Valentine’s Day is upon us, and if you’ve been in the retail industry for more than two days, we’re sure you’ve heard that the capsule collection is the go-to strategy for this period.

Note* for newbies: a capsule collection is a set of selected items from your assortment that bring together characteristics that are specific to a particular period or occasion, such as Valentine’s Day. The most popular ones are also planned for Mother’s Day or Christmas.

Although capsule collections are a common strategy for retail campaigns such as Valentine’s Day, they involve certain risks and difficulties that it is important not to overlook. So before you jump into planning one, here are the pros and cons of producing a capsule collection:

Benefits of designing a capsule collection for your next Retail campaign (like Valentine’s Day):

  • Contributes to the increase in traffic during the sales peaks of some campaigns, such as Valentine’s Day.
  • It provokes a feeling of necessity in the customer, due to the limited edition.
  • The company enjoys an image of exclusivity for the same reason (neuromarketing, Retailer friend).
  • Sales can be multiplied.

But not all that glitters on Valentine’s Day is gold! What are the downsides of producing a capsule collection?

  • Low demand for certain products: Retailers may have overstocked certain items that do not sell well, resulting in unsold overstock.
  • High competition: Many retailers may offer similar Valentine’s Day-themed products, resulting in intense competition and lower sales for individual retailers.
  • Limited target audience: Valentine’s Day collections may only appeal to a specific demographic, such as couples or people in a relationship, which can limit the potential customer base.
  • Timing: If the occasion falls on a weekday, it may be more difficult to purchase gifts during regular store hours.

But if you thought we were going to leave you alone with the bad and a bitter taste on Valentine’s Day, you’re wrong!

Keys to betting on the capsule collection as a strategy and succeed:

Even the riskiest investments can be mitigated with some planning and thought. Here are three tips to follow to ensure that your capsule collection this Valentine’s Day is a success:

  • Plan your capsule collection and make sure your suppliers and distributors will meet your deadlines. Speaking of which, avoid changing suppliers if you don’t have to! The usual extra costs of producing a capsule collection are reduced if you go to your trusted suppliers.
  • As for the order, it is better to under-order and generate desire for the limited edition than to over-order and suffer the dreaded overstock.
  • Finally, don’t bet all your cards on the product: take advantage of the sales peak to motivate your marketing team to run exclusive campaigns and the store team to make an effort in customer service.

Tell us about your experience! Are you planning to launch a capsule collection this Valentine’s Day? We want all the details, links and comments!

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