Soft Goods

Posted in Marketing and Strategy Terms, Total Reads: 475
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Definition: Soft Goods

Goods are classified into two types as 1) Durable goods 2) Non-durable goods


Under the non-durable goods, textile related goods form the soft goods type. Clothing, towels, bed covers, table cloth and similar goods are typical examples of soft goods. These clothing goods have a useful life of around 3 years. Though few goods in this segment might last longer than 3 years, the general wear and tear of this product is inevitable provided these goods are used for their intended purpose of production


Another sub-category of these non-durable goods is Perishable goods. A typical example of this type is food items. Food items are consumed immediately as most of these items are prepared after receiving an order. Even in the case of frozen foods, it comes with a short expiry date. An exception to these 3 year standard expiry periods are Vacuum packed food items which can be consumed for up to five years


Durable and non-durable goods production plays a role in calculating the GDP and National income of the country. Increase in production of these goods indicates increased demand. Increased demand and increased income indicates the economic growth of the country. Inflation rates such as WPI and CPI are calculated based on the price change in the basket of these non-durable goods. Demand prediction and supply chain management are crucial to companies which produces non-durable goods as these items come with limited life time.

 

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