A large global fashion company partnered with INTURN to diversify its buyer base. This designer, marketer and distributor of lifestyle products (apparel, accessories, footwear and fragrances) operates worldwide with over $6 Billion in annual revenue. This fashion label with 450+ retail stores an 600+ concession-based shops globally realized significant margin recovery improvement on multi-category inventory by working with new buyers.
The fashion company faced three main challenges when it came to its liquidation strategy:
- A legacy relationship with one off-price retailer including pre-set, non-negotiable discounts (85% off MSRP) limited the brand’s excess profitability.
- The pool of excess inventory was growing annually due to a challenging retail landscape.
- A linear sales model inhibited the brand from creating a diverse off-price retailer network. The brand would only offer inventory to second-tier retailers after closing transactions with their legacy relationship.
INTURN’s solution enabled the brand to strategically address their off-price challenges:
- The brand leveraged INTURN’s network to expand and diversify its buyer base in order to achieve higher recovery.
- INTURN’s allocation capabilities enabled the fashion label to easily split available inventory and curate assortments for multiple buyers at once, moving from a linear to a competitive go-to-market model.
- The fashion company utilized INTURN’s flexible negotiation settings and pricing tools to set custom resale restrictions in order to avoid saturation.
By implementing INTURN’s solutions, the brand saw powerful results in their off-price process:
- Overall recovery increased by 44%
- New buyers bought 1.6X more than previous buyers
*INTURN introduced the brand to three new buyers, all of whom offered better prices than the legacy partner.
- Women’s apparel and accessories recovery increased by 67%
*All categories achieved higher recovery.
How could a diversified buyer base improve your off-price business? Get in touch here.