Dear Reader,
This is a pretty surreal time for all of us.
That is why, in response to your overwhelming demand, we at WeAr have decided to stick with our usual publishing schedule and present you with a new issue full of timely advice and ideas. They are carefully assembled in order to guide you through this unprecedented crisis. Our Lookbook helps you to discover new brands, our Storebook offers ideas on how to redecorate your store – now is a good time to do it. Of particular importance is our Readbook, with a Round Table where experts share their stories about weathering this storm and reports on how to improve your sales and adapt to the new reality by using digital platforms, adjusting your marketing strategies and considering new product categories.
Our team has used its quarantine time to speak to countless retailers and brands, and has come up with the following suggestions to improve the current situation. Please refer to the Round Table section to see some of these ideas debated in more detail.
1) No price dumping: Spring/Summer 2020 delivery can and should partly be stored and sold in 2021 – at full price
Especially basics and bestsellers should be stored and used for next season. For now, focus on increasing your cashflow by pushing trendy items or styles you have already advertised to your customers. Be careful to only promote those, as you will want to sell the rest next year.
The advantage of this scenario will be that retailers are not forced to heavily discount or even write-off merchandise, but can sell it at a regular price. Whatever doesn’t sell now will do in a year.
This way, brands will lose one season of sales – but only in part. And they will have saved a lot of their clients from a dire financial situation and potential bankruptcy (which would have resulted in said clients being unable to pay brands). Retailers should only have to pay interest and storage fees for 12 months.
The Autumn/Winter season could then run as usual and losses would be minimized. Forcing retailers to quickly get rid of stock with heavy discounts right now will only flood the market and not generate profit in the long term. 2) Shifting sales seasons
Trying to make the best out of the tragic situation, we should think of a new way seasons can be handled by all players, including trade shows, producers, brands and buyers.
It makes no sense to discount a pullover in early winter, when consumers need warm clothing most. Instead, these items need to be discounted at the end of the winter months, if at all.
The number of shows should also be limited: women’s and men’s events can be combined – less is more. The urge for a more sustainable lifestyle will make people travel less anyway. Furthermore, the sheer number of shows reduces footfall at each of them. Shows should also start implementing digital solutions; however, physical appointments will still be key to our industry to allow true partnerships and trust to be built.
3) Merchandise delivery and shifting order rounds
The entire system has to be rebooted. Winter collections should be delivered six weeks ahead of winter, not in summer as they currently are. The same applies, of course, to Spring/Summer. Subsequently, order rounds for Autumn/Winter should start in February and March and in early September for Spring/Summer.
If we implement this mechanism, which used to be standard in the industry until only recently, merchandise can be sold quicker, cashflow will be steadier, and there will be fewer write-offs. Win, win, win. The impact of Covid-19 would thus be minimized and offset by better business in the years to come.
We at WeAr are here to help you through this difficult time – feel free to email us directly on sv@wearmagazine.com with any suggestions and questions.
Stay healthy and all the very best, Your WeAr Global Magazine team.