How to make fashion pre-orders work
What: Pre-orders are gaining momentum – and advance images of influencers wearing digital versions of the season’s new fashion may hold the key to effective marketing.
Why it is important: Adopting pre-order requires having buzzy products as well as a frictionless supply chain and clear communication to avoid returns and cancellations.
A new campaign by Farfetch features influencers wearing luxury items that are not existing in the physical world. They’re digital versions of styles that can be pre-ordered — a new model introduced by Farfetch in August to get products to customers faster.
While Farfetch isn’t the first luxury retailer to see an opportunity with pre-order, it’s the first to link the process of digital clothing to very prompt production. Many of the brands launching pre-order are doing so for the first time through Farfetch, says Jamie Freed, Farfetch's global vice president of private client.
On-demand fashion is on the rise. Reservations are available to Net-a-Porter’s high net worth clients via its personal shopping team. In February, cult UK retailer LN-CC began working with brands such as Di Petsa to produce on-demand pieces. Brands such as Telfar already offer pre-order directly to their customers.
Adopting pre-order enables retailers to collate useful data to adjust seasonal buys, which can also lead to higher sell-throughs and less unsold inventory, says Farfetch’s Freed. Items pre-ordered from Farfetch are being shipped approximately four weeks after purchase.
The biggest challenge will be to incentivise shoppers to buy, as there’s so much inventory available right now. There’s not a huge incentive for customers to pre-order unless it’s something you really want or it’s something that might sell out quickly. In that’s sense, it’s said that Farfetch’s pre-order offering will feature the hottest styles.
One issue with the pre-order model is the potential rate of returns and cancels. The same returns policy for regular items applies to pre-ordered goods, but Freed hopes that digital clienteling can help avoid high returns. The key is to provide customers with plenty of details about the product (videos, information, dimensions) and maintain communication.
As the products for pre-order don’t yet exist, Farfetch worked with fashion tech company DressX to render digital pieces on its models and with Threedium to digitally render accessories. The luxury industry is watching the Farfetch venture with interest as digital fashion becomes part of the business model.
How to make fashion pre-orders work