With constant markdowns, many retailers have
faltered and ultimately gone out of business. The
manufacturers have not been paid and there they sit
with resources allocated to the wrong arenas. The
mismatch between supply and demand ultimately
arises from the inability of vendors and manufacturers,
as their markets change, to make the right
decisions about who they want to be. For instance,
do the department stores want to be discounters,
competing on the basis of commodity products?
That is, all department stores would carry the same
basic designer/manufacturing lines in clothing. Or
do they want to differentiate themselves through
such means as exclusive designers, private labels,
and customer service?