Posted by Alex Jackson on 10th Aug 2018
One of the best-kept secrets in high fashion is that the real money is in the accessories. Sure, it’s the big-ticket items that garner all the attention, who doesn’t dream of owning one of those fabulously expensive outfits from some of the leading names in high fashion but the real money has always been in the accessories, like the belts, scarves, gloves and other accouterments offered by these leading designers. Even to the well-informed reseller such as our reader's accessories can be more of a secondary category. You may have considered purchasing accessories from time to time to possibly complement your selection of goods, but it’s not your go-to category. What you may not realize is that, if properly integrated into your business they can create both increased sales volume and greater overall profitability for your business. So, let’s explore why you should consider accessorizing your business with accessories.
Accessories are money makers- lets explain why accessories are the big money makers for high end fashion and it all has to do with volume. Big ticket items from leading designers garner most of the limelight but the accessories represent the core driving force behind their brands profits. A thousand-dollar dress though stunning, has a very limited consumer base that can and is willing to spend this kind of money on a single garment. Compare this with a few hundred-dollar belt, scarf or pair of sunglasses from the same high fashion house and your potential customer base and sales volume have increased exponentially. The concept here is that leading designers want to grab a wider base of consumer with these lower cost and more obtainable high fashion luxury goods. The number two reason behind accessories being cash cows for top brands is that they are relatively inexpensive to manufacture. You may be using high-quality materials but it’s also to produce smaller items and in much higher volumes. Less material usage and increased production translates into lower costs netting these designers higher profit margins. Resellers can reap big rewards on these luxury goods in the liquidation market as the cost per unit represents a very small fraction of the retail cost allowing ample room for profits.
Accessories add essential sales volume- We have talked previously about finding that happy balance between profitability and sales volume, accessories not only will bring your business greater margins but also adds that much-needed sales volume. Businesses that rely heavily on big ticket item sales need a counterbalance to prevent those inevitable cash flow crunches during slow periods. Adding accessories to this mix increases your volume and reduces the impact of these sales slowdowns.
Accessories are essentials to any wardrobe- Consumers are a whole lot more creative these days with reinventing their existing wardrobe. Instead of running out and buying new outfits each season, many of these thrifty consumers simply keep the foundation pieces and reinvent the outfit with new accessories. This translates into a need for a wide selection but also a high demand for accessories to reinvent those key pieces in their wardrobes.
What’s the number one gift during the holiday season? - No not the instant pot that’s so 2017! What is that tried and true gift that you go to out of sheer desperation every year for that casual acquaintance or that second cousin that is virtually impossible to shop for? It’s the accessories like the gloves or scarves. They are staples of every holiday season. Can you recall a year that you did not either give or receive one of these items? As the fourth quarter heats up and the weather cools down expect to see these types of accessories skyrocket in demand.
If you are in the clothing retail business and do not carry accessories, you should pack your bags and close down your shop. Accessories are those magical high markup-impulse items that will make or break your business. Right now is the time to prepare for the holiday season by purchasing accessories liquidation lots which come from high end department stores and are packed with designer brand names that you want. Please do not procrastinate as these lots sell out quickly once we approach the season of gift giving.