Success in the retail
clothing industry depends in large part to your knowledge of retail
operations, and the suitability of your skills and personality to the
business.
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This business requires that you enjoy meeting people, be skilled in the
art of maintaining customers, have a knack for choosing the clothes that
people will actually buy, and possess a huge dose of fashion sense. The
business may appear glamorous, but you must be willing to work long hours
and be on your toes to adapt to every little change in the market.
The industry is very competitive, and studies show that 80 percent of
retail clothing businesses fail within the first five years. Most retail
stores, particularly small businesses, perish because of poor management,
tough competition from department and discount stores and poor evaluation of
fashion trends. Before embarking on this business, it is better to gain
experience and expertise in the industry, even take training courses to give
you the technical know-how of retailing.
Below are nine ways your small business can succeed in the retail market:
1.
Start small.
One of the most common downfall of small retailers is that they tie up so
much cash in inventory and overheads in the beginning. If you are short in
cash, concentrate on getting select quality merchandise. As your business
grows and your customers increase, you can then afford to increase your
inventory. Avoid buying expensive fixtures at the start, as customers will
go to your store because of your merchandise, not so much the ambiance of
your store.
2. Learn about
your market.
Before you open the doors of your shop for business, you should try to learn
as much about the demographic of your area as possible. Whether you will be
leasing a space at the mall or opening a small boutique, knowing the
population characteristics of your area - their income, age, population
brackets - can assist in your decision making process. If your area is
composed of high-income population, you may want to purchase brand names and
pricier merchandise. If the area is a retirement community, you may want to
look for a new location for your baby and infant clothing store.
3. Maintain quality in your merchandise mix.
The success of your
clothing store will in large part depend on the right product mix. This
depends on your store concept, finances, space, and the expected turnover
rate. Be sure to select your merchandise carefully to meet your market's
needs, and keep up with fashion trends by attending trade shows. At the
start of your business, it may be smart strategy to buy specific items from
within several product lines. By offering a wider selection, you can protect
yourself in case a line does not sell as expected. Always make sure that all
the merchandise delivered to you by your suppliers are inspected thoroughly
and are of acceptable quality.
4. Go heavy on
service.
Because you appeal to a relatively select group of people, chances are you
won't have hundreds of customers in the shop at any one time. Make an effort
to know your customers by name, and even call big spenders when you get in a
shipment with merchandise just right for them. Your advantage over the
larger stores is the extra attention you can lavish your customers.
5. Plan and control your inventory.
In line with following a concept for
your store, consider the range within a reasonable structure. Selling
everything from budget to very expensive is not a sound idea. Experts
suggest that you should keep your merchandise to within three prices lines
(budget, off-price, moderate for example).
You must also establish a system to know and maintain your inventory
level. You need to know on a daily basis what's selling and how much, what's
not selling so it can be marked down and the current dollar amount you have
in stock. The exact system you choose depends on the size of your store,
type of clothing and competition. There are three methods you can use to
keep track of your inventory: (a) dollar-control, which is based on selling
price; unit method, which is used to confirm the results of the
dollar-control method by checking the actual units of merchandise according
to established variables (size, color, etc) confirms the results from the
dollar-control method; and (c) ticket counts, based on tickets removed from
items as they are sold
6. Listen to
your customers.
As the business owner, the success of your clothing business will in large
part depend on the selection of your merchandise. However, it is best to
always keep an open mind and be receptive to customer suggestions. Your
maternity clothing store may initially focus on casual wear, but you may
find that you have a lot of working women clamoring for suits tailored for
the pregnant women.
7. Cross market
your products.
Encourage your sales clerks to offer assistance and advice on accessories.
They can also give suggestions (without sounding too pushy, of course) as to
what matches the outfit the skirt that the customer is buying.
8. Hire the
right people.
Hire employees who possess an understanding of the fashion needs of your
target market. If you are running a plus-size apparel store, a size 16 sales
clerk may be able to assist your clients better, not to mention be less
intimidating, than a size 2 employee.
9. Market your
store.
If your location is good, your business may benefit from a lot of walk-in
traffic. Nonetheless, you still must think of cost-effective strategies to
advertise your business. If you are operating a baby's clothing store, you
may want to advertise in local family magazines, arrange tie-ups with
providers of childbirth classes, or engage in direct-mail advertising.
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