Chapter 6 Fashion PDF

# Chapter Six An effective promotional campaign requires the marketer to understand merchandising process, develop strategies and know the national and international markets. ## Elements to Consider in Merchandising - Trade Shows - Apparel Marts - Business Resources ## Trade Shows Trade shows a...

# Chapter Six An effective promotional campaign requires the marketer to understand merchandising process, develop strategies and know the national and international markets. ## Elements to Consider in Merchandising - Trade Shows - Apparel Marts - Business Resources ## Trade Shows Trade shows are sponsored by organizations in the fashion industry and are events where meetings, conferences and seminars are held regarding the industry. During predetermined annual dates, manufacturers from around the world display merchandise. The event typically runs three days. **Retail buyers are able to:** * Place merchandise orders for their stores * Attend information seminars and fashion shows * Meet with colleagues from around the world. The US fashion trade show is called MAGIC. (The event is held in Las Vegas) **Trade Shows provide companies with:** * Time to interact with other people in the industry. * Purchasing merchandise for the upcoming season. * Learning about new sourcing opportunities. Attending trade shows provides us with information that can be priceless, particularly if it is something that you did not know the day before. ## For Large Organizations, Trade Shows Help Buyers To * Maintain product awareness in relation to the target market niches. * Infuse new merchandise with merchandise from the last season. ## Apparel Marts Covered buildings where buyers and sellers convene for Sale of goods. (Play an important role in building excitement) ## Mart Fashion Marketing The four major US apparel marts offer a variety of marketing services that promote the mart, companies, brand and product. **The services are designed to:** * Build excitement for the product. * Provide information regarding how to increase store sales and show upcoming trends. The print fashion marketing efforts conducted by marts is significantly different from print fashion marketing efforts for consumers. (Both are equally important) **They are designed to:** * Promote a large number of styles. The marketing efforts include detailed information about SKUs (stockkeeping units), which detail everything about the product, whole sale price, color selection, and size offerings. Similar to fashion marketing efforts towards the ultimate customer, the company's image merchandise quality and contact information are emphasized. ## Business Resources **Two important resources that help the fashion industry:** 1. **Resident Buying Office (RBO)**: Formal fashion intelligence source. Defined as "a purchasing agent located in a national or international market center whose representatives shop the market daily in order to provide its clients or member stores with information and to select and buy merchandise for them". The RBO is hired to consult and provide valuable information regarding consumer trends. It may be hired for a limited number of services or an extensive number of services depending on the client needs. 2. **Trade Publications**: Provide valuable information regarding the overall status of the industry. Such as Women's Wear Daily, Arabian Business. International buying markets US apparel mart sponsor buying seasons based on the product category. International fashions are pre-marketed annually during predetermined weeks. *(Paris)* has long been thought of as the capital of the fashion world, and that is because of the number of custom design houses originating from Paris. Two significant fashion associations: * Federation francaise de la couture * Chambre syndicale de prêt-a-porter ## London The British are well known with their ready-to-wear fashion. **British Fashion Council (BFC):** Provides assistance for the fashion week marketing effort; its purpose is to promote and stimulate the British fashion industry. (It is the major fashion marketer for the entire company.) ## Milan Italian designers are well known for craftsmanship, elegance in design and creativity. **National Chamber of Fashion:** Fashion marketing organization to help promote and stimulate the fashion industry. - The ready-to-wear fashion in Italy is called "moda pronta". It's export is important to the Italian economy as well as to the overall stimulation of the fashion industry. ## Hong Kong The American rejected the fashion made in Hong Kong due to the improper sizing and the poor quality. However, designers and manufacturers have refined the sizing and improved the quality. **Hong Kong Trade Development Council:** Sponsored by the country to help the Hong Kong fashion market, it provides national and international information about designers from Hong Kong and Asia. ## Madrid **Role of Fashion Marketers** Planning and advance work preparation determines success. Fashion marketers can: * Monitor trends * Analyze target market. * Suggest sale projections and change in product specifications and style. - Fashion show held on consecutive week. - Fashion show introduces the designers new line. - Opening receptions and parties are part of the marketing efforts. ## Impact of the Economy There is a direct relation between the health of the economy and the amount of merchandise purchased internationally. When the economy worsens, merchandise sales weaken. Retail buyer are often forced to cancel international orders. Existing merchandise that is not selling at a brisk price is featured during the next company marketing campaign. (It will typically focus around price). As the health of national and international economies strengthens, international merchandising orders increase. Move away from focusing on price and emphasize the brand characteristics (quality, craftsmanship, value and image). ## Types of Buying Organizations **1. Centralized Buying Office (Central Merchandising Plan)** Exist when the buying for the entire company is conducted from headquarters (became popular among large retailers). **Not all merchandising or fashion marketing actions work the same way.