Today, across almost every category, products have more features and attributes than those available just a few years ago. For instance, a simple kitchen cleaner is not so simple anymore; there are countless combinations to choose from when you consider the brand, fragrance types, price bands and packaging sizes. The electronics industry has similar challenges and complexities.
The trend has arisen as manufacturers and retailers attempt to cater to disparate markets and a wide variety of preferences by offering more choices. While this is a good thing for consumers, it presents a major challenge for the companies that produce and sell these products. As new products are introduced with a greater number of product attributes, there is no direct sales history available to study historical demand patterns. This has made reliable demand forecasting even more difficult.