When the economy is booming, a manufacturer and a retailer can have a greater margin of error. This margin of error could be defined as poor planning and or untimely inventory. Poor planning is often written off as “just the way the business goes”. When the economy is healthy people are more confident and so spend more freely. However, when the economy slows down for a while, the exact opposite occurs. People start to hold onto their money and only spend it on those items they deem absolutely necessary. Like an extended slow season, it becomes imperative that both manufacturer and retailer plan for no waste with a perfect mix of styles and sizes. To survive, it has been important to ensure that you have the right product in the right price point at the right time. Due to our global economic depression, a new trend has evolved; a demand for cheaper prices, speed to market, and smaller orders more often. All these changes have resulted in a new way of doing business, which is a mixed bag of changes, some good and some bad.
Retailers have been forced to take steps in the past couple years to slash inventory levels. Although they risk limiting their overall sales potential by stocking fewer goods, the effort is aimed at boosting margins and protecting profits. They are buying more often and in fewer quantities. This can be good news for the smaller manufacturer as they can easily handle smaller orders plus they get paid more often.
By offering too many options and with everything a trend, it is very easy not know what to buy. So, the big trend that seems to have stuck over the past couple of years is an item driven market and accessories are BIG. Recycle your wardrobe but keep things look new by accessorizing and adding new items such as separates e.g. skirts, pants, tops and jackets. Then purchase the very all important new shoe style, throw on a new scarf, look for a huge handbag and add some vintage or new jewelry. This should then give the wearer a 2011 trendy appearance.