The price of branded products found in factory outlets is less than the showroom. One of the direct reasons for this is that goods come directly from the factory and it is a means of stock clearance. Some of these are also of stock manufacturing defect products. Apart from this, there are many such reasons, due to which the price of products found in outlets is low.
If you are getting 10 percent discount on the price of different products of that brand in a shoe or jeans showroom, then the same goods are available at 50% less than MRP in the factory outlet. The biggest thing about factory outlets is that the products of expensive brands here also become available to people at very low prices. There are many reasons behind this, which has also been mentioned by experts in the retail sector in their report.
Old and new stock does not make a difference in outlets
There is no difference in the factory outlets many times like old and new stock. Many times such products are also sold here, which are not finished through the stock showroom. In such a situation, these are sent to outlets for stock clearance directly from factories and are sold here at the direct factory price. Because of this, their price is much less or half than the showroom or other retail shop. At the same time, new stocks also come in outlets. They are also sold at the factory price. Outlets are a way of stock clearance of factory branded products.
Outlets do not have a mess between wholesalers and retailers
Stocks in any large brand showrooms usually come through big wholesale traders. There is a distribution channel here. Wholesalers, then retailers before the factory. Also its marketing. Due to this, the factory price showroom of the products increases. At the same time, the stock outlets come directly from the manufacturing unit. There are no links like distributors and wholesalers. The role of wholesale and retailers also ends. This is the reason why goods are sold at a lot of discounts in outlets.
Manufacturing defects also run in outlets
The brand quality maintains in the showroom of any branded clothes, shoes or other accessories. Stocks of products coming here are completely new and fresh. Also, stocks are asked to keep the existing trends, fashion and season in mind. Because of this, the question of selling them at low price or high discount does not arise. At the same time, the stock is old or not new in the outlets. Even if there is a manufacturing defect, it runs. It is sold directly from the factory cost at a higher price, which is much lower than the showroom price and customers get it at 60 to 70 percent less than its actual market MRP.
Low cost of factory outlets
All branded products are found in factory outlets. At the same time, there are not many staff like showrooms. Also, outlets are mostly far away from the city or in places that are less expensive. Often outlets occur on the highway away from expensive malls or marketing places or at an independent place. Because of this, their fare is also much less than open showrooms in expensive malls. The outlets do not even have much tams and there are more staff here. Due to this, marketing costs in factory outlets are very low. Since branded products coming here directly come from the factory, low operational costs, limited service, low fare and distribution chain or retailers cost are less and do not affect the price of the product.
Outlets benefit both brand manufacturer and customer
The factory outlet is beneficial for customers as well as manufacturers. From the factory outlet, consumers get branded goods at a lower price, while the manufacturers have their own control over the outlet at their outlet. They can run the store in their own way. They spend their old stock here at their own cost. They do not have to spend much on inventory or distribution. Also, manufacturers in their own way consume a mixture of new fashion and old stocks here.
The quality showroom of products found in outlets is less than
Due to the increasing concept of outlets, some big brands have started such a series of products in some places in India and abroad, which is only for factory outlets. According to a survey by CBC Marketplace, the outlets were so far cleared of stocks with stock and light manufacturing defects which have not been sold in the previous season till now. But, some companies offer a specific series for their outlets, which are less in quality from their showroom product. Due to this, the price of products found in outlets is less than the showroom.