End of Season Markdowns
This article covers meaning & overview of End of Season Markdowns from marketing perspective.
What is End of Season Markdowns?
Life of a product can be determined as of two types. First, the shelf life of a product i.e. the time duration beyond which the product becomes unusable. Second, the trend life i.e. a product has high demand as long as it’s in current trend. Several products such as apparels fall into the second category, where a stock is designed for a season. With the advent of new season or new fashion, the current stock tends towards obsolescence and its demand slacks.
In order to clear the inventory of existing stock before launching the new stock, sellers often start selling the existing products at discounted prices. Such inventory is also known as terminal inventory. This method of stock clearance at the end of a season is called end of season markdown. The degree of markdown and its timing is critical for maximising return on sales.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
Continue Reading:
