When Changes Come Fast...
VILD Home Decor is a b2b company. We manufacture decorative accessories in the countries of India and China. VILD has been serving the home decor industry since 1996.
2008 was a remarkable year. Not ever one could imagine that change could happen so fast. It is quite unbelievable. Very few businesses can react quickly to this kind of downturn in the economy. However, after enjoying an amazing economy since 1990s, a downturn is expected.
We continue to talk to our customers across the nation. VILD has a base of about 2500 retailers. The theme from most of them is strikingly similar. All are very determined to fight and stay on. All are doing everything possible to ensure their survival.
Some of the things we do hear are as follows:
1. Survival of the fittest: This is the time for the survival of the fittest. There is no room for mistakes. One must know one’s game pretty well. What does that really mean? It means one must reduce costs across the board as much as possible and at the same time have a hawk like focus on your customer base. Know what they want and provide to them. If you can not, you are out.
2. It is about Value, Value, Value: Customers are looking for value. The time of excesses have passed. The time of forgiveness have gone. If one can not provide value, one will disappear. Talk to your customers. Ask them what they are looking for. Provide it with great service, good quality and on a timely basis.
3. Loss of Margins: Margins are squeezing across the board in all categories of home furnishings. However, we must be prepared to weather the storm by clasping hands in partnership with our customers and vendors alike. This is internet era. We must forge networks and spread critical information quickly. Unfortunately, there is a lot of unnecessary information available as well. We live in an age of information overload. One must know how to differentiate. Talking to people still can remain the most useful ways to gather critical information.
4. Luxury Items: Higher End items have gone out of favor quickly. Customers are only buying what is absolutely necessary. Discretionary spending is no longer available. One must carry items which are reasonably priced and have tremendous value to the customers.
5. Freight to deliver merchandise: Freight remains a major issue for the customers. Manufacturers continue to charge 15 to 20% freight to deliver wholesale merchandise to the retailers. This is not a very healthy practice any more. Retailers need to consolidate and ensure lowest possible freight cost or deal with manufacturers who provide free freight. On the other hand, manufacturers must negotiate hard with their carriers to get better rates.
VILD continues to be very agressive in addressing these issues. We have taken major steps in lowering our costs. We are passing those savings to our retailer partners. VILD has started a FREE FREIGHT program. VILD has also started to provide discounts to ensure lowest possible cost and highest possible value to the retailers.
This is the time of action and all of us must act quickly and decisively.
The team at VILD stands behind this industry and our retailer partners in this difficult economic climate.
I am very eager to hear your thoughts. I wanted to let you know that VILD is addressing all these concerns quite agressively. We are providing FREE FREIGHT and DISCOUNTS to help our retailer partners in business. We are there for you.
If we can further help in anyway, please do not hesitate to call us.