STRATEGY MERCHANDISE FLOW

"COVID19-DROP"

Feedback & Ideas

Sebastian Rieder

sr@beta.fashion

+49 172 1630588

"A good concept for a partnership approach of industry and retail in order to have a common roadmap after the shutdown. It is also great to see that companies such as BETAFASHION and the partners involved are working out a strategy in this difficult phase and are not burying their heads in the sand - that's how we can do it together!"

Wolf-Jochen Schulte-Hillen (SHSelection)

BETAFASHION offers optimal support for the scenario that will become apparent in the coming months: The algorithms offered by BETAFASHION will make our merchandise management even faster and more efficient in the exchange of bestseller/worst-seller products. Speed and individualized solutions will be the key to success in the future."

Wolfgang Lohe (Better Rich)

 

This strategy should be seen as a possible roadmap and can, of course, be modified and redesigned by each company according to its needs or used in a modular way.

Situation:

- Too much SS goods

- AW goods already in production and down payments partly made

- Industry must already shoulder planned reorder quantities

- Retailers have no liquidity to cover costs for goods longterm due to missing revenue

 

A solidarity strategy is needed for this situation.

 

Situation Global:

 

A delayed shutdown of all countries/regions is currently taking place.

 

 

Moving Forward:

There will be a delayed "ramp-up" phase. (Country/Region after Country/Region)

This means optimal chances to supply these regions perfectly with goods from day 1 in order to include all other regions bit by bit.

 

Demand-oriented delivery is now the main focus:

Sale of S/S goods only until June is not demand-oriented and the consumer should be enabled to buy them until midsummer.

After a lock-down, consumption will come back, but not with the down jacket in June/July!

 

 

Common steps:

 

1.    cancellation of customer orders - 

       A total pool of goods must be created that can be freely distributed by the                 manufacturer. Manufacturers need full access to all stocks of goods in order to           control the best goods from day 1 of the first ramp-up regions and thus achieve         the best sales from day 1

2.    extension of sales according to demand of the S/S season until Sep/Oct

 

3.     sales period according to H/W demand from Sep/Oct to Feb/Mar

 

 

 

 

Brand is committed:

 

Average industry delivery status for S/S - 75%

  • Invoicing of the delivered goods with 30-50% of the total invoice amount

  • Payment schedule for the remaining 50-70% after opening of the shops in 14-day intervals 

  • Individual replenishment of the goods every 2-3 days 

  • The value of the goods will continue to be paid off according to the agreed payment plan

  • Settlement of down payments with the first settlement cycle possible

  • Fast worst-/best-seller exchange is made possible

 

 

 

Quantities from the merchandise-pool are allocated to the retailer according to their needs, which they have proven they can sell.

It is not worth holding back goods for a market that can reopen 2-4 weeks later.

  1. the sales period for these stores is even shorter and therefore the sales potential is lower

  2. it is not certain whether the ordered goods can be sold there, but only then can it be determined

  3. the longer the dealer is closed, the less goods he will need

 

 

A/W goods:

  • Autumn/Winter collection will be delivered in Sep/Oct

  •  

  • Initial delivery of 30% of the pre-order goods (invoice: 60 days for 50-70%)

  • Only 30-50% down payment of the initial delivery or fixed amount before the first delivery (to be agreed individually)

  • Payment plan for the remaining 50-70% in 14-day intervals 

  • Individual follow-up of the goods every 2-3 days

  • The value of the goods will continue to be paid off according to the agreed payment plan

  • Settlement of down payments with the first settlement cycle possible

 

 

 

Retailer:

 

  • Commits itself to purchase other quantities and possibly other styles than those ordered in advance (due to the merchandise-pool)

  • Agrees to automatic replenishment by the manufacturer

  • Commits to the transmission of EDI data

  • Committed to the permanent optimization of data flows

  • Commits to the optimal and fastest possible handling of all returns (to enable resale)

  • Accepts the postponement of the seasons

  • Retailers will bring all shipments to shops as soon as possible

  • Will agree to the overall control of the shop - automatic replenishment

  • All agreements such as the end of season inventory/marketing participations/targeted margin etc. are cancelled

  • Commits to a "sales guarantee" of 50-90% of all deliveries of goods

 

 

EDI:

 

In the lockdown phase, as many retailers as possible are connected via EDI (or otherwise).

Possible partner (Transus EDI - 158,50 EUR EDI Flatrate for as many customers as you like, incl. data transfer - https://www.transus.com/)

Please contact us for a contact arrangement.

 

 

 

Prices:

 

  • S/S goods are delivered with a discount of 10/20/30%, the trade is asked to pass this price directly to the customer.

  • H/W: UVP from season start

  • It is about achieving the best possible sales and thus generating the best cash flow situation - NOT about profits

 

 

Who does not participate gets his deliveries with a normal invoice.

 

 

 

 

 

 

 

The solidarity with each other in this situation also obliges every market participant to create the best possible conditions. It can only succeed together and therefore everyone must do their part together.

 

A common path will be the first step out of the crisis.

We believe in it!

 

 

 

 

 

Logistic:

When storage capacities become limited or the logistics need to be expanded in the "ramp-up" phase for a quick response.

 

All-in logistic solution for drop-shipping worldwide:

Hellmann Worldwide Logistics performs all documentation & customs services in-house.

The customer can import goods under the Hellmann Worldwide Logistics Freezone license while retaining 100% ownership. Benefits:

 

  • Freezone laws allow goods to be stored as long as required, with cargo separation, pick and pack services, individual product labeling for export to multiple locations as required

  • Dubai is the #1 Airport and Ocean Port in the Middle East with many charter operations to connect to the globe

 

Please contact us for a contact arrangement.

 

 

 

 

 

 

 

BETAFASHION:

We can help to ensure the perfect allocation of goods in each region and thus enable the greatest turnover from day 1. It is important to supply every single POS with goods in the best possible way to achieve the best possible sales. Inventories must be drained and constantly corrected. It is not enough to manage your key accounts every 7-14 days.

The mass of data and decisions cannot be made manually.

BETAFASHION optimizes and automates the entire handling process.

 

BETAFASHION will handle all shipments up to a limit of 500EUR/ proposal fully automated.

The solidary solution is that Brand X gets the opportunity to realize the best possible sales and turnover, not only to provide goods on "good luck" to the retailer with value date and additional margins/sales guarantees.

„The Corona crisis will continue to pose major financial problems for the fashion sector in particular - retail and industry - even after shops have reopened. In 2020 it's not the profit that counts, but the cash flow!

BBE Handelsberatung therefore welcomes the initiative of BETAFASHION to bring trade and industry together to overcome the crisis. Concessions must be made by both sides in order to get as many market participants as possible. Extending the season, reducing deliveries, payment schedules, controlling the flow of goods - all these aspects offer opportunities for support in this special situation. How the details look like in each case has still to be negotiated. But: The approach is the right one!“

BBE Handelsberatung

© 2020 by BETAFASHION

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