Multichannel marketing boosts velocity and recovery by driving buyer interest.
Overview: At a Glance
Gildan, an industry leader in sustainability and one of the world’s largest manufacturers of apparel, socks and hosiery, has been working with our team at Liquidity Services to sell their excess inventory since February 2021.
Challenge: Creating Efficiency with Limited Bandwidth
Gildan sought an efficient, reliable and easy solution to move excess inventory out of their distribution centers quickly. However, they had limited resources and bandwidth. Like many manufacturers, inventory volume varied significantly throughout the year. They needed a solution to sell their surplus inventory that was simple but scalable to handle the spikes in inventory while still maximizing recovery on their surplus.
Solution: A Multichannel Selling Strategy
After working with other liquidation partners, Gildan turned to Liquidity Services because we offer:
- 20+ years of proven experience
- Flexible service options
- Multichannel selling capability
- Network of 4M business buyers
- Shared environmental values
Liquidity Services created a strategic sales plan centered around best practices and customized to Gildan’s needs. The key was leveraging Liquidity Services’ multichannel sales capabilities using liquidation.com combined with offline direct selling. This solution was built for scale and maximum recovery.
Liquidation.com is an intuitive, easy to use auction platform that includes hands-on support, consultation and guidance from Liquidity Services experts. The plan for Gildan started here, with small lots of pallets. This allowed buyers to test the product in small quantities, and helped establish a base of buyers. After the base was established, lot sizes were increased to maximize efficiency. The Liquidity Services team also provided direction on a mixture of auctions, performing testing to find the optimal way to group items to yield the best results.
Gildan then expanded into a second channel: direct selling of full truckloads offline. The results from liquidation.com served as a benchmark for offline sale negotiations, and vice versa. Simultaneous use of the two channels allowed Gildan to increase both recovery and velocity.
The option to sell via multiple channels is one of the main reasons Gildan chose Liquidity Services. Many service providers only specialize in selling through one channel. The biggest drawback of a single channel strategy? When volume increases, recovery drops. The demand from buyers simply can’t keep up with supply. Liquidity Services knows that business buyers have different purchasing preferences – some prefer online auctions, others prefer offline sales. They connect the right buyers to the right products, through their preferred sales channel, and allow sellers to scale without sacrificing pricing. To Gildan, a multichannel sales partnership with Liquidity Services was the answer.
Results: Increase in Sales and Net Recovery
Liquidity Services created a seamless, long-term solution for Gildan that quadrupled recovery and increased average sales 10x within 6 months. Results were visible to both Liquidity Services and the retailer via monthly reports that included trending analyses and insights into the program’s performance.
As the partnership grew, volume increased (3.3x within 8 months), and the custom solution scaled. Diversifying sales across multiple channels allowed Gildan to maintain price points, increase velocity, and ultimately maximize recovery, all while supporting their commitment to operate as one of the world’s most efficient and sustainable manufacturers.
The best part? Gildan doesn’t need to change anything for the 2022 holiday season. Their scalable, long-term solution is already well-positioned to handle spikes in volume year-round.
Conclusion: Pick a Partner with Experience and Proven Track Record
We have selling excess retail products down to a science. Unlike others, we offer full-service reverse logistics management, including returns management, asset recovery, e-commerce, and seller self-service. As Gildan experienced, leveraging multiple sales channels enables scalability, increases efficiency, and maximizes recovery all year. Our team is ready to help design a profitable, efficient and flexible solution for your company, too.