Loop by K&R #3
How Pre-Orders are Changing Fashion
One of the key issues within the fashion industry is too much stuff being made too quickly. Millions of clothes end up unsold, heavily discounted, or in landfill every year. All because brands make first and hope someone buys later. Pre-orders are flipping this model on it's head.
WHAT IS A PRE-ORDER?
A pre-order model allows customers to place an order for a product before it is officially available. They are often used before a product goes into production, allowing businesses to gauge demand before manufacturing. They can also be used to create excitement and exclusivity around a particular product, or as a way of minimising lost sales when a high demand product is out of stock.
Where Do Pre-Orders Come From?
Pre-orders aren't new. Luxury fashion houses have used pre-orders for years, often after runway shows where customers and retailers could reserve pieces before they were produced. It allowed designers to gauge demand and avoid overproduction while keeping the process exclusive.
More recently, business to consumer brands have adopted the model, not just for exclusivity, but also for sustainability and smarter, more efficient production. Big brands like Reformation and Patagonia have used pre-orders to cut waste and reduce costs while some brands, like Fear of God, have built their entire business on a pre-order model.
Why It Works?
For the customer
Lower costs: When businesses don’t have to deal with unsold stock, this may reduce their costs which could be passed onto the customer in the form of lower product pricing.
Access to exclusive pieces: Pre-orders allow customers to order pieces before they drop or before they sell out.
More mindful purchases: With longer wait times, pre-orders embody the idea of slow fashion. Having to wait 4 weeks for a product to arrive may make customers think more about what they are purchasing and whether they really need / want it.
For the businesss
No overstock: Knowing demand before production means more accurate production runs, fewer wasted materials, storage costs, and deadstock.
Smarter cash flow: Pre-orders allow brands to secure money from sales before production. This can help significantly with production costs allowing for faster growth.
Customer connection: Pre-orders create anticipation and exclusivity for brands. They also allow brands to share the story of each piece, making shopping feel less transactional and more personal.