Retailer relationships in the fashion world are a staple, but can be extremely tricky to navigate. Retailers and manufacturers must work together for the promotion of a brand by having an effective working relationship between each other.
This includes telling stories that resonate with consumers, meeting sales quotas and also maintaining healthy finances while working together. In addition, both the retailer and the manufacturer need to know how they fit into the fashion industry as a whole. Obviously, both parties want to make money but more importantly, each party wants to do good business overall.
The working relationship between retailers and manufacturers can be extremely daunting for both parties. Believe it or not, there is usually little communication between the two. While this can be challenging, it is not impossible. Keep reading to discover the importance of a good retailer supplier relationship, plus some tips that will help with the management of retailer supplier relationships in fashion.
You Might Like: What is a Fashion Trend?
The Importance of a Good Retailer Supplier Relationship
As a fashion brand designer, one of your most important relationships is the relationship you have with your retailer suppliers. Because they are usually also manufacturers that can produce high volumes quickly, retailers often provide the most revenue for freelance fashion designers. It is therefore very important to keep them happy in order to sustain successful business relationships throughout the years.
Further to this, supply chains have become a focal point in fashion with "fast fashion" becoming a common term heard in retail corridors. As the speed of business increases so does the demand for frequent orders and constant replenishment. While this increased velocity has increased retailer profits there's been a growing concern that faster and faster business needs to be slowed down. Retailers want quick, efficient and effective ways of working with suppliers for their fast fashion brands.
The challenge is how can you keep up with the speed of business if supplier relationships aren't right? As a retailer, if you don't have a strong partnership with your supplier there's no way they will be able to meet your demands. If they can't, that creates a series of problems for you as the retailer.
When a retailer places a large order with a fast deadline, the supplier has to meet that order quickly. This means they have to pull from their existing stock, use various suppliers and sometimes have to hire additional staff in order to meet demand. In this situation when retailers don't manage the relationship properly it can cause all sorts of problems for suppliers.
How to Manage Your Retailer Supplier Relationships in Fashion
1. Build an Open Retailer Supplier Relationship
The first and most important tip is to be honest and direct with retailers. Give them all the details regarding fabric quality, design specs and any other information that will affect their ability to sell your product. This way you can cut out any confusion or dissatisfactions that may arise later on.
2. Manage Retailer Supplier Expectations
As a fashion designer, it is also important to manage the expectations of your retailer suppliers by providing regular communication on how things are coming along. Make sure that they understand what you are working on at all times and try your best not to leave them in the dark about anything. Doing this will also help you avoid any misconceptions or misunderstandings about your designs and what is expected of the retailer supplier.
3. Be Open to Feedback
Lastly, one of the best ways to manage retailer supplier relationships in fashion is to always be open to feedback on your work. This way, you can fix things that may not have gone the way you wanted them to. There will always be room for improvement and learning from any mistakes is crucial in order to continue growing as a designer.
You Might Like: How To Become a Fashion Consultant
Top Retailer Supplier Relationship Tips For Retailers
Be as clear as possible with your supplier about what you want and when you need it by. If a deadline is set, make sure everyone involved knows about it.
Ensure that you have a strong and transparent relationship between yourself and the manufacturer/supplier. If not, there's no way they will be able to deliver quality products on time.
Be willing to compromise with your supplier. By doing this, it will improve the relationship you have and they will be more likely to go out of their way for future orders.
Offer fair pricing and a stable business partner, and you will have a supplier that is more likely to keep up with your delivery deadlines.
Top Retailer Supplier Relationship Tips For Suppliers
Use your previous sales analytics data to accurately estimate the quantity order size sold in previous seasons. This helps to reduce the need for marking down prices. However, don't be afraid to mark down your items if they haven't been sold!
Be as flexible as possible with retailers and designers. This means that if a retailer needs fabric, but you only have half of the amount they need available, expand your order and purchase extra fabric.
Always agree on sales terms with your retailer beforehand. E.g. 50% upfront / 50% within 30 days. Do not take delayed payment.
Looking For Fashion Brand Consultant to Help Improve Your Retailer Supplier Relationship?
By following industry tips like these, you can make sure that business relationships with retailers are successful for both parties, so don't forget these things when working on your next fashion line. However, if you feel like you need a little more guidance and support with managing your relationships, then we are here to help. At James Hillman we offer various Fashion Brand Consultancy Services that can help you grow and develop your fashion brand and its internal relationships.
Contact us today if you'd like to know more about how we can help.
