Thursday, May 22, 2008

Retailers Optimal Merchandise Mix Constraints

From my primitive observation, some retail shops do have limitation factors that may restrict their growth. However, I should stress that these are form genuine cases (not from dumb/ar**h*l*/idiocratic human limitation/s!);

1. Dollar Merchandise Constraint
- It is a result from a small paid up capital by owner, or board of directors.

2. Space Constraints
- I noticed that if the rental is getting gradually high, some retailers just have to shrink down the size. Or, everybody is rushing and pushing to get the chunck of pie (red sea strategy). Resulting slow death for everyone (vendors, the retailer itself, the shopping complex/area).

3. Merchandise Turnover Constraints
- Usual mistake for everybody especially when they have been there for so long and at the same time trying so hard coping with consumer behavorial and pattern changes. This type of shop usually having the pattern to lose out retail identity. Slow but definite suicidal.

4. Market Constraint
- It is impossible and risky when making decision on variety, breadth and depth of merchandise mix. Bad science project I would say. Especially for big, big retailers when they delegate staffs to perform tasks.
* this is when branding, good marketing, and super good product really helps!
** Ringgit $en$e -> High profit and big retailers usually accept the fact that it is almost impossibble to get an optimum/the perfect merchandise mix. So, they adjust their own merchandise mix formula to statisfy the most profitable domestic market segment.

4 comments:

Anonymous said...

ilmiah!

sare @ syah said...

arghh..cam baca buku teks skolah...takde sebut pasal bola pun..pening2...hehehe....

a good business does not follow trend...they create the trend...hehe

Ney Joe said...

mcm baca berita. NIGHTLINE!!

zain aziz said...

aaaa...

ikut suke aku apa aku nak tulis, lah.. label pun qwik tots..

huhuhuhu... tak suke korang!