factory outlets

Presented By:- Rajput Miraj

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Post on 22-Apr-2015




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Page 1: Factory Outlets

Presented By:- Rajput Miraj

Page 2: Factory Outlets

Here manufacturers sell their products directly to the public through their own branded stores.

Also called as “Outlet Store” or “Best Saving Outlet”

It can be a Normal Store or an Online Store Traditionally, a factory outlet was a store

attached to a factory or a Warehouse It forms a subset of a larger format called

the off-price retailer.

Page 3: Factory Outlets

About 45% of branded products in the country are

sold during discount salesor through these outlets.

These outlets are owned by company.

Page 4: Factory Outlets

Branded Outlet

Free Shop

Multi Branded


Page 5: Factory Outlets

Used to expand their reach To make their products more accessible

to customers They help people who may not have

tried out a brand to do so They help the brand to reach those who

aspire to wear the brand but cannot afford it

The companies also use factory outlets to sell unsold merchandise

Page 6: Factory Outlets

Factory outlets basically sell discontinued merchandise, irregulars, factory overruns and cancelled orders.

Products which are defective. These Outlets sell clothing, sporting goods,

electronics, footwear, jewellery, and home goods, as well as many other brand name products at deeply discounted prices.

These items are surplus or slightly irregular and come directly from the manufacture

Page 7: Factory Outlets

From Retailer

From Factory

Rejected from


Page 8: Factory Outlets

Factory outlets can be profitable due to the low operating

costs, few services, low rents, and elimination of thedistributor/retailer links in the distribution chain. Manufacturers have supreme control of their outlet,

andcan run the store in their own way — visibility, prices,promotion and inventory. Low price is not the only driving force behind

expansion of factory outlets, brand promotion is one of the key

functions. Manufacturers could control where their discountedmerchandise was sold.

Page 9: Factory Outlets



Variety of Product Available Available

Price Discount Available Only Occasionally

Defective Products Available at Discounted Price

Rarely Available

Ownership Manufacturer Franchisee

New Products Rarely Available Available

Out of Fashion Products

Available Rarely Available

Page 10: Factory Outlets