I've got a buddy whoowns a very successful organisation helping retailers restructure the contracts they signed with shops they hire from property owners.
These companies have got into financial problems such as administration and liquidation and their financial directors or accountants must find some way to rein in their expenses and cost structure.
As well as this restructuring, these companies are also left to dump stock they could not sell. Having been exposed to his customers, some well know high street brands, it is definitely astounding how much surplus and bankrupt stock for sale there is. 100 thousand pairs of women shoes, three hundred thousand t-shirts and thousands of designer dresses worth millions at full store sales price.
This stock finishes up being acquired by deal driven entrepreneurs who buy at near cost price and then resell in car boot sales, eBay, Amazon or through their own cut-price stores.
Then we have the production and design teams in organizations that design a lot of alternative designs for their catalog, commit to offshore production only to be informed by the finance department that these products are now not needed.
Even though the overseas factory has made these togs and have received a percentage of the price, the factory is then left with excess stock.
And so we have this big pile of surplus goods all around the world. Very similar to all the excessive content producted in social networks like Facebook and Twitter, there is simply too much supply and insufficient demand.
At the other end of the coin, the client is only drawn to the most recent products, fashion and contraptions. Women want the latest garments from fashion brands, men need the latest Apple Mac or smartphone and youngsters need the latest toys or sports strips.
I think the only brand who has got the supply and demand equation correct is Zara; they manufacture a tiny amount of fashion garments. After they are sold, they're gone forever.
Tough times are still ahead for those brands and outlets who continue with this mass production business model.
These companies have got into financial problems such as administration and liquidation and their financial directors or accountants must find some way to rein in their expenses and cost structure.
As well as this restructuring, these companies are also left to dump stock they could not sell. Having been exposed to his customers, some well know high street brands, it is definitely astounding how much surplus and bankrupt stock for sale there is. 100 thousand pairs of women shoes, three hundred thousand t-shirts and thousands of designer dresses worth millions at full store sales price.
This stock finishes up being acquired by deal driven entrepreneurs who buy at near cost price and then resell in car boot sales, eBay, Amazon or through their own cut-price stores.
Then we have the production and design teams in organizations that design a lot of alternative designs for their catalog, commit to offshore production only to be informed by the finance department that these products are now not needed.
Even though the overseas factory has made these togs and have received a percentage of the price, the factory is then left with excess stock.
And so we have this big pile of surplus goods all around the world. Very similar to all the excessive content producted in social networks like Facebook and Twitter, there is simply too much supply and insufficient demand.
At the other end of the coin, the client is only drawn to the most recent products, fashion and contraptions. Women want the latest garments from fashion brands, men need the latest Apple Mac or smartphone and youngsters need the latest toys or sports strips.
I think the only brand who has got the supply and demand equation correct is Zara; they manufacture a tiny amount of fashion garments. After they are sold, they're gone forever.
Tough times are still ahead for those brands and outlets who continue with this mass production business model.
About the Author:
John Spiers writes for brands365. Brands365 offer bankrupt stock for sale through its online membership club.
