Fashion Distribution Chapter 8 PDF

Chapter 8 Fashion Distribution 0 Distribution channels How to make products available in the right place at the right time in the right quantities The set of all fir...

Chapter 8 Fashion Distribution 0 Distribution channels How to make products available in the right place at the right time in the right quantities The set of all firms and individuals that assist in transferring title to the particular good or service as it moves from the producer to the consumer  A simple exchange system Goods Producer User Money More complex system of exchange  Advantages to the customer Accessibility of goods Convenient mixture of goods Ability to purchase in convenient quantities Allows examination of product Offers a range of pre- and post-sale services Advantages to the manufacturer Less need for direct marketing Allows economies of scale Allows continuous production Minimises – costs of organising field sales Reduces number of transactions…  P = Producer No intermediary C = Customers Number of contacts = 3 x 4 = 12 P P P C C C C With an intermediary... P P P How the intermediary R can contribute to efficiency? C C C C P = Producer C = Customer R = Retailer Number of contacts = 3 + 4 = 7  Elements of channel distribution Channel length Channel intermediaries Types of retailers Levels of distribution Changing structure of distribution Channel length Producer Consumer Producer Retailer Consumer Producer Wholesaler Retailer Consumer  Channel intermediaries Wholesalers’ functions are to... – break bulk – provide some storage facilities – reduce contact cost between manufacture and retailer – reduce marketing risks for the producer Agents Commission agent – secures orders from customers but does not take title to the goods and is not responsible for obtaining payment. Stockist agent – carries a stock of the manufacturer’s products. They may either have purchased these stocks or hold them on consignment.  Retailers – functions include: Provision of variety Customer and credit facilities Individual packaging Promotion and merchandising Final product pricing Delivery Types of retailer Direct marketing – Party plan – Mail order - by catalogue - off the page - own retail outlet Independent shops Multiple and variety chain stores  Types of retailer continued… Department stores – Concessions Discount clothing retailers Supermarkets/hypermarkets Franchising Levels of distribution Intensive distribution:where a company wishes to have its product available through as many intermediaries as possible. Exclusive distribution:where a company chooses to use less intermediaries, specific types of intermediary and only certain ones within that group. Selective distribution  Changing face of distribution Retailing becoming more concentrated Number of retail outlets falling Trend towards larger stores Fulltime employment in retailing falling but productivity rising Increasingly heavy competition Changing face of distribution continued… Trend towards out-of-town stores Decline in independents More vertical systems with own brands Continued growth in franchising Increase in international retailing within Europe Increasing technology in retailing  Fashion and Ethics Ethical fashion is garment design, production, and distribution that focuses on reducing harm to people and the planet. Fashion and Ethics Issues in The Fashion Industry: Low Wages Child Labour Environmental Concerns  Future of fashion business AI shopping experience: AI can create a more personalized shopping experience for consumers. Sustainable Fashion: ‘items of clothing made taking the human and environmental impacts of production into account to support’ Technical design and pattern cutting Future of fashion business Garment production Digital innovation Renting clothes Colour technology