Garment market during Tet: "Recession" of wholesale goods?

(Baonghean) - The time before the Lunar New Year, the most bustling market of the year, along with confectionery, dried food, household goods, ... the demand for clothing also increased significantly. In fact, in recent years, the thinking and tastes of fashion consumers have changed significantly, requiring sellers to be flexible and sensitive to avoid being "sunk" in this market that is somewhat saturated in supply and demand.

Declining purchasing power and new challenges

The second floor of Vinh market's main hall was bustling with people around 9am. The stall owners were attentively checking the newly arrived goods, instructing the staff to fold, wrap, and arrange them into categories according to size. Groups of customers walked between the stalls, occasionally stopping to look at an item that caught their eye. Some people came from neighboring provinces, districts, and towns, who must have arrived early, and were seen carrying heavy loads of newly purchased items. But amidst the bustling trading scene, there were also quiet corners of the market, where stall owners sat flipping through books, calculating ways to collect year-end debts or cover upcoming shipments. Talking to some ready-made garment businesses at Vinh market, it was known that most of the stalls here serve wholesale customers. The target customers could be owners of retail clothing stores in and around the city, or distributors in districts across the province. Thus, the main products sold at Vinh market are ready-made garments of mass production, serving customers who do not have high demands. The number of visitors coming to buy garments at Vinh market is not too much, most of them order by phone.

Customers shop for Tet at a ready-made garment stall at Vinh market.

Understanding the characteristics of goods and buyers, from there finding the answer to the situation of sluggish sales, clearly declining compared to previous years. Ms. Le Thi Kim Dung - the long-time owner of a ready-made garment stall for children at Vinh market said: "Previously, I mainly supplied ready-made garments to the retail market in mountainous districts such as Con Cuong, Ky Son, Que Phong. At that time, transportation was still difficult, buyers did not have the opportunity to contact the outside market, so the above form of sales was very effective. But now the roads go all the way to the village, many traders bring goods to the commune, from the commune they use motorbikes to bring goods to every corner, to the buyer. Local retailers cannot compete, and they cannot sell their goods, which means no one buys their goods."

A fashion shop owner on Nguyen Van Cu Street (Vinh City) advises customers on choosing clothes.

This is also the common mood of many ready-made garment stall owners at Vinh market. It is known that in previous years, at this time, goods sold very well, no matter how much goods were brought in, they did not worry about unsold goods or losses, but now, the consumption level is not much different from normal days. According to the sellers' estimates, the consumption in 2014 decreased to only about 1/3 of the consumption level in 2013. The main reason is as stated above, and the sellers themselves understand it clearly, but what is the solution? “We know that we have to change our business direction, diversify our products and target customers, but change is not easy. The products need to follow fashion trends, be trendy and meet consumer tastes. At the same time, we have to be more meticulous in getting the goods. There are people who have gone directly to Mong Cai to get the goods, even to China, but most of them are young people, or have to ensure a stable customer base before they dare to invest capital to do so” - Dinh Thi Chung, owner of a wholesale store in Vinh market shared.

The reason why ready-made garment traders in Vinh market are still hesitant and afraid to change to such a risky business direction is partly due to the inherent characteristics of the previous wholesale form. In reality, most of the transactions between stall owners and wholesale customers are carried out in the form of debt. Due to geographical distance, stall owners usually only collect debts 1 to 2 times a year, and do not always collect all the debt. Although it is hesitant and complicated, everyone tacitly accepts this reality, because now the market is saturated, supply exceeds demand, so sellers sometimes have to accept being in a "lower position" in trading transactions in the hope of keeping customers. In return, the traders themselves also buy debts from the main owners of other provinces. This complicated relationship keeps "recirculating" like that, creating a rut in the thinking of traders, which is the worry about uncertainty, instability and great losses if an incident occurs in the transaction relationship.

Need to change business perception

In fact, according to observations at Vinh market, most of the stalls with a relatively large number of customers such as Lam Mai, Quang Thang, Vinh Hong, etc. are all in the direction of selling fashion goods, focusing on young customers. To see, the change is necessary and also completely feasible, in the time when the mass market is saturated and the needs, requirements and fashion tastes of consumers are growing day by day. The most obvious consequence is the density of fashion clothing stores in the city, especially concentrated along roads such as Nguyen Van Cu, Dang Thai Than, Le Hong Phong, etc. Is this direction easier than doing business at the market?

Maybe not really, because walking through the above "fashion" streets, it is easy to see that many shops are always closed and empty of customers. At a clothing shop located on Nguyen Van Cu Street, which is known by many young people today and chosen as a regular destination, Ms. Hoang Thi Thu Huyen - the shop owner said: "I started my business in October 2013, and everything is still going well. Of course, business also has its charm, but I think my shop is doing relatively well for several reasons: Before opening the shop, I used to sell cosmetics online, so I also built a relatively good network of relationships. Also through social networks, I realized that my "taste" in dressing is quite suitable for the tastes of young people, and is supported by many people, so I boldly opened a shop. Second, my shop pays a lot of attention to decoration and interior, so although it is small, it "attracts" the eyes of young people to buy. Third, all the goods are directly selected by me after carefully researching the goods in the market outside the province, avoiding duplicate designs. When it comes to fashion, everyone wants to be beautiful and not clash. products, express your personality!

Observing, we noticed that the density of customers entering this store was quite high. Some people came to see and try on an item they had "spotted" on the young owner's social networking site before, some people stopped by out of curiosity when passing by the small, pretty store, displaying coat models with colors that are very "trendy" this year. There were also customers who came to pick up the purchased items but left them at the store to have them altered to suit their body shape... Each person has a different need, but everyone was warmly welcomed and consulted very openly and enthusiastically about their dressing style. People felt like the person they were talking to was not a salesperson, but a close girlfriend who understood them and went shopping with them. And perhaps this is also one of the things that made customers come to Ms. Huyen's store.

Asked about the consumption demand of the fashion market in Vinh and neighboring areas, Ms. Huyen said: “Customers' demands, especially young people today, are relatively high. The price criterion is sometimes only secondary, because even if it is a bit expensive, buying a set of clothes is not like buying a TV, refrigerator, etc. The price is still within an acceptable range. Especially at times like this, preparing for holidays and Tet, customers are willing to spend a little more money, as long as the clothes are beautiful. So I think that when doing fashion business, you should not be afraid of investing capital, effort or risk. Sell to customers the items that you yourself want to wear!” Ms. Huyen also said that in the near future, she may expand her business and differentiate her products to serve a more diverse customer base. To see, for fashion business in particular and business in general, it is always necessary to be sensitive to clearly identify who your target customers are, what they need in order to be able to meet them, bringing the supply-demand relationship to a balanced position in both quality and quantity.

Changes in perception, taste or living standards will lead to changes in consumer demand, and the demand for fashion for clothing is no exception. In addition to many reasons leading to the market being somewhat sluggish near Tet holiday compared to before at Vinh market as mentioned above, the issue is that business people need to renew their thinking, awareness of understanding and grasping the tastes and needs of customers to show respect for the "gods" is very necessary in this time; or in other words, customer satisfaction is the most solid foundation for transactions and trading.

Article and photos:Thuc Anh