Search for non-rated models occurs throughout the assortment. Price reduction is carried out in two or three stages, which allows you to determine the real market value of the goods and sell it. Thus, the owners of retail stores are also satisfied, buying profitable shoes and a wholesaler who frees up warehouses and working capital for the purchase of new products.
Practice shows that in the season many models, poorly marked at exhibitions, are quite popular in the season. In order not to lose sight of them, at the beginning of each season, in certain groups of footwear, Mila makes a stock at its own discretion. Thus, the company strives to provide its customers with the breadth and complexity of the assortment necessary in the season. This approach, in addition to identifying additional rating models, has a side effect - part of the goods in a free warehouse is unclaimed by the market.
“The only way to return the invested funds is to lower prices for poorly demanded models following the peak of the season. Of course, sometimes the markdown shows that the market price of shoes is several times lower than the purchase price, but it's worth it. The freed working capital restores what was lost literally within a few months. Companies that do not pay due attention to the search for illiquid assets and do not carry out such events work with reduced efficiency, some of which may even lead to bankruptcy, "says the manager of Mila - wholesale footwear" Alexander Borodin.
Previously, it was difficult to carry out such markdowns due to the large assortment of the regional distributor, which reaches about 7-10 thousand models of children's shoes in bulk per year. However, Mila's specialists, on the basis of a successful classifier and statistical data over the past years, were able to clearly identify the seasons of sales of various subgroups of footwear, using special algorithms to calculate poorly selling positions and discount them while there is still demand.