How to Forecast Demand for Fashion Products?

Demand forecasting is about guessing what items your customers will want to buy, how many they’ll buy, and when they’ll buy them. In the fashion industry, this means figuring out which designs, colors, and trends will be popular in the next season.

Fashion demand forecasting involves watching for changes in the market, listening to what customers say, and thinking about other factors like economic shifts or trends on social media. The aim is to have the right products available at the right time to meet what customers want.

There are various methods to predict demand. Each method has its advantages and works best for different types of clothing stores and products. Here are a few simple tips that work for the majority of businesses:

This method uses your previous sales record to guess future demand. It’s very simple, especially if your clothing business has been running for a long time and you have lots of data.

• Check your sales from the same time in the past year.
• Notice any patterns, like busy selling periods or trending products.
• Consider any changes in the market or customer tastes.

Example: If you sold 500 denim jackets last autumn and denim is still popular, you might expect to sell about the same amount this year. You can also adjust your prediction if you think demand will go up because your business has expanded.

Sometimes, just looking at old sales numbers isn’t enough, especially when you’re starting something new or entering a new area. This is when market research and asking customers what they want become important.

• Ask your customers what products they want to see next season by doing surveys.
• Check what’s popular on social media among the people you want to sell to.
• Get advice from fashion experts and influencers who usually know about trends early.

Example: If you’re considering adding new luxury fashion brands to your store’s branded clothing collection, you could ask your Instagram followers if they’d like that. If many people say yes, it might mean there will be more demand for those items.

Trends often begin on social media sites like Instagram and TikTok. By watching what’s popular, you can change your stock to match what people want.

• Look at hashtags and popular topics about fashion.
• Use tools like Google Trends to see what people are looking for.
• Keep track of when your store or certain products are talked about to see how much interest there is.

Example: If you see many influencers showing off outfits with oversized blazers, it might mean people will want more of those. So, plan to have more of those styles in stock.

Predicting the future can be challenging, but there are helpful tools available to simplify the process. Let’s take a look at some commonly used ones:

Benefits: 

• Helps you plan inventory based on historical data and current trends.
• Alerts you when certain items are selling faster than expected, so you can reorder before running out of inventory.
• Integrates with your existing point-of-sale (POS) system.

Cost: $249.99/month

Why use it? It’s great for small to medium-sized fashion stores that want to automate their inventory planning.

Benefits: 

• Tracks your inventory in real-time and provides demand forecasts based on sales data.
• Helps you manage stock levels across multiple sales channels, like your website and brick-and-mortar store.
• Offers integration with popular eCommerce like Shopify or WooCommerce.

Cost: Starts at $35 per month for small businesses, with more advanced plans available for larger operations costing up to $235 per month.

Why use it? Ideal for businesses that sell both online and offline, providing a centralized way to manage clothing inventory.

Benefits: 

• Google Trends provides insights into what people are searching for on Google’s browsing engine.
• Helps you identify rising trends in fashion before they peak.
• Can be used to forecast demand for specific styles or products.

Cost: Free

Why use it? Perfect for keeping your finger on the pulse of what’s trending in the fashion world.

Benefits: 

• Uses data from Google Trends, social media, and e-commerce market data to forecast emerging trends and identify those that have peaked.
• Allows users to analyze competitors’ products, colors, assortment breadth, and pricing, providing insights into market positioning.
• Offers weekly trend reports.

Cost: Trendalytics offers subscription-based services with different tiers to cater to various business needs. Specific pricing details are not publicly disclosed on their website.

Why use it? Best for larger fashion brands that want to stay ahead of trends and optimize their product lines.

Understanding what customers need and when they need it is very important, especially in a field where things change quickly.

Being able to predict what people will buy helps stores make better choices, work more smoothly, and make customers happier. 

This isn’t just about looking at numbers, it’s about turning that information into useful ideas that can help your clothing business grow and make more money. 

Let’s look more closely at how predicting what people will buy can help your fashion store.

With good demand forecasts, you can prevent the issues of having too much or too little stock. This helps you get the right amount of inventory, which means less waste, less overstock, and better money management.

For example, if you know winter coats will be popular, you can have enough without ordering too many.

Accurate predictions about demand help make your supply chain run more smoothly, from getting materials to storing products.

With better predictions, you can shorten the time it takes to get items, avoid delays, and make sure products move easily from clothing suppliers to your store. This lowers costs and makes everything work more efficiently.

Customers can get upset when their favorite items are out of stock. By forecasting demand, you can make sure popular products are always available.

Satisfied customers are more likely to shop with you again and tell others about your store.

Predicting customer demand helps you manage your money more wisely. Knowing what items will sell well and how many, lets you use your budget better.

This way, your money isn’t stuck in products that don’t sell, and you can use it for advertising, new products, or growing your clothing business.

Being ahead of trends helps you outperform your competitors. If you can anticipate the demand for new fashion styles, you can have these items in stock before others do.

This can make your store the top choice for customers who want the newest trends.

When you know which products will likely sell well, you can adjust your marketing to focus on them.

For instance, if predictions say a particular type of winter boots will be in demand, you can send more email marketing and clothing ads about them. This makes your marketing more effective and helps you sell more.

Unsold items often end up being wasted, especially when they are thrown away to make space for new collections. By more accurately predicting demand, you can avoid overproduction, which supports a more sustainable business approach.

This is especially important for brands that focus on environmentally friendly practices. 

For fashion retailers, certain times of the year, such as holidays and summer seasons, are when sales are highest. Demand forecasting helps you get ready for these busy times by making sure you have enough of the right products in stock.

This way, you can increase your sales during these busy periods without ordering too much.

If you know which styles, colors, or fabrics are likely to be popular, you can present new products that match what customers want. By using demand forecasts as a guide, you can concentrate on making products that are more likely to appeal to your customers.

This reduces the chance of launching products that don’t sell well and provides you with a better inventory turnover.

Whether you have a small shop or a big store, knowing what your customers want can save you money, increase sales, and help your clothing brand grow. 

By using past sales data, market studies, retail statistics, and trend information, you can make smarter choices about which fashion products to have in stock and when to get them. 

Begin using the right tools and techniques to improve your demand forecasting. It might take some time to learn, but the advantages will be worth the work. 

Your business will operate more smoothly, your customers will be more satisfied, and you’ll see a positive effect on your profits.