Launching a fashion collection is super exciting—it’s your vision coming to life! But when it comes to production, things can get tricky. Make too much, and you’re left with piles of unsold inventory. Make too little, and you risk selling out too fast, missing out on potential revenue (and disappointing customers!). Finding that sweet spot between demand and supply is key. So, how do you strike the balance and ensure your collection is both profitable and sustainable? Let’s break it down.
There are two key approaches, depending on your type of business
If You Have a Small to Mid-Sized Brand
Ask yourself: How much revenue do you want to generate? Your collection should be planned with a clear sales target in mind. Here’s a simple way to calculate it:
- Define your revenue goal (e.g., $100,000 for a season).
- Estimate your average price per item (e.g., $80 per piece).
- Calculate how many pieces you need to sell to hit that goal:
$100,000 ÷ $80 = 1,250 pieces (approximately). - Adjust production based on bestsellers, demand forecasts, and stock capacity.
Brands like Sézane (France) and Reformation (U.S.) use this strategy. Instead of overproducing, they analyze past sales and customer interest to restock only the best-performing pieces.
If You’re Just Starting Out or Launching a New Line
Here, the key question is: How much can you invest? If your budget is limited, focus on a small but strategic collection:
- Start with a capsule of 5 to 10 versatile pieces instead of launching a massive line.
- Prioritize essential colors and styles with high sales potential.
- Consider pre-orders or limited batches to avoid overproduction.
- Use cost-efficient production models like made-to-order or small-batch manufacturing to minimize risk.
Brands like Christy Dawn (U.S.) and Minimalism Brand (Spain) started lean, focusing on timeless designs and sustainable production. By validating demand before scaling up, they optimized costs and built a loyal customer base.
There’s no one-size-fits-all formula, but clear financial planning helps ensure your collection is both profitable and sustainable.