How To Properly Discount And Promote Clothing Retailers

In the fierce competition clothing In terminal sales“ Discount "Or gift giving" is not only a common means of competition, but also a lingering "worry" of operators. For many operators, they use discounts or promotions to improve the store's sale Well, it's just like using aphrodisiac. It doesn't work, but long-term dependence will be more troublesome.

So, can discounts or promotions be used or not in store sales? If it can be used, how long is the most reasonable and effective interval?

To solve this problem, we must be clear about the following two problems: which customers are discounts and promotions effective for? Generally speaking, customers can be roughly divided into the following five categories: the first category: customers who like your products very much; The second category: customers who don't like your products; The third category: customers who like your products and have purchasing power, but feel that the cost performance ratio is not appropriate; The fourth category: customers who like your products but have other better choices; The fifth category: customers who like your products but cannot afford them.

From the above analysis, it is not difficult to see that the first type of customers will purchase without promotion, the second type of customers will have no effect no matter how you promote, and the fourth type of customers, although effective, are junk customers in store sales. The more such customers, the less your profit will be, and the closer to the closed session. Therefore, only the third and fourth types of customers can really stimulate purchase behavior through price reduction or promotion.

It can be seen that some customers will buy without promotion, and some customers will buy without promotion. Therefore, you must know that discounts or promotions are not effective for all customers.

　　 The second question is the advantages and disadvantages of promotion on store sales.

Sudden and short-term promotions have an immediate effect on driving the turnover of stores. However, when operators regard this method as the most effective magic weapon and rely on it for a long time to sell, the result is that consumers who often taste the benefits of discounts are reluctant to "waste money" the next time they buy. This way, not only will the promotion lose its effectiveness, but also will let customers reposition your brand value. You are not worth the money at all. In fact, consumers' perception of the brand is very simple. Price=value. Once the commodity price is lowered for a long time, it means that your brand value will be lowered along the way.

According to the survey, 52% of consumers have no brand loyalty to brands that often discount. That is to say, regular discount promotions will drive away old customers with high loyalty, and only leave or attract new customers with low loyalty. In the long run, the number of your old customers will become less and less, and the cost of developing a new customer in the sales of stores, Six times the cost of maintaining a regular customer. Such customer group composition can only result in a substantial increase in the sales cost of the store and a reduction in the sales profit of the store. In the end, it is unprofitable and spits blood.

Here, I give three suggestions. Suggestion 1: If the price of your product is higher than the average level of the industry, it is suggested that you should pay more attention to the decoration of the store and constantly strengthen your brand, style, quality, service and other differentiated selling points. The effect will be far greater than the simple price reduction promotion.

Suggestion 2: If the price of your product is in line with the average level of the industry, but the brand awareness is not high, and the homogeneity of the product is relatively heavy, then it is recommended to do short-term price promotions for sufficient reasons, such as anniversary celebrations, redecorations, etc., but the frequency should not be too high. Three to five times a year will bring you unexpected results.

Suggestion 3: If your price is lower than the industry average, and the product quality is not inferior to that of your peers, it is recommended that you use the promotion cost for decoration and communication, and the effect will be more obvious.