I have traded through three major recessions now and have learnt a variety of tactics to help stack the odds in favour of my business (es ) surviving the downturn.
 

The economists have told us "It's back to basic business principles"!
 

Low overheads, maximising sales opportunities, identifiable and achievable target market, innovative products, cost effective strategies, superior customer service, full control of budget, robust funding package, blah ,blah ,blah!!!!!!
 

But what does it all mean??????
 

This type of jargon has never really fitted the Fashion Bizz, many of our sector businesses are not at that level of sophistication. So, do these words of wisdom contain anything useful for us with smaller, creative, growing and shakey businesses?? Let's see if I can unlock some of the important info stored in these words from our wise business gurus that could help our survival.

Not spending money. Well that's easy!

Who does what for you?

Do you pay them?

Could you do it yourself rather than someone else?

Do you employ them?

Could you use their expertise on a freelance basis?

 
Are you getting help and begging favours from all friends and family that are appropriate?

(My mum was the fastest envelope licker I ever worked with!)

(As a child I was forever stuffing leaflets through letterboxes for various friends of my parents who had businesses!)

Where do you run your business from?

Is it the very cheapest option?

It needs to be, the money you save by working from home or ‘mum's spare room' could be put towards finding sales rather than paying for a swanky office or studio, these may not be appropriate now.

You visit the suppliers and customers rather than them coming to you, it always worked for me.

An Identifiable and Achievable Market.

My grandpa always told me, "Michael, boys will always wear trousers!"(He was a bespoke tailor from Poland).

So, who do you think will buy your collection, styles, service?

Why will they buy it from you rather than someone else?

Yes, you may be designing, developing, offering something that is unique, exclusive to you but you are still competing with others for the limited money in the pockets of our customers.

Through extensive research (or not), you have found a slice of customers that you would like to supply.

How did you decide on that particular target market?

Are they the usual, high visibility graduate target retailers ( Harrod's, Harvey Nicks ,Liberty, Space NK, Covent Garden, Dover Street et all?)

Or maybe it's the ‘elite international stores' who only stock ‘elite' award winning designers often first spotted at Graduate Shows or LFW?

What makes you think they are an achievable and realistic target for you in these uncertain times? Have you done any research?
 

Back in the day, when God was a much younger person and I was studying Economics, the buzz words were "Supply and Demand".

Do you identify the demand FIRST and then create the supply to match the demand?

OR do you create the supply first and hope to find your customers thus creating the demand?

These critical supply and demand questions were the way forward for business from the swinging sixties up to recent months.

These times, now gone, were growth times, expanding demand, expanding economy, expanding taste, expanding income, expanding population.

This made the decision about supply and demand easy, to "create the supply and the demand will follow", which it did, especially in the clothing industry.

It then splintered into the fashion sector and other sub sectors which have grown to what we have today.

Is this strategy working now?

Is it relevant in this current economic climate?

Is our sector benefiting from too much supply and not enough demand?

What about the other option?

Finding the demand and supplying it?

Is it relevant now?

Could it work for you?

How would you go about it?

If you are making things based on individual specifications from a private customer you are already supplying the existing demand that you have found (or has found you).

If you don't already, have you thought about supplying the public (the end user) direct?

If your production availability allows you to make one-offs, supplying the public and their individual needs is a much safer opportunity now, credit cards and the internet have created a system for guaranteed payment, which was always a stumbling block before.

The public is a target market that you can talk to, ask them about their needs, they're wants, lifestyles and aspirations. Always remember to ask them about what they don't want or like, it gives you a wider perspective.

This is now called "Niche Marketing", the niche (French word) is a group or club within society of like-minded people who share similar interests, tastes, lifestyles, aspirations, hobbies, activities or pursuits as each other.

Find a niche, you may already be part of one, or become part of a niche, see if there is a product or service that you can supply to this defined target audience with specific needs.

"Find the customer, find out what they want, supply them and make everyone happy"!!

It can be done, less risk, more chance of success if you do your research, less cost if it goes wrong.

More time needed on your part.

‘Talking' to new, potential customers now is easier than ever before, Google will tell you who they are, how you ‘get their attention' is up to you.

From my ‘old geezer perspective' it's like science fiction to have so much new customer information at our fingertips.

WOW!!!!!!!!!

Have you spoken to them direct? If not, why not?

Speaking to customers direct is the key to producing something that they may want to buy from you.

The independent retail buyers/owners will always be able to tell you what they don't want? Well, it is a start!

Our independent fashion stores, boutiques and speciality retailers now need the suppliers/designers/creative's to help survive this recession as much as the suppliers need the retailers sales to continue.

Across the UK we have fantastic fashion shops catering for a huge diversity of tastes and demands from our own unique multi cultural society of fashion shoppers.

These shops should be the natural target market for most design, fashion and creative businesses.

Go and talk to the independent retailers, just wander in and ask to see the buyer/owner. Chat to them, make friends, tell them what you do, see what it will take for them to stock your product.

Start with the appropriate shops local to where you are.

It is always a good connection to be on speaking terms with an independent retailer especially if they are supplying your identified niche customers.

Are they interested in selling your stock on a Sale or Return Basis (SOR)? That means you give them items (for an pre agreed price) which they will market and promote in their shops, they pay you the agreed price once they have sold your items.

 
This can work well for both retailer and suppliers alike, it can also create a broader selection for the wearing public.

You could create a steady income if the retailer sells some of your stock every week.

In this circumstance, you will have clear signals as to what is selling and what is not. This will always help you to create items that the customers of that particular shop will be interested in.

To make the most of SOR sales opportunities, in the current circumstances, will the retailers promote you, the designer, the individual that you are whilst they offer your stock for sale?

Are they planning any advertising or PR about you?

Do they plan to promote you on their in house website?

Will the shop customers have access to info about you and your brand while they are purchasing?

You, the supplier are taking risk by making stock on SOR basis that may not sell, it is only reasonable for you to expect the retailer to help optimise sales for you using every thing they can to attract customers.

A few ‘new stores' are offering these type of add on services to designers that they have SOR agreements with, it is a great way for the retailer and suppliers get attention and increase the potential for sales for unique designs.

 
Many fashionistas now crave knowledge, info, titbits and insights to the designers themselves, this info coupled with social networking sites like facebook and twitter are creating a new demand for all things ‘designer'.

These ‘new' forward thinking retailers might just have the right answer at the right time to help increase sales in our difficult sector.

Self Promotion is always the most effective way forward for creative businesses.

This is the time for being open minded and positive when it comes to sales; no sales, no business!

Be innovative, be creative, think outside the obvious, everyone will be trying that.

Put yourself in the heads of your customers, what would make you buy something new?

All that stuff about "Fail To Plan" means "Plan To Fail" does seem to be true.

"Doing nothing now is not an option" also seems good advice in our current situation.

Research, minimise the risk of spending money and NOT finding a real market for you.

Spend as little as you can on things that are not relevant now.

Spend as much as you can on finding sales/customers/more business.

There are still customers out there wanting to buy fashion, we must work harder to find them, communicate with them, sell to them.

WHO EVER SAID THE FASHION BUSINESS WAS EASY????????

michael@designerhelp.co.uk