50 Star US Inc
Since a few months ago, the flow of work orders from foreign clothing brands and stores to Bangladesh's clothes industry has slowed down. The unsettling pattern is having an effect on the industry that earns the most foreign currency in the nation, which will ultimately cause the foreign exchange problem to worsen.
In response to greater prices in Western countries brought on by the current Russia-Ukraine war, The Daily Star said that orders for the April to June season fell by 20 to 40 percent.
In the paper, the main causes of the unexpected market situation were covered. We will attempt to highlight a few strategies for sustaining the current order crisis in today's essay.
Need for innovative marketing strategy
There is a marketing department at every factory, but it also includes the phrase "merchandising," which is problematic. Someone who can handle the immense pressure of marketing, market research, customer segmentation, branding, product development, quotation creation, market metrics, fashion trends, price revisions, sample development, understanding of the market, effective communication to satisfy the initial needs of the buyer, creation of CAPs, failure analysis, etc.
First, we should establish separate KPIs for the marketing and merchandising departments. We must grasp the idea that the company's marketing department is its beating heart and its sales department its lifeblood. A marketer who constantly does research and development to comprehend the current, historical, and future market conditions.
As a matter of fact, their way of thinking indicates that they are living in 1980 even though we are in the year 2023. The all-out manufacturer failed to provide a separate budget for branding and marketing support materials. Without marketing tools and techniques, our marketers would be scouring the world for unproductive customers while utilizing LinkedIn.
We do not want to utilize LinkedIn or other social media exclusively; rather, we use them to gather information on the ideal candidate for my target company or brand. Our management should take into account the fact that we must employ additional, pricey instruments in order to directly contact them.
Overcoming the lack of product diversifications
A situation where there is a constrained variety of product options inside a specific brand or firm is referred to as a lack of product diversification in our garment sector. That indicates that, rather than considering a wider range of options, our firm primarily produces and promotes a small number of products. For instance, if you search for workwear, a faux down jacket, a seamless factory, a uniform, a practical product, etc. that will cause you to perspire, you may or may not find what you are looking for.
One of the effects of a lack of product diversification is the current predicament. There are some more effects. First off, it makes it harder for the company to accommodate a range of customer tastes and preferences. Customers have a variety of fashion demands and tastes, therefore by only selling a small selection of goods, a business risked failing to pique the interest of a bigger client base.
Additionally, focusing primarily on a small selection of products leaves a brand open to changes in consumer preferences. Consumers are continuously looking for new styles and patterns, and fashion trends are constantly changing. A brand runs the risk of becoming old and losing market relevance if it does not change and diversify its product offerings.
Additionally, a brand's capacity to enter new markets may be hampered by a lack of product diversification. There may be distinct fashion needs and preferences for various geographic and demographic groups. A brand can better cater to these distinct audiences and improve its chances of success by offering a more diversified variety of products.
We must diversify our product offering. A weaving mill must be able to produce workwear, essential uniforms, and jackets made of faux down and genuine leather. A knitting factory also needs to be able to produce things seamlessly.
Need to shift a rigid perspective
When someone has a fixed mindset, they believe that their skills, intelligence, and capabilities are unchangeable, undevelopable fixed traits. People with fixed mindsets in our factory frequently think that their talents and attributes are innate and immutable, which makes them shun challenges, fear failure, and see effort as futile. For instance, they outright deny it when they encounter critical styles. We must implement training and skill-development initiatives to address this issue. The KPI should include different training and skill development.
A stuck attitude can have a substantial negative effect and obstruct business growth and development in numerous ways. Some major effects include losing a potential order, failing to carry out an order, a quality issue, being unable to manage a crisis, etc. To obtain new orders, we must be willing to try new marketing strategies.
Adapt to the new terms of payment
Recently, buyers have requested a variety of unique payment terms, including postponed 30, 60, and 90-day terms, BL at sight, BL for 30 days, and TT 30%, however Bangladesh is not accustomed to handling these terms. Some businesses are doing this, but only for a small group of loyal customers who wish to share savings on costs of conducting business. The factory doesn't perceive any risk in this situation. However, when a customer requests these types of payment benefits for a first order, it often leads to confusion. The review of your credit record will be one of the remedies to this issue.
It is crucial to check a company's credit report because it contains critical details about its financial situation and trustworthiness. The garment industry is notably benefited by this strategy, and other businesses in the same sector may also benefit in a number of ways. Here are some of the main advantages: risk assessment, lowering payment delays and default, enhancing supplier relationships, securing advantageous terms, and reducing financial risks.
Customized line configuration
In our sector, customized line configuration is in high demand right now. The demand for Maxima factory's products is quite high on the global market, but it was unable to fulfill a tiny number of orders. You will have an advantage over rivals in this situation. A game-changing phenomena will occur if we can set up tailored lines for the few orders (size by side).
The ability of a manufacturer or supplier to handle and complete small orders successfully is referred to as the small clothing order execution ability. It is a determination of how capable and prepared they are to handle the logistics, production, and delivery components of little orders put by customers or purchasers.
The capacity to swiftly complete small garment orders is crucial for a variety of reasons, including flexibility, upfront payment, cost effectiveness, simple quality control, less compliance requirements, and opportunities for larger orders at competitive prices.
The capacity to fulfill small clothing order enables manufacturers to serve a wider range of clients, react swiftly to market demands, and uphold solid relationships with clients who frequently make small orders. Garment makers can improve their competitiveness and standing in the market by excelling in this area.
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