The challenge
A major high street fashion store came to Active when they found themselves with a large amount of capital tied up in previous year’s fashions which they were unable to sell.
Our solution
- Active agreed to purchase the out-of-fashion clothing from the client, restoring the full value to the fashion store by issuing Trade Credits.
- The clothes were sold to a specialist clothing remarketer, where they were de-branded and sold on via independent outlets.
- The client received the full value of the stock in Trade Credits and therefore did not have to take a hit on their profit and loss account or have to reduce or cut other budgets such as marketing.
- The Trade Credits were used to increase the marketing budget, delivering incremental TV,radio and press activity.
The Benefits
- Increased marketing budget by receiving full value for slow moving stock
- Increased spend from the client in the face of a potential budget cut
- New client relationship and income from sale of stock
