Consignment Is Not A Concession
Apparel Advisors Playbook For Structuring, Managing & Protecting Consignment Relationships
Consignment is one of the most underutilized and most mismanaged channels in fashion.
The brands that get it right use it to access premium retail environments, test new markets, and build retailer relationships without overcommitting capital.
The brands that get it wrong end up financing someone else’s business.
The difference is not luck. It is structure.
Here is what the playbook covers:
Consignment Is A Privilege You Extend: Every opportunity should be evaluated against three criteria. Does the retailer reach your target customer? Is the store environment brand-appropriate? Can they report and pay on time? If any answer is no, walk away.
Optimize Cash Flow Before It Becomes A Problem: Bi-weekly reporting. A 60 percent sell-through conversion rule. Monthly payments secured by a credit card on file. If you are waiting 90 days to find out what sold, you are giving your retail partner an interest-free loan.
Maintain Operational Control: Five business days’ notice to recall inventory. Retailer-funded shipping both ways. A 60-day reconciliation window with financial responsibility for discrepancies. If you cannot get your own inventory back on short notice, you do not have control. You have exposure.
Protect Assets With Legal Safeguards: File a UCC-1 in every state where your consignment inventory sits. Retain title at all times. Require insurance naming your brand as additional insured. When a consignment partner closes unexpectedly, these filings are the difference between recovering your inventory and writing it off.
Structure Margin Terms With Precision: Start the conversation at 60/40 in your favor. Retain full markdown authority. Define retail price in the agreement. Your price is your brand position. Protect it.
Proactive Monitoring Separates Strategy From Chaos: One person at your Brand must own the relationship. A dashboard tracks sell-through, weeks of supply, and payment status by retailer. Quarterly business reviews. A 30-day credit risk max. The retailers who perform best are the ones who know you are paying attention.
Download the full playbook here: 👇
Are your consignment relationships running on structure or on handshakes and hope?
👇 Drop your thoughts in the comments.
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