Your shop has been open for a long time but the sales are steady, the profit is still enough to eat but there is no growth? This article Malu will give 5 common reasons why your fashion shop is not able to grow revenue. Remember these 5 reasons to have an effective way to increase profits!
1. Costs are increasing day by day while sales are still standing still
Over time, your business improves, but not enough to offset the escalating costs. The increased costs can be mentioned as the cost of hiring staff, renting space, larger cost of goods or electricity and water also increase gradually over the years.
To improve sales, when you cannot control the increase in costs, find ways to promote sales activities to increase sales.
If you feel that sales revenue is on the rise, but you don’t notice that costs are also increasing, the proportion of revenue and profit will not grow.
It is best to create monthly sales analysis reports by items of revenue, expenses, and profit to have the most accurate assessment of the sales situation. From there there are ways to improve sales.
2. Sell old items forever
Sell old items forever
Fashion is an industry that is always changing. Therefore, if the business sells old products forever, it will significantly affect the business results of the store. Best-selling items are not always relevant and best-selling all the time. Fashion trends are always changing, when the models are out of trend, customers often lose interest in those best-selling items.
As an example, last year the store sold very well a model of shirt. This year you plan to re-import that shirt for sale. Before doing so, consider:
– Do not enter in bulk to see the current customer tastes
– Is the color of the shirt still popular and popular?
If you intend to sell old items, make sure that the item is potential, can be sold, avoiding the situation of importing in large quantities causing a long backlog of capital.
3. Only selling to regular customers
Your store has not had new customers for a long time, but only sells to regular customers, which is the reason why sales cannot grow. Besides maintaining a loyal customer base, look for new customers.
If you want to get new customers, boldly promote sales activities by marketing more products (run ads, encourage customers to refer friends, sell on more new channels…).
4. Don’t dare to change
Not daring to change is the reason why revenue is difficult to progress
Staying in the safe zone makes it difficult for the store to have a breakthrough in sales. Be bold to change the sales method, store management or change products and sales channels to promote business activities.
Changes need to be based on studying customer habits, market needs and competitors. Many retail stores, especially in the fashion industry, have experienced significant growth after changing the way they manage their stores, improve their products, or change the way they approach customers.
To improve business performance, remove the “no need to change” mindset, instead, “dare to think, dare to change” to reap more success.
5. Follow the crowd when it’s late
Catching trends and crowd effects often helps you sell more. However, following the trend and the crowd needs to be timely, not too late to do it. This requires sensitivity to market changes and sensitivity to customer psychology.
If you “follow the crowd when it’s too late”, you may encounter risks:
– Your competitors have sold first, when they are about to move to a new trend, you will start selling items that are too many people to buy.
– There is no difference, customers can find the product anywhere.
– Out of trend, can not sell, long to recover capital.
The crowd effect always has two sides, before running after the crowd effect, consider what you can gain and what you can lose. Bringing you many opportunities, which means that you need to prepare the means, experience and seize the right time to achieve the expected business results. Wish you successful business!
