An Introduction to Retail
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Transcript of An Introduction to Retail
This guide aims to offer insight into selling your designs and products
to a retailer. It explains;
The benefits of selling through a retailer
Understanding the role of the buyer
Differences between types of retailers
For further information on this topic, read How to Approach a
Retailer.
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Support from buyers and retailers can be very important in order to
establish your brand and credibility. Although the profit margins are
lower, wholesaling your product can provide many useful benefits
including:
The benefits of selling through a retailer
• Wider geographical reach - it is possible to have your product in a
larger number of outlets giving access to a wider customer base.
• Credibililty - the consumer is likely to trust your brand more if they
see it displayed in a retailer/store that they already trust.
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• Although the profit margin is low, the sales volume acquired
through a retailer is much greater.
• Prestige - an association with illustrious outlets can create prestige
for your brand and elevate its status in the eyes of the consumer.
• Marketing and PR provides a wider reach to your ideal market and
can drive additional traffic to your website.
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The buyer has many key responsibilities. Generally these tend to be
profit driven and many buyers are under extreme pressure to
produce profits for owners / share holders. It is helpful to understand
what their priorities are when preparing for an appointment. These
include:
Understanding the role of the buyer
• ensuring that stock bought sells well and achieves the
company’s sales targets
• market analysis - understanding the market place that they
operate in and identify changes in consumer habits
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• trend analysis – predicting future style and fashion trends
relevant to their market
• planning merchandise and space – knowing when the stock will
arrive and how to present it in store
• budget control – managing stock budgets, buying enough of the
right stock to meet sales targets
• developing product ranges – identifying new products which will
inject freshness into their ranges and maintain continuity with
existing products 5/10
• Very often the buyer of an independent retailer is the owner and
is able to make quick decisions regarding purchases and
stocking new products.
• They tend to buy intuitively according to their own taste and
customer base.
• They often know their customers personally and maintain a
close relationship with them.
Independent retailers
Differences between types of retailers
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• They have the flexibility to try out new product lines.
• They order in small quantities and will not necessarily comply
with supplier’s minimum order quantities.
• They may request exclusivity within a local area.
Independent retailers continued
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Chain store retailers
• The process for placing an order can be slow as buyers need
approval from various levels of management.
• The buyer may need to raise a purchase order which can take
time before the order can be confirmed.
• They may require their own presentation / labelling.
• They tend to buy a range of products, (sometimes called
‘stories’), rather than single designs.
• They may request exclusivity in a design, colour way, print or
finish, so be prepared to negotiate on price.
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• The orders tend to be larger so it is important to negotiate a
realistic delivery time when the order is placed .
• Deliveries may need to be scheduled i.e. you may be required to
make a scheduled delivery appointment at a centralised
warehouse .
• The buying process may be dictated by company guidelines.
• The buyers may be required to negotiate a higher retail mark up
to comply with an overall company strategy.
Chain store retailers continued
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For further information on this subject, please refer to the
following resources:
Costing & Pricing Work
How to Approach a Retailer
Preparing to Attend Trade Events
Planning to Sell at Trade Events
How do I protect my ideas / business / product?
Next steps
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Disclaimer: Cultural Enterprise Office is not responsible for any advice or information provided by any external
organisation referenced in this document.