Quality Difference: Generally, products sold at an outlet centers are of lower quality as compared to products sold in retail storesĢ. These are generally located in the outskirts of a town or city and they offer huge discounts.ġ. Whereas an outlet mall consists of a number of factory outlet stores of different brands organized in a mall fashion. Selling a lower quality product through factory outlets lowers the brand value of the company.ĭifference Between Factory Outlet, Outlet Mall, Retail Storeįactory outlet center is a store owned or rented by one company and is only for one company’s products. One factor that distinguishes a regular company from a brand is the brand equity or the brand value. They end up buying a good amount for a product which was supposed to last for years but may end up lasting just a few weeks which in fact costs the buyer even more.ģ. Buyers turn up to have huge discounts and thus, to save money which many times do not turn up so in reality. There are considerable chances that the products bought from factory outlet centers may get torn off or become unusable in a very short duration which in turn upset the customer and he might not turn up to this company or brand next time ever thus reducing the customer life time value.Ģ. Factor outlet centers help companies save warehouse space as displaying at outlets leads to sale.ġ. It helps companies get incremental revenue from goods which are out of fashion or slightly defective.ģ. They benefit customers as they get branded goods at affordable prices.Ģ. With the booming industry of outlet centers, manufacturers have started manufacturing products which are specifically for the purpose of such centers such that they do not compete with their retail stores.ġ. Instead of discarding all the products belonging to such categories, factory outlet centers sell them at heavily discounted prices which buyers are willing to pay and accept the little problems that these categories have. All the above mentioned categories which do not find itself a place at retail stores find itself a very good place at factory outlet centers. So, what to do with all such products which are either discontinued, irregular or are in surplus? Here come the factory outlet centers. Further, with such a dynamic market, a product which is in trend today may get outdated tomorrow and again it becomes undesirable at retail stores keeping in consideration the limited space at retail stores. Also, some products are manufactured which have a minor defective or not perfect but still usable. Not all products manufactured by a company are of the benchmark quality and thus, they cannot be sold in retail stores. Difference Between Factory Outlet, Outlet Mall, Retail Store.Disadvantages of Factory Outlet Centers.
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