Deborah Sterry has a fashion career spanning over 25 years within fashion retail and wholesale. She trained with Myer, was the Advertising Director for Sussan, former owner of Matisse Boutiques in Melbourne and is now owner and Creative Director for Threadz Pty Ltd, with labels including Threadz, Clarity and new label, Contrast.
Let’s have a look at the Internet “effect”:
– Large retailers like Harvey Norman in electrical are up against catchoftheday.com. This site sold $1m worth of Samsung Lcd TV’s in 1 hour and shipped 100,000 parcels in Dec 2010.
– Department stores who have been used to dominating the market, are now up against online stores such as Lasoo.net who have approximately 2.5 mil users a month, and huge cosmetics site strawberrynet.com who now dominates the online cosmetics industry.
– Large businesses have reacted to this online onslaught by price cutting and ongoing discounts.
– Take the current supermarket price war for example with their daily discounts on commodities like bread, milk at below cost prices, or the David Jones versus Myer department store war who seem perpetually “ON SALE”.
HOW do the small and medium boutique retailers compete and prosper?
As simple as changing the way they currently view and run their businesses.
• #1 SELL through different revenue streams; Increase your profile and accessibility to the consumer by extending business hours and establishing your own boutique internet site 24/7 to increase your customer reach.
• #2 INCREASE YOUR MARGIN! It allows the retailer to have accessibility to cash flow to spend more on expansion into their business.
• #3 BUY PRODUCT in season and offer variety of product by new stock deliveries every week or even every day. Manage stock inventories according to the sales flow.
• #4 Offer personal service, know your customer – that is the foundation of the independent boutique’s business and will always be superior to the large retailer.
• #5 Maintain quality and offer product that is value for money, not be motivated by price only.
• #6 ADD “WOW” factor to your business, make it exciting and give your boutique a social network image as well as a store image.
EMBRACE THE CHANGES. SEE THEM AS OPPORTUNITIES AND CHANGE THE WAY YOU OPERATE, NOT ON PRICE BUT WITH MARGINS. OFFER THE CONSUMER PRODUCT THEY WANT, WHEN THEY WANT IT.
Deborah Sterry and Ian Perkins will be guest speakers at the Fashion Exposed regional seminars on Monday August 29th from 2.30-3.30 to discuss, “The changing face of the Fashion Boutique – change how you do business today to succeed for tomorrow”.
These one hour seminars are complimentary for Club Card Members and regional visitors. They are held in the hospitality suites at Fashion Exposed, seats are limited, so reserve your spot to avoid disappointment.
Book now, visit here.