Children's Clothing Store: Control Inventory Strategy

The financial crisis sweeping the globe makes it difficult for children's clothing industry to be independent.

The most direct reflection is that many franchisees are more concerned about inventory than before, and pay more attention to pre prevention of inventory.

However, some children's clothing brands still have some mistaken ideas about ordering products. For example, the training of ordering companies should encourage the franchisees to place more orders, the larger the order quantity is, the better the order will be to avoid the analysis of the previous stock, and to avoid the occurrence of inventory, so that the franchisees will not be afraid of stock keeping.

As a professional lecturer with professional ethics, I have rejected the above requirements.

First of all, from the franchisee's point of view, even if it was "ordered" for more than one time, a lot of inventory and heavy losses were generated in the actual sales of the season, and the stupid person knew that he would not order the next time or simply do not make this brand of children's clothing.

For brand manufacturers, this is also a matter of "lips and teeth". The inevitable result is that the franchisee's market is sluggish or completely withdrawn from the market.

For training lecturers, it seriously undermines professional prestige. In the long run, no student will trust the lecturer's professional ethics and professionalism.

In fact, for a joining boss of children's clothing, the most concern is how to improve the pure profit of store operation. How does pure profit come from?

Net profit = sales - cost cost - inventory. When the store does not increase and the brand does not change, the cost is basically unchanged. Changing the net profit is two main indicators: Sales / inventory. Therefore, the franchisee of the children's clothing store should try to raise sales and reduce the inventory ratio so as to effectively make their purse "bulge up".

Inventory is the pain of all children who make children's clothing. Only when the inventory is in the safe range, can we effectively protect our net profit.

To control inventory, we must analyze the root cause of inventory and find the corresponding measures.

Can not "choke out," fear of inventory will not in-depth analysis of its root causes, do not dare to order, and even do not dare to do children's clothing.

In addition, children's clothing operators choose to join the brand, mainly based on the manufacturer's products, affiliation policy, service support, brand reputation in the market and other elements to judge, nor because a training instructor praises a brand, blindly follow up to join, most of the merchants are more rational view of the brand.

Therefore, as a brand manufacturer, what we need to do is not to rely on a short-term behavior. For example, let a lecturer "fudge" franchisees, but do a solid job in "internal strength", and cultivate franchisees, cultivate markets and cultivate brands in a more long-term perspective.