Forecasting

Modeling Attributes, Not Products: Feature Engineering for Luxury Demand

What it actually takes to build a production forecasting system for luxury demand at SKU level: decomposing products into shared attributes, designing hierarchical aggregate features without leakage, handling intermittency with Tweedie and hurdle objectives, and forecasting in a way finance can use.

May 8, 2026
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6 min read

The first part argued that hierarchical forecasting in production is a representation problem, not a modeling one — and that the right architecture for luxury demand at SKU level is a single global LightGBM model with the hierarchy living in the feature space, not in probabilistic pooling.

- category, - sub-category, - brand, - price tier, - pack size, - seasonality, - lifecycle stage, - channel, - geography, - launch timing, - and commercial positioning.

The model therefore learned demand behaviour from the broader structure of the catalogue.

- "premium gifting behaviour," - "mid-price seasonal products," - "holiday luxury spikes," - or "slow-moving high-margin products."

About the author

Cyril Noirot

Cyril Noirot

Lead Data Scientist

Freelance data scientist. I design and ship decision systems — forecasting, pricing, marketing measurement, optimization.

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