As a consumer, we’ve all been there. That one sale that has a ridiculously steep discount that is hard to dismiss. While markdowns are crucial to moving excess inventory to increase cash flow, it’s important to know when to draw the line in order to make a profit. Many consumers don’t realise the effect a large discount has on a retailer and if done wrong can make a huge dent in your business.
As a retailer, it is very unlikely that you will sell ALL of your inventory at full price and excess stock is inevitable for an endless number of reasons that you can’t plan for. Despite this, you can PLAN when you need to markdown as incentives for your customers.
Good retailers aim to create and implement inventory solutions to grow their brand and optimise inventory. Great retailers do this using the gift of technology. Bad retailers don’t utilise basic technology to understand what is selling where, when and at what price. This is essential to help retailers PLAN a product’s phase-out and determine its lifecycle. Unfortunately, companies who simply ignore their internal backend systems are shooting themselves in the foot and stunting their own potential business growth. Markdown optimisation, invoicing, inventory management, and image management are just some of the legacy systems that can help you.
Despite the 36 percent of brands that have a plan, a whopping 72 percent are still in the dark while they look into updating their systems. Technology has redefined how we look at retail business and if you are in the 72 percent, it’s time for a reality check. In this issue, we have an extended feature on e-commerce to push your business further. Starting on page 8.
Vancouver Fashion Week was a roaring success showcasing a large variation of up and coming designers from across the globe. If you would be interested in showing at Vancouver Fashion Week in March for FW18, get in touch with me directly. See our highlights from Vancouver Fashion Week from page 21 onwards.
This month I travelled to Rome and found a small shop that handmade sandals. A couple was already in the store. “I have some special sandals I think you would be interested in,” said the clerk to the couple. “They make you wild at sex!” The wife was intrigued, but the husband was not so sure. “How can sandals make you a sex God?” the husband asked. “Try them on and see,” said the clerk. As soon as he slipped them onto his feet, his wife noticed a wild look in his eyes. In a blink of an eye, the husband jumped to the clerk and threw him on the table, tearing at his pants. The clerk screamed: “WRONG FEET! YOU HAVE THEM ON THE WRONG FEET!!”