Chapter 12

Wholesale Marketing and Distribution

Fashion From Concept to Consumer, 8/e © 2005 Pearson Education, Inc.Gini Frings Upper Saddle River, New Jersey 07458

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 © 2005 Pearson Education, Inc.Gini Frings 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 © 2005 Pearson Education, Inc.Gini Frings 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 © 2005 Pearson Education, Inc.Gini Frings 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 © 2005 Pearson Education, Inc.Gini Frings 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 © 2005 Pearson Education, Inc.Gini Frings 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 © 2005 Pearson Education, Inc.Gini Frings 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 © 2005 Pearson Education, Inc.Gini Frings 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 © 2005 Pearson Education, Inc.Gini Frings 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 © 2005 Pearson Education, Inc.Gini Frings 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 © 2005 Pearson Education, Inc.Gini Frings 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 © 2005 Pearson Education, Inc.Gini Frings 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 © 2005 Pearson Education, Inc.Gini Frings 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.