** Centralized buying may result in losing touch with target market clarification of marketing efforts handled face to face. Fashion marketing team must have a comprehensive understanding of the branch location and brand identification needs to fully understand if the centralized office will work for the organization. **2. Decentralized Buying Office (Departmentalized Merchandising Plan)** Exists when the company uses different buying offices based on geographic region, merchandise category and/or divisions. This type of structure enables the merchandiser to have an excellent understanding of the target market needs and wants. Buyer are able to examine the social and cultural differences among consumer that geographical location may influence in their fashion needs. * Less likely to rely on stereotypes when making purchase decisions. **Advantages:** As with any organization, when offices are spread out across the country, effective communication become more difficult. It is essential for all buying offices to maintain the organization's buying guidelines and procedures. As the number of buying offices increase, the possibility of error increase. Expenses and communication difficulties need to be weighed against the possible advantage of specifically marketing to a smaller geographic market. ## Mission Statement Impact on Buying Regardless of the type of buying, buyers must continually remember the mission statement. **Buyer use (fashion intelligence):** Ability to identify or track trends, it involves understanding how the product will be accepted by consumers. ## Major Fashion Price Zone Throughout the buying and marketing of fashions, the designer retailer and marketer continually must keep in mind these considerations: 1. The company's mission. 2. The characteristics of the brand carried. 3. The target market wants and needs. **Play an important rule in the selection of merchandise during the buying season.** The design, style, quantities and brand of merchandise purchased influence the marketing efforts. (The full marketing effort does not need satisfy an entire market.) **Six major fashion price zone:** 1. Designer Signature 2. Bridge 3. Contemporary 4. Better 5. Moderate 6. Budget **This zone is reserved for high fashions that are created from quality fabrics, styling, designs and craftsmanship.** ** Designer Signature Fashion Price Zone (High Price Zone)** **Bridge Pricing** Represent a bridge between designer and better priced merchandise. Fashions in designer labels may offer a bridge label $a to a secondary market. (The bridge label is offered at a bridge pricing), this means that the price is lower than the designer signature price zone, but the fashion, style and design continue to be higher than average. It's manufactured using fewer styling features than the designer merchandise. Lesser quality fabrics would also be used. The bridge pricing zone is an excellent marketing tool for fashion designer. The pricing zone extend the designers name, promotes their fashion into a wider target market and generates sales and profits. **Contemporary Price Zone** Is targeted at quality, yet affordable fashions. It allows for a larger target market. The contemporary pricing zone is popular among designers who are new to the industry and those with innovative fashions. **Better Pricing** Offer affordable and stylish fashion in national and store brands name to the target market. The designs, style and quality of the fabrics are good. Department stores and independent retailers regularly carry the better pricing zone. The fashions are also regularly featured in fashion marketing effort because of brand name recognition and popularity among the target market. **Moderate Fashion Pricing Zone** Is targeted to the mass market, the fashion are typically items the majority of population wears. The marketing effort for this fashion may emphasize value and a low price without sacrificing quality, a brand name, style and design. **Budget Pricing Zone** The least expensive pricing zone, specially targeted to the mass market. >The offered merchandise is not necessarily a staple or fashion incentive. ## Buying Seasons The planning is the key element of success. The fashion buying season occurs on the same week year after year. The preparation work in advance of the buying season includes monitoring, analyses of the target markets needs, change in color forecasting. The number of unit to sell in each category and the (open to buy) the amount of money the merchandiser has remaining in the budget during a particular season.) **Fashion show introduce the designer new line.** Not all fashion show are designed to sell the fashion; some are designed to build hype and excitement for the designer. ## Fashion Behavioral Theories Is a theory that helps explain the reason why consumers adopt or reject fashions. **Trickle Down Theory** States that fashion trends are dictated by upper-income consumers, After widespread adoption at the top level, design modifications are made to the fashions. Ultimately, the fashions are offered in lower price and quality point and the marketing effort targeted to middle and lower income consumer. **Trickle-Up Theory** Show how consumers at lower income levels influence fashion (trends) > have been influenced to a greater extent by it during the later part of the 20th century.