Fashion retailing is the section of business that acts as an intermediary between the manufacturers and customers. It can be defined as the process of “buying clothes from the manufacturer and selling them to the customers. Fashion category is an effective option to make money because it is highly important for this modern world. The fashion retailing is simply amazing in growth because of user's requirements. The clothing and fashion branding categories make people rich because of effective sales. It is the link or a bridge between the fashionable product manufacturer and the consumer. Fashion Retailers may buy fashion merchandise from various manufactures (Vendors) directly import merchandises from all over the country their own brands. Fashion retailers must constantly be aware of customer’s desires. They must notice changes in people’s living patterns and tastes. Retailers must show to put together and accessories an outfit. Fashion Retailers are always trying to cope by meeting consumer needs with value, service, Entertainment, unique merchandising, and global expansion. There is a renewed interest in inner-city retailing, and malls are diversifying and renovating to stay in Business.
Manufacturer makes the goods and sells them to the consumer directly with no intermediary, such as a wholesaler, agent or retailer. Goods come from the manufacturer to the user without an intermediary or middleman.
5 Major challenges Retailers faces :
High vendor cost
Stock
Transportation cost
Damage of products
Online competition
I have learnt some new vocabulary in Retailing:
Footfall - Footfall is defined as the number of people, or traffic, entering a store, and is an important indicator of how successful a company's marketing is at bringing customers into stores.
2. Conversion Rate - Retail conversion rate is the percentage of visitors to a retail outlet who make a purchase. It indicates the number of people out of all potential shoppers who buy something from the store.
Ideal conversion rate of Retail stores is 15 to 20%
Ideal conversion rate of E-commerce is 0.025%
3. Turn around time - It is the amount of time of stock delivered till selling.
4. Shop in Shop - It is a separate part of the floor space which is reserved for a particular brand or retailer.
5. Product drops - Product drops are when a company releases a limited-edition product line for a short period of time.
6. Mark Up - The markup is the difference between the price that the product is sold by the retailer and the price that the seller purchased the product from the supplier.
7. Shrinkage - Shrinkage describes the loss of inventory due to circumstances such as shoplifting, vendor fraud, employee theft, and administrative error. The difference between the recorded inventory and the actual inventory is measured by shrinkage.
8. Sales per square - foot Sales per square foot is the store's average revenue for every foot of sales space. It can be used to determine the efficiency of a company’s retail store. A higher sales per square foot indicates a retail shop that the strong efficiency and performance.
9. Aging Inventory - It is basically a old stock. It is a term for goods that haven’t sold quickly or haven't sold for their full retail price.
10. Deadstock - Dead stock is inventory that a company has held for a long time and is unlikely sell. To get rid of dead stock, companies may provide strategies such as offering discounts or bundling dead stock with better-selling products.
11. Sell Through - It measures the amount of inventory sold in a month versus the amount of inventory shipped from a manufacturer.
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