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Engeleena
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pauljmc, post: 255788, member: 101468 wrote:
Here’s the thing about fashion suppliers. We are in our second and probably last year of business as a fashion boutique, both physical and online. We jumped through all the hoops necessary to become resellers for various labels. We find that most if not all are themselves selling online in direct competition with their resellers. Fair enough, but we soon found those suppliers discounting their stock and selling online at 70% off. Which is probably their cost price, but double the price at which they supplied to us. We have little choice but to match their prices and sell at a huge loss.
You have a small window of time in which to sell stock at full price before your supplier starts to undercut you. There does not seem to be a decent interval in which you could sell at 50% off. I would have thought that this was not a sustainable business practice (quite apart from the ethics involved) as we will certainly not be using these suppliers again – if we remain in business that is.
Only one supplier that we have used is wholesale only. I don’t know how long they can resist the temptation to compete directly with their resellers.
It may be possible for a purely online store to survive with the skinny margins that result from this discounting, but rents are so high for bricks and mortar shops as to make it unviable to maintain a physical presence.
Hi
I am a designer based in Auckland. I am also a start-up and looking for boutiques to stock my designs. Please visit my website (http://www.engeleena.com) to view my collections. Contact me for more details.