• For a successful fashion business strategy, retailers will have to focus on products that are selling well. 2021 is the best opportunity to curate retailers’ assortment.
• Be cost-efficient by knowing what and when to sell. Timing has always been crucial in the fashion industry, and even more in a context of crisis.
• Optimize margins based on what customers are willing to pay. Get the right price directly to avoid the costs of reductions.
The year 2020 was an unprecedented time in all of our lives. The fashion industry faced lockdowns, store closures, supply-chain challenges, and more. Companies should seize new opportunities and double down on outperforming categories with consumer demand for fashion unlikely to bounce back in 2021.
At Retviews, we summarized three tips retailers should follow to make a successful fashion business strategy in 2021.
Tip 1: Focus on Products
Retailers continuously try to balance hitting on trends and providing a steady stream of key products. The first point should be strong and right on time, and the second one should fall at a reasonable price point and be available year-round. But how do they find just the right balance?
The coronavirus pandemic shook brands to their core and made them even more aware of their stock management. Though it’s always an ongoing topic in the industry, store closures and troubled supply chains were an even bigger problem in this chaotic year. It is time to rethink ever-changing trend collections and focus on what is selling.
At Retviews, we help retailers spot their strengths and discover new opportunities. Comparing your brand to competitors is essential if you want to understand how your market works. By doing competitive benchmarking, fashion brands can curate their assortment and focus on what sells.
Tip 2: Know Exactly When and What to Sell
The merchandisers’ holy grail is to know when to sell a product and what type of product to sell at what price. It is a considerable challenge in a fast-moving and evolving market like fashion. Trends are getting shorter, and customers clamor for fashion too. But supply-chain disruption makes the cycle harder to complete.
If a competitor is known as a trendsetter, it can be interesting — and useful — to understand its selling pattern. Knowing when it launches a new collection, at what price, and what type of merchandising actions it takes to boost sales can be crucial to your brand’s efforts. All in all, while respecting your fashion brand positioning.
One example would be to know when exactly to discount — and at what rate. Sometimes, retailers are too aggressive in terms of markdowns and make them too early, thus missing full-price opportunities.
Additionally, with last year’s reshuffling of the end-of-season timing, some retailers missed the mark — especially international brands that have to focus on several markets. Avoiding those timing mistakes is crucial for retailers — now more than ever.
Tip 3: Get the Right Price for Each Category, Starting with Your Best-Sellers
Knowing the right price is always a big challenge. Retailers often chose their price based on their purchased price, the margin they are aiming for, and additional costs they need to add on top. However, it is hard to know your customer’s willingness to buy and determine your target customer’s price is ready to pay for your product.
Retviews allows fashion brands to know the most-frequent price for their products — and their competitors. That price represents the price perception the customer has about a specific brand.
In the case of brands that aim for the best price-quality ratio, knowing how their most-frequent price compares to competitors is essential. With this knowledge, they can optimize their pricing and optimize their product positioning strategies.
Optimize your Collection to Get the Best Fashion Business Strategy of 2021
There are always hot topics running through the fashion industry, but now, what is essential is to focus on what customers really want.
Optimizing collections from a pricing and trend standpoint while knowing your competitive advantage is essential to winning the market. 2021 will be a challenging year, but Retviews is here to help brands make the best decisions to succeed during the coming months.