The Chattering Wind

Tuesday, February 05, 2008

The Pessimist Vol 1

I believe that there is a over supply of niche fashion shops in shopping mall. I do not believe it is sustainable in the long run. Shops that still exist may be barely surviving or sustaining perhaps with VCs of close relations (family)or maybe just eating their own past profits.

Shops that target the wealthy may sustain as they are not volume orientated as I assume. They are more of a higher margin and high class targeted business.

For shops that targets the mass, shopperholics will still shop, but will consider twice as accounting inflation to their income, they may not afford to buy more. If everyone cuts their spending by maybe one blouse or dress each, all shops revenue will decrease by a multiplied effect due to the population ratio between shoppers and retailers.

Therefore those with sufficient capital to last this oversupply, are able to improve their branding, continual R&D(Research & Design) and prudent money management will sustain in the long run.

Or else, volumisers(not hair) will see their shops close.

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