Apparel companies’ merchandise, designers, and development personnel, as well as buyers, will have the following questions regarding the launch or procurement of apparel products:

1. How much?
2. How fast?
3. When will it be available?

There are 13 directly related factors about these issues.

1, Basic Brand Positioning Factors

A brand’s fundamental positioning is the basis for all sales decisions. Regardless of the product being sold, it should not deviate from its original positioning and spirit. This mainly includes the following three aspects:

1. Product Line Series

Does the brand sell men’s, women’s, and children’s clothing lines, or does it only sell a single major product line? The more diverse the product line, the greater the demand for variety.

2. Product price range

For low, medium, and high price points, which segment does this brand position itself in? Generally speaking, low-priced products need to “sell in large quantities,” so the variety of styles needs to be rich; high-end products mainly rely on selling individual items, so the variety of styles is not as important, but the design and quality of each individual item will be relatively high.

3. Fashionability

Is this brand positioned as a designer brand, following current trends? Is it a sporty casual brand or a mainstream fashion brand? Generally speaking, brands selling mainstream fashion items require a higher quantity of items compared to sporty fashion brands.

2, Seasonal and climatic factors

The timing of the seasonal transition is crucial — it marks the beginning of a new season. If the first batch of goods arrives late, it will severely impact the arrival dates of subsequent items, thus affecting the entire season’s sales. Currently in the fashion industry, spring clothing typically hits the market in early or mid-January; autumn clothing typically begins in early or mid-August.

3, Sales cycle factors

How long is the expected sales cycle for a newly launched product? — This will determine when and how much of the next batch of new goods should be launched.

First, let’s look at the brand positioning:

—The sales cycle for products that follow a trendy fashion route should be short.

Brands that prioritize quality and don’t offer many style changes tend to have a longer sales cycle.

—Sports and leisure products typically have a relatively long sales cycle.

—Men’s clothing generally has a longer sales cycle than women’s clothing, etc.

Secondly, the climate must be considered. The sales cycle for clothing should generally not exceed two months, otherwise it may no longer be suitable for the weather conditions at that time.

4, Factors related to the “sell early” principle

Consumers generally have a “buy early” habit. For example, in many northern regions, the actual time to wear down jackets may not be until November, but the demand actually begins after October.

5, Holiday factors

Holidays are important times for retail. New product lines are often launched to coincide with these holidays, such as Valentine’s Day or Black Friday collections.

6, Factors related to the number and distribution of stores

The number of stores determines the scale of the product line, while the geographical distribution determines the diversity of products. There are significant differences in climate and culture among different countries and areas, resulting in variations in the thickness, design style, size, and launch date of product lines. Therefore, when defining the scope of a product line, it is essential to understand the current distribution of the brand’s retail stores.

7, Factors related to maximum store area and average store area

If not carefully considered, some large stores may end up empty, with insufficient merchandise even for display. This is especially true for brands with flagship stores, where it’s essential to ensure there’s enough stock to fill the store space.

To understand the brand’s average display capacity per square meter and basic display principles, you can calculate the basic display capacity required to meet the needs of your company’s largest store area, as well as the basic display capacity required for the average store area.

Here is the winter collection ordering reference standards for one of our clients.

Area Range	Collection Range	SKU Quantity Range	Store Display Quantity (incl. accessories)	Accessories Quantity
90-120 ㎡	10-14	120-170	270-360	60-90
120-150 ㎡	12-16	150-190	350-440	100-130
150-200 ㎡	15-18	180-220	420-560	130-170
200 ㎡ or more	23 or more	300 SKU	≥560	≥160

8, Factors Affecting Different Sales Demand

Even within the same brand, different sales locations may have different product line requirements.

For example, sales points with relatively lower customer purchasing power should be stocked with a higher proportion of lower-priced products. In contrast, locations with stronger purchasing power but lower foot traffic should carry more higher-priced products.

In such cases, the product line should be flexible enough to serve a defined range of customer segments.

9, Factors for Adjusting Brand Strategy Direction

Whether the brand has made any strategic adjustments this year or season will also affect the positioning and development of the entire product line. It is important to always pay attention to the company’s strategic development direction.

10, Product Efficiency Balance Factors

The quantity of products offered in a product line can sometimes present a contradiction in sales and development.

In theory, without violating brand positioning, a wider product line offers greater choice and makes expansion and sales easier from a sales perspective. However, developing any product line requires a significant investment of human and material resources .

If you develop 100 products, will all 100 products contribute to sales? If only 50% of the products are in circulation and the rest are barely sold, then the product efficiency is very low.

11, Factors affecting current inventory status

When inventory levels exceed reasonable limits, consider appropriately reducing the number of newly developed products. Calculate the current inventory and the quantity of available stock.

Remember, the quantity of items available for sale refers to items that are suitable for the current sales season, are not out of stock in any size (otherwise they should be sent directly to the outlet store for sale), have a certain amount of inventory, and finally, have reasonable sales discounts.

A reasonable sales discount means that, firstly, the discount should be attractive enough because it is for inventory; but secondly, since it is sold together with new products, the price of the discount should not differ too much from the price of the new products, otherwise it may lead to the new products not selling well.

12, Factors affecting the new product launch cycle

The company’s set new product launch cycle is also an important reference indicator. Most women’s apparel brands can now launch new products within 1-2 weeks, while sportswear and menswear are relatively slower, around 3-6 weeks. The frequency of launches will also affect the final product planning. Generally speaking, the higher the frequency, the shorter the sales cycle and the greater the demand for each style.

13, Product turnover rate

Product turnover rate is the percentage of old products that need to be replaced each time a new product is introduced.

With limited sales space, every new style that needs to be introduced requires replacing roughly the same older styles. This means that a certain number of styles must be sold or removed from the shelves as soon as possible to make room for new products to be displayed.

Different brands have different methods for handling product update issues.

Some brands remove poorly selling products from the shelves and put them in the warehouse, then bring them out for discounts at the end of the season. The advantage is that it prevents customers from seeing the brand constantly offering discounts, which could damage the brand image. However, the disadvantage is that it can easily lead to inventory buildup and affect cash flow.

Some brands offer discounts immediately if their products don’t turn over within 2-4 weeks of being on the shelves. The advantage of this is that it speeds up inventory turnover and thus increases cash flow. However, the disadvantage is that it can easily damage the brand image, leaving people with the impression that there are always discounts, thus creating a “no discount, no purchase” mentality among consumers.

Summary

In summary, there are 13 points:

1. Basic Brand Positioning
2. Seasons and Climate
3. Sales cycle
4. The principle of “selling early”
5. Holidays
6. Number of stores and their distribution areas
7. Maximum store area and average store area
8. Differentiated Sales Needs
9. Adjustment of Brand Strategy Direction
10. Commodity efficiency balance
11. Current Inventory Status
12. New product launch cycle
13. Product turnover rate