Optimization of assortment policy in cosmetic retail enterprises: Integrating ABC–XYZ analysis with clean beauty trends (The case of Alfa Parfum Plus LLC)

Abstract

The article presents research results on assortment policy of cosmetics trading enterprises under conditions of transforming consumer priorities towards environmental friendliness and product ethics, strengthening regulatory requirements due to Technical Regulation on cosmetic products implementation, and active digitalization of sales channels. An integrated ABC-XYZ analysis of LLC "Alfa Parfum Plus" assortment was applied, enabling identification of structural imbalances in product distribution by profitability and demand stability criteria. The study established that 42% of the company's assortment belongs to low-margin categories with unpredictable demand (CZ and BY groups of ABC-XYZ matrix), resulting in inventory turnover reduction by 23% compared to industry benchmarks and formation of 67% non-liquid inventory. The scientific novelty of the research lies in developing a methodological approach to assessing cosmetics trading enterprises assortment policy effectiveness, which integrates traditional economic indicators of ABC-XYZ analysis with compliance criteria for international quality standards (ISO 22716, ISO 9001) and global clean beauty consumer trends. Practical recommendations have been developed for assortment optimization through phased implementation of clean beauty products with international certificates (ECOCERT, COSMOS), product portfolio revision based on integrated analysis results, and omnichannel sales strategy development with emphasis on digital channels. Economic justification demonstrates potential for marginal profit growth by 12-15% (UAH 151.2 thousand annually) and inventory turnover acceleration by 20% with release of UAH 311 thousand working capital upon implementation of proposed measures.