Textile producers are dependent on fashion and mainstream on the one hand, but also on seasonal influences on the other. If a summer is too cold or a winter is too warm, this is immediately reflected in the sales figures of the pre-produced goods. Clothing from surplus production arises when the general mood to buy decreases – new sales concepts are the clever reaction to this.
New sales concepts for fashion designers
That is why more and more brand labels are investing in their own innovative concept stores in order to be able to come into contact with potential customers. In addition, these forms of sales concepts have more commitment and economic know-how.
Then there are the problems of the market – the rules of supply and demand. In the textile industry in particular, hard bandages are used to fight for market share.
That is why the trend towards factory outlet centers, designer outlet centers and factory sales centers is currently going on in Germany. But to be successful here, too, you need the courage to break new ground. This includes the perfect choice of location, the high quality of the concept, first-class service and the creation of additional service, gastronomy and experience offers. Then in the best case scenario, the supposed shopping trip turns into a relaxed family outing for customers.
A completely new path was taken this year in Bad Münstereifel, where there were 40 stores throughout city distributed, which are all designed as outlets. You can see exactly what this is all about in this article.
Consumers are now in a buying mood
Companies and consumers are currently discovering that trading in residual items, samples, returns, surplus and discontinued goods can be a lucrative business area for both sides. In addition, consumer buying behavior has changed. They have become more critical, more enlightened and, above all, more demanding. As a result of this change in awareness, a clear trend reversal can be observed. It means: steer clear of cheap rejects and prefer to buy reduced branded products from past collections and from surplus production.
Bekle is also very successful with a large discount >save customers an average of 50 percent and more when shopping. The variety of advantages can be explained using the example of children’s fashion: Many parents are often annoyed by the overwhelming oversupply and the size and material conglomerate – in fact, they only want to dress their children and babies cheaply. In addition, children grow quickly and wear enormous clothing.
If parents then still have certain requirements with regard to quality, durability, durability, skin compatibility and a certain brand loyalty, shopping can quickly become an exhausting and ultimately costly affair. But really good children’s clothing does not have to be exorbitantly expensive, because there are great bargains that come from production surpluses.
There are now some shops where you can get excess clothing, such as discounters like TK Maxx. But this is only a well-known provider of many. There will certainly be other businesses in the future that will focus on this type of concept.
Where do the bargain prices come from??
Concept stores, outlet centers and factory outlets often have additional online shops. These parallel sales concepts have the advantage that the classic middleman is avoided and profit margins are eliminated. This means that customers can be offered first-class goods at greatly reduced prices. Many outlets are located near the production site and are supplied by the shortest route. This significantly reduces the cost of transportation and storage for manufacturers. In the long term, direct sales from the manufacturer to the end customer will develop into a new, strong sales channel.
This leads to conflicts between manufacturers, wholesalers and retail stores behind the scenes. Nevertheless, it is clear that these future-oriented forms of sales reduce excess goods and are good alternatives in terms of sustainability, economy and customer satisfaction.
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The boom in outlet stores in Germany
The brand share of factory outlet stores in Germany is estimated to be around 1 to 3 percent compared to other European countries and the USA. The reason for the hesitant spread is not the operators and investors, but the legal framework is still missing. Once set up, it will become clear what development potential this sector will have in the future.
Consumers have very different reasons to take advantage of bargain offers: too little income, branded products are much more expensive to buy, or buyers are very price conscious.
If you look behind the scenes, you also know that many companies launch up to 30 fashion collections each year. Each of them should be sold within three months if possible. Neither the course nor the end of the respective season can be reliably planned. This logic turns possible Surplus clothing sold to end users with large discounts to clear the warehouse and make room for something new.
If this sale happens in direct sales, companies achieve not only Profits, but positive marketing, brand loyalty and the customer carries his favorite label for less money.
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