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Economic Climate

29-09-2008   


The credit crunch is getting worse and worse, such as the recent collapse of Bradford & Bingley and the Government taking control and rescuing £50bn of mortgages and loans. The branches and savings units are being bought by Spanish Santander. This now creates a climate of uncertainty for a whole cross section of businesses and home owners as they are deprived of cash, banks unable to loan and tax payers unable to buy with the danger of redundancy, loss in investment through pension schemes and house value. 


Whether you’re a business owner or a consumer, you are in for a bumpy ride over the next few months but for the fashion design sector is this also an opportunity?

Retailers are hungry elephants and they will always need newness and top store ranging. The days of the high street multinationals buying narrow and deep are now surely numbered? Can companies such as M&S, Top Shop and Next really afford to risk large buys of 5000 units plus on an all store line per colour option and risk loss of margin on discounted items?  Likewise the option of”spraying and praying” (buying a wide cross section of choice but in small depth) also has risks of confusing the customer and not optimising sales and margin on fast selling lines. It’s a fine balance to have the right product mix at the various levels of store ranging; so what can be done?
 
Trialling new lines is always a proactive and relatively risk free way forward for any retailer. Buyers are always concerned with trends and the latest new silhouette and trend and normally there is always OTB (Open to Buy) budget available by the merchandisers. Buyers work closely with the design departments but can’t always find the right supplier to deliver – they also want confidentiality too. So here is one big opportunity for the right minded organisation – small trailing and production runs to bring in newness for the retailers.

Now…watch this space!




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