TXMI 3210 Exam 3; FINAL
showcase stores
a manufacturer's or designer's store that sells merchandise at the introductory and early rises of the fashion cycle. in addition to generating income, showcase stores are the testing grounds for new products.
mart
a building or building complex housing both permanent and transient showrooms of producers and their sales representatives
franchise
a contracted agreement in which a firm or individual buys the exclusive right to conduct retail business within a specified trading area under a franchiser's registered or trademark name
leased departments
a department ostensibly operated by the store in which it is found but actually run by an outsider who pays a percentage of sales to the store as rent
discount store
a departmentalized retail store using many self-service techniques to sell its goods. it operates usually at low profit margins, has a minimum annual volume of $500,000, and is at least 10,000 square feet in size.
prêt-à-porter
a french term meaning "ready-to-wear"
market center
a geographic center for the creation and production of fashion merchandise, as well as for exchanging ownership
chain organization
a group of 12 more centrally owned stores, each handling somewhat similar goods that are merchandised and controlled from a central headquarters office (as defined by the Bureau of the Census)
market
a group of potential customers. also the place or area in which buyers and sellers meet for the purpose of trading ownership of goods at wholesale prices
buyer's directory
a list (and often a map) of the manufacturer's showrooms in a particular market or mart; it is furnished to retail buyers to assist them in "working the market"
magalogs
catalogs that have editorial content, not just advertising
sales representative
company representatives who exhibit merchandise to potential customers
Name the five ways foreign-made fashion merchandise can be purchased.
1. Foreign Fashion Markets 2. Store-owned foreign buying offices 3. Commissionaires or independent agents 4. Import fairs held in the United States 5. Importers
What is a chain organization? How are buying and merchandising handled in chain operations?
A chain organization is a group of centrally owned stores, four or more, each of which handles similar goods and merchandise. A chain organization may be local, regional, or national, although it is the national chains that have had the largest impact on retailing. They also may be general or specialty merchandisers, and depending upon what kind of store they are, they will target their customer broadly or narrowly. They may be a mass-merchandiser known for low-prices, a department store known for high-quality, mid- priced goods, or a specialty merchandiser selling exclusive designs at high prices. Apparel chains may focus on a special size, age, or income group. Most chain stores are departmentalized but not in the same way as department stores. Chain-store buyers are typically assigned to buy a specific category or classification of apparel within a department instead of buying all categories for a department. This practice is referred to as category of classification buying and differs from the departmental buying practices by buyers for department stores. A chain-store buyer who bought in the sportswear department might buy only swimsuits or only swimwear accessories. This is necessary because of the huge quantities of goods that are needed to stock the individual stores of a chain operation. Most chains also have a system of central distribution. Merchandise is distributed to the units from a central warehouse or from regional distribution centers. Computer systems keep track of stock so that it can be reordered as needed; they also keep buyers informed of what is selling.
What is a specialty store? How are buying and merchandising handled in a specialty store?
A specialty store carries a limited line of merchandise and has a more specific target audience than do general merchandisers. They may offer a single line or a limited line and some offer a subspecialty. Another part of speciality stores are private label retailers, who only sells what they manufacture themselves. In small specialty stores, buying and merchandising are done by the owner or manager, sometimes with the assistance of a small staff. Large multi department stores are organized along the lines of a department store, buyers purchasing merchandise for their own departments. Multiunit specialty stores belonging to chain organizations are set up in a unique way.
What stage or stages of the fashion cycle would most likely be emphasized by a specialty store, a department store, and a discount store?
A specialty store would emphasize the early rise stage of the fashion cycle, a department store would emphasize the culmination stage, and discount stores would emphasize the late peak and early decline stages.
What advantages does a website offer as a promotional medium?
A webpage is a reflection of a firm's identity, and in the fashion industry especially it is necessary to have a website that is well-designed and user-friendly. Web pages also allow the company to reach selected market segments and respond to their specific needs at any given moment. Retail customers can locate the nearest outlet of a favorite chain store, job applicants can find out about available positions and submit their resumes, and employees can communicate with one another, as well as with customers and vendors. Customers also have the ability to view and purchase products online within minutes.
According to Malcolm P. McNair, how do retail organizations typically evolve?
