You are to assume the role of the owner of Victor May, a business that creates made-to-order handbags, tote bags, clutches and purses. Your business partner wants the business to add an additional sales channel and has provided you with two possibilities. You must analyze the possible sales channels and recommend the best fit for Victor May.
Victor May's only sales channel currently is its website. Customers can page through available fabrics and patterns to create custom made products. A customer first chooses the type of bag desired, then chooses the fabric inside the bag, the outer fabric, the type of strap and closure. Victor May has hundreds of styles of fabrics and accessories to choose from. Customers place an order, and the bag is made-to-order and shipped.
Your business partner feels that Victor May can take sales to the next level by adding an additional sales channel. Your business partner has two ideas that would fit well, but wants you to analyze each for overhead expenses, staffing needs, and possible risks.
Idea 1: Pop-up stores
Your business partner has identified retail space in suburban shopping malls and outdoor mixed-use spaces that offer three-month leasing for temporary retailing. Victor May could open three pop-up stores that feature product samples, available fabrics, straps and accessories for customers to custom order on-site with finished product shipped directly to the customer.
Idea 2: In-home parties
Victor May can introduce in-home parties, having a company representative bring product samples, fabrics, straps and accessories to small groups gathered at the host’s home or other venue. The company representative would make a presentation, facilitate orders and answer questions. Finished products would be shipped directly to the host.
