Maximising Sales and Profitability through Range Planning: A Guide for Retail Fashion Buyers

As a retail fashion buyer, developing ranges from concept to product involves a lot of moving parts. The range plan is a jig-saw puzzle that is constantly refined and edited to ensure the balance and mix of commercial metrics match with the planned seasonal styles and quantities.

Most buying teams have different buyers for different categories e.g. A Womenswear buying team may have different buyers for knits and woven textiles or for Tops ,Bottom , Dresses and Outerwear categories depending on the size and structure of the business.

A buyer for a childrenswear category is usually responsible for an age group for example baby or Toddler or Teen. This can be split by gender but they will develop their range plan across all the different product categories.

Working with a range plan (essentially a detailed spreadsheet) is a vital part of a buyers planning process. The inputs created are based on many different sources of information and decision making including future trends, past seasons sales data, available resources and open to buy budget for example to determine the outputs thus creating an optimal mix of products and styles, price point hierarchy, quantities and options per style, production capabilities and store grading allocations.

In larger businesses the budget, quantities and allocation numbers may be calculated by the merchandising teams. In my opinion a buyer also needs to understand these numbers and be able to work with them to ensure they align with the intended styles that will be developed and purchased.

The product range will include all the planned items that will be bought for the upcoming season accordingly to the budget available to spend. Within the range plan there will be items that will be make up ‘mini collections’,‘looks’ or ranges. These products are usually planned according to the different stories and trends determined for the season. This will support the visual merchandising team when preparing the in store launch strategy, layouts and placement of the products in a way that will be aesthetic pleasing and optimise sales opportunities .

Ultimately the product selection should include a variety of colours, styles, and sizes to suit your target customer. This final selection should have a balance of different items depending on their category, type (e.g. tops versus bottoms ratio), and pricing structure. The buying budget is normally broken down by category and not by story or collection therefore it is important to remember this when planning your product range and allocating your budget. This is where the information on the range plan can provide a clear overview of the budget spend breakdown.

THE RANGE-PLAN DRAFT

When starting a new season buy plan you do not have to start with a blank spreadsheet each time. Each buying season provides the opportunity to build on the previous season by maximising any lost opportunities and using lessons learned to avoid buying slow selling items.

If your business has a clear buying structure then your will use this as the template to get started . There will be a category of items classified as ‘never out of stock’ (NOS) or all season products (AS) These products are lower risk and less sensitive to markdowns than fashion products with a longer product life cycles. The sales success of these products rely on price, fit, colour and availability. They are also less susceptible to changes in trends or seasonal silhouettes. The lead times are also not as time sensitive as these can be managed and replenished on an ongoing basis and can take advantage of low season production availability.

Product ranges that have a higher percentage of ‘Fashion’ or ‘Trend’ driven styles on offer to the consumer rely on having specific ‘Hero’ items in their ranges. This is where good commercial understanding of trend forecasting is very important in order to make informed decisions when planning these ranges. Buying closer to the season will give a more accurate reading of the trends developing and minimise the risks of these items but they do reply on shorter lead times and you need to have suppliers in your business to support this

When making product decisions on what to shortlist for the range, there are many considerations for the buyer to take into account: These the some of the additional factors when preparing the plan.

Market Position?– is the product relevant in terms of its appeal and quality for the segment in which your brand operates and the season which you are buying for? If not, then it is unlikely to generate sales.. Buyers must make sure that their products are competitive in the market, and that they maintain their market position each season.

Target Customer?– it is crucial to completely understand the identity of the your customer. Different customers are looking for different products at particular times, and understanding your customer, as well as when they are ready to purchase certain trends or products, is important to ensure the correct assortment or offer in your store at the correct time.

Customer Expectations?– to be successful season after season, Buyers must introduce products to the market which can fully meet and even exceed expectations, as well as meeting the business targets and metrics. In your role as a buyer you must offer the customer those products that they?need?along with products that they?want?to buy to keep them coming back. As a buyer my aim was always to create a product offering where my customers would want to buy everything !!!

Retail Calendar?– There are various events and activities throughout the year that are drive higher footfall in stores and for part of the budget allocation when planning seasonally. For example party season during December and holiday or festival season during the summer months of June and July. Depending on the region your business operates in there may also be specific occasions that drive customer demand at different times.

Alongside these factors when building your range plan,here are the some of the key headings to include on your plan : product range hierarchy, colour, fabric, silhouette, brand mix, price range, and Supplier

Product range hierarchy: Determines the different levels of products that will be offered within each group or category and sub-group or sub category, such a core, fashion, and trend items.

Colour palette: This will include a mix of recurring brand shades with the new season colours

Fabric: Whether a knit or woven fabric and the details of weight and quality

Silhouette:?Specifies the style and fit of the product.

Brand mix: Determines the balance of different brands offered in the store. It may be all own brand or private label or a mix of private label, Licensed products and outsourced brands.

Price range: Outlines your pricing structure within each category

Allocation:?Proposal for styles ,options and quantities to each store?Supplier:?Manufacturer and country of origin for each product.

DEVELOPING STYLES FOR THE RANGE PLAN

When we look at the mix of styles within a planned category there is usually a combination of methods for developing the styles

1. This is a new and original design developed by an in-house design team or supplier.
2. An existing style which performed well in the preceding season and still offers additional sales opportunities.
3. Catwalk copies or styles inspired by other brands.

New and original designs involves the creation of styles entirely from an initial idea. The product development will begin with the design team and subject to selection by the buyer will then move through the development process for sampling, costing and final selection.

