Storing excess inventory was never a problem for brands and retailers, but for retailers now, finding stock exit routes for SS20 collections is an absolute priority. The recent events around the world provided the apparel industry with such a unique opportunity that will alter its value chain and make it more sustainable and efficient. Our suit design tool operates on a similar basis as it lets your buyers design their apparel through a digital medium, thus, ensuring minimal wastage and less recycling requirements.
Suit Design Software Enables Brands to Tackle New Recommerce Wave
Of late, retailers have deferred stock and canceled orders. A popular strategy is opting for out-of-character discounting to make up for lost sales. Although this may generate some short-term revenue, heavy discounting inevitably dilutes brand prestige. Unsold inventory also includes online returns. And as brands are investing in online services due to uncertain futures, the returns are anticipated to rise. In this tough time, adequate returns management, including selling stored inventory, will be an essential investment to cut costs, save time, and retain customers.
According to a recent report published by PYMNTS, one of those unexpected areas has turned out to be the reCommerce market. Second-hand sales have boomed – even in segments like apparel, where they have otherwise come grinding to a near halt. Recently, it has been witnessed in the future; brands need to churn out plans for unsold supply and alternative routes that go beyond significant markets. If you also, want to dive into the market of recommerce, let’s look at factors driving it.
Here is how re-commerce can become the future retail revolution:
- Promotes Responsible Consumerism
A successful re-commercing strategy helps to promote responsible consumerism as people will buying a second-hand market. The problem of dumping the stocked inventory arises because brands never view recycling and CSR as synonymous terms, but in reality, they are polls apart. For example, old apparel can’t be made into a new one, but it can also be used to used or broken down to be utilized in making some other product. However, why always brands take the onus of managing the waste products when they can also educate their buyers to buy what is required and shun overconsumption of clothes. One way to achieve the target is to install a customization solution, like the suit designer, which enables your buyers to imagine fashion and wear it without hesitation. The tool is well equipped with various designs, colors, styles, and fabrics that consumers can choose from and wear.
- Uses High-end Technology
The UK-based Parker Lane Group, a company specialized in managing goods, is launching its own clothing outlet, which follows the simple rule of return+ model= more sales. The target can be achieved using the company’s in-house AI/ML platforms to determine the optimum resale channel for each item. Thus, the recommerced items in the market can gain the highest possible value. The trick implemented here is simply the better technology you use, the more you are aware of the inventory. Aleksandra Banasik, COO of Parker Lane Group, explains, “This allows our partners to enjoy returns of over 30 percent revenue on unsold inventory compared to processing independently.”
— Brioni (@Brioni_Official) October 19, 2016
The events have helped brands to reshape their strategy to a greater extent, and therefore, one after the other, every brand is incorporating technology to gain maximum return. Recently, Farfetch has captured an exclusive deal with Rihanna’s Fenty line to be the brand’s exclusive digital partner. The retailer will be the only e-commerce channel to stock the label outside of the brand’s channel.
Besides, the recommerce ensures that excess market goes into the second-hand market and helps brands become commercially more successful. Those who are willing to embrace the latest technology will emerge as winners and explore a new avenue full of opportunities.
- Encashes on Public Empathy
No matter what we say, public sympathy lies with brands that provide sustainable clothing lines, and the brands that are yet to explore this market should try this out. Re-commercing is also in line with consumer trends. Public antipathy towards wasteful business models was rising before the pandemic. Responsible consumerism, combined with retail spending grinding to a halt this year, has led to high demand for off-price and discount retail as well as second-hand goods. The present scenario offers a golden opportunity for brands to encash on public sentiments and prove that they are viable options for sustainable growth.
The apparel brands have faced challenges even before and but nothing hit them the hardest the way recent events did. But the time has come, that we all learn from our mistakes and adopt a model that is shock-proof, or least let you know when things are doing downhill. The 3d suit design by iDesigniBuy is one such customization model that will not only safeguard brands’ supply chains from future shocks but also ensure they resolve age-old problems and adapt to the new world’s trends.
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