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Digging for Gold with Data Analytics at Chow Tai Fook
內容大綱
The case on Chow Tai Fook (CTF), the world's largest jewelry company, introduces an important challenge for data analytics in the jewelry or luxury product industry. It is difficult to provide an accurate demand prediction for a product at CTF. The reasons are mainly three-fold. First, the jewelry products are of high value and slow-moving, with mostly single digit sales numbers over a year. Second, the demand of a product partly depends on the availability of other products, due to customers' substitution behavior. There are 16 product categories with more than 15,000 distinct products offered by CTF, and how the sales of different products are related is not clearly understood. In this case, traditional statistical methods such as linear regression is not useful.