Dionysius Longinus, a Greek critique and philosopher, was right when he commented on the sublimity in ‘On the Sublime’ about a masterpiece that is created in the best of mood, on the best of time, in the best of style and in the best of language. In the same way, retailing sector in the fashion industry requires sublime approach to make a robust and dynamic model for making the retailing a success to the benefit of all those involved in the long chain of the fashion industry from manufacturer to the retailers. This strategy is based on 5 Rs (Rights) that ensures success in approaching the end users and thus selling the products to have a good profit as this strategy helps in keeping the ball rolling.
WHAT ARE THE 5 Rs?
- Right product
- Right price
- Right time
- Right place
- Right customer
WHAT IS IMPORTANCE OF RIGHT PRODUCT?
The decision to put the right product on sale needs deep analysis and study of the demand of the customers, their preferences, purchasing power, market trends, competitors’ inventory and price bracket. A brand can have variety of products to cater for different customers according to their demand and market behavior. It is the best marketing and sale strategy to put on display what is required otherwise the products fail to attract attention of the customers and are rendered no more than a dead horse. It is also important to note that many customers are not price sensitive as they prefer to buy what is their requirement and many customers have the priority what they like. These are the real time customers and can be an asset for the brand and the retailers.
WHAT ROLE DOES RIGHT PRICE PLAY IN RETAILING?
Price determination is an important factor because the whole business model hinges on pricing as the right price ensures marketability and sustainability of the fashion products. The fashion product prices are determined keeping in view different factors such as cost of the raw material, overhead charges from manufacturing to transportation to the retailers, quality of the product, competitors pricing mechanism, retailing margin and customers’ purchasing power. So, fashion product pricing is like a narrow bridge to be treaded with care and full conscious. Pricing strategy has some types such as;
- Dynamic Pricing: Dynamic pricing is determined keeping in view the demand of the customers and the available inventory. High demand and low stock triggers price escalation as it is a matter of supply and demand theory of economics.
- Psychological Pricing:
The psychological pricing is to play with the psychology of the customers to have good niche in their mind and heart. In this pricing mechanism, two price brackets are presented – lowest and highest. It is to give an impression that fashion products are available on lower rates as this method attracts customers’ attention and helps in making their mind to make purchases. The chances exist that they get attracted to the other fashion products displayed in the retailing outlet.
3-Cost-plus Pricing:
This is the natural method of determining the prices of the fashion products as it involves calculation of the total cost and the profit margin. No business can survive if its products are sold on prices lower than the cost as this factor always proves to be a death knell for the businesses. Cost effective products with reason profit ensures sustainability and longevity of the business.
- Skimming Pricing: At the launch of a fashion product, the price is kept high and the behavior and response of the customers are evaluated. If demand persists, the price remains unchanged otherwise, the prices are lowered. This is the method in which product’s demand and customers’ response is skimmed to determine the price.
- Status Pricing: This pricing method has nothing to do with cost, market trends, competitors pricing, style and other factors rather it is to satiate the desire of the status conscious people who boast of making pricey purchases from the luxury high end stores located in the posh areas. This superiority complex serves the purpose of luxury brands.
- Penetrating pricing: This pricing method is opposite to the skimming pricing method as the prices are kept low at the launch of the fashion products and then increased keeping in view the popularity of the product and the demand of the customers. It provides a robust and sound foundation to the fashion products that ensure their sustainability, longevity and popularity.
- Competitive pricing:
This pricing method requires prudent and practical approach as it ensures longer stay of the fashion brands and their products in the market because the pricing is determined considering the prices of other brands in the market.
- Discount Sales: The fashion brands offer discount sales on different occasions and the prices are slashed to attract the larger number of customers. This occasional pricing method helps in making the brands popular in large part of the customers, disposing of left overs, emptying the occupied rakes and introducing the new trendy products.
HOW SIGNIFICANT IS RIGHT TIME IN FASHION RETAILING?
It is said that iron should be hit when it is hot and same is the perfect strategy to cash in on opportune time for making a product popular, a brand known and earn profit. Sensing opportune time requires deep knowledge, first hand information, real time research and deep analysis of market, competitors, customers inclination, their behavior, reaction, likes and dislikes.
In 1970s when Saturday Night Fever was screened, it broke records of popularity and John Travolta became a celebrity while all the things featured in the movie, disco music, style and fashion got so popular that the fashion brands had to make concerted efforts to fulfil the growing demand of the customers. The brands which seized the opportunity succeeded in establishing their strong standing in the market only because they sensed the trends and ran with the time.
Moreover, the right time becomes all the more important when the brands introduce the products according to the requirement of the seasons and they present the products in color associated with the seasons.
- Summer Collection: The brands present light clothing at the onset of the summer season as they ensure the clothing and other accessories airy, comfortable and light weight.
Color Preference: In summer light color of clothing and accessories are preferred such as white, sky blue, light green and so on.
- Winter Collection: In winters, the fashion brands offer heavy woolen and warm clothing and accessories which protect the wearer from the cold.
Color Preference: The winter collection is normally presented in dark colors such as black, dark brown, dark blue and so on.
- Spring Collection: For spring season, the fashion brands introduce clothing and accessories in tropical stuff.
Color Preference: In the spring season, the fashion clothing and accessories are presented in bright colors like shocking pink, red, maroon and others
- Autumn Collection: For autumn clothing and accessories, the fashion brands introduce stuff that is neither warm nor light.
Color preference: In autumn, somber colors are preferred such as yellow, light orange, off-white and others.
HOW MUCH VITAL IS RIGHT PLACE IN FASHION RETAILING?
Selection of a suitable location and place for putting the fashion products on display is also very significant as inappropriate place and location fail to attract the customers. It is just as no one appreciates the dance of a peacock if it is in a forest. It requires deep study and analysis of the customers purchasing power, community, customers’ priorities, their reaction and behavior. It is also important to note that the certain products should be presented as per the requirements and demands of the customers. The high value and highly priced products should be presented to the brand conscious customers in posh locations, the localities of mediocre class of the people should be attracted through the products of their priority and in the areas of lower income group, the customers should be catered to as per their demand.
Moreover, the outlets should be established at the locations with hustle, bustle, easy approach, parking facility, spacious display with a broad and open look and providing an easy peep at the products on display.
HOW IS RIGHT CUSTOMER SIGNIFICANT FOR FASHION RETAILING?
The deep study and analysis of the customers’ psychology is very important for a successful fashion retailing. The study should begin whenever a customer steps in the brand outlet. This analysis determines what is required by the customer, how much he or she can spend and it also determines the category of the customer such as casual buyer, brand conscious, need based customer, conscious customer, choosy customer, window shoppers, casual visitors and so on. This study determines what should be put on play to which type of customers and it also gives an evaluation how to treat the customers as per their category.
CONCLUSION
The 5 Rs (Rights) is a significant part of the Successful Sales Strategy (SSS) because it encompasses the whole mechanism of the long chain from the gate of the manufacturer to the hand of the customers. Apart from the target of the sale strategy, there is a sizeable community of the potential customers who remain above all the parameters. They make purchases of choice, of likes, for status, for ego satisfaction, for psychological satiation and for personal grooming. The fashion brands manufacture the products particularly keeping in view the demand and requirement of these valued customers.
FAQs (Frequent Asked Questions)
