KIDS INDIA MAGAZINE AUGUST 2018 - ISSUE V | Page 4

SAY GOODBYE TO SHELF WARMERS!
4 TIPS ON HOW TO SELL OVERSTOCK
Certain product categories are particularly susceptible to becoming shelf warmers. They include pro-
motional and seasonal goods as well as licensed merchandise linked to film releases. The latter are
particularly common in the toys sector and can be particularly difficult to plan for. Depending on the in-
dustry, various ways have evolved to deal with these goods.
The fashion industry thrives on sales cycles of its related merchandise.
The fashion industry has long attuned itself to season-
al business. Cyclical sales of fashion collections are
now the norm. However, in order to avoid excessive
price erosion, higher-quality labels have turned to
other strategies, ranging from limiting the number of
goods at the end of the season to private shopping.
The aim is to keep the value of the goods high, i.e. not
to sell off branded goods at a loss. SO WHAT METHODS TO DEAL WITH OVERSTOCK
AND SLOW -SELLING PRODUCTS ACTUALLY EXIST?
Peculiarities of the toy industry
The toy industry has its own cycle with one major
sales period in the year. But surprisingly, the market
forces in this sector act contrary to what one might
expect: before Christmas, retailers underbid each
other to obtain a larger piece of the toy sales cake.
Licensed toy articles lead a life of their own. Their suc-
cess is linked to the success of the film, book or TV
series. If, for example, a film becomes a hit in the cine-
mas, sales of the licensed merchandise are likely to
be correspondingly high. Depending on the licence in
question and the efforts of the licensor, the merchan-
dise may spread well beyond the film. This means that
retailers can, therefore, keep on selling the licensed
products. However, the opposite also occurs again
and again. Both the film and its merchandise fall short
of expectations. And after the film has done the
rounds of all the cinemas, the warehouses are still full
Page 02 | Kids India Mag Issue V : August 2018
SALES METHODS FOR RETAILERS
One thing that is recommended for retailers is that
they organise special campaigns in good time, i.e.
themed sales and "flash sales" that put the merchan-
dise at their centre. When it comes to licensed prod-
ucts, this may take the form of themed tables and
events that are linked to the hype relating to the
brand. Retailers would be advised to accept or even
plan that they will be "out of stock" rather than miss the
main selling period because they organised their
sales campaign too late or thought it would last
longer. Because there's nothing more annoying than
sinking money into re-ord