KIDS INDIA MAGAZINE AUGUST 2018 - ISSUE V | Page 5

Bundled pricing of slow-sellers
Bundled pricing and add-on campaigns also allow
slow-selling products to be sold: in the form of a free
gift with a certain value of purchase or as part of your
customer rewards programme, these articles can act
as an added incentive to buy.
wider distribution than if they had had to start from
scratch and establish initial contacts. Of course, this
method is difficult to carry out with trendy topics that
have generally peaked. This is an area where the bun-
dling of various offers – e.g. DVD or game plus mer-
chandising products – is recommended.
Private shopping through online retailers
Exclusivity through private shopping
For retailers with an extensive customer list, private
shopping or event-related sales of inventory are rec-
ommended. The customer focus here is on the exclu-
sivity of the invitation – and the supposed scarcity of
the merchandise increases its desirability. Shifting
overstock this way means that these "special sales"
rarely have any adverse impact on brand value.
Special discounts with a large amount of overstock
If it's a matter of a large amount of overstock, there's
often no way of getting around special discounts. It
makes sense to put them into some larger context, so
that the individual product isn't seen as mere junk
you're trying to sell off cheaply. For example, some
topics and product groups can be bundled into "Back
to School Sales" or "Easter Gifts" offers or similar sea-
sonal events.
SALES METHODS FOR MANUFACTURERS
Even manufacturers are familiar with the problem of
overstock. They need to manage the difficult balanc-
ing act between supply availability and empty ware-
houses, and need to sense how the sales cycles are
evolving. Often, well-functioning networks that can
handle slow-moving products without any loss of
image are already in place. They consist of retailers
who specialise in slow-selling items.
Introductory offers in new markets
When it comes to selling off stock on a larger scale,
markets that have not yet been tapped by the brand
are recommended. This will prevent the domestic
market from being adversely affected by knock-down
prices, which will ultimately harm the brand value. For
example, markets that are still being developed can
be offered "introductory offers". The manufacturer thus
gets to know new customers and establishes initial
brand contacts at "test prices".
The distribution partners get the chance to enter a
new market with attractive prices. Afterwards, they
can then start to develop the market properly with a
Several online retailers specialise in private shopping.
They are a sales channel that can be used to sell
slow-selling items "exclusively" – without reducing the
brand value. They are, therefore, a welcome partner
for branded companies with overstock.
Pop-up or concept stores
In recent years, both retailers and manufacturers have
found another way to sell goods, one which builds
brands while at the same time coming across as ex-
clusive and in line with the zeitgeist: vacancies in
prime locations are used for pop-up and concept
stores. Accompanied by social media campaigns that
promote the special sales venue, old goods can be
sold off and, at the same time, new goods tested and
launched.
Write off goods, but maintain brand value
In sum, however, the art of selling leftover merchan-
dise is always a fine balance between brand value and
stock value. Writing off goods before they flood the
market as cheap products and the brand value sus-
tains long-term damage may, therefore, be the most
sensible solution in some cases.
A balanced product range or portfolio protects retail-
ers and manufacturers alike. Given a solid foundation
of year-round revenue generators, trend-driven sales
products or seasonal goods will keep the cash regis-
ters ringing.
Explore more on Store Design concept from experts
at Kids India 2018. Join us at the seminar area on first
day of the fair i.e. 4 th September to find out how a
good store design/concept can boost the business!
Check the Seminar schedule at:
www.kidsindia.co.in/news
Author:
Eva Stemmer & Jörg Meister
Kids India Mag Issue V : August 2018 | Page 03