Friday, May 24, 2013

5 Factors that Affects Your Shoe Business

“How much do you know and understand about the shoe industry?” This is one of the first questions that you have to ask yourself before setting your hands on this venture that will require your time, money and dedication.

The level of understanding an entrepreneur has about the industry he’s in is essential in the success or failure any business. If you want to join the shoe industry as manufacturer, wholesaler or retailer, you should be able to broaden your understanding about the factors that affects your business in short term and long term basis. This way you can easily devise a way to respond more quickly to the needs of your clients. Likewise, it will also make it easier for you to spot opportunities and threats inside and outside your company.

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In order to guide you in becoming one of the established shoe brands in your area, here are some factors that greatly affect the shoe industry.

  • Price - Anything that has to do with money is a great player in any business. Understanding how this works in your advantage can help you in making names in shoe industry. Putting competitive price tags on your products and services can attract more customers.

Americans are known for being price conscious when it comes to items they buy. In fact, four out of ten shoes are sold at a discount. Keep in mind though that competitive price is not entirely synonymous to cheap pricing. Check how well your prices fit the quality and usability of your fashion shoes and how your consumers respond to it.

  • Weather - There are different kinds of shoes that women wear depending on the occasion and the weather. Offering different items that fit the climate and lifestyle of the people in your area can be a great way to increase your sales. Sell knee boots or calf boots during winter and stock up with thongs and sandals during summer.

  • Target Market - As you determine your target market in the beginning of your business, you must also consider their purchasing power as well the style or designs that they are after. If you want to cater to a specific target market, create a trademark that can be easily recognized by them and provide for their footwear needs.

  • Other economic Factors - Surging economy means people are happy and have more money to purchase wholesale shoes but during a recession people might be more concerned about putting food on the table or keeping their house than buying shoes. Carefully analyze the industry and try to adapt your business with the general economy.

Engaging into a business means being smart about your investments. Understand these key factors and use it to grow your business as well your entrepreneurial skills to be successful in this industry.

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