According to McNair's theory, called the Wheel of Retailing, most retail organizations begin life as lower-priced distributors. They offer strictly functional facilities, limited assortments, and minimal customer services. As time elapses, the successful businesses need to grow to survive, so they begin to trade up in an effort to broaden their customer profile. Facilities are modernized. Store decor becomes more attractive. Assortments become varied and of higher quality. Promotional efforts are initiated or increased, and some customer services are introduced. The process of trading up, however, involves considerable capital investment in the physical plant, equipment, and stock. Operating expenses spiral. As a result, retailers are forced to charge higher prices to cover the increased cost of doing business. To justify the higher prices, they also begin to stock more expensive merchandise. According to McNair's theory, as retailers move out of the low-priced end of the market into the moderate-to-high-priced field, they create a vacuum at the bottom of the retailing structure. The vacuum does not exist for long, however. Enterprising new retailers move quickly to fill the vacated and temporarily uncompetitive low-priced area to meet the demands of customers who either need or prefer to patronize low-priced retailers. This pattern keeps repeating itself as successful retailers trade up and new ones move into the vacuum. This theory also applies to catalog companies.
What criteria must be met for an area to be considered a market center?
Actually, there is no one giant shopping mall that serves as a market for the entire U.S. fashion industry. Instead, several market centers, or geographic locations, exist throughout the country and across the globe. A market center is a city where fashion is produced and sold at wholesale prices. The first market center in the United States was New York City. It must be a city that is at the center for creation and production of fashion merchandise and exchanging ownership.
The paid use of space or time in any medium is called:
Advertising
What is the difference between advertising and publicity/public relations?
Advertising, which appears in everything from magazines and newspapers to radio, television, and on the Internet is space and time for which an advertiser pays. Publicity is the free and voluntary mention of a firm, product, or person in the media. Its purpose is to inform or enhance public interest about something specific. Public Relations, a broader term than publicity, is also free and voluntary mention, but it is designed to enhance a long-term goal, such as the shaping of a company's public image. One main difference between advertising and publicity/public relations is the amount of control a manufacturer or retailer can exercise over each. Since advertising is purchased, a great deal of control can be exercised over its execution. Public relations and publicity can be carefully developed and well presented to the media, but there is no guarantee that the material and information supplied will be used well- or at all.
What are the two important functions of foreign import shows in the United States?
Another way to buy foreign goods is to attend one or more of the foreign import fairs that are now regularly held in the United States. Many foreign countries participate in such shows or stage their own fashion fairs in the United States. These foreign import fairs increase the size and depth of the import market by giving buyers of small-and intermediate-size stores who would not ordinarily tap into the foreign market a chance to do so. To provide their customers with imported merchandise, these buyers need not maintain foreign representatives or shop in the foreign markets, neither of which would be cost-effective for their operations.
What examples in your community can you cite that support McNair's theory of trading up by retailers?
Any of the small retailers in my community that are trying to grow essentially support this theory, or those retailers who have already gone through this movement and are considered successful. Macy's, Forever 21, Charming Charlie's
As a fashion consumer, do you advocate protectionism or free trade? What major items of your current wardrobe would you have been unable to purchase if broad legislation prohibiting imports had been in place?
As a consumer, I advocate free trade. I believe that free trade more successfully supports the global economy of fashion in the long run versus that of protectionism. Almost all of my wardrobe would not have been able to have been purchased if broad legislation imports had been in place.
What distinguishes New York City as the major fashion market center in the United States?
As a market, New York city belongs in a category by itself, not only because it is the city with the most resources to offer the fashion world but also, as mentioned earlier, because it has no central mart building. The New York market is made up of literally thousands of showrooms, which line the streets of the garment district. The couture or higher-priced lines are situated primarily along Seventh Avenue. Moderate-priced lines and sportswear firms are housed around the corner on Broadway. Whatever is new will be seen here first. New York, most industry people agree, is the most dynamic and creative market center. Any buyers servicing stores of any size must come to New York to do so, regardless of the other markets they add to their schedule. New York offers a wide range of shopping. Every kind of fashion can be found here in every size. New York city is also the hub of the fashion network.
buying, merchandising, and product development organization
Associated/cooperative: one that is jointly owned and operated by a group of independently owned stores Private: one that is owned and operated by a single, out-of-town store organization, and which performs market world exclusively for that store organization Salaried/Fee/Paid: one that is independently owned and operated and which charged the stores it represents for the work it does Syndicate/Corporate: one that is maintained by a parent organization that owns a group of stores and which performs market work exclusively for those stores
How is the buying function handled by the department store?
