Festive and party supplies are a critical part of any celebration. From birthdays to weddings, Halloween to Christmas, or any other celebrations, the right decorations, costumes, and party favors come in handy to set the right mood and make the event memorable.
However, with many products flooding the market, how do retailers decide what to stock? How can they maximize on customers’ need for these products to drive sales?
This article will unravel some of the critical factors you should consider while choosing festive and party supplies for your business.
A brief overview of the festive and party supplies market
The global festive and party supplies market is continually growing, powered by several driving factors. As of 2021, the market was estimated to be worth about US$ 12.3 billion. However, growing at a compound annual growth rate (CAGR) of 9.0%, it is anticipated to reach a whopping US$ 31.44 billion by 2032.
This growth is driven by an increasing number of global events and party management businesses, product innovations, and of course, increased urbanization. Moreover, while the impact of non-biodegradable supplies on the environment initially impeded the market, new eco-friendly products are filling the gap and contributing to growth. Consequently, the market can only get better and bigger.
7 factors to consider when selecting festive and party supplies
1. Understanding consumer preferences
Understanding your customer’s needs and preferences is the starting point when deciding what to stock as a seller. It’s critical to identify what your customers want, what’s trending, and what themes are currently popular in the festive and party supplies landscape.
Trends can shift rapidly, hence the need to keep tabs on what’s hot in the market. You could stay in touch with your customers, conduct regular surveys, and keep an eye on social media. This could come in handy to help you get valuable insights on what customers currently love so you can stock accordingly.
2. Quality and durability
The longevity and quality of party supplies contribute significantly to customer satisfaction. Nobody wants a decoration that wilts halfway through the party. Keep in mind that customers will always remember the quality of your products, and positive experiences can lead to not only repeat purchases but also referrals. As such, it’s important to stock supplies that are not only visually appealing but also durable and reliable.
3. Price point and profit margins
Profitability is a delicate balance between offering competitive pricing and maintaining healthy profit margins. Sourcing from wholesalers can often provide the best of both worlds. For instance, buying in bulk from the right wholesalers, such as Alibaba.com, typically leads to lower costs, allowing you to pass savings onto the customer while also preserving your target margins.
However, while pricing is essential, it should never compromise the quality of your products. This means you should aim to strike a balance and stock accordingly.
4. Seasonal demand and inventory management
Seasons significantly influence the demand for party supplies. For instance, demand typically skyrockets during Christmas, Halloween, and summer party seasons. Consequently, as a seller, you have to adequately manage your inventory to ensure that you’re well-stocked to meet the heightened demand during these peak seasons. You have to avoid stockouts, which often result in disappointed customers, and automatically lost sales.
5. Vendor reliability and product availability
Ensuring steady product availability is crucial to keep your store running smoothly. This heavily depends on the reliability of your vendors. Stockouts can lead to loss of sales and negatively impact your brand’s reputation and customer satisfaction. Therefore, it’s necessary to cultivate strong relationships with reliable suppliers who can consistently deliver high-quality products on time.
6. Sustainability and eco-friendliness
The world has become more environmentally conscious. This means the demand for sustainable and eco-friendly products is on the rise. Incorporating these products into your inventory satisfies this growing customer preference and positions your store as a brand that cares about the environment. Such products range from biodegradable balloons to recyclable party decorations, and luckily they are readily available through most reputable wholesalers.
7. Product diversity and inclusivity
Lastly, offering a diverse and inclusive range of products is key to catering to a broader customer base. This means stocking supplies for various cultural celebrations, different age groups, and a range of tastes and preferences. For instance, you could stock party supplies for kids, targeting kids’ birthday parties. Inclusivity in your product range can increase customer satisfaction and loyalty and ultimately expand your market reach.
The bottom line
The global festive and party supplies market is continually growing. This presents a lucrative opportunity for smart sellers with an in-depth understanding of market trends and a strong alignment with consumer demands.
Luckily, the above seven factors are an ideal stocking strategy that any seller can use. Even better, a reputable wholesaler such as Alibaba.com offers the perfect implementation platform. You can track what’s hot in the market, see variety, compare pricing, and access stocking options.