Is it really possible to create more sales without spending any more on advertising and marketing?
Absolutely! That is not to say that marketing and advertising are to be ignored. They are still a key part of your recipe for success. However, as you ponder your next promotion to bring traffic into your shop, ask yourself this basic question: what makes one retailer more successful than another? Do I have what the customer wants in stock right now? This is the clue to finding the retail Holy Grail.
Let’s examine this principle and see why it is the strongest marketing tool at your disposal. Every retail business breaks down into seasons. Some seasons are stronger than others and each season has classifications (types of stock) that are important to making that season a smash hit. For example, jumpers and cardigans are more important in the Autumn and Winter than in the spring. Now this is where it can get a bit thorny. When will the season peak and how much stock of that particular classification will I need to drive my business? If you underplay your purchases you lose business; if goods arrive late you lose business; if goods arrive too early they will be ‘stale’ by the time the customer is ready to buy. Not to mention that one season can run into the next! The key is to carry stock which provides what you need, when you need it, based on expected demand. Where there is demand, there is traffic, and thus, revenue.
Here is an example. February in Cornwall is slow. There are no tourists, it is cold and the shops are quiet. One of our retailers there who was really struggling to do business in this slow period brought in some great new tops on the constant urging of one of their staff. The day the tops arrived in the shop the owners put them in the window and by the end of the day they had sold out the entire order. They were on the phone the following morning ordering replacements and the trend continues stronger than ever. The point is they found where there was demand. Where there is demand there is business. Feeding the demand is what Winning @ Retail does. Could a marketing initiative or a sale have accomplished the same thing as effectively? Look at the expense of producing an advertisement or a mail shot. Redirecting cash into a classification where demand is strong can help you achieve great results.
We look at the business at the classification level because customer demand usually happens at a national level. When flat pumps became hot, it did not matter who made them or whether there was a special style or colour. They were hot because they looked great with skinny jeans. Demand is measured by classification. Our ability to read that demand and translate that into cash available to buy stock can make the difference between business growth or struggling to survive.
Marketing, especially for the independent retailer, is about seizing the opportunity. Winning @ Retail allows you to maximise your opportunities and minimise your risks.
There are always some classifications that are driving your business, some that are in cruise control and some that are falling away. Our priority is to provide the information to retailers to identify the opportunities and exploit them to the full. That is why good planning is your best marketing friend.
To learn more about Winning@Retail and how we can help you forecast sales over the next 12 months at over 90% accuracy, call us on 020 8576 6233 - Ask for Thierry.
email us on m1@globalfashionmanagement.com
www.globalfashionmanagement.com/retail.htm
