Seasonality is one of the biggest challenges CPG brands face—it’s unpredictable, unavoidable, and often unforgiving. It’s not just about pumpkin spice in the fall or sunscreen in the summer; it’s a delicate balancing act of managing inventory, forecasting demand, and avoiding costly missteps. And when it comes to inventory, there are two major pitfalls: producing too much or not enough.
With Valentine’s Day just around the corner, this reality is hitting home for many brands. Heart-shaped candy boxes and romantic-themed products dominate shelves in January, but come February 15, leftover inventory becomes a liability. On the flip side, underestimating demand leads to out-of-stocks—and nothing stings more than losing sales because there’s nothing left to sell. Whether you’re dealing with too much or too little, the right strategy can make all the difference.
The Seasonal Shuffle
Every CPG brand knows the dance. One minute, your shelves are stocked with products flying off the racks; the next, you’re staring at stacks of unsold inventory that missed its moment. Seasonal peaks and valleys are as predictable as they are challenging—and they don’t always play nice with traditional sales strategies.
Take Valentine’s Day as an example. Brands ramp up production to meet the holiday’s demand for themed products, but the day after, unsold stock risks becoming obsolete. The same story plays out for other key seasons and holidays, whether it’s back-to-school gear in September or holiday decor in January.
The Alternative Channel Strategy
Here’s the thing: not every product is going to sell in its intended season. That’s just the nature of the business. But what you do with those products afterward can make or break your bottom line. This is where a strategic alternative channel comes in—a way to keep inventory moving, minimize waste, and recover value.
Alternative channels are not about dumping products. They’re about finding the right buyers who see value where others might not. Whether it’s discount retailers, secondary markets, or even international sales, having a plan for these channels ensures your inventory doesn’t just sit there gathering dust (or worse, hitting a landfill).
Why This Matters Now More Than Ever
Seasonality has always been a challenge, but today’s CPG brands face even more unpredictability. Economic shifts, supply chain disruptions, and rapidly changing consumer preferences make it harder to anticipate demand. A strong alternative channel strategy acts as a buffer, giving you the flexibility to adapt when the unexpected happens.
Consider these scenarios:
- Overstock: Alternative channels can help move leftover seasonal products quickly, ensuring they still reach consumers at the right price.
- Out-of-Stocks: Planning for alternative channels allows brands to better manage seasonal surges and avoid lost sales.
- Trend Misses: That super-trendy item that didn’t catch on? It’s not a total loss if you have a secondary market ready to absorb it.
- Product Launches: A strategic channel can act as a safety net for new products that don’t perform as expected in their primary markets.
- Reformulations: When product ingredients change due to regulatory updates or shifting consumer preferences, alternative channels offer a way to move existing inventory efficiently without waste
Building Your Playbook for Seasonal Success
Creating a strategic alternative channel doesn’t have to be overwhelming, it’s not about reinventing the wheel, it’s about being intentional and proactive. Here’s how:
- Know Your Inventory: Get clear on what you have, what’s moving, and what’s likely to stick around longer than it should.
- Identify Potential Buyers: Build relationships with buyers who operate in secondary markets or alternative retail channels. Not every product is a fit for every channel, but there’s always someone who sees its value.
- Stay Flexible: Seasonality is unpredictable, but your strategy doesn’t have to be. Build in room to pivot as demand shifts.
- Think Sustainably: Moving inventory through alternative channels isn’t just good for your bottom line—it’s good for the planet, too. Reducing waste aligns with consumer expectations and corporate goals.
Final Thoughts
Seasonality is here to stay, but it doesn’t have to be a source of stress. By embracing a strategic alternative channel, CPG brands can navigate the ebbs and flows of demand with confidence, turning challenges into opportunities. So, whether you’re preparing for the post-Valentine’s Day inventory shuffle or planning ahead for the next seasonal peak, remember: there’s always another way forward.
Change is inevitable, but with the right strategy, you’re ready for whatever the seasons throw your way.