Daddy, Chasing Mommy Back is On Us! novel Chapter 113

“Well?”

“Yard Group is indeed in trouble. There is a massive shortage of capital as their sales performance reached a new low this year. It’s mainly because your father signed a huge order at the beginning of the quarter when pre-ordering raw garment materials in order to purchase at a lower price. The supplier requested full payment in advance, so this led to the massive shortage of capital.”

Selena snorted. I just knew it! “How stupid!” I’m again convinced that he isn’t suited to do business. After all, he loves petty gains.

“The few brands by Yard Group in the past were excellent, especially Jewel Blossom. Many young people loved it, so I have no idea what happened in the past few years,” Linda muttered.

“The few brands by Yard Group had a clear positioning in the past, focusing on the young and fashionable. The selling price was set at a few hundred, so many young people could afford to buy. Sales performance would still be pretty good with a slight discount. However, ever since they switched to a certain designer, the clothes they design became all the more capricious, and the prices were even hiked. Clothes that were a few hundred before are now a few thousand, which is why it is discouraging young people to purchase it. Besides, their fashion taste is now turning off the consumers who can afford their clothing. It’ll be a miracle if they can sell when they neither cater to the high or low-income bracket now.”

Linda nodded incessantly. “I found out that Megan Yard is now acting as the vice president, and she launched a series of promotional activities. One of them is the bundle discount, and it’s said that the lowest discount is 10%! They even have a mystery bag event online with an exceedingly low price of 99. Also, I heard that live streaming e-commerce is also promoting a few brands by Yard Group.”

Upon hearing this, a splitting headache assailed Selena. “They’re simply courting death!”

Tilting her head, Linda gazed at her. “But their promotional sales are doing very well. I heard that many people are now buying frantically!”

Selena pursed her lips and shook her head with a smile. “What’s the biggest fear in the clothing industry? Inventory. Once there’s too much inventory, it’s going to bring about a huge expenditure to rent the warehouse. Besides, this years’ clothes can no longer be sold next year. Thus, businesses have no choice but to have sales in order to clear the inventory since its effect is immediate. However, once there’s excessive promotion, sales for the next year will decrease even further because consumers already know that they can buy the clothes at a very low price after a month or two. If it were you, would you still buy them at the original price?”

“Of course not! Well, unless I really like it. Or else, I’m not that big of a fool. I’ll naturally wait until the sales a month or two later to buy!”