Meet the competition head on
A niche market and loyal customer base can be hard to come by - particularly in the fashion industry. It can take years of hard work to establish a reputation in an area, and then, usually next to no time before a competitor snatches away your once unique stock concepts, individual lines and, potentially, your once devoted customers.
However, a little healthy competition can be good for your business. Naturally the curiosity over a new competitor's shop will diminish over time, but your business will still feel the pressure of having to share a once unchallenged customer base.
There are courses of action that immediately come to mind to take in a situation like this. You could promote a sale, customer loyalty programs, or maybe try re-energising your store's look and layout. You could also think about boosting your advertising and direct marketing. All these are good ideas and can be quite effective. But these approaches to recapture the market's attention require funds, and eat into your fashion business' cashflow.
With the majority of your working capital tied up in existing stock, as well as the need to purchase new stock, you have to be ready to meet your competitor head on and stake your claim as the store of choice.
Aesthetics and window dressings will certainly attract customers. But your promotions will fall flat if you don't have enough stock to meet customer expectations. By diversifying your range or sourcing new lines from abroad you'll not only keep your customers returning, it will also have your competitors struggling to guess what you'll do next.
Getting access to such stock can be a struggle though, especially if your cash is already stretched. This is where your business intelligence and experience comes into play: if you can't afford to source new stock since this is where the majority of your working capital is tied up, you might want to consider seeking finance.
The trick to tackling a competitor in your niche market is to keep your stock fresh and innovative, but not at the cost of quality. Seeking finance for your stock purchases makes a great deal of business sense since your working capital can remain available for other important projects and tasks, such as promotions, and customer reward programs.
Just because a new competitor tries to move into your market doesn't mean you have to change your direction, use your business savvy to corner the market and gain the competitive edge. Indeed, the prospect of competition can be a great opportunity to consider changing your stock purchasing habits and bring an edgier look to your fashion business.