CURATING SUCCESS: How Smart SKU Management Strengthens Your Business
Jennifer Declark- Mar 21
- 3 min read
An article by Jennifer Declark, Founding Member, Moda Guild Agency
In any business, focus is key, but when the economy is uncertain or a business is facing challenges, honing in on a streamlined product offering is even more critical. A well-curated assortment allows brands to operate with precision, reduce waste, and improve overall efficiency. SKU proliferation—the practice of increasing the number of styles, colors, or variations within an assortment—may seem like a way to capture more sales, but it comes with hidden costs that can weaken an entire organization and its supply chain.
Often, when a brand is thriving, anything goes. There’s excitement, momentum, and an openness to experimenting with a broad range of products. But when business and market conditions shift, brands need to transition to a merchandising-led mindset. This shift isn’t just about SKU management—it’s a cultural change that requires alignment across design, development, merchandising, and production. Embracing this discipline ensures long-term sustainability, even in volatile times.
Rather than overdeveloping, brands can succeed by strategically managing SKUs, prioritizing quality over quantity, and ensuring their product line speaks clearly to customers.
Smart SKU Management Strengthens Your Business
How to Effectively Take Control of SKU Proliferation
1. A Well-Curated Menu: Make Buying & Selling Easy
A strong, well-edited assortment makes it clear what a brand stands for each season. Instead of overwhelming customers with too many choices, a focused collection simplifies decision-making and enhances brand identity. Think of it this way... A brand shouldn’t feel like a sprawling buffet with endless choices — it should be like a chef’s tasting menu, thoughtfully curated to highlight the very best, where each item stands on its own, while at the same time complimenting the rest of the meal. A clear, intentional assortment makes it easier for buyers to understand the collection, identify key styles, and make confident purchasing decisions without second-guessing.
2. Smart Development: Invest Where It Matters
Every new SKU requires investment—design, prototyping, sampling, and testing. A well-structured collection follows a pyramid model: at the base are the high-volume, core styles that drive the bulk of sales and profitability. These are proven winners that customers come back for season after season. In the middle tier, there are fresh updates and trend-driven commercial items that help keep a brand relevant. At the very top is the "Field of Dreams"—the aspirational, statement-making pieces that generate buzz, reinforce brand identity, and draw new customers in season after season. By maintaining this balance, brands can ensure that innovation supports—not overwhelms—the foundation of their business. Essentially, a thoughtfully tiered line optimizes both creative expression and financial success.
3. Operational Agility: Simplify for Speed to Market
A strategically focused product line streamlines merchandising, inventory planning, and supply chain management. With fewer SKUs to juggle, brands can make quicker decisions, improve fulfillment speed, and adapt to market trends more effectively. Efficiency is the key to maintaining agility in a competitive landscape.
4. Lean Inventory: Reduce Waste & Protect Margins
Not every SKU sells at full price. Overdeveloping leads to excess inventory, markdowns, and margin erosion. By keeping assortments disciplined, businesses can maintain healthy inventory levels, minimize waste, and protect profitability—especially in uncertain economic times.
5. Stronger Factory Partnerships: Build Trust & Efficiency
Factories thrive on consistency. When brands overdevelop and cancel styles, factories absorb the cost of wasted materials and labor. This often results in higher production pricing and embedded hidden fees. By offering clear visibility and maintaining stable development and production plans, brands can strengthen their factory relationships, negotiate better pricing, and ensure higher-quality output.
6. Quality & Consistency: Deliver Excellence Every Time
A well curated assortment allows design and production teams to focus on refining and perfecting key products. Instead of stretching resources thin both internally and at the factory level, each end of the business can focus on meeting high-quality standards that resonate with their audience. A controlled, intentional product line enhances brand credibility and customer trust.
The Bottom Line: Less is More
Edit Ruthlessly and embrace cultural change. A well-managed SKU assortment strengthens a brand’s identity, improves efficiency, and enhances profitability. Instead of chasing endless options, businesses should focus on what truly works—giving customers confidence in their choices and ensuring the brand remains strong in any market condition. Keep it simple, keep it focused, build the field of dreams, and let the product speak for itself.
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