Problem 1.

High inventory levels

Internal Reasons Wrong buying

External Reason Bad market situations

2. Low stock rotation

Internal Reasons Purchase related issue
Brand/product related issue
Price Related issue
Presentation related issue
Manpower incentive related
80:20 issue
Sales related issue

External Reasons Season fitment issue

3. Large chunk of dead stock

Reasons As shared above

4. Reducing fabric sales

Reasons Garmentization
Reducing tailoring
Fast paced Urbanization
Time consuming
Ease of online sales
popularity of: Jeans/Tshirts/Short

5. Low working capital turns

Reasons Increase stocks
Lower slaes
Improper brand mix
Improper shop ambience

6. Young generation doesn’t want to join

Reasons Traditional style of working
 Poor work environment
No technology usages
Low social status (in case )
Missfit team structure
No space (freedom) to learn and

7. Too much of manual working

Reasons Its been a traditional business
Even many Companies are very o
Its been a promoter driven busine
It been abusines of relationships
This trade demands less qualificat

8. Higher supplier credit payables

Reasons Over trading
Often using business money in non
Poor purchase discipline
Not taking cash discount benefits
Pooor business revenue

9. In-house tailoring is expensive, not everyone’s cup of tea, outsourced tailoring is not reliable and
Reasons Traditionally Retailers and tailors
Tailoring was a low profile occupa
Tailors didn’t command a good ma
New tailors didn’t add to the job
Tailoring te3chnology also evolv

10. Higher property rentals to setup shops at high streets (hence mostly retailers are based at old m
 Solutions
1. Prefer Brands, they are more saleable as per current market trend (As tailoring has become expensive)
2. Don’t get tempted by scheme/discounts
3. Clear deadstock regularly, if need even donate/do charity of certain stocks which wont sell for sure
4. Do 80:20 analysis of stock and buy the best sellers more
5. Use technology and MIS for stock monitoring, agewise analysis
6. DO Why Why Why anlysis if some stocks don’t sell….design problem? Price problem? Salesman problem? Display problem
1. Connect with your customers
2. Motivate (if need and incentivise) your team
3. Improve the customer experience at the stop
4. Use the low season to prepare better for the upcoming sale period
5. Work on important areas which are often left out due to handling urgencies

1. Improve design selection in purchase

2. The brands in your MBO may not be attracting customers, Unbranded stuff denting customer confidence
3. You have priced the products wrong or value proposition imbalance
4. You havent displayed the products rightly at shop
5. You staff may be pushing the fast sellers but not focusing slow moving one5
6. You have more slow moving goods and fast sellers in shortage
7. You have purchased more than your sales potential

1. You have bought wrong season goods duw to certain benefits

2. You have not enough designs and colors based on festivals or ocassion coming
3. Your shop location may have certain design preferences that should match the purchase decisions

1. Monitor the inventory frequently, take timely actions

2. Clear the deadstock regulary creating some outlet mechanism
3. Improve buying
4. Use technology to maintain stocks
5. Use various display tools (manniquin, catalogue) to push slow moving stocks

1. Create and promote tailoring setups

2. Set design and creativity benchmarcks with tailoring
3. Digital, paperback catalogue, homeservice convenience
4. Right mix of brands
5. Right fit and value prosition communication to customers
6. Promoting custom cloting cult
7. Focusing Tier 2/3/4 markets

Optimise stock by addressing sales issues and other factors as shared above
Analyse the reasons: Location/Ambience/Display/Brands/Designs/Price/Manpower and address
Prefer Brands and supersellers (like SIYARAMS) among brands

oesn’t want to join

1. Induct them to learn the basics
 2. Show your inclination to change
3. Coach them well
4. Give them fredom to experiment a low risk area
5. Build their respect and authority as they gain experience
6. Bring changes step by step to create a fit
7. Motivate them on small wins

1. Adop technology
2. Computerised billing and stock keeping
3. Use applications /simple ERPs to simplify the business
4. Align with company softwares to bring changes fast
5. Employ some young grads to deveop systems

dit payables

1. Financial discipline
2. Methodical and sceintific purchase
3. Always buy in CD (CD benefit is must higher than interest cost)
4. Work on improving sales
5. Pay your suppliers timely

s expensive, not everyone’s cup of tea, outsourced tailoring is not reliable and timely
Principally Fabric business doesn’t exist without tailoring
Intially tieup with tailoring but slowly own the quality
Hire a good master
Train your staff
learn tailoring attending various seminars

entals to setup shops at high streets (hence mostly retailers are based at old market areas)