What is an outlet? A comprehensive guide to buying from outlet stores

If you have a question, what is an outlet? Or what exactly does outlet mean? We must say that an outlet is a store that sells original products of famous brands at a very low price. In recent years, shopping from outlets has become one of the most popular shopping experiences and allows you to make a smart and economical purchase.

In this article from Alibaba tourism magazine, we tried to give an accurate answer to questions such as “What is an outlet?” or “What is a stock and outlet?” We considered all aspects and talked about the types of outlet stores, the reason for the big discounts, the difference between the outlet and the main stores and the most famous outlets in Iran and the world.
If you also want to join the professional buyers of outlets and get to know the techniques of shopping in outlet stores, stay with us until the end of this article.

What is an outlet?

If we want to answer the question very simply, what is an outlet? To answer, we must say that an outlet is a type of store that sells goods of the same brand, or goods of different brands, at a lower price than the main store. These products usually include the collections of the previous season, products with limited and incomplete stocks, end of season products, or products with minor and unrecognizable defects.

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Because the customers of the main stores of the brands are not willing to pay the full price for this model of products, these goods are sold in outlet stores. On the other hand, brands cannot keep these products in the warehouse due to high storage costs, and they empty their warehouses by selling them below the price.
If you are looking for affordable shopping and you want to get the original products of popular brands at a lower cost, go to outlet stores.

History of outlet stores

Following the answer to the question of what is an outlet?, we are going to check the history of outlet stores so that you know when this model of stores was formed. To learn about the history of the outlet, we have to go back about 100 years ago, that is, the 1930s. When factories used to sell damaged and unsold products to their employees to avoid throwing away goods and emptying warehouses.

Sale of outlet products was usually done in small buildings next to factories and its audience was not as wide as today. The next development happened in 1970. Where big brands and factories have decided that they can sell the remaining unsold inventory at a lower price. Of course, not only to your employees, but to the general public.
The continuation of this process led to the formation of the first public outlet store. In order to show the real distance between the products in the main store and the outlet store, the brands opened their outlet stores with a simple design and layout outside the city.

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The next evolution in the world of outlets occurred when the concept of an outlet changed from a simple store next to a factory to large shopping centers and commercial complexes offering products of multiple brands. In the 1980s and 1990s, opening outlet stores became a serious marketing and sales strategy for brands. Some brands started producing exclusive products for their outlets, and some formed their own outlet branches, causing the question of what does an outlet mean? were all over the world.
Today, outlet stores around the world, from America and Europe to the UAE and Türkiye, have become one of the most popular economic shopping centers. Where customers can buy the products of their popular brands at a lower cost and return the unsold goods to the consumption cycle.

Why are outlet products cheaper?

You probably have the question, why are the products of the outlets cheap? Do they really have the same quality as the original store products? Are they really original? And questions like this. The fact is that outlet products are cheap for several reasons, which we will discuss below.

1- Old or obsolete products

One of the main reasons for the cheapness of outlet products is that these products are usually old and out of order. Of course, not very old either. Most of the goods are from the collections of the past few seasons or are no longer sold in the main stores. Brands have to sell their current inventory to make room for new collections.
Also, the cost of keeping goods and warehousing them is not economical for brands. For this reason, they cannot keep the remaining products and prefer to sell them at a lower price in outlet stores.

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2- Minor defects in appearance

Another part of the goods that you see in various outlets may have minor defects. For example, these items may have faint stains, scratches, thread pulls, surface scratches, sewing problems, and similar defects. In fact, customers are not willing to pay full money for a product that has even a minor defect.
But because these defects do not affect the final quality of the product, they are willing to buy it at a lower price. Usually, such goods are placed in the category of A and B quality products and are offered with significant discounts.

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3- Leftovers from the previous season or collection

Most of the goods that you see in the outlet stores of bags, shoes and clothes are left over from the previous season or collection. Since the philosophy of fast or unstable fashion exists in the world and the trends of each season and each year are different from the previous seasons and years, customers are not willing to buy old collections at the original price.

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However, old or off-season collections are still products of the same brand with the same quality as always. When they are offered at a significant discount, they are highly appreciated by customers. Also, due to the production of new models and products, brands need to empty their warehouses of old goods, so buying pre-outlet season items is a win-win deal for customers and brands.

4- Eliminating intermediaries in the direct sale of the brand

Another reason why outlet products are cheap is that the middleman is removed, and when the brand moves its product directly from the warehouse to the store, the cost is lower.

Photo from: londondesigneroutlet

All kinds of outlet stores

For a more accurate answer to the question “What does outlet mean?” Also, we have to introduce you to all kinds of outlet stores. Outlet stores have two different models, which we will examine each of them below.

