Big Business, Small Store

in Manufacturer
A number of large manufacturers, especially those in the apparel and consumer products industry, are getting back to their roots by establishing in-house stores where their products are sold.

Large manufacturers, for a time, preferred to rationalize their resources by outsourcing some of the aspects of their operations to third parties. It was typical of any large manufacturer to offer third party distribution contracts instead of relying on their in-house marketing and distribution network. However, this diminished brand recognition for manufacturers, since many distributors also had retail concerns and managed to gain name recognition because of the products of manufacturers.

The retail industry responded to this problem of manufacturers by offering the outlet store. An owner or developer of a retail complex offers a manufacturer space for selling their products. While a manufacturer continues to honor its distribution contracts, the outlet stores allow the manufacturer to restore their brand recognition with consumers.

Outlet stores are especially good instruments for brand recognition in small, lesser known tourist spots, with the tourists teaching the local market of the brands quality and, consequently, the manufacturers reputation. In the meantime, the local economy benefits from the revenues earned from sales from these stores.

As to the proliferation of outlet malls, Florida is still a large market to conquer. Especially in small areas that are opening up to tourism, manufacturers hoping to gain a foothold can rely on the tourist population to augment sales with the locals.

For a small outlet mall, Florida would present an opportunity for sizable sales. The key to growth for an outlet mall would be location. Mixed use communities, where there are facilities for tourists and where there are ready locations for stores, would be advantageous for forming an outlet mall.

Malls in Florida will continue to be profitable enterprises as long as communities protect the infrastructure that supports tourism. What will be needed is more small support business for tourists, specifically for those with special requirements. Water sports and fishing are some of the prime areas of growth, especially in terms of equipment and facilities rentals. These sectors are good for locals to develop.
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Larissa Dobbin has 1 articles online


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Big Business, Small Store

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This article was published on 2010/11/03