2014 Trends For The Retail Fashion Industry

With the new year upon us, retail fashion store owners across the country are preparing and strategizing for the 12 months ahead. In the world of retail fashion, trends play a pivotal role in the success of a business. Stores offering 'hot' garments that are popular and in high demand will ultimately trump stores offering dated, low-demand garments. This goes back to the basic economic principles of supply and demand. So, what are some retail fashion trends to look for in 2014?

Niche Stores

If you live in a highly populated city or suburban area, you're probably well aware of the growing number of niche apparel stores opening up. There are still plenty of national chain retailers which offer all types of apparel, but small businesses tend to have greater success when operating niche stores focused around a specific type or category of apparel. 

For instance, female teen clothing stores have become a popular niche, as they target a specific demographic. If a young girl wants to purchase an outfit, which store do you think she would choose: a general apparel store or one that specifically sells female teen apparel?

You read more about how to choose a niche for your retail apparel store in our previous blog post located here.

Go Mobile

If you aren't incorporating mobile into your retail apparel store's overall marketing strategy, you're missing out on a massive amount of untapped potential. According to a recent State of The Internet Webinar, mobile web traffic will trump desktop traffic in 2014. This means store owners with a web presence must cater to the unique needs of smartphone and mobile users; otherwise, all of this traffic will end up going to their competitors.

Even if you don't operate an e-commerce website for your retail apparel store business, you can still utilize mobile into your marketing strategy. Quick read (QR) codes have become a hot trend that's growing in the world of retail. These square-shaped bar codes allow businesses to market their products and services to mobile users. Users scan the QR codes with their smartphone or device to access to a webpage. This webpage may contain promotional codes, discounts, coupons, new products, or practically anything else the store owners chooses to display.

Fashion on a Budget

There's a growing consumer demand for inexpensive fashion garments as opposed to luxury, high-dollar items. Don't get me wrong, consumers are still buying the $1,000+ handbags, but not nearly as much as the lower-dollar items. If you operate a retail fashion store, consider offering more of the budget-friendly garments and accessories to your clients.

Understanding Point of Sale (POS) In Retail

Point of sale (POS) is a term that's frequently tossed around in the retail industry. Market analysts, retailers, accountants, and more use the term on a daily basis. Even with its widespread use, however, some people are completely clueless as to what exactly a point of sale system really is. In this blog post, we're going to take a closer look at POS and how it relates to the retail industry.

POS: The Basics

The short definition for POS is the location where a customer exchanges money (or credit) for a retail store's product (see image to the right). The most commonly used type of POS in the retail industry is a cash register. Here, an employee takes the customer's cash, credit card, debit card, etc. in exchange for the product. It's a simple process that plays a critical role in the overall function of a retail store.

Why POS Are Important In The Retail Industry

The bottom line is that retail stores and businesses can't operate with a POS. The entire purpose of a POS in the retail industry is to perform the exchange of goods for money. Without it, stores wouldn't be able to effectively sell their merchandise to customers.

However, point of sale systems serve an additional purpose in stores and retail businesses: they help manage inventory. Depending on the particular type of system used, some POS systems automatically subtract the purchased item from the store's inventory. This automation takes some of the burden of trying to manually count each and every item off the store's employees. Once a customer purchases an item at the POS, the system subtracts the item from the inventory, allowing the owner and manager to see exactly how many of which products are currently available.

Different Types of POS

While cash registers are the most commonly used type of POS system in the retail industry, there are several other types as well. Ever visit a grocery store or national department store and notice the self-checkout registers? These self-checkout registers fall under the category of a POS. Even though there's no employee present, they are still responsible for performing the exchange of goods for money.

Of course, POS systems don't necessarily have to be high-tech. A street vendor accepting cash for his or her goods is technically a POS.

Hopefully, this will give you a better understanding of POS systems in the retail industry.

How To Reduce Employee Turnover Rate

Does your business suffer from a high employee turnover rate? There are both direct indirect costs associated with high turnover rates. Some of the direct costs include training programs for new employees, time and resources spent hiring new employees, and the cost for new equipment. Indirect costs may include gaps in production, reduced morale, reduced performance, etc. Allowing your business rate to suffer from a high employee turnover rate will only hinder your professional goals. Thankfully, there are some simple steps business owners can take to encourage longer tenure among employees.

Screen Potential Job Candidates

One of the biggest mistakes business owners make is hiring the first candidates who apply for the job. Even if they have all of the right credentials listed on their application, this doesn't necessarily mean they are fit for the job. And hiring candidates such as this without screening them beforehand could have disastrous consequences for your business. Some workers strictly want temporary jobs for a little side cash, so try to determine candidates' short and long-term goals.

So, how can business owners determine a candidate's goals? When you're interviewing a candidate (you should always interview candidates before hiring), ask them how long they plan to stay with the company if they are hired. A good answer to this question is "as long as possible," but you'll want to beware of candidates who say a couple months or even a year.

Show Appreciation To Employees

There are many factors that can drive employees to quit their current job and look for work elsewhere. The single most common reason why workers quit their job, however, is because of lack of recognition. Cutting your employees a check once every two weeks isn't enough; instead, you should implement some form of recognition program to show appreciation for everything they've done. You don't have to spend thousands of dollars on expensive gifts, but a simple recognition will go a long ways in reducing turnover rates.

An employee-of-the-month program is one example of an employee recognition program. Perhaps you could dedicate a wall in the office to employees of the month. There are dozens of companies that specialize in plaques, trophies and other gifts specifically for this reason.

Other Tips For Reducing Employee Turnover Rates:

• Allow employees room to grow and work their way up the professional ladder
• Keep employees involved in current and future changes within the company
• Make sure employees are given time off
• Maintain a positive attitude

Laying The Foundation For Long-Term Success

Most entrepreneurs start a business or company hoping that it will achieve not only immediate success but long-term success as well. Once you've invested a large portion of your time, energy and financial resources into a starting a business, you probably don't want to start all over again. This is why it's important to always keep one eye looking down the road at the future of your business. Owners who remain shortsighted by focusing only on the immediate needs of their business will likely suffer as a result.

Setting Goals For Your Business

Laying the foundation for long-term success of a business starts with clear professional goals. Ask yourself what you hope to achieve with your business. Using a pen and paper, write these goals down and hang them in a visible area to serve as a constant reminder. If you happen to lose focus or drive, you can look up at your goals to get your business back on track. Revealing these goals to your employees is also helpful at encouraging and motivating them to work more efficiently.

Set both short-term and long-term goals for your business. Short-term goals will give you and your employees something to immediately strive for, while long-term goals will act more as a roadmap for the future success of your business.

Grow With The Times

Businesses must keep up with the times if they wish to succeed later down the road. We live in a high-tech age where people use Google and social media sites to locate contact information for businesses more than phone books. If your business lacks an online presence, you are missing out on one of the key tools for any modern-day business. Launching a website and a social media networking page for your business takes very little effort but will pay off huge.

Of course, this is just one example of "growing with the times." Don't be afraid to adjust and modify your business according to recent trends and technological advancements. Complacency is a killer for businesses and companies, so don't allow yourself to fall victim to it.

Products and/or Services

Want to know the secret to achieving long-term success with a business? It's offering a product and/or service that's superior to your competitors. This will naturally attract more customers while creating a name for your business through word-of-mouth marketing. Focus on building an exceptional product or service and you will reap the benefits of long-term success.