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Is it worth bothering with Pre-orders for my clothing brand?

New clothing brands are keen to launch with pre-orders because it generates a buzz and helps manage inventory and gauge customer interest before launching a new collection. The most common reason a new clothing brand launches a pre-order marketing campaign is to generate much-needed cash.


Let's be real...


In this blog, I am going to discuss the pros and cons of launching a pre-order marketing campaign


Pros of Using Pre-Orders

Demand Prediction

Pre-orders help brands forecast demand accurately, allowing them to produce the right quantity of items and reduce excess inventory, thus saving money.


Cash Injection

By collecting payments upfront, brands can use this cash to cover production costs and business-related expenses.


Creating Exclusivity

Pre-orders can create a sense of exclusivity and urgency among customers, driving early sales and building excitement around the upcoming collection.


Reduced Risk

Launching a new collection through pre-orders can reduce the risk of producing items that might not sell well, as brands can adjust production based on the pre-order numbers.



Cons of Using Pre-Orders

Potential Delays

Production or shipping delays are unavoidable and can lead to customer dissatisfaction if pre-ordered items are not delivered on time, damaging the brand's reputation.




Refund Requests

Customers may change their minds especially if they are yet to receive their order, especially during this pre-order period. This means that the cash used from the preorders will need to be paid back to the customer.


Overestimation of Demand

There's a risk of overestimating demand, resulting in excess inventory if the actual sales fall short of pre-order numbers. Brands may base future sales on preorder sales and they may not match up.


Loss of Spontaneity

Pre-orders can eliminate the element of surprise for customers who prefer immediate gratification, potentially impacting impulse purchases.


While pre-orders offer several benefits such as demand prediction and cash flow management, you need to carefully consider the potential drawbacks like delays and inflexibility before implementing a pre-order marketing strategy.






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