E-POP Fashion vs Traditional: Which purchasing model for stores?
In a constantly changing market, multi-brand boutiques and concept stores seek to maximize their profitability while limiting their risks.
Traditional retail, which relies on purchasing and storing collections, has significant financial drawbacks. On the other hand, E-POP Mode offers an innovative alternative that transforms the way stores manage their inventory and margins.
1. Purchasing stock: A significant cash investment
In a traditional model, stores must purchase their collections in advance, thus tying up a significant portion of their cash flow. Each item purchased is a direct investment that is only profitable if it is sold at the initially planned price.
However, faced with the need to sell off unsold items or liquidate them, margins can be significantly reduced, sometimes by half. Between storage, shelving and fluctuations in demand, stores must juggle uncertainties that impact their profitability.
2. E-POP Mode: A Flexible Model with No Risk of Unsold Items
With E-POP Mode, boutiques display collections without having to immobilize a large amount of stock. Rather than investing massively from the start, they benefit from a model where each sale made directly generates income.
From the first sale of the month, the store receives an additional amount that further optimizes its profitability. Subsequently, each sale allows you to obtain a percentage of the public price, without having to manage unsold items. This model ensures financial stability and optimization of cash flow.
3. Difference in Profitability: Expenses, Gross Margin and Net Margin
An often underestimated aspect of running a store is the difference between gross margin and net margin.
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In a traditional model , the gross margin may seem attractive, but it is quickly reduced by associated costs: storage, shelving, depreciation of unsold items, personnel costs, and miscellaneous expenses. After deducting these costs, the net margin can be significantly lower than what was initially planned.
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With E-POP Mode , storage and unsold stock costs are eliminated, allowing for more predictable and stable profitability. Net margin is optimized because it does not suffer from the declines caused by forced sales or unsold stock losses.
Thus, with equal turnover, the store that adopts E-POP Mode maintains a better net result and can reinvest its resources more strategically.
4. Comparison of Financial Benefits
| Criteria | Traditional sale | E-Pop Mode |
|---|---|---|
| Initial investment | High, cash immobilization | Very low, financial flexibility |
| Risk of unsold items | Important, may reduce margin | No risk, every sale generates income |
| Flexibility | Low, frozen stocks | Collections renewed monthly |
| Net margin | Varies depending on charges, balances and unsold items | Stabilized and predictable |
5. Why E-Pop Mode is a Strategic Choice for Boutiques?
✅ Cash flow release : Less money tied up in stock. ✅ Guaranteed profitability : Each sale ensures a predictable margin. ✅ Zero unsold items : No need to sell off or liquidate. ✅ Attractive and renewed offer : Boosting the point of sale. ✅ A scalable model : Adapted to new consumption habits.
A Modern and Profitable Model
By opting for E-Pop Mode, stores reduce their exposure to financial risks while increasing their profitability. With a flexible approach adapted to current trends, this model makes it possible to make the most of each sales opportunity without the constraints of stock.
It is important to emphasize that E-POP Mode is not intended to fill a store . We offer a selection of pieces exclusively made in France, in limited series, in order to provide an original and complementary offer to the existing assortment of stores.
