Sales of Mila fell by 5%

The manufacturer of children's shoes "Mila" has summed up the sales results for the first half of 2013. Compared to the same period last year, the total lag was 5%.

The office of the Ural distributor analyzed the dynamics in different price segments. It was revealed that in the low price segment, sales fell by 19%, while for one of the brands they reached minus 30%. A survey of wholesale children's shoes showed that the main reason for the decline in sales was increased competition in this sector. If previously only markets offered low-cost shoes, now it has appeared on the shelves of chain stores and, of course, in warehouses about wholesalers. Both links began to offer a rather high level of service compared to the markets. So part of the retail entrepreneurs, who are accustomed to purchasing goods from wholesale companies, found an additional source of supply of inexpensive shoes from a larger number of suppliers. In addition, marketers have long revealed that in the economy segment there is very weak branding and attachment to shoe suppliers. The determining parameter in this segment is the price. All other properties of shoes go by the wayside. The transition from one supplier to another and the change in the assortment of brands occur rapidly, you only need to appear a slight difference in price.

In the middle price segment, the picture is different: total sales of children's shoes in bulk increased by 5%, but they could by all 15% if it were not for the organizational confusion in the purchase of one of the brands whose sales fell by 30% and negatively affected the overall statistics. The starting base of Mila in this group is 250 of thousands of pairs of children's shoes in bulk per season. In 2013, it was possible not only to keep it, but also to increase it by 5%, which means that the result of sales of the first half of the year in the middle price segment can be considered good.

“Today, together with manufacturers, we need to take a number of measures to keep the market in the low price segment. The first thing that buyers pay attention to is the lag of the lineup from the requirements of the time and the not-so-successful box configuration. We are pleased to assist our partners in the study and calculation of the size of the boxes. This experience already exists and bears fruit for all participants in the distribution chain, ”said Mila, managing director, wholesale shoes Alexander Borodin.