Methods of Fast Fashion Stores Gaining Profits

                                        

Under the rapid developing trends, there exist challenges and opportunities in various industries. For many entrepreneurs, industries with a small initial investment and a high rate of return are certainly welcomed. 

Based on this, fast fashion department stores that are popular among consumers in recent years are absolutely good options. 


Taking the route of small profits but quick turnover is the main strategy of the fast fashion department stores. With the prices of most goods ranging from USD 1 to 10, these stores have a wide range of products that can meet the great needs of customers. 
 
Many people are of the opinion that the inexpensive prices of such stores may generate fewer profits. Actually, the profit of a fast fashion department store can reach 35% to 60%, with the generous return. The methods fast fashion department stores gain profits are mainly as follows.


Supply chain adjustment
 
The supply chain of traditional physical retail is complicated. Generally, there are several suppliers from the manufacturers to the stores and each of them receives a rebate. To ensure a balance of income and expenditure, the price of the goods in the store will be much higher than the ex-factory price. 
 
To control the costs, fast fashion department stores simplified the supply chains and eliminate the price difference by directly connecting the manufacturers. By doing so, the product prices are reduced, which is advantageous to attract consumers.  


Purchase strategy
 
To further reduce the costs, fast fashion stores usually purchase quantities of products to transfer profits to franchisees and consumers. 


Multiple purchase channels
 
When purchasing goods from only one channel, there will be limitations in space of cost reduction, product types and styles, which is not conducive to increasing sales. 
 
Fast fashion department stores usually cooperate with hundreds of manufactures and brands to ensure the diversity of products. Besides, products with higher cost performance will be selected by comparison of multiple channels and cooperation with effective logistics teams.