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Export surplus garments, as the name suggests, is the stock counted as surplus rejected/canceled for a myriad of reasons. Also known as overrun garments or stock lot, the export surplus is not an intentional move by suppliers who aim to export these manufactured garments. Some of the primary reasons resulting in this surplus include:
· Excess production: While manufacturing the garments, factories make sure to produce a tad bit more than the ordered quantity, 2.5%-5%, to cover for the defects during the manufacturing process. Post complete shipment of these garments, the leftover ones constitute surplus.
· Quality issues: The buyers refrain from accepting garments that don’t live up to their quality standards. Thus, the ones rejected during the close quality inspection process done by the buyers result in the stock lot.
· Shipment rejection: Sometimes, a delay in shipment or inability to meet the size ratio or quality specification of the buyers leads to the rejection of those garments.
Due to any of the aforementioned reasons, the manufacturing units are left with piles of surplus garments. However, the good news is that they’re now given leeway by many companies to sell this surplus in the open market. Instead of bearing the loss of these unsold garments, they can cover their cost of manufacturing by selling the surplus stock at a much discounted price.
For both the customers and the suppliers, it’s a win-win situation.
The customers get to buy superior-quality branded garments without burning a hole in their pockets. For someone running on a shoestring budget and still feeling gravitated towards branded garments, it’s a great bargain. And, the manufacturers get to still profit from this leftover stock.
All that being said, the export surplus garments business is mushrooming these days. The craze around getting your hands on branded products at low prices has made it turn into a profitable business idea for many. However, if you’re into this business, then there are 5 things you must know to benefit from your work.
1. Identify the gaps in the market
As a business owner, the idea is to bridge any gaps spotted in the market. To become successful in your work, you need to identify the niche that has been left untapped or a problem yet to be solved.
There are a variety of export surplus garments that customers get to choose from. If you plan to go smart and provide the garments that serve some need or purpose of your clients, then you can’t fail to leverage from the market. By providing your clients with something unique that is not present already, you can always stand out among the crowd.
2. Always know your competitors well
In any business, the adage “know your allies well and your competitors even better” doesn’t seem far from the truth. Living in the era of cut-throat competition, it’s imperative to keep tabs on the moves of your competitors. With so many business owners selling the same type of surplus garments, it gets hard to outshine.
To do so, you must identify your USP (unique selling point). Find out what sets your products apart from your competitors and then witness the market growing for you.
3. Understand the legal formalities involved
Understand the fact that it’s illegal to sell export surplus garments without acquiring prior permission from the buyer. To sell it legally, the factory or supplier must obtain a release letter from the brand specifying the permission granted to sell the surplus merch through non-regular distribution channels.
4. Opt for regular quality control checks
The booming need for surplus garments by customers has led to a lot of malpractices by the suppliers. Hence, for customers, it’s hard to place trust in businesses selling export surplus garments. Try to employ stringent quality control checks using different parameters to win over your clients’ trust. Always adhere to selling superior quality goods and bar from selling fake or low-quality garments.
5. Keep a ready stock handy
The needs of the clients can always vary. With a wide market in hand to cater, a successful surplus business ought to keep a ready stock of surplus garments for men, women, and kids. If you leave your clients spoilt for choice, you’ll always end up having a returning client.
Alongside, be in sync with the latest fads and in-line fashion. If you inundate the market with the latest styles, there is nothing that can stop you from becoming successful.
Thus, for any export surplus business owner, there are certain dos and don’ts one needs to follow to make the most out of available resources. If you choose to be of value to your community, there is nothing that can stop you from becoming successful.