Today we take a look at the different retail marketing strategies you can employ for your fashion brand.
We have previously talked extensively about how to use different sales tools to make your life easier and your business more efficient but today we would like to take a broader approach. Put bluntly, in this article we would like to talk about ways to increase sales and profits in retail.
One surefire way of achieving an increase in profits is via cost cutting but often that won’t have the biggest impact or isn’t easily feasible. So, what retailing or marketing strategies could you REALLY employ to increase your business?
What is a retail marketing strategy?
Your retail marketing strategy is the plan that defines how, where, when and to whom you will sell your products. It identifies your target market, the type of merchandise you aim to offer to satisfy your target audience’s needs and the factors that set you apart from your competitors.
So what are your options? This list is by means not exhaustive, but we have brought together the most iconic, recognisable retailing strategies for you.
We’ll talk about:
- Fast Fashion
- Creating a core product
- Expanding to online channels
- Going niche
We look forwarding to reading your thoughts and examples in the comments at the end!
Inditex, The H&M Group & Bestseller are some of the largest companies using this strategy to their advantage.
Fast fashion means introducing clothing collections based on up-to-the-minute fashion trends. Design & production turns around within a few short weeks allowing the final consumer to pick up new clothing styles at lower price points.
The time where brands would release two or four seasonal collections per year has gone in this new, fast fashion segment. For you as a company this means stocking very little and updating your collection more often. It ensure customers return to your store with greater frequency to see what is new.
Additionally, it increases the feeling of urgency as a shopper knows that each particular product won’t be available for long, driving them to make a more immediate decision.
In this sense, the assortment rotation and variety you offer in-store is the most important factor in increasing sales.
Creating a core product
This might not be the hottest trend in fashion right now but having one product so well made that it speaks of your brand will not only bring your customers back – but draw new customers to you.
Often a core product can be the first product you launched. While you have since created new product lines, you will forever be remembered for this one item. It will be representing your brand – giving you long term visibility within the product category.
Focusing deeply on developing one core product for your brand gives your brand a really story. You have something to tell and talk about – and for your customers something to remember.
A core product also works as a hook to get new or existing customers to see more of your merchandise. An example for a core product in fashion could be the renowned Burberry trench coat or the square scarves, les foulards carrés, by Hermès. Even thought both brands are active in countless other categories, they each have an iconic product.
What is the core product for your brand?
Expanding to online channels
A quick way to have availability in your own country and globally is through the potential of e-commerce.
Online channels such as your own web store or existing third party marketplaces are a quick and low-cost way of opening up new revenue streams for your brand.
Expanding online could for example be a first step for you to create a presence in a new market to test traction.
Scaling your business online is much quicker and less costly, as you won’t need physical retail space, can ship from existing warehouses and do not need to add infrastructure for employees as marketing and customer communication can be managed from your headquarters.
You can use online channels to not only expand to new markets but also to create exclusive online offers in your existing markets to increase your sales and your profits directly.
The last of the four retail marketing strategies is creating a space for yourself in a niche market segment.
This could be identifying what you are best at – and expanding on it further! In a niche market you will face less competition but you must also excel 100% to be taken serious.
A niche segment that has become less so over recent years is the sustainable fashion segment. Sustainable fashion means using organic and biological raw materials to create the garments in a production process that respects nature and our human, local communities.
This is nothing new. Organic materials have been used for many years, however there is now a strong demand for this process in more main stream fashion production and distribution.
Consumers are becoming aware of sourcing and production and the effects purchasing choices have on their communities and health.
As a brand dedicating yourself to fulfil this rising need of sustainable fashion, you could create a new revenue flow for yourself in this niche segment.
If you are interested in finding out more, we have prepared a more in-depth look at children’s fashion brand in the sustainable clothing sector. Click here to read the full article.
Creating your own retail marketing strategy
As mentioned in the introduction, this analysis of retail marketing strategies is by no means exhaustive.
We have brought together four trends in leading your business that will increase sales and in the end your profits.
There are many ways to customise these approaches to your own needs, to improve and most importantly to craft your very own retail strategy.
Which is your target audience? How do you approach them and where do you position your merchandise to reach them? What these strategies to increase sales do you employ?
We look forward to hearing your strategies and opinion on the above tips!