TIPS FOR DESIGNERS: HOW TO ACHIEVE A HIGH PROFIT MARGIN WHEN PLANNING A COLLECTION?

The answer is: by including continuity products in your collections.

Let me explain. Continuity or never out of stock products are, by definition, products a fashion brand carries season after season and which never go on sale, reason why the margin on these products is consistent and will be higher over time than the one of the other products. Continuity products, for some accessories brands (such as socks), can represent up to 50% of their total offer, while some fashion brands might not have any continuity products and have new collections twice a year. 

Examples of continuity products:

• Dr Martens: the black combat boot

• Levi’s: the 501 Jeans

• Hugo Boss: men iron free white and light blue shirts

• Falke: men black knee length merino wool sock

• Polo Ralph Lauren: the white Polo shirt 

• Burberry: the classic beige trench coat

Advantages of continuity products:

• These products never go on sale, meaning you will achieve a higher margin on them than seasonal products

• If well executed these products can elevate a brand to an iconic status

• Retailers/dealers can rebuy them season after season and sell more units of them

Tip: brands should carry some stock of these products so stores or websites can rebuy/replenish on them when the inventory is running low. This means that these products do have a separately allocated budget for them and are managed independently. 

Continuity products should be:

• Consistent with the core competences of the brand 

• A color which is consistent with the brand DNA

• An optimized price/quality ratio for the customer 

• A mark up of minimum 5x for the brand (in a wholesale model case)

• A wardrobe staple 

In this unusual moment, consider categories which are selling well, such as: loungewear, slippers and accessories, such as scarves which can easily be converted into masks.

Final tip: The easiest way for buyers and customers to remember a continuity product and elevate it to an iconic status is to give the product a name. As an example, Rachel Comey’s “Mars” boot has become an iconic fashion staple. 

Book your initial free consultation to discuss what kind of continuity products you could develop https://www.couture-consultancy.com/contact.. Stay tuned, more tips to come next weeks, what are the best selling clothing categories during the COVID19 crisis.

Katja Noschis Delaloye

Edited by Kara Van Cleaf

Dr Martens Combat Boot