“It’s the most wonderful time of the year –
New stock is a-coming
And great sales in the making
Here’s the holiday cheer!”
Especially for fashion brands, it may be the best time but it’s also the most challenging. As the demand for stylish gifts, party outfits, and cozy winter essentials peaks, brands are racing to meet customer expectations, optimize sales, and stay ahead of trends. With every second customer adding a new pair of boots or a new coat to their “letter to Santa”, a fashion brand takes a somersault.
But what are fashion brands adding to their wishlists in their letter to Santa?
Let’s find out!
A Fashion Brand’s Wishlist
1. Dear Santa, I Wish for Timely Inventory Availability
Holiday retail sales are projected to grow to $1.353 trillion in 2024. One of the most common fears for any fashion brand during the holidays is running out of stock at the most crucial time. Whether it’s a hot-selling dress for a holiday party, the perfect ugly Christmas sweater for cozy winter days, or the must-have pair of boots, fashion brands need to ensure they have the right items at the right time for in-store and online sales.
Unpredictable consumer behavior and sudden fluctuations in demand can lead to stockouts or excess inventory. Every fashion brand wants a system that allows them to better predict demand and, in an ideal world, never run out of stock! Using data analytics, real-time inventory tracking, and customer insights, brands can align their stock levels with demand predictions, ensuring customers never walk away empty-handed.
2. Dear Santa, I Wish for a Seamless Omnichannel Experience
Today’s customers expect a seamless shopping experience no matter where they are – online, in-store, or anywhere in between. Every fashion brand needs to understand where their customers are and how they’re segmented. Studies suggest that Gen-Z and millennials prefer purchasing in-store as compared to Gen-X and boomers who love to shop online. Fashion brands need to create a unified omnichannel experience to maximize sales and improve customer satisfaction across all segments, especially during the busy holiday season.
Imagine this: A customer browses a brand’s website and falls in love with a chic sweater. They then visit the physical store to try it on, but the item is out of stock. Making the transition between online and offline channels effortless could increase a customer’s happiness quotient. A truly omnichannel experience allows them to shop in-store, order online or even order online and collect in-store. Whether it’s “click and collect” or easy returns for in-store and online purchases, a seamless omnichannel experience creates convenience, satisfaction, and brand loyalty.
3. Dear Santa, I Wish to Know My Customer Through and Through
To succeed, fashion brands need to know their customers as well as their collections. They need to understand what drives them, what they truly value, and what’s trending. For instance, customers are bending more towards personalized experiences this year and the numbers show that. Expenditure on experiences is expected to rise by 16%. In 2024, brands need more than just demographic segmentation. They need to leverage data to understand purchasing behavior, style preferences, and even seasonal trends.
With accurate forecasting models and data-driven analytics tools, brands can predict what will sell and when. By understanding customer needs and delivering personalized experiences, fashion brands can create targeted marketing campaigns, develop collections that resonate, design in-store experiences with the right product assortment and allocation, and keep a replenishment plan in hand for any real-time changes. Personalization isn’t just a trend; it’s essential for creating long-term brand loyalty.
4. Dear Santa, I Wish for Supply Chain Efficiency
The holiday season brings logistical challenges. Brands face higher demand, longer lead times, and complex logistics. What’s truly on every fashion brand’s wishlist is smooth, efficient supply chain management. Any fashion brand would kill to have something adjacent to Santa’s efficient factory in the North Pole that is able to deliver presents across the world to each unique customer within a tight one-night delivery, whether it’s via chimney or chain mail or FedX. A reliable supply chain ensures that products reach customers on time, regardless of order size. Brands want their logistics to be so smooth that no customer expectation goes unfulfilled.
To achieve this, brands need robust systems that track orders in real time, optimize shipping, and automate inventory management. By gaining visibility into the entire supply chain, brands can predict delays and adjust their operations accordingly. This will not only enhance customer satisfaction but also improve margins by reducing unnecessary operational costs.
5. Dear Santa, I Wish to Sell More Without Sales and Promotions
While sales and discounts are a common strategy during the holidays, many fashion brands wish for a world where they don’t need to rely on promotional pricing to drive sales from the get-go. Instead, they dream of selling at full price while maintaining high revenue. There are a lot of checkpoints for fashion brands to go through before the holiday season.
In 2024, many brands want to elevate their brand experience to the point where customers are willing to pay full price without requiring a discount. From viral content on social media to funny emailers that drive consumer attention, there’s a lot a brand can do before offering discounts. By offering personalized shopping experiences, exceptional customer service, and exclusive collections, brands can create an emotional connection with their customers, making them more likely to purchase without needing a markdown.
Conclusion
As the 2024 holiday season draws near, we hope that Santa grants most of your most coveted wishes and helps you have the best sales season! These wishes, while ambitious, are within reach.
At Increff, we help fashion brands streamline their operations and optimize their sales, from inventory management and customer-led assortment planning to supply chain efficiency and omnichannel retail. As we enter the busy holiday season, we wish every brand the success they’ve been dreaming of – and the ability to make these wishes come true.
If you want to know more about how Increff can help you have a kickass holiday season, chat with our expert.
