MISFIT
Do manufacturers want their cake and eat it?
I
have visited the shoe fairs over the last couple of weeks and seen some really exciting developments from those suppliers that chose to exhibit. I was disappointed to see a number of market leading brands choosing not to give their customers a chance to see next seasons collections under one roof. I can only live in hope that one day we will get all suppliers supporting the industry’s exhibitions.
With this in mind I’ve started to think more and more about
the different ways our suppliers are trading. Some have been out selling next summers collection for over a month. They are playing the ” I need your orders early so the factories can plan production”. So the poor old retailer commits his money in July for sandals to be delivered 7 months later. Then, when they are delivered very often not on time, the supplier wants his money 30 days later with no discount. Is this fair?
If we take this summer as an example, the retailer
booked sandals to be delivered in March. We had snow on the ground in March and April and no chance of selling a pair of sandals but the retailer still has huge bills to pay. May was cold and wet so still no sandal sales so it’s June before we get any movement in sandals and guess what, the suppliers are around again in July pushing the retailer to commit to sandals for next year. How can any retailer have any chance of making a living if this scenario carries on? He is asked to commit to product 7 months earlier with no idea of what the weather is going to be like and with fashion changing so quickly no real assurance if it’s the right product anyway. The fact that a suppliers range hasn’t moved for whatever reason makes no difference to the fact they want paying.
I remember speaking to an Irish retailer who introduced a
new payment scheme -“ Pay by performance”. If your product sold he paid your bill, if it didn’t you were at the bottom of the pile. This might be a bit extreme but somehow the trade has got to find a way to solve this ongoing issue.
12 • FOOTWEAR TODAY • SEPTEMBER 2013 If we look at some of the wholesalers in the industry they
are taking more of the risk factor by committing to large quantities of stock and selling for immediate delivery. In return they are very tight on terms and insist on payment within 30 days maximum. If those manufactures who want orders 6 months before delivery received payment in a similar pro rata way as Wholesalers they wouldn’t be paid for least 6 months after delivery................ I don’t think they would be to keen on this idea!!
I remember speaking to an Irish retailer who introduced a new payment scheme - “ Pay by performance”. If your product sold he paid your bill, if it didn’t you were at the bottom of the pile. This might be a bit extreme but somehow the trade has got to find a way to solve this ongoing issue.
The more you look at the footwear industry it is more and
more apparent that many of the manufacturers are not supporting the retailer as they did 10 years ago. They want the retailer to commit earlier and earlier to forward orders and pay for stock within 30 days very often without any discount, They are cutting back on trade exhibitions, very rarely helping with any advertising, certainly not promoting their product themselves to the consumer, trying to tighten margins and then selling to every shop, department store or Garden centre they can find.
Luckily not all manufacturers are like this but sadly more and more are going this way, so when you place your orders for next year think hard who you want to work with.
Readers wishing to send comments or suggestions for Misfit should contact:
Misfitfootwear@hotmail.com
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