2006
Store Consignment = Suicide for your apparel company
Posted by: Fashion06 in Starting your own line |
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When starting an apparel line most designers will do anything (as long as it?s legal I hope) to get their designs into store fronts for sale. I?m pretty sure most of you are pretty familiar with the idea of consignment as an option of retailing in a store this is mostly used by store owners to reduce the risk of your brand not selling well or as expected.
Many up and coming clothing line choose consignment as an option when placing their brand in a store expecting it to sell just like the other brands that are bought wholesale. Which sounds right? Maybe, kind of, I don?t know?Well let me clue you in by first giving an example: when u bought your first car you probably took care of it with all you had?now remember when your parents bought you your first car and how you demolished it (if u don?t get the example then use your imagination) Basically what I?m saying is when you spend money your taking a risk and to lessen that risk you usually try and make the best out of your purchase. So when a store owner buys product wholesale their taking a risk (buying new brand products not knowing if it will sell or not) so to lessen their risk they will stop at nothing to get the product out the store. They will come up with sales strategy and make sure they help with promoting the brand with their in store salesperson. On the other hand the product on consignment kind of fends for itself on the store rack! (Because they have no risk with the product if it sells or not) They could care less if your brand moves or sits on the shelves and collect dust?they did their part by giving you space to display your brand the rest is up to you. The other LITTLE problem with consignment is after your garments fly off the racks (which if you read this blog they will) is waiting to receive payment from store accounts which can get messy and create bad relationships with brands and store owners when they fail to pay within the agreed terms.
In all reality if a store really, really, really wants to give space to your brand within their establishment they will have no problem with paying for it upfront at a reasonable wholesale price if not, give them some other incentives (see who pays for shipping article) too make a purchase. All the above is from personal experience and believe me it will save you guys/girls a world of trouble.
What is some of your opinions on store consignment?
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May 14th, 2007 at 9:14 pm
What are some of the risk in putting your label in a store like Fred Segal’s…?
I heard that putting your clothing under someone else’s store rather than a private enterprise can be rather risky…you can loose your brand name? Is that true…why?
June 29th, 2007 at 5:59 pm
You can’t argue with that one,cause if they didn’t pay for it ,why would they worry, or if it fell on the floor why would they care..Consignment thats bad business,but if you did do that you’d have to stand in front of the store to kind of push your LINE like you mentioned in one your other articles..as long as it is cool with the owner of course.