Fashion Wholesale Excellence

ADDING SCIENCE TO THE ART OF SELLING

Inspiration for the Industry Copenhagen, August, 2011

ADDING SCIENCE TO THE ART OF SELLING

Why Wholesale Excellence?

Fashion companies are, due to the industrys dynamic nature and the constant focus on developing new collections, often more unstructured than other industries

The lack of good effective structures increase the operations cost and inhibits the brand in exploiting its full potential

ILLUSTRATIVE

Turnover
The majority of brands underexploit their potential because of poor structure

Brand potential

By introducing simple flexible structures the Fashion brand will leverage its current full potential AND the structure will enable it to grow and realize its potential

ADDING SCIENCE TO THE ART OF SELLING

When The Going Gets Tough, The Tough Get Going... On A Cocktail Of Six Structural Ingredients
Driver Sales & service strategy Key questions What are the key markets, segments, customers, and sources of revenue? What are the commercial objectives and which strategies and tactics can realize them? What are the service levels to each segment? How is the sales strategy defined and cascaded to sales person level to ensure execution? What are the key sales processes and activities to realize the strategies and tactics? What are the key non-sales activities to realize the strategies? What roles are required to perform the key sales activities? What is the appropriate organization structure? What is the appropriate governance model? What are the critical touch points to other functions? What are the KPIs per sales role? What are the required performance management processes, tools and reports? How is customer satisfaction and feedback measured and used systematically? What are the required performance rewards and incentives? What and how are industry best practice sales tools and guidelines used? What are the requirements to performance reporting? Is a KAM and CRM system or practice in place? What are the required competencies of a each sales / sales manager role? What are the competency gaps? How can the competency gaps be closed? Are effective introduction and training platforms in place? 3

Sales strategy Sales force competencies FASHION

Processes

Processes

Organization

WHOLESALE
EXCELLENCE Sales tools & systems Performance management Organization
Performance management

Sales tools & systems

Sales force competencies

ADDING SCIENCE TO THE ART OF SELLING

Selling Accelerators Overview - Example of specific selling tools used in the 3* different selling situations that will grow sales significantly

SELLING-IN TOOLS

OTB** VISIT TOOLS

GETTING NEW CUSTOMER TOOLS

Objection handling DB: Selling-in

General Selling-in period preparation checklist Customer specific S/I preparation checklist Selling-in agenda

Objection handling DB: OTB

OTB preparation checklist OTB visit agenda Purchase suggestion Stock refiller Objection handling method Competitor weakness table Sell through table/calculator

Objection handling DB: Getting new customers

11 questions sheet Brand story & commercial arguments Customer visit reference sheet

The NASA principle, need activating questions and meeting structure RRP, Contribution, Mark up, wholesale price & stock turn calculator Customer type profiles and automatic preferences Budget split agreement
*Fair selling is regarded as a mix of selling-in and new customer acquisition **OTB: Open to buy (in-season sales)
White box: Tools used across more selling situations 4

ADDING SCIENCE TO THE ART OF SELLING

The Sales Force Competency effect on collection strength

Turnover

ILLUSTRATIVE

A strong salesforce makes more out of both a good and a troubled collection

Theoretical sales based just on collection strength

An average/poor salesforce makes the a poor collection worse, and do not improve a good collection

Time

ADDING SCIENCE TO THE ART OF SELLING

Example of competency areas CoCoCo ME has developed with Fashion Brands (Wholesale)
WHO Management Management Management Management Management Sales reps Sales Reps Sales Reps Sales Reps Sales Reps Sales Reps Sales Reps Sales Reps Sales Reps Sales Reps WHAT Budgeting and business planning Action planning Coaching Sales Management and leadership Anchoring new initiatives Key account management Knowing the customer, customer types and preferences Understanding retail Retail math Increasing sell-through Selling OTB (In-store selling) Selling-In (Showroom selling) Getting new Customers (New doors) Planning and preparing for effectiveness Personal efficiency

Sales Reps
General General General

Objection handling
Communication Developing resilience Phone selling and service
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