Department stores are organized into special areas, or departments, such as sportswear, dresses, men's clothing and furniture. Generally, buyers purchase for their department, although in very large department stores, even the departments may be departmentalized, with individual buyers purchasing only part of the stock for a department. In some sportswear departments, one buyer may purchase tops while another purchases bottoms.
Compare and contrast the organization for buying and merchandising among prestigious chain organizations, department stores, and large specialty stores; discounters and off-price mass merchandisers; and franchises and leased departments. Give examples of different types of retailers in your community.
Department stores: organized into special areas, or departments, and buyers buy for their department Leased Departments: the outside organization usually own the department's stock, merchandises and staffs the department, and pays for its own advertising Franchises: The franchisee pays a fee plus royalty on all sales for the right to operate a store with an established name in an exclusive trading area. The franchiser provides merchandise and assistance in organizing, merchandising, plus training. Discount Stores: discounters specialize in low-end open-market goods or special lines made exclusively for them. Specialty Stores: a specialty store carries a limited line of merchandise, whether it is clothing accessories, or furniture Chain organization: most chain stores are departmentalized but not in the same way as department stores. Buyers are typically assigned to buy a specific category or classification of apparel within a department instead of buying all categories for a department the way a department store buyer does. Off-price Retailers: off-price retailers sell brand-name and designer merchandise at lower-than-normal retail prices when they are at the late rise or early peak in the fashion cycle. In contrast, regular discounters sell merchandise in the late peak and decline stages of the fashion cycle .
Discuss the growth of non-store retailing direct sellers, television shopping, and the Internet/Social Media. In your opinion, where do you, as a shopper, see the opportunity for the greatest growth, and why?
Direct selling, which used to be known as direct-to-the-home selling, is still a major force in the United States. Almost all people who work in direct sales in the United States are independent part-time sales people, who buy merchandise from a large firm and distribute it by selling it to customers in their territories. TV home shopping is taking catalog sales techniques to the next level. Cable television made it feasible to produce informercials and to set up home shopping services that sell an array of goods. The invention of the Home Shopping Network was the pioneer in the TV Home shopping business. The second largest is QVC, which has grown significantly and was the first to offer high-definition service to customers. ShopNBC is a multichannel electronic retailer. Apparel sales are moving to number one spot of online buying. This is due to the variety of sites available, the large consumer base, and easy search options as well as high-speed broadband and the opportunity to zoom in and see multiple views of the same product. The big players in this field offer interactivity with live chats and assistance. A more recent trend in e-tailing that has emerged is member-only and flash-sale sites. They give customers exclusive discounts with sales that last only for a certain number of hours, creating a sense of urgency to buy. Social media has turned the world from a one-to-many broadcast format to a many-to-many interactive conversation. Various social media sites allow fashion to be seen at an instant and multiple companies are utilizing social media to promote products and deliver instant information as well as live updates from fashion shows. I think the largest potential for growth is definitely in Internet/Social Media. This trend didn't start too long ago and has done nothing but grow exponentially in the past few years. It is only going to become more used as we become more technologically savvy and I believe that online shopping could eventually take over in person shopping.
When the value of goods that a country imports exceeds the value of goods that it exports, the country has a trade surplus:
False; trade deficit
The reputation of Paris as a prime source of fashion inspiration began to develop several centuries ago as the result of many interrelating factors. Identify those factors and discuss their importance in the development of any major fashion design center.
France has been the center of haute couture since 1858, When Charles Frederick Worth, generally regarded as the father of Parisian culture, opened his doors. In 1868, an elite couture trade association called the Chambre de Syndicale de la couture parisienne, came into being. Membership was by invitation only and was restricted to couture houses that agreed to abide by its strict rules. A couture house is an apparel firm for which a designer creates original designs and styles. Beginning about 1907, Paul Poiret became the second great fashion legend of Paris. He was the first to stage fashion shows and to branch out into the related fields of perfume, accessories, fabric design, and interior decoration. In 1973, Federation Francaise de la couture, du pret-a-porter des couturiers et des createurs de mode was established. La Federation is the executive organ of all trade associations for Chambre Syndicales of each fashion. Haute couture, ready-to-wear, and menswear each have their own Chambre Syndicale. There is a very large focus on Paris as the prime source of fashion, and with good reason. Paris has a history, and with that history, it also is what created/maintains the couture house; a place needed for the development of any major fashion design center.