Modifying existing styles is a common practice among many brands where products from a previous season are re-developed or ‘moved-on’. Sales data and analysis are used in the decision making process and it a much more cost-effective and time saving method as the patterns and the technical specs already exist and have been tried and tested. There may be minor modifications made to trims , details, colours, fabrics, etc but the shape and fit will remain the same. Another advantage to this method of product development is that it is a more sustainable option with less waste and sampling required.

Catwalk copies involves garments being adapted or modified from styles designed by other brands. The timings of the biannual fashion weeks where the designer labels, couture houses and ready-to-wear brands showcase their ranges a season ahead mean that high-street retailers take their inspiration and direction from these styles through the photographs or actual garments.

DETERMINING WIDTH VS DEPTH IN THE RANGE PLAN

An important factor when building your range plan is to consider the width and depth of the assortment.

The width of the range refers to the number of different styles and shapes that are offered; the more styles on offer the wider the on offer for your customers.

The depth of the range refers to the number of colour options, prints, sizes, and price points available in each of the styles. It is important to create a balanced range and have variety in the mix but too much variation in the fabrics and colours offered can cause confusion and make your range look inconsistent.

Using sales data from previous seasons identifying the best and worst sellers will influence the width and depth of your new range. As a buyer you should constantly monitor your competitors’ and be aware of the variations of styles and options available that will be in direct competition with your business. The seasonal strategy of the business overall or just the specific category can also impact on the width or depth of a range as the direction planned may influence product variations.

It is important to layout your buying strategy before preparing your range plan. if the direction for the category is to reduce the number of styles, but offer more colour or print options in key styles, this will reduce the width and increase the depth of a range.

This is known as a broad and shallow strategy.

On the other hand a range plan that is based on narrow product range with a lower number of styles, but a deep number in terms of colourways and sizes within those styles known as a deep and narrow strategy.

Whatever strategy you use, having the correct plan is vital to the success of the range. Offering too many products can cause confusion and potentially lose customers through indecision or overwhelm at the array of choices presented to them. Instead your range should be clear and understandable offering a well thought and balanced product offering

SIZE RANGE AND RATIOS IN YOUR RANGE PLAN

It is not possible or profitable for a retailer to offer a full range of sizes for every product ; Whatever size range your brand or business offers determining the size ratios correctly will make the difference in your profitability at the end of a season. A good way to understand this is monitor the competition when it comes to ‘Sale’ time and to check what is left on the rails. In most cases it is the smallest and the largest sizes that are usually left over at the end of the season and can require heavy markdowns to clear the stock. This unbalance will mean that the middle sizes sold out quickly leaving a ‘broken’ range with an uneven size selection available.

An example of a size ratio for a size range of S-M-L-XL can be 2 : 4 : 4 : 2 This mean a 12 piece ratio pack will contain 2 x pieces in size S , 4 x pieces in size M and so on.... however if you know your target customer and that your bigger sizes are more popular, then a more profitable ratio breakdown might be 2 : 2:4:4

With this in mind a buyer must ensure that they order their styles the optimal size ratio spread to minimise left over sizes. This can vary across product category and even across particular styles. Understanding your customers and using historic data can aid in the decision making process. It is particularly important to optimise your size selection for more trend driven pieces, as they may go out of fashion quickly, meaning you only has a limited selling period in which to sell out of them.

PLANNING YOUR PRICE POINTS IN YOUR RANGE PLAN

Price point architecture or also known as hierarchy is important to get right as this relates to your target customers and their perception of your brand position in the market. Most Brands offer different levels of price points for different types of products and ranges.

Usually the basic or core products will be priced at the bottom or entry level of pricing, with a classic or Key product in the mid-range, and more styled and decorative pieces in the top range with the highest price point. All retailers plan some form of price point hierarchy to appeal to a wider range of customers.

When your customers know your brand they have an expectation of what they will pay for a product. The price points you set need to be understandable and make sense to the customer and that the products are perceived to offer good value for money. From the buyers side there will be cost differences in fabric quality, design or styling which will all impact the price point but you must remember to view the products through your customers eyes as these differences may not be reflected in the end product they see and thus not ‘good value for the associated price tag.

By understanding this concept and planning your pricing hierarchy carefully, you can clearly communicate your product offering with a variety of options for your customers at different price points, while also maximising profits. balancing price points in your range plan is an important aspect of range planning as it helps to ensure that you are offering products that are accessible to a wider range of customers This will be discussed in more detail in another article later in the month.

Offering a strong product mix and balancing price points in your range plan can have many benefits for your fashion retail business. One benefit is that a strong product mix allows you to offer a variety of options to your customers, which can help to increase customer satisfaction and loyalty. Depending on your specific retail business model by offering a mix of private label and established or new and upcoming brands you can provide a diverse shopping experience that caters to different preferences and budgets.

In conclusion, range planning is an essential parts of retail fashion buying from concept to product . By understanding your specific consumer needs and wants, and effectively managing your inventory, and creating a cohesive visual display in your stores, you can maximise sales and drive profitability. By applying the strategies outlined in this article, as a fashion buyer you can develop and hoe your skills and achieve success in you buying career.

Remember, range planning is not a one-time task; it's an ongoing process that requires constant review, evaluation, and adaptation. Keep an eye on market trends, customer preferences, and your competitors to ensure that your range plan is relevant and up-to-date. With the right range planning strategies in place, as a fashion buyers you can ensure that you products are in the right place at the right time and that customers always come back for more.