Have you ever imagined a world where all products would last an infinity, there wouldn’t be such transitory trends and people would wear shoes, clothes, cars and other durable goods indefinitely? Besides the monotony to which we would be subjected, the truth is that the economy needs a market in which there are well-defined product life cycles.
Even more so in the fashion segment, those cycles are inevitable. Entrepreneurs, manufacturers, wholesalers and retailers need to understand the stages of these cycles. This allows them to adjust processes in order to exploit the peak of sales to the maximum without manufacturing or buying surpluses that get stuck in stock.
Do you want to understand what the product cycle is like in the fashion market and how to take advantage of it? Then continue with us!
What is the life cycle of a fashion product?
It is the stages that a new product goes through in the market, from its emergence, growth, peak, decay to its disappearance. In the fashion world, this is extremely common and often happens at very fast intervals. The collection cycle is a good example.
It is essential to know how to take advantage of each of these steps to create and launch products, boost them and know when to end their production. Let’s get to know them!
What are the stages in the life cycle of a fashion
It happens from the launch of a product to the point where the sales actually start happening. Generally, at this stage there is little – if any – competition.
In order to successfully introduce a product, the company needs to think of the best ways to attract customers: prices, added value, benefits and choice of distribution channels, as well as investments in marketing and advertising.
A good tip for an assertive launch is to base it on trend forecasts made by Business Intelligence tools. They identify market needs and desires, increasing the chances of getting the product development right.
At this stage, the product is already known and valued by a larger number of consumers. Sales increase rapidly and it is possible to produce on a large scale. Competitors start to “run after” similar products.
This stage allows the product’s value to increase, investment in differentiation and creation of actions to develop brand preference. It is important to prepare to meet the growing demand with expanding production and distribution channels.
This phase is marked by the apex of sales, as well as the stabilization of competition and profit. Demand has not yet fallen, but competitors usually bet on the price war or additional advantages to conquer what is still possible in the market.
The best strategy for this period is to bet on differentiation, either on some characteristic of the product itself or on service. Enchanting the customer remains the key to remain in a reference position.
Saturation is the peak supply, which makes the competition extremely fierce. Many competitors offer the same product and, as can be expected, the result is devaluation.
Companies that have created a good branding strategy still give an image of originality and value, as opposed to “generic” offers.
At this stage, the product becomes obsolete and consumer interest falls. The market is already eager for novelties and willing to migrate its focus to differentiated products.
Before decreeing the death of a product, it is important to assess the reasons for the decline and whether there is a possibility to reverse the situation. Small innovations and a strong marketing strategy can be effective in extending the life cycle.
However, if the death of a product is inevitable, the company should plan its withdrawal from the market in the best possible way in order to avoid losses. This can mean suspending production and carrying out promotions to spawn the stock.
The life cycle of a fashion product can vary greatly. Not all items go through the steps at the same time. The life cycle of an accessory can be longer than that of a garment or shoe. Improper management can lead some items to saturation without reaching maturity.
The duration of these steps also varies according to the type of product. The classics have a slower rise, but a longer cycle. On the other hand, fashions turn into a sales fever but decline extremely rapidly.