In-store sales, consignment sales, phygital sales, etc. What are the differences?
Fashion designers have several marketing channels at their disposal to sell their collections. Each of these models has advantages and disadvantages depending on the brand's objectives, available resources and target audience.
Whether through direct sales in stores , online sales , phygital with E-POP MODE , consignment sales , or even pop-ups and trade fairs , choosing the right channel is essential to maximize profitability while minimizing risks.
I started an analysis of the different marketing channels available, based on the criteria of Costs , Profitability , Visibility , and Stock management, in complete objectivity 😎.
E-POP MODE, it is the 💗 that is at the origin of the project. We can see it on the graph below 😉
Click on the images to enlarge them
So how do you choose the marketing model for your brand?
1. Direct in-store sales: an immersive but expensive experience
Direct sales in stores allow designers to offer an immersive experience to their customers, with a strong and personalized relationship. This is the place where the brand's universe can be fully expressed. However, fixed costs are high , because the store has significant expenses (rent, salaries, consumable expenses, stocks), which it must compensate for with a high margin coefficient.
Inventory management is also complex, as unsold items often need to be restocked, creating additional financial risk. The store’s visibility is primarily local, which can limit customer access if the store is not located in a high-traffic area. However, for established designers or in sought-after neighborhoods, this model can be profitable if sales volumes are high.
2. Direct sales on the Internet: flexibility and beyond borders but...
Selling online offers enormous flexibility with low to moderate fixed costs , including website creation and maintenance, payment systems, and digital marketing. It also allows you to reach a global market , although competition is very strong. So plan for good social media activity and a good advertising budget.
Variable costs , such as delivery costs, returns of goods ( in France, 44% of Internet users surveyed returned at least one product ordered on the Internet during the year 2023 - Consumer Insights study by Statista.) and bank commissions (from 2 to 3%), must be taken into account to assess the profit margin, which can be high if management is well optimized.
However, the customer relationship is less direct than in a physical store, which can pose challenges for brands that rely on strong interaction with their customers.
3. Phygital Sales: the best of both worlds?
E-POP MODE combines the advantages of physical store sales and e-commerce. The designer benefits from free catalog representation and digital visibility, while being present in several physical stores. This model optimizes cost management and offers a personalized customer experience , both in person and via digital tools.
Fixed costs are low , and the profit margin is optimized , with a minimum margin of X2 guaranteed compared to a traditional sale. Inventory management is simplified, because it is managed jointly with the creator. This model offers great flexibility and allows the offer to be quickly adapted according to market trends.
4. Consignment: an economical solution but with a low margin
Consignment is an attractive option for designers looking to minimize fixed costs . Items are consigned to a store that sells them in exchange for a commission ranging from 30% to 50% . This reduces the financial risk for the designer, but affects the profit margin .
Visibility depends on the brand's reputation and how it promotes the items. Inventory management is handled by the store, but requires regular replenishment by the designer. This model is suitable for those who want to test the market without committing to high investments, although control over product presentation is limited.
5. Pop-ups, trade fairs, ...: a temporary spotlight
Pop-ups , as well as trade fairs and exhibitions, allow you to create an event around the brand for a short period of time. Fixed costs are low , but variable costs mainly covering decoration, communication and space rental are significant. Visibility is generally high , but remains limited in time.
This model allows for a strong and personalized customer relationship , while allowing the designer to test a new market or launch a collection exclusively. However, inventory management must be well planned, as the event is ephemeral, and the profit margin will depend on the designer's ability to quickly recoup the organization costs.
Choosing the right channel according to your objectives...
The choice of marketing channel depends on the available resources , the desired reach and the type of customer experience the creator wants to offer. In-store sales are ideal for creators with local notoriety and looking to offer an immersive experience. Online sales are better suited for those who want to go beyond borders and have flexible management. Phygital combines the advantages of both, offering both a customer experience and an optimized margin. Consignment sales are a good solution to minimize financial risks, while Pop-ups and trade shows are perfect for one-off launches with intense visibility.
