Day in and day out, new products keep surfacing in the retail industry. Some become successful after a while and some fail and vanish from the industry. Unfortunately, the success of a new product cannot be determined in their initial stages which presents difficulties to retailers venturing into the retailing of these products.
While retailers are careful of new products, they can still be coerced into venturing into new products by the constant demand of that product by customers and also suppliers presenting those products to them. Retailers should always be prepared for a new challenge and thus should ask themselves these few questions before finally venturing into the retail of a new product.
Does the product fit into my style of business?
Your style of business refers to the kind of product you deal in and the type of business you have (online or physical). If it’s physical, can your shop hold the new products? Will the new product survive among your current products? Will the new product affect the sale of your current products? Favorable answers to these questions can determine if you can go into the retailing of the new product. For instance, if your current retail products are cosmetics, it will be unwise to venture into food products unless you have a separate space for them.
Is it profitable?
Sometimes, new products can become popular in a certain period of time and you might be tempted to look that way. You must therefore consider the profitability of that new product before you look that way. Consider the cost of the new product itself, cost of advertising the product, cost of utilities and finally any cost associated with buying the product to be assured of favorable profit. Otherwise, withdraw from going for this new product. In retail, the two sides of the coin are to make profit and serve your customers. A product serving only one purpose of the coin should not be entertained.
Is it accepted by your immediate market?
Retailers should know that every market has a different preference when it comes to products and it can be very hard to convince customers to accept a totally new product. The fact that a new product is selling well in a different state or region does not mean it will sell well in your state or region, especially if your customers have no information about the new product or have not come to terms with the new product. Retailing can be very simple. Sell products that your customers demand.
Is the product of good quality and not harmful?
Before stocking up a new product, you should ascertain if the product is of good quality and not harmful to your customers. Satisfying your customers should be your top goal and thus providing quality, good taste and durability to your customers must be a priority to the retailer. 98% of customers won’t return to buy a bad product which will result in losses in sales.
Hopefully you have been able to answer these questions and can now go ahead to order the new products you have been contemplating about for a while now. Goodluck.