UNDERSTAND SEASONAL DEMANDS –ENTREPRENEURS ADVISED

By Lumbiwe Mwanza

SOME products may increase or decrease in demand depending on the season and that is why marketers should identify goods to invest in to generate reasonable profits, the Zambia National Marketeers Credit Association (ZANAMCA) has said.

ZANAMCA president Mupila Kameya told The Scoop that the variation in seasons made some products or goods to experience significant demands.

Mr. Kameya explained that seasonal items need to be carefully managed to account for any events or trends that could affect their popularity and trigger losses.

“Product or goods demand forecasting is one of the most critical responsibilities for SMEs. Understanding the seasonal demands and flow of product demand is essential for every business to succeed and that is why financial literacy among entrepreneurs remains critical.

“For instance, an entrepreneur that sells Christmas confectionery will anticipate a rise in sales as the holiday season approaches and those that were selling winter goods are out of business as the hot season approaches. This inevitably means that entrepreneurs affected by seasonality demands will require other business strategies,” he added.

He said that businesses needing help to predict seasonal demand frequently need help with their stock levels as they risk stock outs and lost revenues during periods of peak demand if they underestimate.

 He explained that if more entrepreneurs could understand and predict seasonal demand precisely, they could have an advantage over competitors and gain more reasonable profits to grow their businesses.