Factory Outlet

Factory outlets are the original form of outlets that were located next to factories, and brands sold their remaining goods in them. These outlet models continued to exist, with the difference that their only customers are not the employees of the brand itself, and the general public can also buy from them.

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Among the main features of Factory Outlet, we can mention direct transfer from the factory to the store, higher percentage of discounts compared to other outlets, the presence of products from old collections, the presence of one-size-fits-all products with minor defects. The design of these stores is usually simpler and the focus is on the variety and inventory of the warehouse, and there is no mention of the luxurious arrangement of the main stores.
In this outlet model, you will face a large volume of different products. Usually, the sizes are scattered and it is possible that the sizes of an item are incomplete. But if you spend enough time and patience, you can buy cheaply from these stores. For example, brands like Nike and Adidas have their outlet factories outside the big cities.

– Outlet Store

Outlet stores are another type of outlet and have a similar experience to the original brand stores. The layout of the outlet store is more orderly than the factory outlet, and the products are relatively newer. Sometimes brands have a special line for their outlet store and produce products at a low price for this store model.

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Outlet stores have more diverse products and more orderly arrangement; For this reason, they provide an easier shopping experience for their customers. The goods usually belong to the collections of the previous season and not much time has passed since their production. Also, the quality of the goods is not much different from the quality of the original store.

Some outlet stores are an independent business center and others belong to a specific brand. For example, Zara and Mango brands have the most famous outlet stores. Also, Dubai Outlet Mall in UAE and Optimum Outlet in Türkiye are independent commercial centers that sell products of different brands.
The shopping experience at the outlet store is a little simpler and more convenient than the factory outlet. Items with full sizes and arranged, orderly arrangement, better decor along with reasonable prices, have made outlet stores become one of the most popular shopping centers.

The difference between outlet and stock and second-hand clothes

Maybe you have a question, what is stock and outlet? And how are they different from second-hand clothes? To answer these questions, we need to go into details. As we explained earlier, outlets are a place to sell products that are left over from the previous season’s collection, are factory surplus, have minor defects, or the brand has decided to produce and supply them at a lower price for outlet stores. Therefore, the products available in outlet stores and outlet factories are new and first-hand.

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There are many uncertainties regarding the stock product. Especially in Iran, many people equate the word stock with second hand. But this is not always the case. Let’s go a little deeper to be more precise about the question of what is stock and outlet? to answer The story starts from where the big stores in the world, for more customer-oriented, implement the 30-day product return rule, and customers can return the product for 30 days after purchase without any reason.

The products that return to the store are no longer included in the resale process and are transferred to special warehouses. Returned goods are graded in the warehouse and then sold in bulk. A-grade goods are new and untouched goods.
The duty of second-hand goods is clear. These goods have already been used by another person, but because they still have good performance and quality, they have returned to the consumption cycle. Second-hand goods have a lower price than outlet and stock products. Also, their pricing depends on how long they have been used and in what condition they are.

The difference between a regular store and an outlet

What does the outlet mean after the answer? You may have the question of what is the difference between a regular store and an outlet store. To put it very simply and straightforwardly, there are several main differences between the normal and original brand store and the outlet. The first difference is in the goods of these shops.
The brand’s main store usually sells new, full-size items for the current season and new collections. Therefore, if you are looking for shopping for the current season or you want to buy trendy products, you should go to the main stores of the brands.

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The next difference is in the price of the products. Since the products of the main store have more fans and buyers, the prices of the products are also higher. But in the outlets, the goods are sold at a lower price because they belong to previous seasons and are not used and have many fans at the moment.
The last difference between a normal store and an outlet is in their arrangement and decor. The main stores create a more pleasant shopping experience with an attractive design and an atmosphere in harmony with the spirit of the brand; But in outlets, the focus is on offering a low price and usually not much attention is paid to the decor and atmosphere.

What is an outlet without a label?

You may see products without specific labels in outlet stores and the question arises, are these products original? Is it similar to the main brands? Is it the same quality? What is an outlet without a label?

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There are various reasons why some brands sell their products without labels and brands in outlet stores. Sometimes this comes down to the contract between the brand and the suppliers. Some brands do not allow products that are part of the official collection or overproduced to be sold in the outlet under the name of the original brand. Because they don’t want their cheap products to damage the image of the brand and make the brand look cheap.
Sometimes there is a simpler reason; The product label is damaged or due to a defect in the production line process, products are supplied without labels.

Outlet in Iran; Where to buy?

The trend of outlet stores has reached Iran and more or less, there are many outlet stores in different cities of Iran. One of the famous outlet stores in Tehran is related to the Hakopian brand. This store is located at the 14th kilometer of Lashkari Highway (Karaj Road) and offers out-of-season and old Hakopian products with impressive discounts.