As a consumer, where do you get your information about fashion? How does each medium influence your buying decisions?
I get most of my information from television, internet, and by my own experiences.
You own a small boutique that caters to upscale young women. What services of buying, merchandising and product development organization would be most useful for you? Why?
I think that the most important service would be their purchasing. I would want advice and support in each decision of what to stock in my store. It would be beneficial for someone else to have better knowledge of how much to stock, order, and give to other places.
The country that is home to the largest hand loom industry in the world is:
India
Name the fashion products for which Italy and Britain, respectively, are considered leaders.
Italy has long been recognized as a leader in men's apparel, knitwear, leather accessories, and textiles. For many years, London's Savile Row was for menswear what Paris has been for women's apparel.
Foreign investors, mostly from Europe and Asia, have taken certain routes to ownership, including:
Joint Ventures, Licensing, Total ownership
What is a leased department, and how does it operate? Name the departments in a real store that are frequently leased.
Leased departments are sections of a retail store that are owned and operated by outside organizations. The outside organization usually owns the department's stock, merchandises, and staffs the department, and pays for its own advertising. It is, in turn, required to abide by the host store's policies and regulations. In return for the leasing arrangement, the outside organization pays the store a percentage of its sales as rent. Leased departments work best where some specialized knowledge is required. Jewelry, fur, and shoe departments are often leased, as are beauty salons. Glemby Company and Seligman and Latz, for example, lease many of the beauty salons in stores. Another example is Macy's Inc., which has a leased agreement with Sunglass Hut. Department stores, chains, and discount organizations will lease both service and merchandise departments, while specialty stores usually restrict leased operations to services, such as jewelry or shoe repair or leather and suede cleaning.
What legislation eliminated quotas and tariffs for goods shipped between the United States, Canada, and Mexico?
NAFTA (North American Free Trade Agreement)
How do successful discounters make a profit?
One area that is experiencing strong growth is off-price retailing, the selling of brand-name and designer merchandise at lower-than-normal prices when they are at the late rise or early peak in the fashion cycle. In contrast, regular discounters sell merchandise in the late peak and decline stages of the fashion cycle. Off-price retailers attribute part of their success to the fact that they provide an invaluable service to manufacturers and price-conscious consumers. Because manufacturers must commit to fabric houses so far in advance (up to 18 months before garments will be in the store), they risk not having enough orders to use the fabric they have ordered. Off-pricers have in effect helped to smooth out the cyclical and often financially disastrous course of apparel manufacturing. Customers, in turn, benefit from being able to buy garments very similar to those that are being sold in exclusive stores for less than they would pay in those stores. Off-pricers managed to capture an important share of the brand-name market. Success of brand names meant designers no longer had to give department stores exclusives, and they were soon selling their products to off-pricers. More recently, designers have begun to sell their overstocks in their own stores. This has put severe pressure on off-pricers to get enough inventory. The possibility of strong profits is not to be underestimated. An outlet buys merchandise from the parent company for 30 percent off the regular wholesale prices and sells it for the same markup percentage as regular-priced retailers.
What are the advantages of television, radio, the Internet, and social media for fashion exposure? Do you prefer one instead of another? Why?
One cannot turn on the television without learning something about apparel fashions. The fashion industry obtains invaluable publicity from the simple fact that everyone acts in a show or hosts or appears on a newscast or talk show wants to- and usually does- wear the latest fashions. Cable television is becoming increasingly attractive because it costs so much less than network television, many more outlets exist for the cable television reducing the competition to buy space and it is also home of the informercial. Radio is popular because it is inexpensive and can reach large but targeted audiences. Radio is also a source of publicity for announcing sales and other storewide events and because products and fashion news are discussed on regular shows. A web-page is a reflection of a firm's identity and it is important to be well-designed and user-friendly. Allows company to reach selected markets and respond to need immediately. Also provides ability to view and purchase products online within minutes. Social media allows the instant notification of new trends and what fashion is being worn all over the world. They can promote new products and deliver instant information and broadcast their runway shoes simultaneously.
