How To Handle Increasing Inventory

Because of its close to fashion trends, clothing stores decide that their styles must be updated frequently. And the fashion that was popular last year may become a slow-moving product this year, so there will inevitably be a backlog of stock. For the entire garment industry, excessive inventory has become a serious problem affecting the development of the industry, including those very successful clothing manufacturing and distribution enterprises are difficult to avoid the problem of backlog. There is such a "laughable talk": even though all the garment enterprises in China are now discontinued, they can only be sold for 3 years by domestic clothing sales enterprises. It can be seen how serious the problem of overstock in domestic garment industry is.

The clothing season is obvious, and the clothing product renewal speed is faster and faster. How to deal with the increasing inventory has become one of the most headache problems for the clothing industry. Don't deal with it. The longer the goods are pressed down, the more devalued it will become. Sell at low prices, and fear that customers who have previously purchased products are not satisfied, especially for clothing stores which are mainly based on familiar customers. This is very important. On the other hand, selling can also affect the brand built by garment manufacturers and affect the future cooperation with suppliers, which is a difficult choice.

So, how should clothing stores digest the increasing inventory? Is there any other effective way to reduce the sale and sale? Some industry experts put forward the following suggestions:

I. diversified operations in the off-season

"35 yuan into the clothes, now 25 yuan must be sold." Before August, Chen Juan's clothing store began to clear the storehouse and dump the goods. She said she would rather lose money than goods, which is a sales principle for the off-season clothing. The operating capital of a small shop is mainly the money sold every month. If the goods are pressed down, it will not be able to sustain it for up to two months. The main reason is to keep the rent for two or three months and stick to the peak season.

Chen Juan's clothing store, to prevent pressing goods, will not enter the season's products until the season changes. She will steal the clothes shop secretly and turn to those busy season products. For example, she will put some of her old leather bags, trinkets, etc. in a prominent position, such as earrings, necklaces, bracelets and anklets, and design cute cartoon bags, canvas bags and so on. Although there is not much money, the single profit is still very high, and eye-catching goods are easy to attract passenger flow. Sometimes people will not be able to get busy at a time, and it will be easy to get through in the off-season. In Chen Juan's words, there is still a good deal of business to do with a little bit of brains.

Two, moderate sale

It is unrealistic for any clothing store to realize zero inventory. Therefore, we can master the rhythm and do some proper sales activities at the right time; for example, group buying, VIP sale, issuing coupons, rush buying in time, holiday promotion and so on, are all good ways. Generally speaking, such a method will not damage the reputation and image of the operator, nor will it affect the relationship with the supplier.

Three, timely transfer goods with wholesalers.

Wang Meng has opened shop in Beijing for more than 2 years. Her secret to prevent inventory is to contact with wholesalers in time. When purchasing, she insisted on a small amount of money, and set rules for the shopping guide, so long as the new style was not inquired in 3 days or sold within 5 days, she quickly returned to the wholesaler to exchange other colors or styles. At present, the competition in the wholesale clothing market is very intense. Wholesalers usually allow other colors or styles to be replaced in order to sell as much as possible. For those wholesalers who are not allowed to change, Wang Meng is determined not to pick up the goods. In her words, this way of preventing goods is not only bringing her the biggest cash flow, but also bringing new styles to the shop, attracting buyers' attention very much. Of course, there is one drawback to doing this. It is to look at the face of wholesalers from time to time.

Four, exchange advertising with stock.

There is no doubt that advertising can definitely enhance the reputation of the operator. If it is a franchised store, advertising can often get a certain degree of support from the supplier, and a lot of multimedia can be used to fill advertising fees, which is beneficial to the operator's future business activities, which is to exchange future gains with immediate losses.

There was once a store owner who talked to the TV station in the city for an advertising transaction. He used 800 sets of thermal underwear to fill an advertising fee of 80 thousand yuan (the market value of the thermal underwear was over 180 yuan / set, but the store's purchase price was only 60 yuan / set). At the end of the year, when the TV station opened a customer Association, the thermal clothing was presented as a gift to the participants. The owner of the store not only used the inventory to get the advertising benefit, but also used the invoice of 80 thousand yuan to apply to the supplier for 50% of the expense reimbursement. The store is worth half of the money, but received 80 thousand yuan of advertising returns, but also cleaned up the inventory in hand.

Five. Organize and take part in some targeted fairs.

By participating in related exhibitions is a good way to promote inventory backlog products, the operators in Shanghai are especially good at this way.

Here, science investment reminds investors that making clothing "inventory agent" has a high profit and is a potential investment direction. "Inventory agent" does well, sometimes profits are higher than regular stores.

A shopkeeper in a clothing store in Xinjiekou, Nanjing, repeatedly said that he had made a profit when he talked about his experience as a "stock agent". He said: "agency inventory goods are often more profitable than selling positive prices." He calculated an account: take the 100 yuan positive price goods as an example, when the clothing agency is cleaning up the stock, it usually gives the package agent to the "stock agent" at about 90 percent off of the price, and Shanghai has also had the lowest 95% off discount. According to the rule of inventory digestion generally below 50 percent off, the highest price of 10 yuan can be sold to 50 yuan. For shopping malls, special arrangements are arranged, and the buckles for goods are generally only around 10%. That is to say, 50 yuan of goods only deducted 5 yuan. In addition, ex gratia products do not use VIP cards, nor do they have any renovation costs. The salaries and office costs are reduced by more than half. In this way, we earn at least 30 yuan in 50 yuan.

Six. Look for special sales channels.

When the existing sales channels are not enough and can not digest inventory, we can consider opening up other forms of sales channels for target consumer groups.

A shop in Nanjing specializing in brand sportswear, because of the backlog of hundreds of outdated sportswear, occupied a lot of money, so that the boss was very worried, through the retail market is obviously unable to sell these stocks in the short term. Later, the owner of the shop found a way. There are many major secondary schools in Nanjing, and college students are obviously the main consumers of sports wear, and college students generally wear famous brands, but many students can not afford brand name sportswear because of economic problems. The boss, through a friend of the City Sports Bureau, contacted more than 10 school sports associations, sports departments or teachers responsible for sports equipment. He sold sportswear to students at below 30% of the retail price of the market, and at the same time gave 10% commission to the relevant sports directors. This is a good thing for both sides. Thus, some schools provided him with short selling sites, some provided him with support for broadcasting advertisements and bulletin board advertisements, and some work study centers also organized students to run sales for each of his dormitories. He also gave some small money to sponsor some activities such as badminton and basketball competitions, and further established relations with schools. After 3 months, all the goods were emptied through more than 10 schools.

There are also some companies that specializes in acquiring inventory products, and set up professional stores for inventory sales. Operators can also consider working with these companies.

In addition, the above "inventory agent" is only limited to well-known, highly priced brands. As for the 10 yuan purchase, the original price of 100 yuan is marked as 200 yuan, and the number of people who sell 50 percent off yuan is 100 yuan. Despite the fact that the price has been discounted, such a trick has long been known to the public, but as long as there is a market, it can not stop the enthusiasm of buyers and sellers.