Why Outlets Sell Brands at Half Price?

Ever wonder why Outlets offer branded goods at 50% off? As a 15 - year veteran in the stock industry (specializing in Garments Wholesale Stock and Excess Clothing Stock), we’re revealing the secrets—these “budget buys” are deeply linked to stock clearance strategies and global supply chain quirks!

1.Three Stock Supply Sources for Outlets

Unsold out of season clothing stock (e.g., winter coats, summer sandals) and slow moving footwear stock (like last year’s sneakers) are bulk transferred to Outlets via Stock Clearance. For example, 20% of a fast fashion brand’s annual Clothing Stock Deadstock ends up here same quality, just delayed by a season.

2.The Price Gap: Cost - Cutting in Stock Circulation

(1) Full - Price Stores: High Costs Every Step

Prime Rent: 20% - 30% of price goes to CBD rents (e.g., Beijing SKP: >$3/㎡/day). For Job Lot Clothes brands, this forces higher markups.

Marketing Spend: 15% of sales on ads, endorsements (5% - 8% per item). A designer bag’s price includes celeb campaign costs!

Operations: 3x higher costs due to fancy decor, frequent restocks.Stocklot Company  teams know: luxury stores spend big on ambiance.

(2) Outlets: Focus on “Stock Clearance”

Suburban Locations: Rent is 1/5 - 1/10 of CBD (e.g., Shanghai Qingpu Outlet: <$0.7/㎡/day). Perfect for offloading Garments Wholesale Stock cheaply.

Lean Operations: 60% lower labor costs with minimal staff/promotions. No need for personal shoppers—just Stock Clearance efficiency!

Cash - First Logic: Accept 15% - 20% gross margin (vs. 50% for full - price). Brands prioritize freeing up capital over max profit, so Excess Clothing Stock gets steep discounts.

3.TAILORMAX: Turn Your Stock into Outlet - Ready Goods 

As your stock supply chain partner (with expertise in Stock Footwear And Apparel and Clothing Stock Products), we apply Outlets’ logic to your inventory:

Compliance & Adaptation

One - stop service: label localization (e.g., Swahili tags for Africa), quality pre - inspection, certification (EPR for EU, SONCAP for Africa). We turn Cancelled Shipment stock into compliant, sellable goods!

Repair & Resize: Fix minor defects (95% success rate) and resize stock (e.g., EU L to SEA M for Job Lot Clothes) to fit Outlet buyer demand.