When clothing brands finish selling their current collection, some of the products – which have not sold out – go to so-called outlets. These are end-of-line items, excess stock, seasonal sales or short promotional lines. Such clothing, although new, is sold at much lower prices.
Some items may have minor defects – caused during fitting or production – or come from customer returns. However, the vast majority are full-value clothes that simply did not find a buyer during the regular sales season.
Why is outlet clothing so popular?
Outlets are an ideal solution for both customers and stores. Consumers can get fashionable and branded clothing at attractive prices – often even 70% cheaper. In turn, sellers get rid of their stock and make room for new collections.
As a result, outlets have become very popular – especially among boutiques that offer customers high-quality clothing at affordable prices. And importantly, many people are convinced that clothes from outlets are in no way inferior to those sold in regular salons.
How does outlet clothing trade work?
Fashion brands often transfer unsold collections to their outlets – special stores located in shopping malls or operating online. There are also outlet wholesalers that buy the ends of collections from foreign markets and sell them on – both to individual customers and store owners.
You will also find online wholesalers on the market that offer a wide selection of products from well-known brands. For many entrepreneurs, they are a great way to start a business related to selling clothing – especially since some of them also operate in a franchise model and offer support in opening a store.
Example: Zara clothing outlet
Zara is one of the most common brands in outlet stores. This brand offers clothes for children, women and men – fashionable, diverse and in attractive colors. Zara end of collections are a chance to create unique styles at very favorable prices.
This brand’s products are available both in online retail and through wholesalers – ideal for people who run their own clothing stores and want to offer customers premium fashion without high prices.
Outlet fashion – a trend or a real need?
Contrary to stereotypes, clothes from outlets are not products of lower quality. In many cases, these are new, full-value goods that did not fit into the main sales channel.
More and more people see the benefits of shopping in outlets. Firstly – savings. Secondly – the possibility of buying branded clothes, which often do not require any advertising, because the customer already knows their value.
Is it worth investing in an outlet clothing store?
Absolutely yes. A low entry threshold, growing consumer interest and the ability to sell recognizable brands are factors that speak in favor of the profitability of this business model. Starting an online business is a particularly good solution – it requires less investment than opening a brick-and-mortar store.
Running your own point of sale obviously requires commitment: from finding a reliable supplier, through the right selection of products, to providing customers with friendly service and frequent deliveries. Effective promotion is also key – it is worth taking care of the store’s online presence and local marketing.
Who are outlet customers?
On the one hand – young people who want to keep up with trends, but do not always have the budget to shop at regular prices. On the other – people aged 25–55, and among them especially women, who are looking for stylish, good quality clothes at affordable prices.
An important group are also individualists – people with unique taste, looking for original styles and clothes not mass-produced. For them, outlets are often the only chance to stand out from the crowd without spending a fortune.
What determines the success of outlets?
- originality of goods – products from the end of collections are often unique,
- well-known brands – do not require additional promotion,
- affordable price – clothes can be cheaper by up to 70–80%,
- development of e-commerce – online sales increase the reach of the store and the convenience of shopping.
Some customers follow brand catalogs and wait for the model they are interested in to hit the outlet. For them, it is an everyday practice – a way to shop fashionably but sensibly.
The future of the outlet market
Every year, the number of both customers and entrepreneurs interested in trading in end of collections is growing. Even wealthy people increasingly shop at outlets – similarly to Western European countries, where this sales model is very developed.
The growing interest in outlet clothing is the result of both greater consumer awareness and the need to save money. Although the crisis is over for many, the attachment to sensible shopping remains. That is why outlets are still doing great – and everything indicates that this trend will continue.