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PRODUCT CHAIN

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Glossary

Definition

Product chaining involves linking together successive SKUs for the same product over time, even when there are changes in packaging, EAN codes, brand names, or internal SKUs. The goal is to reconstruct a product’s complete history in order to analyze trends in its prices, sales, and performance, even if its technical SKU has changed.

Why it's important

  • Analyzing long-term trends: without price indexing, it is impossible to compare a product’s sales over several years if its product code has changed in the meantime.
  • Calculating reliable elasticities: To measure the impact of a price change, a continuous time series is required. Chaining reconstructs this time series even when data gaps occur.
  • Managing product launches and relaunches: When a product is replaced by a new version (new packaging, new formula), tracking allows us to monitor the shift in sales.

A concrete example

A laundry detergent brand is launching a new formula for its flagship product. The previous "Laundry Detergent X 2L EAN 123" is being replaced by "Laundry Detergent X Eco 2L EAN 456." Without product chaining, the retailer loses access to price and sales history, which prevents any trend analysis. With product chaining, the system identifies EAN 456 as the successor to EAN 123 (same brand, same format, launched concurrently with the discontinuation of the old product). Historical data is linked, allowing for before-and-after performance comparisons and enabling the pricing strategy to be adjusted accordingly.

Key takeaways

Chaining is particularly critical in sectors where:

  • Product lines are frequently updated (fashion, high-tech, cosmetics)
  • Manufacturers regularly change their packaging (food, personal care)
  • Retailers are transitioning their systems (ERP migration, store mergers)

Chaining relies on algorithms that cross-reference product attributes, launch and end dates, sales volumes, and prices to identify logical sequences.

Common Mistakes

  • Matching different products: confusing "Laundry Detergent X 2L" with "Laundry Detergent X Sensitive 2L" because their names are similar. Matching must be done rigorously to avoid these false positives.
  • Ignore overlaps: sometimes, the old and new products coexist for a few weeks. The chaining must handle these transition periods.
  • Do not document the chains: keep a record of the chains you create so that you can audit and correct them if necessary.

Learn more

  • Research & Data: Price analysis to examine price and sales history using reliable product linking.
  • Solutions: Product matching and linking to automate linking within your catalog and ensure data consistency.
  • Tip: Operational pricing to structure your product catalog management processes.
  • Resources: Check out our blog for best practices in catalog management.

Mini FAQ

No. Focus on strategic products such as key performance indicators (KPIs), bestsellers, or high-margin products. Listing the entire catalog is often disproportionate.

Seasonal products, such as Christmas toys or swimwear, return every year, often with new items. Tracking year over year allows for a comparison of seasonal performance.

Technically, yes, but it's more complicated than that. Chaining is particularly useful within a single brand to ensure the consistency of its own historical data.