Photo from: hacoupian site

Most of Iranian outlet stores are located in free zones such as Bandar Anzali and Kish. Because the process of importing foreign products to these areas is easier. Sheen Brand Outlet and Barcode Outlet are among the most famous Iranian outlets in Bandar Anzali.
Also, online clothing and cosmetics stores, such as Bonnie Fashion, may have a special section for outlet products on their site.

Famous outlets in the world

Now, what is the full question of the outlet? We answered and checked the outlet stores from all aspects, we want to introduce you the most famous outlets in the world. The first famous outlet is located in England and is known as Bicester Village. You can find the best European brands at the best price in this outlet.

Photo from: Google maps site

The most famous American outlet is located in New York and is called Woodbury Common. Permanent discounts, famous brands and various goods are the most important reasons for the popularity of this store. But if we want to go back to Europe again, we reach one of the most popular outlets in the world, La Vallée Village in Paris, France. This outlet is located near Disneyland Paris and with its European architecture, it is one of the most beautiful outlets in the world.
Serravalle Designer Outlet in Italy also represents the sale of Italian luxury brands at reasonable prices and has many fans. Skipping Europe and America, we reach Istanbul and Dubai, the popular destinations of Iranian tourists. In the following, we introduce the most famous outlets in Dubai and Türkiye.

– The most famous outlets in Istanbul

Since the city of Istanbul is one of the popular and popular tourist destinations of Iranians, we introduce the outlets of Istanbul in a special way. Perhaps we can consider Olivium Outlet Center in Istanbul as the most famous outlet in this city. A place where many tourists visit every year to buy their popular products and brands with exceptional discounts.

Photo from: Google maps site

Optimum Outlet shopping center is another outlet in Istanbul that has relatively good access. Star City Outlet shopping center is one of the modern and new shopping centers in Istanbul and is a short distance from Ataturk Airport.

– Dubai outlets

Since the city of Dubai is full of luxury and expensive shopping centers, many tourists are looking for shopping centers with reasonable and economical prices, and what better place than the Dubai Outlets? In addition to luxury shopping centers with famous and expensive brands, the city of Dubai also has various outlets.

In fact, the first outlet in the Middle East called Dubai Outlet Mall has been opened in this city. With its large size, this outlet offers products of more than 1200 brands with 30-90% discount.

Photo from: Google maps site

The Outlet Village is another famous outlet in Dubai, which has a special place in the hearts of shopping lovers with its European architecture and international brands. The atmosphere of this shopping center is designed like Italian tourist villages and is very impressive. In addition to offering a variety of goods at economical prices, this shopping center has many amenities such as parking, cafes, restaurants, playgrounds and cinemas.

Shopping guide from the outlet

Now that you understand what outlet means? You need to learn how to shop at outlets like a pro. Yes, you got it right; Buying from outlets has its own drawbacks. So, in order to have the best purchase from outlet stores, pay attention to the following points.

First of all, be prepared to search long, pay attention to details, and explore a lot. The first point that turns you into a professional buyer is paying close attention to the quality of sewing and checking the goods thoroughly. Especially if you want to buy bags, shoes and clothes, pay attention to things like stitching, glue, small and minor stains, scratches and things like that.

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If the desired product passes this step successfully, be sure to verify it. Sizes may be different in outlets. The next thing you need to know as a professional outlet shopper is when to go to the mall. It is true that outlets are always discount stores, but at special times such as the end of the season or occasions such as Christmas, these discounts are even more.

Also, when buying a product, it is better to check its price from the main store. Sometimes the price difference is so small that it makes buying from the outlet illogical. Another point of shopping in outlets is to pay attention to the production date of the product. If too much time has passed since the time of production, the product may have rotted and changed in quality.

In order to be able to shop safely and without rushing, it is better to visit the outlets in the early morning hours and in the middle of the week. In these times, you have a better chance to find the best products and the probability of finding the right size and desired product increases and you will have a more relaxed shopping experience.

The last thing to consider is the return policy. Many outlets are very strict in taking back the goods. Some of them do not return any goods. Some only exchange the goods and some outlets may return the goods in a short period of time such as 24 to 48 hours.

Alibaba recommendations for buying from outlet stores

Now that you are familiar with one of the most attractive models of shopping malls and understand what an outlet is, here are some final recommendations from Alibaba for shopping at outlet stores.

• Be sure to write your shopping list in advance so that you don’t get lost in the big and crowded world of outlets.
• Don’t get excited because of low prices and don’t buy unnecessary goods on impulse.
• Be sure to spend enough time shopping, because shopping at outlets takes more time.
• When buying a product, carefully and patiently check it so that it does not have any major defects.
• If possible, be sure to try the products as soon as possible. Shopping at the outlet means smart shopping, not hasty shopping.