It was never clear until well into each season which colors would sell best. By reversing the process and getting rapid online feedback from retail outlets, they realized a huge return. Instead of dying the yarn first, Benetton knit the plain wool into sweaters and postponed coloring all the inventory. After an initial shipment of dyed sweaters went to stores, the company got solid information about which ones were selling. They dyed the remainder of their sweaters to more accurately meet demand for certain colors.
Cashiers estimate the age and record the gender of each customer.
The information is compiled overnight and distributed to give both the store and its supplier a precise picture of who buys what, when, Whang says. Based on that information, stores change their layouts several times daily in response to expected customer demand. Japan's market valuation quadrupled in 1999.