What is the difference between home TV shopping and shopping on the Internet?
One of the most talked about developments in retailing has been the growth of home TV shopping, a form of retailing that takes the catalog sales techniques one step further. The potential of television as a direct-mail sales tool has long been recognized; witness the late-night gadget demonstrations and the ubiquitous storm window advertisements. Not until the advent of cable television, however, with its lower production standards and costs, was it feasible to produce informercials and to set up home shopping services that sell an array of goods. Apparel sales moved into the top spot online in 2006 and have continued its phenomenal growth rate. Key reasons for growth of apparel, accessories, and footwear online are the variety of sites available, liberal shipping policies, a larger customer base, and easy search options for customers. High-speed broadband allows users to navigate quickly, and some sites give customers the opportunity to zoom in and see multiple views of products.
Choose three international fashion centers (cities) and discuss each according to their relevance to the fashion industry.
Paris: France has been the center of haute couture since 1858 with Charles Frederick Worth, father of of Parisian couture. Paris is considered the cradle of the fashion world where new fashion is born and once it is seen there it is adopted and adapted by others around the world. Couture houses are popular in Paris and designers are known as courtiers or couturiers. Chambre Sydnicale was originated in Paris. There are famous Parisian haute couture fashion shows as well as ready to wear fashion shows. Boutiques are also big in Paris. Licensing agreements are lucrative in Paris. Creatuers are ready to wear only designers. Italy: France's most serious rival in the international fashion industry and surpasses Paris is the areas of knitwear and accessories and specializes in men's apparel, leather, knitwear, and textiles. Italy's Chambre de Syndicale is known as the Camera Nazionale della Moda. Milan is the largest fashion center but fashion is dispersed across Italy. Boutiques and licensing agreements are also popular. It started exporting earlier than France and still heavily relies on exports. Ready to wear designers make their fashion shows interesting and exciting to match those of Paris. Trade shows are held in areas where the market is centralized. Great Britain: Savile Row in London is to menswear as Paris is for womenswear. British couture may not be supported as strongly as those of Italy and Paris, but it does have extremely famous design schools. Ready to wear wasn't extremely popular until after WW2 and designers like Vivienne Westwood shocked people with her talent and scene of unorthodox clothes and lifestyle. Trade shows used to be dormant in GB, but are not a required stop on the European circuit
export
when a country provides goods to another country
The equivalent of American ready-to-wear is the French:
Prèt-â-porter
Which of the following works to improve a client's image with the target market and may develop long-range plans and directions for this purpose?
Public Relations
What advantages do imports give retailers?
Retailers are the primary importers of foreign goods in the fashion industry, although manufacturers also seek global sourcing. Retailers like imports for several reasons: their uniqueness, quality, cost, and the variety they add to their stock. They constantly seek merchandise that will make their stores stand out in special and unique ways that will set them apart from the competition. Foreign merchandise often fits that bill.
Name and briefly explain the characteristics and importance of three early forms of retail distribution in the United States.
Retailers today can generally be divided into two broad categories- general and specialized- depending on the types of merchandise they carry. In each of these categories, there are many types of retail operations: department stores, specialty stores, chain operations, discount stores, leased departments, etc. The retail scene is dominated by general merchandise retails, such as JC Penney, Target and Sears. These retailers sell many types of merchandise in addition to clothing. They appeal to a broad range of customers and very broadly target their merchandise to several price ranges, and only a few limit themselves to narrow price ranges. In contrast, specialty retailers, offer limited lines of related merchandise targeted to a more specific customer. They define their customer by age, size, or shared tastes. Their customers are more homogenous. Examples are Crate and Barrel, Tiffany's, and Talbots. Three traditional types of fashion retailers are department stores, speciality stores, and discount stores. Department: most familiar to buying public, tourist landmarks, reigned as kings of retailers until 1980s when they became victims of over expansion, mergers and acquisitions, and increased competition. by 2005, retail space occupied by a variety of stores. department stores serve a larger portion of the community than other stores and offer a variety of quality and price ranges, offers a category of apparel at several price points, each in a different part in the store, traditionally enjoyed a certain prestige and are actively involved in their communities, organized into departments and buyers purchase for their department, compelling and changing merchandise, video walls, fixtures, merchandise, interactive Internet sites, etc. building relationships through award and loyalty systems Specialty stores: limited line of merchandise, shoe stores, jewelry stores, boutiques, target more specific customer- single line, limited lines, subspecialty. Private label retailer- sells only what it manufacturers itself. Buying and merchandising done by owner or store manager in small speciality store, sometimes with assistance of a small staff. Large multi department speciality stores are organized along the lines of department stores, buyers purchasing merchandise for their department. multiunit belonging to chain organizations are set up in a unique way. entertainment is natural, visual merchandising, video wall, rock climbing wall Discount Stores: any retail operation that sells goods at less than full retail prices, discount stores, mass merchandisers, promotional department stores, off-pricers, general or speciality, cosmetics, accessories, apparel to health and beauty aids, to major appliances. specialize in low-end open-market goods or special lines made exclusively for them. conventional retail operations do not want buyers to purchase goods that will be sold to discounters, but this has not stopped manufacturers from making special lines for discounters. use discount outlets to sell overstocks or slow-moving items
What are the advantages of using a store-owned foreign buying office? A commissionaire?
