, and 3 enumerators in Sylhet. Collected and verified data were analyzed using advanced analytics software to extract relevant key insights. We analyzed the data and separated the customers into four main groups. We used a combination of Demographic, Economic, Behavioral and Psychographic segmentation methods. We deciphered four broad customer communities:

1. Esteemed,
2. Succeeders,
3. Aspirers, and
4. Explorers.

The Future

Our client is now set to revamp their product line to meet the following objectives:

• Meet the demand of their most prevalent customer segment,
• Capitalize on demand from its aspiring customer segment, and
• Gain higher market share in the fashion segment they operate in.