Chapter 12 Wholesale Marketing and Distribution Copyright 2005
Chapter 12 Wholesale Marketing and Distribution *Copyright © 2005 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved
International Markets • International wholesale apparel and accessory markets are the means of distributing the manufacturer’s finished product to retailers. • Traditionally, fashion markets were located close to suppliers and manufacturers. • Globalization made local market centers, or places with abundant convention space, new fashion markets. • Paris remains the world center for couture. Fashion From Concept to Consumer, 8/e Gini Frings © 2005 Pearson Education, Inc. Upper Saddle River, New Jersey 07458
International Markets • Twice annual shows are highly regulated by the French government which in turn gives extensive support in the form of campaigns to promote export and free media coverage. • Prêt a porter also garners extensive coverage in Paris, as well as Milan and throughout the German market fairs. • Many designer collections now combine women’s and men’s. Fashion From Concept to Consumer, 8/e Gini Frings © 2005 Pearson Education, Inc. Upper Saddle River, New Jersey 07458
Domestic Markets • New York remains the domestic capital, with two shows annually in addition to trade show during market weeks. • While children’s wear now has three or four shows a year, men’s wears, National Association of Men’s Sportswear Buyers (NAMSB), now shows four times a year. • Showrooms are places where manufacturer’s reps show samples to prospective retail buyers. Fashion From Concept to Consumer, 8/e Gini Frings © 2005 Pearson Education, Inc. Upper Saddle River, New Jersey 07458
Domestic Markets • The Men’s Apparel Group in California (MAGIC), has the largest men’s apparel trade show in the world, held twice a year in Las Vegas. • Regional markets in the United States include: – Los Angeles – Dallas – Chicago – Atlanta – Miami Fashion From Concept to Consumer, 8/e Gini Frings © 2005 Pearson Education, Inc. Upper Saddle River, New Jersey 07458
Marketing • Manufacturers use specific marketing strategies to make their merchandise known to prospective retail buyers and the public. • Marketing strategies are adjusted to local habits, styles and tastes. • Publicity is information given to the public regarding products, policies, personnel, activities or services. • The goal is to obtain editorial coverage. • While media coverage is free, manufacturers pay to create the publicity materials. Fashion From Concept to Consumer, 8/e Gini Frings © 2005 Pearson Education, Inc. Upper Saddle River, New Jersey 07458
Marketing • Advertising is the planned writing, producing and scheduling of paid announcements designed to attract potential customer’s attention to the manufacturer’s merchandise. • Manufacturers use trade and consumer media to reach both markets. • Image advertising is aimed to make consumers aware of names or brands. • Manufacturers may choose one outstanding style from a collection to create item advertising. Fashion From Concept to Consumer, 8/e Gini Frings © 2005 Pearson Education, Inc. Upper Saddle River, New Jersey 07458
Marketing • Cooperative advertising is a joint venture between textile producers and retailers to share advertising cost. • A variety of marketing aids for retailers are available: – Personal appearances by designers, designer trunk shows and in store clinics – Videos and image books – Display fixtures – Radio scripts and TV commercials – Glossy photos, statement enclosures and hangtags • Associations that promote fashion also have annual fashion awards to generate interest in fashion. Fashion From Concept to Consumer, 8/e Gini Frings © 2005 Pearson Education, Inc. Upper Saddle River, New Jersey 07458
Distribution • Manufacturers plan distribution to achieve four points: – Appropriate stores buy the merchandise – The desired geographical representation is achieved – Competition between stores is not created – Business volume is obtained • Manufacturers strive to create brands consumers prefer over all others, consumer franchising. • Brand integrity is supported by consistent quality and value, licensees kept to a minimum for purpose of control, appropriate advertising, fixturing. Fashion From Concept to Consumer, 8/e Gini Frings © 2005 Pearson Education, Inc. Upper Saddle River, New Jersey 07458
Distribution • Building a brand requires: – Multiproduct manufacturing – Exporting – Opening retail stores • Licensing provides diversification without capital investment. • Licensing agreements allow manufacturers to use designers or brand names for a royalty fee. Fashion From Concept to Consumer, 8/e Gini Frings © 2005 Pearson Education, Inc. Upper Saddle River, New Jersey 07458
Distribution • Joint ventures accomplish the same goals as licensing but are partnerships between manufacturer and designer. • Franchising rights allow someone to retail a manufacturer’s line. • Manufacturers sometimes lease space within a store to sell their merchandise, particularly when expertise is needed to sell as in the case of fine jewelry, shoes and fur. Fashion From Concept to Consumer, 8/e Gini Frings © 2005 Pearson Education, Inc. Upper Saddle River, New Jersey 07458
Selling to Retailers • Manufacturers, or vendors, communicate design and merchandising concepts to retailers. • Assortment customizing makes each separate account slightly different to give unique looks at each store. • The two basic ways of selling fashion merchandise to retailers is through: – Corporate selling, where major vendors sell management team to management team – Sales representatives who call on specialty stores that don’t have time or money to travel to New York Fashion From Concept to Consumer, 8/e Gini Frings © 2005 Pearson Education, Inc. Upper Saddle River, New Jersey 07458
Selling to Retailers • Retailers search for manufacturers who provide, at a minimum, the following: – Consistent quality – Continuity of styles – On time delivery – Value – Reorder performance • EDI orders create Inventory Management Systems (IMS) reports on in stock and expected delivery dates. • Manufacturers hire consultants to “train” retail sales associates on their merchandise features and benefits. Fashion From Concept to Consumer, 8/e Gini Frings © 2005 Pearson Education, Inc. Upper Saddle River, New Jersey 07458
Selling to Retailers • Traditional buy/sell relationships between retailers and manufacturers have been replaced. • Today’s competitive market demands sharing of risk and information on forecasting, product development, production, scheduling and distribution. Fashion From Concept to Consumer, 8/e Gini Frings © 2005 Pearson Education, Inc. Upper Saddle River, New Jersey 07458
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