There was a recent newspaper article which reported several local labels have closed their stores or ceased operations totally. One retailer even reported this year's sales was their worst and they could no longer afford to have their store. And they now only sell on consignment in stores. Such reports are really saddening.
I am not a guru in business but I certainly hope to celebrate Fuchsia Lane's 50th anniversary and beyond. So here are my thoughts.
1. Treat your customers as friendsThere is a saying treat your customer as king but I feel this is too pandering. I prefer to treat them as friends so I always recommend what looks best on them and what not to get. I remember their names, their purchases, their birthdays, their stories about their childern and hubbies. I put on a big genuine smile whenever I see them like I see a friend. I sms or call them occasionally. And they can feel it I believe. And vice versa I also share with them my difficulties in being a young start up and many of them understand.
2. Be Creative and ProactiveEverywhere now I see stores slashing their prices. I feel that consumers have become immune to storewide discounts. And if you only give discounts all the time, it seems to mean you have nothing to give your customers except discounts. For myself, I try to value add, address my customer's needs better and keep coming up with unique designs that flatter a woman's body.
Naughty Nights Retail Therapy came about becuase I realised my customers are occupied with working or taking care of the kids during normal hours. So I tried late night shopping which was more relaxing. People tell me I am mad as the area my store is in is deserted after office hours but the idea worked and it was fun! And we proactively look for sponsors who supported our Naughty Nights idea.
3. Surround yourself with supportersSurround yourself with people who believe in you, rally around your cause and will help you. This creates positive energy. No one can do everything alone and dont be afraid to ask. Gary is my biggest supporter. He provides advice when I am perturbed, design ideas from a guy's point of view and is the carpenter, the driver, the delivery man and the list goes on.
Many of our sponsors of our first "In Love With Passion" fashion showcase last year agreed within a few days! Our Presenting Sponsor On Cheong Jewellery sponsored us cash as they believe in my talent and the branding potential that comes with supporting a young designer. Thank you to all! These people allow me to go further.
4. Be Firm When you are young and a new start up, everyone tries to "eat" you. It is a vicious world out there and you need to stand firm to command respect. Dont be afraid to walk out if the other party offers you unfair terms. I must have earned myself a reputation for being a chilli padi over these years.
I rejected a prestigious hotel as the terms offered were unfair even after months of discussion. The hotel initially offered to do a direct purchase of my items which really sent me over the moon. After 2 months, the manager told me the management changed decision and decided to consign my items instead at their shop. And they would not be responsible for any items lost, stolen or damaged. I cant imagine that behaviour came from an international luxury hotel who earned billions in a year. They told me other "suppliers" have readily signed it. Well I decide how I want to be treated.
5. Guard your cashCash is the blood of businesses. Many profitable businesses close becuase of lack of cash. I go weak in my knees when I see catalogues of pretty laces and trimmings and I want to buy them all. But stocks "eat up" your cash. Pay only when you need to, delay your purchases when you need to and do a cash flow projection. I am still trying to learn this.
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