How to Curate In-demand Sustainable Fashion Range

Sustainable fashion has been on a steady rise for years as the industry’s damaging impact on the environment could no longer be ignored. The Covid-19 pandemic accelerated the movement even further as consumer mindset changed and fashion’s overproduction issues were spotlighted..

With the lessons learned from the pandemic, it’s clear that fashion would not survive another crisis if it reverts to the previous levels of mass production and resource-draining processes. The future of fashion is sustainable and this article will take you through the key steps to integrate sustainability into your assortment.

The Growth of Sustainable Fashion

Before Covid-19, the sustainability movement in fashion was spearheaded by a few cult brands with sustainable practices at their core. But now, the rest of the industry has been catching on. In the last six months, there has been a 209% YoY increase in sustainable products in the US across sustainable, fast fashion and sportswear markets.

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Sustainability is becoming mainstream post-pandemic as consumers’ buying habits change and the demand for slow fashion rises. Fashion companies are moving towards implementing sustainability as a purpose rather than just taking individual measures. This shift was spotlighted in The Business of Fashion’s sustainability index, in which brands like Nike and Puma led with high sustainability scores.

A Holistic Approach

Brands and retailers must refrain from approaching sustainability as another trend to profit from. It’s not enough to greenwash with capsule organic cotton collections or piggybacking off cult eco brands with one-off collaborations. A holistic approach is needed to address the many issues at play and achieve real sustainability – from ethical sourcing to conscious merchandising and creating a more circular product lifespan

Last year, some of the biggest players in fashion, including The BFC & CFDA, The Business of Fashion, Dries Van Noten and Tory Burch came together to call for a reset of the fashion industry and its harmful processes. Some of the new processes recommended to reduce fashion’s carbon footprint were:

• Revamping the fashion calendar to bring releases closer to their intended season, focusing on no more than two main collections each year.
• Reduce costs and the environmental impact of travel during fashion weeks with digital runways, presentations and showrooms.
• Achieve a sustainable supply chain with fewer launches and products to prevent waste.
• Wait until the end of the season to reduce prices instead of constantly discounting.

Produce the Right Products with Trend Validation

One of the main issues preventing fashion from becoming sustainable is excess inventory at the end of every season. This is an outcome of poorly planned product cycles and the rigid seasonal calendar that brands abide by, releasing Spring/Summer collections in winter and Fall/Winter in summer.

The reality is, consumers today are ‘buy now, wear now’ shoppers who are not ready to purchase seasonal products ahead of time.

To remedy this, fashion brands need to rework the calendar and launch products closer to the actual season. Understanding demand becomes crucial to launch the right products at the right time, and minimise markdowns down the road.

From the runways to social media and even trend reports, fashion trends come from many different sources and set the tone for a brand’s new assortment. While these sources are relevant, it is crucial to validate the demand for trends before going into production to avoid excess inventory later on. This is where a fashion analytics tool comes into play.

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Omnilytics’ Trend Performance module provides an overview of the different categories in a market so you could determine which ones are trending to aid assortment planning. Dresses, shoes, jewellery, bags and accessories are currently trending – which indicates an opportunity for retailers to incorporate in-demand categories into new assortments.

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Clicking on any category allows you to study its trend’s trajectory over time and spot movements like spikes or drops. The demand for dresses is stable with the highest trend score and has been holding steady against all categories since April.

You can also see the top retailers and brands stocking sustainable dresses, along with the top patterns, colours and materials. Crucially, you can see that sell-out was largely contributed by full-priced products at 75% – indicating strong demand for sustainable dresses.

Go Granular

For more accurate insights on demand, dive further into a category’s trade performance. We’ve already established that dresses are trending, but which subcategories are the most in-demand? It’s crucial to observe at a subcategory level to understand what drives trade, whether it’s discounts or full-price sales.

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Here, we can see that bandeau dresses performed best with 100% sell-outs at full price. There is also potential in other subcategories like drape and wrap dresses with less discounts to drive sell-out.

Reformation Sets the Standard for Conscious Consumption

Reformation has been synonymous with sustainability since its inception in 2009 as a game changer in meeting fast fashion demands with an eco-friendly approach. The LA startup became a cult brand in sustainable fashion and grew through the tough 2020.

Reformation’s success lies in three key strategies: demand-driven assortments, tiered pricing and compelling marketing messages.

Demand-driven Assortments

Reformation has relied on capsule collections in the past to test and validate demand before scaling. Not only does this prevent waste, but it also allows the brand to plan better assortments with the insights derived from the capsule collections’ sales performance.

A great example is the brand’s Wedding Collection. Like most get-togethers in 2020, weddings were getting cancelled amid lockdowns. As a result, Reformation reduced its wedding collection due to unstable demand.

Now that the pandemic has improved, the demand for bridal retail is back – and Reformation was ready to deliver. The brand’s new-in rate for its Wedding Collection increased by 60% while sell-out shot up by over 270%.

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Launching at the right time was also crucial – Reformation waited until popular wedding seasons, spring and summer to release new products when consumers would actually be looking for them.

Effective Tiered Pricing

With a median price of USD 160, Reformation products are on the premium side. Despite this, the brand is still achieving high sell-outs. This is because consumers are willing to pay premium for products that meet their value expectations.

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Reformation has an effective tiered pricing strategy, also known as the ‘good-better-best’ pricing ladder. With this approach, products are split into tiers and priced accordingly to key attributes.

The ‘good-better-best’ pricing ladder is mapped against three tiers of fashionability.

• Core (Good)
• Fashion (Better)
• High fashion (Best)

With tiered pricing, Reformation’s prices reflect their perceived value. Core items, like plain casual dresses, get ‘good’ pricing while more elaborate designs fall under the ‘better’ category. Meanwhile, dresses in the ‘best’ pricing tier have the highest quality or most elaborated attributes, including premium materials like silk or velvet and intricate prints or designs.

The higher the product’s fashionability, the higher its perceived value and price. When products meet consumers’ value expectations to justify their prices, sales will easily follow.

Good

Priced between USD 0-100, ‘good’ dresses product attributes are basic designs in core colours.

Better

Priced between USD 100-250, Reformation’s dresses under the ‘better’ tier have more elaborate designs like ribbon ties, flare sleeves and in midi/ maxi lengths.

Best

Priced over USD 250, dresses under the ‘best’ pricing tier are made up of premium materials like silk and velvet with on-trend attributes like voluminous sleeves and prints.

Compelling Marketing Messages

Completing Reformation’s retail strategy is robust communications and promotions that perfectly tie in with the brand’s DNA.

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Having a compelling marketing tone is crucial to organically gain loyal customers and boost engagement. Reformation does this with a playful approach and casual yet cheeky messaging tone.

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Behind the witty messaging, the brand’s underlying persona shines through and leads the audience back to Reformation’s sustainability agenda. The brand’s distinct tone of voice and consistency throughout its communication throughout its promotions creates a compelling story that draws attention.

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Key Takeaways

Sustainability is no longer just about incorporating more eco-friendly materials and one-off collaborations – it’s an entire mindset. From product sourcing, merchandising to inclusivity in the brand’s staff force, consumers today are demanding true sustainability from the brands they buy from.

By prioritising sustainable fashion, you can align with customers’ needs, reduce your impact on the environment and protect your bottom line all at the same time. The future of fashion is sustainable – take action today or risk getting left behind as the industry adapts.