Some stores- those that are large enough to do do or whose image is very special- maintain company-owned foreign buying offices. Buyers who work in these offices support and advise buyers by surveying the market for new trends, supervising purchases, and following up on deliveries. Because they are an extension of the store, buyers in foreign buying offices are often authorized to make purchases just as store buyers are when they shop in foreign and domestic markets. If the purchase is part of a new trend, stores need the foods when they are still new and customers are still eager to buy them. If it is part of a foreign theme promotion, goods must be delivered whilst the promotion is in progress. Delivery- especially timely delivery- has been a major problem with imported goods. Stores generally locate their buying offices in major fashion capitals such as Paris, Milan, London, Hong Kong, Bejing, and Toyko, from which their buyers can travel to smaller markets around the world. In contrast to store-owned foreign buying offices are commissionaires, of foreign-owned independent agents. These offices are also located in key cities, and tend to be smaller than store-owned offices. They also represent both retailers and manufacturers. Apart from these few differences, however, they provide many of the same services as store-owned buying offices. They often have specialized buyers, or market representatives, who work closely with clients, keeping them abreast of what is generally available and helping them locate specific goods. As is the case with store-owned buying offices, a substantial part of the staff's time is spent following ip on purchases to ensure they are delivered when they are needed. Unlike store buyers, who are authorized to purchase on the store's behalf, commissionaires do not purchase unless they have been authorized to do so. They are paid on a fee basis. Usually they take a percentage of the first cost, or wholesale price, in the country of origin.
What is a category killer?
Superstores or category specialists carry one type of goods that they are able to offer in great amounts in low prices because of volume buying. They so dominate a market that they drive out or "kill" smaller specialty stores, and so are known as category killers. They offer a narrow but deep assortment of goods in stores more than 8,000 square feet. Because of their buying power they can get not only rock-bottom prices but also excellent terms and an assured supply of scarce goods. Examples of category killers include Bed Bath and Beyond, Home Depot, Barnes and Noble, and Babies R Us. Typically these are huge freestanding stores, often called big boxed. They are rarely located in malls. They carry thousands of related products at low prices, which they think offset no-frills service and decor.
Describe the distinctive characteristics of the three regional market centers.
The Los Angeles Market: much of the look and style of California's markets revolve around its casual lifestyle, which it seems to sell almost as much as it sells clothing. California leads the nation in retail apparel sales, and Los Angeles is the nation's largest apparel manufacturing center. California introduced pants for women in the 1930's, and since then the West Coast has been the source of many important trends in sportswear. Dallas Market: The mood at Dallas market weeks is strongly southwestern, as people will find hand-crafted clothes, or clothes that look handcrafted, with bright, vibrant colors. "Marketplace for the southwest, the Nation, and the world." Miami Market: The Miami market weeks have a highly international- mostly Latino and Caribbean- flavor. Colors and styles are lively. The Miami market is also known for an outstanding collection of childrenswear. Three strong selling seasons: cruise wear, spring, and summer. Budget and moderate-priced sportswear, swimwear, and children's clothing.
Discuss the importance of Asia to producers and retailers of fashion goods. What are some current emerging global markets?
