top of page

Deadstock: What is it and how to solve the problem?

Updated: Mar 1, 2023

Creating a collection requires planning and research. Things may often not go as planned, leaving you with deadstock, which refers to leftover products that cannot be sold. This can occur if you purchase or produce in greater quantities than necessary, a lack of communication between sectors and/or lack of inventory management. Learn how to resolve this common issue below:



1. Impacts and consequences

Deadstock affects the financial health of the company, hindering revenue and expected profit. Other negative impacts caused by idle inventory include:

  • Excess product due to seasonality

  • Lack of physical space, logistical issues when receiving a new collection

  • Low liquidity due to sale of discounted products

  • Debt, if the product doesn’t generate enough revenue to pay for previous investments, such as suppliers


2. How to avoid

  • Design a communication plan for your collection, thinking about the strategy for both the physical store (product placement, visual merchandising) and also online (product emphasizing on banners, lookbooks), texts and photos that speak to your audience and induce the desire to buy

  • Create a purchase plan based on extensive research and focused on your target audience

  • Control your stock on a daily basis

3. How to solve it

It is important to understand why your inventory is on hold. Analyze your sales for the period so you can make a comparison. Here are a few more actions to take:

  • Invest in new ways to market this product

  • Change the display of your products in the physical store

  • Create exclusive content to enhance the product online

  • Offer styling inspiration with other pieces

  • The last option is to offer discounts. Provide combos or progressive discounts to prevent losses

With START by WGSN, gain access to exclusive information to develop products and evolve your brand, in addition to the best resources and tools to facilitate your day-to-day business journey.

Discover everything START offers to help your fashion business grow.



Comentários


bottom of page