How to Categorize Products to Grow Your Business
Competition in the sportswear market is becoming increasingly fierce. Success depends on smart product selection and strategic marketing. Whether you are just starting out or looking to improve your existing strategy, understanding the following five strategic product categories will help you increase brand appeal, meet different customer needs and maximize profits.
1.Loss Leaders (Traffic-Driving Products)
Set low prices: Choose basic yet frequently used products like T-shirts, sports socks, or essential sports accessories, and price them below market value, even at a loss. These products draw consumers into your store or website.
Limited-time promotions: Promote loss leaders through social media or email marketing, creating a sense of urgency and encouraging more customers to make purchases.
While setting low prices may result in a loss, they can drive a lot of traffic, and offering a top-notch product at a low price builds consumer trust and inspires customers to come back for more.
2.High-Margin Products
High-priced products can often highlight your brand strength. Focus on sportswear with advanced features, unique designs, or innovative materials, such as compression pants, smart sports gear, or custom sportswear. The quality and features should justify the higher price point.
The high gross profit of high-profit products can offset the losses of loss-making sales, which can not only maintain the overall profitability of the brand, but also enhance the brand image.
3. Flagship Products (Core Brand Items)
The flagship product must be a timeless classic product, which can be a basic pair of leggings or a regular T-shirt. Although it is a regular product among sportswear, it is special and irreplaceable, highly recognizable, and can convey brand value. It is the sales champion of all products in your store and represents the brand image, so it must focus on high quality. At the same time, you can create a unique brand story for the flagship product to attract consumers’ emotional resonance.
Flagship products create steady revenue streams and enhance brand recognition, building customer trust and encouraging repeat purchases.
4.Seasonal Products
Launch new items promptly: Release seasonal sportswear collections, such as lightweight, breathable apparel for summer or insulated, windproof jackets for winter. Launching new items regularly keeps the brand relevant and exciting.
Create a sense of urgency: Emphasize the scarcity and exclusivity of products through “limited time sale” or “limited quantity release” to stimulate consumers’ desire to buy and avoid waiting.
Holiday promotions: Tie seasonal items to holidays or events (e.g., Black Friday, Christmas, back-to-school), offering discounts to attract shoppers during peak times.
Seizing the peak of seasonal demand and creating a sense of urgency for limited-time sales can justify a price premium, increase profits, and demonstrate the brand’s fashion sense and freshness.
5. Accessories and Add-Ons
Create an accessory section: Designate an area in-store or online for accessories to make it easy for customers to find complementary products for their main purchases.
Upsell at checkout: Recommend accessories such as sports hats, socks, or wristbands to customers at checkout, using these high-margin, low-cost items to increase the overall order value.
Multi-buy discounts: Offer promotions such as “buy three, get X% off” to encourage cusomers to purchase multiple accessories, boosting total sales.
Accessory gift sets: Package accessories into gift sets or bundles and offer discounted prices, especially during holidays or special occasions, to appeal to shoppers looking for gift options.
Accessories often have low production costs but significantly increase the average order value, thus boosting overall profitability.
Through a reasonable merchandising strategy, using a combination of loss-making items, high-margin items, flagship items, seasonal items and accessories, not only appeals to different customer segments but also maximizes sales and profitability through smart marketing approaches, keeping your brand competitive in the market. If you want to stand out from the fierce competition in sportswear brands, please contact us. We not only provide high-quality sportswear, but also help you create your own sportswear brand.
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