Chapter 10 Fashion Distribution Buying Fashion Selling Fashion

Chapter 10 Fashion Distribution Buying Fashion Selling Fashion 1

Fashion Distribution Chapter Objectives Explain the role of the fashion buyer. Discuss the steps in the buying process or merchandising cycle. Identify the types of fashion retailers. Discuss buying motives. Identify the difference between personal and nonpersonal selling. 2

Fashion Distribution Fashion Buyer’s Job Buyers make sure merchandise consumers want is available in stores Buyers purchase goods from vendors Must be able to predict what consumers want six months to a year before the goods reach stores Monitor styles and trends and which items are selling – like those featured in Vogue and Bazaar Read trade publications like Women’s Wear Daily Must have good fashion sense and keen business skills 3

Fashion Distribution What problems do you think occur for retailers like Walmart or Goodys when buyers make inaccurate predictions about what consumers want to purchase? 4

Fashion Distribution The Buying Process There are three steps in the buying process, also known as the merchandising cycle: starting with predicting what customers will purchase. 3 2 1 Merchandise Buying. Selling. Planningbuying goods from exchanging of Estimating vendors or goods for styles, colors, manufacturers money from sizes and prices for resale retailer to customer Section 10. 1 5

Fashion Distribution Merchandise Planning Sales Records – The main resource which is past records of goods sold. This tells quantities and styles. Vendor Information – Vendors sales representatives keep on tope of current trends and can advise buyers about making purchases. Market Week Previews – Buyers attend these to preview the upcoming season’s merchandise and to buy merchandise. 6

Fashion Distribution Do you think it would be hard for buyers to separate their personal likes and dislikes from the current trends and consumer desires for which they are making purchases? 7

Fashion Distribution What recent fashion item do you think would be the wrong choice because it is about to go out of style? 8

Fashion Distribution Types of Fashion Retailers Macy’s is an example of a large department store. üDept. stores employ at least 25 people üSell apparel/accessories, home furnishings, and household linens A specialty store will generally emphasize a certain style, such as classic or trendy. üIt targets its merchandising to specific age groups and price ranges. üExamples: Pac. Sun, Claire’s Section 10. 1 department store a retail operation that carries different kinds of merchandise and houses them in separate sections, or departments specialty store a retail operation that offers only one category or related categories of fashion merchandise 9

Fashion Distribution Types of Fashion Retailers Because the target market for a boutique is smaller, the buyer must plan purchases carefully. ü Apparel and accessories carried by boutiques tend to be more trendy. Example: Main St. shops in Clinton The designer store concept is called vertical retailing. ü By selling directly to the consumer, designer stores earn bigger profits. ü Examples: Gucci, Guess, Coach, Talbots Section 10. 1 boutique a type of small specialty store that offers a more limited selection of merchandise and may focus on few-of-a-kind items designer store a designermanufacturer retail operation that owns and operates the retail store and carries only its own lines 10

Fashion Distribution Types of Fashion Retailers The goods offered at an outlet may be overruns, damaged items, or leftovers from a prior season. ü Another term for outlet is off-price retailer A discount store operates like a department store, but offers discount prices ü purchases manufacturer overruns and end-of-season goods. ü special deals from manufacturers because of large quantities purchased ü Examples: Marshalls, Target, Walmart Section 10. 1 outlet a discount store that is owned by a manufacturer that sells its own merchandise in the store discount store a retail operation that offers volume merchandise and limited service and sells goods below usual retail prices 11

Fashion Distribution Top Retailers Walmart Target Jc penney Gap May department stores Tj max 12

Fashion Distribution Would you rather shop at a department store or speciality store? 13

Fashion Distribution Types of Fashion Retailers Mail-order, or direct-mail, marketing is a type of retail operation in which a business sells merchandise in a catalog and sends it by mail to consumers who purchase it. ü People use catalogs because of convenience. Online shopping, or Internet shopping, is a fast-growing trend. Customers are able to shop at any time of the day or night, seven days a week, and have the merchandise shipped directly to their homes. ü Some retailers offer discounts for online shopping Section 10. 1 14

Fashion Distribution Why People Buy Fashion Cultural, social, and psychological factors affect buying behavior the way consumers react to satisfying a need or want when making a purchase Buying behavior can be rational or emotional. Which type of behavior do you think marketing is trying to influence? Section 10. 2 15

Fashion Distribution Remember!!!! The Main Categories used to group merchandise: Women’s wear Juniors Children’s Wear Men’s Wear 16

Fashion Distribution Buyer’s Questions: What problems occur when fashion buyers make inaccurate predictions? Do you think it is difficult for buyers to separate their personal likes and dislikes from the trends and consumer desires they need to purchase? What recent fashion item do you think would be a wrong choice because it may be about to go out of style? Do you like stores with sales associates or ones with no help? Do you find most are trained and helpful? What is important to you? Describe some of your online purchase experiences 17

Fashion Distribution Complete: Handout on “Types of Fashion Retailers” On paper, begin to create a design plan for layout for your, “Ideal department store. ” – This plan must include at least 3 groups of general merchandise. The plan must include at least 3 groups of general merchandise The plan must be creative, color, and neat The plan must be detailed with explanations of where various areas of merchandise are located within each group. For example: Jewelry and handbags, hosiery, undergarments and sleepwear, plus sized clothing, etc. 18

Fashion Distribution Do you think that the media is an important influence on fashion? Why or Why not? 19

Fashion Distribution Influences on Fashion The role of fashion in popular culture has a significant impact on people’s lives and the purchases they make. People are influenced by: Television Films Magazines Street fashions Section 10. 2 20

Fashion Distribution Personal Selling Advertising, sales, promotion, and publicity are types of nonpersonal selling. The selling process occurs when sales associates communicate through personal selling. (see page 212) ü Suggestion selling techniques: ü Add-on ü Trading up ü More than one ü Special offer Section 10. 2 nonpersonal selling the type of selling that does not involve interaction between people personal selling the type of selling that involves direct interaction between sales associates and potential buyers by telephone or in person 21

Fashion Distribution How are sales people similar to teachers? 22

The Steps of Selling-see p. 209 Successful sales associates use the Steps of Selling Follow Up Perform Suggestion Selling Close the Sale Overcome Objections Present the Product Determine Needs Approach Section 10. 2 23

Fashion Distribution Selling Questions: What selling step do you think is most important? Why? What new or emerging technology can a sales staff use to improve and increase business What does “closing the sale” meaning Describe a situation in which you made additional purchases because the sales associate made suggestions to do so… 24

Fashion Distribution Steps of Selling Role Play: At your tables: *See page 209 -210 in book Now assume you are being sent to Chicago for a sales training seminar. Your are a salesperson who gets commission. You are going to role play the 7 steps of selling in your groups. Think of 3 open ended questions that would help you learn about your customers preference. Then outline and write down scripts for all the 7 steps of the selling process, assuming you are selling a particular item to a client (You can choose an item at your tables). Be ready to discuss some of your questions and scripts at the end of class. 25

Fashion Distribution 10. 1 1. What is the job of the fashion buyer? What are three steps of the buying 2. process or merchandising cycle? Compare and contrast at least two different 3. types of retailers. Section 10. 1 26

Fashion Distribution 10. 2 4. What are the two types of buying behavior? 5. What are the seven steps in the selling process? 6. Describe the difference between personal selling and nonpersonal selling. Section 10. 2 27