Purchase intention of deconstructed end-of-lifecycle Fashion products in an outline and offline retail environment

Purchase intention of deconstructed end-of-lifecycle Fashion products in an outline and offline retail environment

Management

Obsolete or slow-moving inventory is one of the major influencers for the bottom line of any business today. Surplus stock- be it from overbuys, returns, defects or simply merchandise hitting the end of their lifecycle- need to be accounted, accommodated and dealt with in a manner that can least affect the planned margins. For the fashion business, such merchandise poses greater challenges. The business is ground by seasonal preferences, fast-changing trends, short lead-times and shorter shelf-lives. With rising costs of traditional retail businesses, the associated costs of carrying such inventory are something that the retailer can easily do without. At the retailers’ end, such merchandise is often subjected to traditional liquidation methods such as Markdowns, carry forwards, or selling at lowered prices to discount stores or factory outlets. From a manufacturer’s perspective, overruns from production are either sold at discounted costs to the retailer or are diverted to other sources of sales. In either case, such decisions do affect the margins of the business, and retailers often account for these “necessary evils” while planning their pricing strategy.

Nithya, V - 1520074

CHRIST (Deemed to be University)

English

PhD