TIPS FOR DESIGNERS: HOW TO MINIMIZE RISK WHEN PLANNING YOUR ANNUAL COLLECTION?

First I would like to reintroduce myself and explain where I learned about collection planning. My name is Katja Noschis Delaloye, I am a Fashion Brand Strategist. I founded my consultancy company, Couture Consultancy four years ago, it is based in Tribeca, New York, at Spring Place. Before founding Couture Consultancy I worked as a buyer and manager for major European multi brand retailers, including Net-a-Porter. During my time there I learned how to best pace collection planning and how to minimize inventory risk. Currently, like so many others, I work from home and offer interested designers an initial free consultation. Our areas of speciality are: brand position, stock management, website improvement and coaching.

As discussed in last week's article, now is a good time to research production options, because, even as a small emerging brand, there is more room to negotiate better terms of production. When negotiating with a production manager you should negotiate the following terms: produce 4 collections a year and aim at delivering a product inline with the seasons, which can be sold without going on sale. By planning four collections, you will no longer need to follow the two collections a year model, which ends with lots of items on sale. You will achieve higher sell-through and margins/profit by following the four collection model, detailed below.

During the year you will have 4 collections delivered to your warehouse or retailer, we can call it the see now buy now model:

Drop 1

Delivery end of August, about 35% of the total for the year: 

Autumn feel collection (what we call in French mid season clothes), wearable from beginning of September to end of November. 

Drop 2

Delivery mid November, about 15% of the total for the year: 

Pre-Christmas delivery, special collection for the end of the year (either party clothes-accessories or resort).

Drop 3

Delivery beginning of March, about 30% of the total for the year: 

Transitional items for the March-mid May period (for example: lighter weight bombers and short coats, colorful accessories, mid weight scarves and sportswear). 

Drop 4

Delivery June, about 20% of the total for the year:

Real summer items (can be swim or lightweight clothes).

Final tips: First, never over produce. Scarcity has been proven to increase the desire from consumers and you will also achieve higher margins if you don’t over produce. We can help you create a plan to avoid overproduction. Second, think of having an extremely precise and well made virtual line sheet and lookbook so potential buyers can buy your collection remotely. Third, masks will be a category which is here to last, even for those working from home, so include as many comfortable accessories and clothing as possible in your collection.

In our next week’s post we will define what *Never Out Of Stock items/Continuity products are and how you can develop them for your line.

Stay tuned and book your initial free consultation to better navigate the crisis: https://www.couture-consultancy.com/contact.

Written by: Katja Noschis Delaloye

Edited by: Kara Van Cleaf

Pitti Uomo, in Florence, is the biggest trade show in menswear ocurring twice a year