Trends are an important part of our industry. And "Market Pulse" published by the CGTA is a great source to understand
sales trends. But you need to know how to interpret it. We’ll show you how in this blog.
All vendors face long production lead
times (4 to 6 months), so they simply can’t spot a
trend today and then have it ready for delivery tomorrow. They need to anticipate trends.
Consequently wholesalers have no choice but to take a guess about the future. And basically what they need to do is determine whether a category is growing or declining.
trend today and then have it ready for delivery tomorrow. They need to anticipate trends.
Consequently wholesalers have no choice but to take a guess about the future. And basically what they need to do is determine whether a category is growing or declining.
If a wholesaler anticipates that fewer retailers are
purchasing a product category, they will produce fewer products. No one wants to be stuck with inventory and
few potential customers.
On the other hand, if a wholesaler senses the number of
retailers interested in a category is growing it may produce more merchandise
in anticipation of higher demand. You don’t want to miss out on sales.
The ability to identify trends is important...lots of
money is at stake. How do you predict
growing or declining categories?
