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Chapter 12
Wholesale Marketing and
Distribution
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