How to demand forecast your fashion brand sales in 2021
Demand forecasting is a skill that will evolve and improve over time. Practice does make perfect with this process, so don’t shy away from it and implement this formula ASAP!
To succeed in 2021, you need to learn how to run a sustainable business model.
So what do I mean by this?
A sustainable business model focuses on running a lean business model, that focuses on producing to product demand, not just because.
You need to work hard to reduce waste, that being ‘dead’ stock at the end of the season, the stock you didn’t sell that risks going into landfill or being sold to an unwanted home.
That is why in this vlog post, I am teaching you a 12-point checklist that you can use time and time again, to demand forecast the units you will need to produce to produce to demand.
Your 12-point checklist to demand forecasting EXPLAINED!
More of a reader?
Separate in-direct (wholesale) and direct (your website) sales channels. Each requires a separate methodology.
In this 12-point checklist, I am focusing on-demand focusing for your direct channels only.
Before getting stuck into the step by step process, I need to call out the obvious…
If you have launched a ‘similar’ product before, similar being an A-line dress with no sleeves and in a solid colour – a product with an overall similarity. Then should use this as a benchmark to help you to demand to forecast your fashion sales.
Look at the units sold by the week, month, consider your price point, promotional activity and the weather, and forecast a similar pattern based on your launch date and product life cycle.
If you don’t have a similar product don’t worry, that’s why I have created this vlog to give you a checklist to use to demand to forecast your sales.
Let’s get stuck in!
Your 12-point demand forecasting checklist
- Research past and current trends.
- Determine possible factors that will affect future trends
- Research consumer behaviour
- Use social media and research # trends and track the performance of posts ie prints and colours based on their engagement.
- Use keyword tools to track trending searches on Amazon, by using tools like Ahrefs.
- Know your market trends when it comes to; politics, economics & the environment
- Plan your sales based on your intended product lifecycle. For example, is it a fast fashion style, therefore you intend to sell out within 6-8 weeks or a slow fashion every day basic?
- Plan your pricing and promos to help drive sales
- Plan your sales based on the weather predictions
- Plan for more than just base-line sales
- Never be afraid to adjust the forecast
- If you want to produce to demand, ask yourself where is your production-based and how quickly is your lead time? Move closer to home to improve this.
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