The United States imports more apparel from Asia than from any other area in the world. The major portion of these imports has been low-priced, high-volume merchandise, but hardly any of the apparel had qualified as "designer merchandise" in the past. However, this is changing with innovative styles offered by design-oriented Asian stylists. Buyers have used certain countries in Asia as a market in which to have fashions they saw in the European fashion centers copied and adapted. A fashion buyer needs to know which areas in Asia are best equipped to handle specific types of manufacturing. Japan and Hong Kong were once the two major contract or copyist countries. But Japan has upgraded its fashion image so that today it is a producer of outstanding high-styled, high-priced fashion apparel. Hong Kong is working to develop the apparel industry of China and promoting Chinese goods in its international trade fairs. In addition, recent patterns show that Vietnam and India may take over as leaders if costs get higher in China. India continues to serve as a major force in the Asian textile market, and recently the industry has seen its potential to surpass China as the leader in the industry. India also has its own rapidly growing homegrown designer industry. India is also home to the largest hand loom industry in the world and cotton and silk are the strongest growth areas. Indonesia, Thailand, Malaysia, Sri Lanka, Vietnam, and the Philippines are regarded by many Americans in the apparel industry as sites of offshore production. Thailand produces fine silk and cotton. Vietnam has produced its production capabilities. Singapore has many of the advantages of Hong Kong and serves as Hong Kong's major competitor as a center for trade shows. Korea has young exciting designers.
Describe the contents of Women's Wear Daily.
The best known trade publication is Women's Wear Daily, often referred to as the bible of the industry. It is one of the oldest publications of its kind, having first been published in 1901. Women's Wear Daily, covers every aspect of the fashion industry from fiber and fabric to apparel, from day-to-day developments to new directions and trends. Each daily issue highlights a different segment of the fashion industry. In 2008, WWD started including coverage of men's fashion, retail, and related industries in its pages. Special WWD/Global issues are published, providing an overview of the major international markets that prepare readers for the upcoming spring and fall fashion weeks.
What are the concerns that arise when retailers do specification buying of private label merchandise?
The concerns are counterfeit, boot-leg, and grey market goods.
How does a store design contribute to the store's image?
The layout and design of any retail business have an impact on sales. For the traditional retailer, the selling floor serves as the critical purpose of presenting the merchandise to the customer, a function that is essential in selling fashion goods, for which appearance is a primary feature. Manufacturer's and designers showrooms are their selling floors, and, thus, require the same attention to interior design and visual merchandising.
What is the major function of buying, merchandising, and product development organizations? What additional services do they perform?
The major function of these organizations is to buy and coordinate orders but they offer various services to both retailer buyers and wholesalers as well as apparel manufacturers. They watch and report on fashion trends, help with strategic planning, make vendor recommendations, coordinate imports, and assist in product development. They help to organize fashion weeks and ensure that they go smoothly for their clients stores' buyers. They continually add to their list of services, and many have even expanded into areas such as sales promotion, and advertising, personnel operations, and computer processing.
What tasks do public relations firms undertake for the clients?
They are involved in the creation of publicity as well as in public relations. Agency must work closely with its client, keeping abreast what is new and newsworthy and announcing it to the world. Shapes a company's image. May suggest or help to plan/coordinate an event or activity.
What business activities have the Paris couture houses undertaken to offset the decline in sales haute couture clothing?
They have entered the ready to wear business, established boutiques, and entered into licensing agreements.
What support services for buyers are offered by the marts during and between market weeks?
They offer fashion shows of the latest trends during markets, assist with planning assortments. Treat buyers to breakfast, luncheons, and cocktail parties throughout market week. Information services like giving buyers a buyer's directory and a calendar. Bring an industry professional for educational symposiums.
Describe the research methods that trend forecasters use.
They use fashion consultants and information services, specialized information services, and market research agencies. They use their own anecdotal observations as well as gut instincts and polls and surveys. A new trend is for trend-forecastic agencies to specialize and their info is collected by insiders. Trade associations and trade shows also assists forecasters. Buyers groups also help to disseminate information.
What forms do American investing in foreign countries' fashion industries take?
To counterbalance foreign investment, US businesses have been interested in investing in foreign countries, where US management is often welcomed because US know-how and standards for high quality are much-respected commodities. US investment in foreign countries can also help the balance of trade. US companies can participate in licensing as well as joint ownership.
