What Are Soft Goods in Retail and Why Do They Matter

The retail industry is evolving at a constant pace globally. A considerable portion of this market is dedicated to apparel and other textile-based products, commonly referred to as soft goods. The apparel industry itself is expected to reach a staggering US$1.84 trillion by the end of 2025. Considering the substantial growth, businesses need to understand what soft goods are in retail and why they matter to modern retailers. In this article, we will explore all the important aspects related to soft goods.

What Are Soft Goods?

Another term for soft goods is softlines, which essentially refers to merchandise made from textiles or other flexible materials. One of the primary characteristics of soft goods is that they are non-durable, often used for decorative or personal purposes. The easiest way to determine whether a good is soft goods is by its natural softness and flexibility, such as fabric or rubber.

Some examples of retail soft goods include:

• Bedding
• Curtains
• Apparel
• Pillow
• Mats
• Bags
• Towels 
• Upholstery fabric
• Soft baby shoes
• Slippers
• Cushions and cushion covers
• Tablecloth
• Napkins
• Quilts and comforters
• Hat
• Belts
• Handbags

Characteristics Of Soft Goods in Retail

Things that differentiate soft goods from other types of goods are:

Type of Material

Soft goods are usually made from fabric or other pliable materials. These materials are easy to fold, drape, or handle.

Consumable

Soft goods are non-durable, meaning they will eventually either wear out, fade, or get out of trend. Since soft goods are a consumable item, they are replaced more frequently.

Trend Driven

Some of the soft goods, such as apparel and home decor are influenced by seasonal trends and current fashion styles. Hence, retailers must stay up-to-date with changing styles and color schemes to remain competitive in the market.

Visual Appeal

Soft goods are aesthetically appealing due to their color coordination and touch and feel aspects.

High Turnover Rate

Soft goods are consumables and are more in demand with changing seasons and fashion styles. Hence, the life cycle is short, and the inventory turnover rate is high.

Variability

Consumable soft goods must be tailored to consumer demands. He must have come in various sizes and fits.

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Hard Goods vs Soft Goods

Opposite to soft goods, hard goods, or hardlines, are much more durable and are made from solid materials. Unlike soft goods, hard goods are long-lasting and functional. Besides these, there are many other differences between hard goods and soft goods. 

Below is a detailed hard goods vs. soft goods comparison table:

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Importance of Soft Goods or Softlines in Retail 

Softlines, or soft goods, have made a significant contribution to the growth of the retail industry in recent times. Let us look at the significance of soft goods in retail:

Increased Consumer Demand 

Soft goods, such as apparel and textiles, are in constant demand as they are used in day-to-day life and, therefore, play a significant role in the retail industry. Moreover, the desire for the latest trends increases the demand for soft goods.

Store Layout and Merchandising

In retail outlets, soft goods are often displayed attractively to attract customers and encourage them to make purchases. Since the visual appeal of these items is important in the shopping experience, it does impact how the store layout is designed.

Branding and Marketing 

Soft goods present an opportunity for brands to increase their brand's visibility and presence. Brands can now advertise their product via apparel or other soft goods. 

Sustainability 

Customers are more conscious of how their choices affect the environment and hence opt for sustainable soft goods. It presents a great opportunity for brands to include sustainable soft goods in their product lines.

Role in E-Commerce

With the rise of e-commerce platforms, the soft goods sector has also been significantly impacted. On an e-commerce platform, consumers can now get a wide range of options along with fast shipping and easy returns for soft goods online.

Soft Goods in Retail: Challenges

Softlines make a significant contribution to the retail industry; however, they also face several challenges. Some of the challenges are as below:

• When it comes to soft goods trends, they are quite dynamic, which can make it challenging to predict which soft goods will ultimately be popular with consumers. 
• Considering that the soft goods are non-durable and also the trend changes quite frequently, more often than not, unsold inventory becomes obsolete.
• To maintain its reputation, a retailer must ensure that the soft goods in its retail outlet are of high quality. The reason is that defective or low-quality goods can lead to returns.
• Unsold inventory and out-of-trend soft goods can become difficult to dispose of or recycle.

Best Practices Which Retailers Can Adopt

• Utilizing advanced technology to monitor inventory levels can help retailers better understand their consumers' behavior and prevent overstocking situations.
• Having an omnichannel approach can improve customers' shopping experience.
• It is important to ensure that the manufacturing of soft goods is ethical and that the materials are environmentally friendly, as it will attract conscious consumers.

Conclusion

It is an undeniable fact that soft goods or softlines, play an important role in the retail industry. Retailers must offer soft goods that not only meet the consumer's needs and preferences but also are sourced ethically. When a business understands the nature of soft goods and adopts approaches that help mitigate challenges, it can manage inventory effectively while providing exceptional customer service. The key to managing soft goods in a cut-throat market for soft goods in the retail landscape is embracing technology, sustainability, and customer-centric approaches.

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FAQs

How can retailers ensure that soft goods are managed effectively?

Retailers must adopt advanced inventory management systems that can allow real-time tracking, stock replenishment, and demand forecasting.

Do fashion trends impact soft goods sales?

Yes, changing fashion trends is a significant and influential aspect when it comes to customers' preferences for soft goods. Hence, retailers need to stay informed about the newest trends in the market.

Which sustainable practices can help retailers when it comes to soft goods?

Retailers can adopt sustainable practices, such as using environmentally friendly materials in manufacturing, promoting recycling, and responsible manufacturing processes.

Does e-commerce impact soft goods in retail?

Yes, the soft goods section on e-commerce has increased considerably. E-commerce offers consumers variety and convenience. It also helps retailers to understand the shopping behavior and expectations of the customers.