Optimising Inventory with Revenue Based Financing: XimiVogue's Strategies During Chinese New Year
Following the bustling sales driven by Black Friday and Singles' Week, retailers now face a slowdown in the supply chain. The upcoming Chinese New Year, also known as Lunar New Year, is a 15-day celebration observed in China and by Chinese communities globally.
What is it you ask? Read about it in detail here!
Taking place between January and February, the next Chinese New Year is scheduled for February 10, 2024. This period marks a significant pause in the world's largest supplier network due to festive celebrations.
XimiVogue, an international fast-fashion franchise established in 2015, is a key player in providing high-quality daily products globally. With 1700+ stores in 93 countries and regions, 600~800 new arrivals monthly, 10,000+ suppliers, 6000+ SKUs in 10 categories, and 24/7 after-sales service, XimiVogue aims to create a valuable lifestyle for its consumers.
For Indian businesses, understanding the impact of the Chinese New Year is crucial. Despite being a 7-day national holiday in China, the associated production halt can last up to four weeks for suppliers, partners, and contract manufacturers. Ports and customs operate with minimal staff, focusing on perishable and priority goods.
XimiVogue faces several challenges during the Chinese New Year, including delayed inventory deliveries to businesses in India, lower product quality (especially for short-lived products), increased product costs when ordered close to the holiday, and delayed payments due to the festivities.
Read about how Ximi Vogue's Chinese New Year tactics here!
To overcome these challenges, XimiVogue has implemented strategic measures:
- Plan Ahead:
Planning for both pre and post-festival periods is crucial. XimiVogue emphasizes creating a comprehensive demand picture, incorporating structured data (orders) and unstructured data (sentiment analysis, weather patterns, events). The company recommends increased monitoring and communication in the months surrounding the Chinese New Year to mitigate potential gaps. Discover XimiVogue's plans for the Chinese New Year 2024 in our Case Study. - Fast & Flexible Capital for Inventory Flow:
XimiVogue has leveraged Revenue-based Financing from Klub to address inventory challenges. This financing model, based on monthly revenues, has proven beneficial, especially during the initial years when obtaining funding from traditional banks was challenging. Abhishek More, Director at XimiVogue, attests to the efficiency of Klub's fast turnaround time, aiding in meeting urgent fund requirements.
