The distribution system in the world of retail fashion is short-sighted…

Fashion Distribution System The myriad of small and medium-sized clothing and

fashion accessories shops, which populate the streets of Italian towns and cities

scattered everywhere and to this day they appear to be around 78,000

(Unioncamere and Infocamere December 2023), yes they cling to end-of-season

sales like a life preserver . . . so as not to drown. . . the sales dates are the first of July

for PE and the first of January for AI: let’s not lose sight of these dates which will

be fundamental for the following.

As is well known, sales sales are now effective no later than two o’clock weeks

from the beginning and then a slow agony where the only certainty is: “how

much money we are losing.” The obstinacy with which they carry them forward is

what for the PE continues until the end of September and for AI until the end of

February if not halfway March!

We are missing the point that this behavior leads to products being put up for

sale of the new seasons late, i.e. for AI only from October and for PE from mid-

October March forward, i.e. we would have the presumption of having sell outs at

full prices for only 3.5 months in PE and 3 months for AI and here with the

aggravating circumstance of BlackFriday” (see my 2022 post also on Linkedin)

which reduces the marginality.

The question that the enlightened are asking is how this is possible in a short

time bring sell outs at full price to 50% or 60% of the input: The answer is given

by the markets of Northern Europe or the international chains that after 2

weeks of sales, they immediately insert the company’s products new

season, dividing the point of sale into old and new products.

If the less short-sighted imitated them, we would have 5.5 months for both

seasons of sales at full prices: the experience of Northern Europe or the large

chains international, they teach us that a product is purchased correctly

brings about 11% of sell out per month, i.e. 55% of sales before the sales.

What is certain is that if we have purchased unsellable things it is preferable, if

possible, ask the manufacturing companies to replace them or tragically

alternatively remove them from the windows and then sell them off, because

anyway yes it is a wrong purchase and this can happen, in Fashion Distribution

System.

What is happening in Italia is the paradox of the “dog who yes bite the tail”, or to

get rid of the inventory or goods bought badly, we don’t put new goods on

sale for later consequently create new inventories for having given little time to

products, to leave the store.

Another fundamental note is not to “restock what is sold” for attempt to sell what

is unsellable: such behavior typically “local” creates a double damage that no one

notices and/or takes into account.

I fear that if we do not put into practice what has been reported above, “we will

go to crash into a wall” and as usual, blaming facts external contingents

and never to our short-sightedness. . .