How to Leverage Capsule Collections to Boost Visibility and Sales

Transcript:

How to leverage capsule collections to boost visibility and sales. Hey guys. I’m Syama. And I’ve been hearing so much from you independent fashion brands about how to leverage and use capsule collections. And for those of you fashion startup owners who don’t know, capsule collections are essentially those little deliveries and drops that happen mid-season, in between seasons, basically outside of your regular collection deliveries.

Imagine this. You have a spring collection, maybe you have a spring one and a spring two delivery, maybe you do a third or half of the styles that you did in your bigger collection to introduce a high summer. So maybe we’re thinking about things like from 70 SKUs to about 15 to 20, significantly diminishing the number of styles, however, providing an extra boost of visibility to your fashion startup or growth stage business by creating content that’s more marketable and easier to use.

So, let’s think about the three things that capsule collections are good for, independent fashion brands. Number one, they’re really great for working with wholesale accounts. Number two, they are excellent in terms of driving visibility and marketing. And number three, they’re fantastic for your online sales. So let’s unpack a little bit more exactly how you guys can be executing capsule sales strategies.

So first off, certainly for your website online, you might be asking yourself, “How do I create newness? And how do I continue to drive customers to my site?” Well, guys, having capsule collections and more frequent deliveries is definitely one of the paths you can take forward, diversifying your distribution, product lines, and having something on your site that is new and exclusive to you is a fantastic way to start to look at online capsules exclusively for your business.

Now, the second way to approach this is really through wholesale distribution. Companies like MATCHES, Net-a-Porter, The Webster, and maybe other online retailers and also brick-and-mortar retailers are also looking for newness in independent fashion brands. They’re looking for ways that they can continuously drive customers back into their stores. So, partnering up with any one of them for doing an exclusive capsule collection could be a fantastic way to increase possibly your open-to-buy with any of these potential retailers and begin to draw in newness and more visibility to your partnerships. Even as a newer fashion startup.

Now guys, looking at capsule collections is certainly a new way of looking at business modeling. Companies like VETTA have done an amazing job of including certain different kinds of products, let’s say 6-7 different styles that can be worn in 30 different ways. Now, this is a core part of their offering. In fact, guys, I’m wearing one of the pieces from the collection. Now, what I love so much about this business model is if you purchase all of the pieces at once, you will actually get a small discount, whereas if you purchase all the pieces individually.

Now, what I love so much about this business model is it really drives the idea of having additive wardrobes not over-consuming but yet every few months, they release a new capsule. So guess what? Not only are they having them in terms of groupings of products, but they’re having them more regular. So if you become a fan of the brand, which I certainly am, what you’ll find is that you continuously want to be purchasing these small groups of products because now you can see how easily they merchandise with one another.

Now before we sign off guys, I just want to draw your attention to really the benefits of doing business model capsules like VETTA is doing. What’s so fascinating about this is it actually increases your average order value online as well as your units per transaction, which means you’re actually getting more of the market share more often by creating really extremely brand loyal customers. Other independent fashion brands out there like S├ęzane have now introduced collections really four times a year with instituting capsules to really again help boost visibility and help drive that to marketing.

All right guys, if you want to take this a step further, I highly suggest that you read our blog post on how to design marketing budgets and strategies for your fashion startup. In addition, make sure you check out our download on effective assortment planning strategies. It’s super important guys that as you take a look at capsule collections, you understand how you’re going to promote them, market them as well as how you’re going to plan the assortment.

Now assortment planning is something that a lot of brands certainly think about in the fashion startup stages. They just want to design and create and make beautiful things, but exactly what you are selecting and creating when developing those price points and covering all those categories is extremely, extremely valuable and important. So make sure you check out that download.

Now guys, please leave comments below. Head on over to Instagram where you can find this at Scaling Retail. And when you’re ready to take your business into overdrive, develop amazing sales and marketing tactics, and execute, shoot us an email at hello@scalingretail.com. I look forward to working with you. Bye.

Ready to get planning right away? Here’s a free download to get you started! Enjoy “How to Plan Your Assortment for Maximum Impact”.

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