Fashion Exposed Revived will take place on 20 – 24 February 2015 at Sydney Showground, Sydney Olympic Park. Organiser AGHA shares some business insights ahead of the event, which will also feature a series of industry seminars. Head here for more.
Being based outside of the major capitals can sometimes be a disadvantage due to the tyranny of distance, but there are some effective things regional retailers can do to ensure they remain competitive with those city slickers.
Carefully target your marketing spend
If you are operating in a multi-channel environment then the focus of the marketing spend needs to vary in the bricks vs clicks environment. For bricks and mortar, immersion within the community is the key. In this sense, the spend is not necessarily in traditional marketing channels such print and electronic media, but the real focus should be building relationships through events and activities that engage customers and reward them for their loyalty.
Be super speedy with despatch
If you are competing nationally in the ecommerce environment then focus less on where you are and more on the service that you provide. A customer generally cannot tell where you are based from looking at your home page, but they will still measure you on your customer service. This needs to be quick and professional. Timeliness of despatch is crucial, as customer expectations regarding timeframe for deliveries have shifted in the past couple of years. Being in a regional location may add a day to delivery timeframes, so strive for same day despatch where possible.
Nail your competitive advantage
No matter what channel you are retailing in, competitive advantage is the key to your success. Product selection is therefore crucial in this regard. For traditional bricks and mortar retailers in regional areas this should be the first question you ask yourself: “Does my product range give me a competitive advantage?”
Keep inbound freight costs in check
For regional retailers the landed Cost of Goods (COG) can often be higher than it is for metropolitan retailers. For this reason, try to deal with suppliers who offer Free into Store (FIS) freight rates rather than ‘at cost’ freight. This is especially the case if you are competing in the ecommerce space, as you have less room to move with the sale price of goods. Inbound freight costs can seriously erode your profit. Be prepared to make hard decisions about product ranges. If the landed cost to you is too high, no matter how much you like the range, it simply may not be viable.
Back yourself
The fundamental principles of good business do not vary regardless of your location. A solid business plan, competitive advantage, cash flow, and progressive thinking are all necessary. Most importantly, you need to have the confidence to back yourself to take the next step with your business. Remove the blinkers, be innovative and be prepared to spend money in order to make money.
Guest blogger: Deborah Latouf is the owner of traditional toy store Entropy. Based in Townsville, North Queensland, but shipping all over the country; Entropy won Toy Retailer of the Year for 2013. Focusing on quality educational, wooden and traditional toys that are designed to get children (and adults) physically and mentally active; Entropy opened its doors in 2007 as a boutique toy shop and ventured into ecommerce in 2009. Since then the multi-channel retailer has needed to move three times to accommodate growth with Deborah taking out several business awards in the process.