"Market weeks" typically last five to six days, although smaller marts and trade shows often schedule three-day markets:
True
A store's "visual merchandising" supports and strengthens a retailer's image.
True
Departmental buying refers to the practice, for example, of a sportswear buyer who buys all categories of merchandise usually carried in a sportswear department.
True
Group purchasing power for private label programs is a key advantage of a corporate buying office.
True
The balance of trade is the difference between the value of exports and the value of imports:
True
The purpose of a fashion auxiliary service is to keep fashion in front of the public through advertising or publicity.
True
category buying/classification buying
a practice whereby a chain store buyer located in a central buying office is usually assigned to purchase only a specific category or classification of merchandise instead of buying all categories carried in a single department
departmental buying
a practice whereby a department buyer is responsible for buying all the various categories of merchandise carried in that department
boutique
a shop associated with few-of-a-kind merchandise, generally of very new and extreme styles, with an imaginative presentation of goods. french word for shop.
mom-and-pop stores
a small store run by the proprietor with few or no hired assistants
specification buying
a type of purchasing that is done to the store's rather than to the manufacturer's standards. Private label: merchandise that meets standards specified by a retail firm and belongs to it exclusively. primarily used to ensure consistent quality of products as well as to meet price competition
North American Free Trade Agreement (NAFTA)
an agreement that eliminated quotas and tariffs for goods shipped among Canada, the United States, and Mexico
couture house
an apparel firm for which the designer creates original styles
commissionaire
an independent retailer's service organization usually located in the major city of a foreign market area. It is roughly the foreign equivalent of an American resident buying office
department store
as defined by the Bureau of the Census, a store that employs 25 or more people and sells general lines of merchandise in each of three categories; home furnishings, household linens and dry goods (an old trade term meaning piece goods and sewing notions), and apparel and accessories for the entire family
visual merchandising
everything visual that is done to, with or for a product and its surroundings to encourage its sales. This includes display, store layout, and store decor
social media
forms of electronic communication in which users create online communities and share information, including photos, videos, and messages
créateur
french ready-to-wear designers
gray market goods
goods not intended for sale in the country in which they are being sold, often with an invalid warranty
factory outlet store
manufacturer-owned store that sells company products at reduced prices in austere surrounding with minimum services
trade publication
newspapers or magazines published specifically for professionals in a special field, such as fashion
Central American Trade Agreement (CAFTA)
passed in July 2005, eliminated most trade barriers between the United States and Costa Rice, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua
trade show
periodic merchandising exhibits stages in various regional trading areas around the country by groups of producers and their sales representatives for the specific purpose of making sales of their products to retailers in that area
trade association
professional organizations for manufacturers or sales representatives
bootleg goods
quality products made by the same manufacturer that produces the genuine branded products; these are sold to the black market
general merchandise retailer
retail stores that sell a number of lines of merchandise- for example, apparel and accessories; furniture and home furnishings; household linens and dry goods; and hardware, appliances, and small wares- under one roof. Stores included in this group are commonly known as mass-merchandisers, department stores, variety stores, general merchandise stores, or general stores
The primary importers of foreign goods in the fashion industry are the:
retailers
market week
scheduled periods throughout the year during which producers and their sales representatives introduce new lines
Purchasing done according to the store's rather than the manufacturer's standards is called:
specification buying
category killer
superstores or category specialists who so dominate a market that they drive out or kill smaller speciality stores
global sourcing
term used to describe the process of shopping for and purchasing imported goods
haute couture
the French term literally meaning fine sewing but actually having much the same sense as our own term high fashion
editorial credit
the mention in a magazine or newspaper of a store name as a retail source for merchandise that is being editorially featured by the publication
publicity
the mention of a firm, brand, product, or person in some form of media
advertising
the paid use of space or time in any medium. this includes newspapers, magazines, direct-mail pieces, shopping news bulletins, theater programs, catalogs, business cards, billboards, radio, TV, and the Internet
couturier/couturière
the proprietor or designer of a French couture house
off-price retailing
the selling of brand name and designer merchandise at lower-than-normal retail prices when they are at the late rise or early peak in the fashion cycle
first cost
the wholesale price of merchandise in the country of origin
import
when a country buys goods from a foreign country
public relations
works to improve a client's public image and may develop long-range plans and directions for this purpose
