What is the location & competition factors, If a person want to open a retail store specializing in high quality high price children clothingRelated to marketing management
clairewait | Certified Educator
Well, there are a number of questions this person would want to ask before opening.
- What is the average age and income demographic of the area I'm looking at? The store would not only require famililes with money but families with children.
- What are the hobbies, personal-interests, cultural opportunities available in the town? Consider that some towns have families who have money, but aren't spending that money on expensive clothes because they have nowhere to wear them. Spokane, Washington is a good example of this. High-end fashion tends to pass right over Spokane (despite the abundance of money) because people aren't getting dressed UP for anything around there - really. This children's clothing store would need to target adults who purchase and wear expensive clothing - because those are the only people who dress their children expensively.
- What location will make my store the most convenient to the highest number of potential customers. Shopping for children is not easy - most people want to be in and out as quickly as possible AND want to combine trips into one - if you have to tack a 30 minute drive to either side, forget it. This guy would want his location to be convenient to other stores, places to eat, and neighborhoods with kids.
- What other stores exist that would be in competition, what kind of clothes do they sell and at what prices? If it turns out this is a town that has the money to spend on expensive children's clothes (and would), likely there are already high end children's stores around. How many?
- How many consignment stores will I be competing with? Again, usually in a demographic where people WANT and purchase expensive clothes, they want to be able to resell them - especially children's clothes. They are outgrown so fast that styles often haven't changed. Almost every mother of young children hates to get rid of a nice piece of clothing even if it doesn't fit - unless they know they can get some $$ for it. And if they are consigning clothes, they are purchasing consigned clothes.