Merchandise Buying

Objectives: Summarize the activities of market weeks and trade shows List domestic fashion market centers and apparel marts State factors involved in buying foreign goods Describe the market resources available to buyers Summarize strategies of market trips and merchandise selection Explain the process of writing orders

Markets Market weeks--scheduled time for showing new lines Regional Markets –Spring (October) –Summer (January) –Fall (April) –Winter/ holiday (June) –Resort (August)

Advantages of Market Weeks Buyers gain a sense of the market See vendors’ entire lines of latest merchandise Discover new sources Meet and consult with manufacturers Get special terms and purchases Gain promotional or selling help Networking Ideas for displays Attend seminars and fashion shows NEW IDEAS

Other Industry Events Trade Shows –Periodic, temporary exhibits at trade centers –For one specific type of product, such as golf wear Apparel Marts –Some open year-round –Rent showroom space during market weeks –Buyers meet with vendors –Fashion shows –Fashion publications Apparel marts are in large single buildings or a complex of buildings.

Market Timeline 1 year ahead –Work starts on new seasonal line for market –International manufacturing and buying 6 months ahead –Apparel samples at market for retail buying 3-6 months ahead –Market orders turned in for manufacturing

Regional Apparel Marts Advantages and Disadvantages for Buyers Save money Save time Convenient (usually one building) Merchandise suited to area Services cater to small retailers More relaxed Used as test markets so may have order problems Inexperienced reps Unusual or newer items may not be there Promotional sales not available Few RBOs (if any)

Domestic Fashion Markets  New York- latest fashions  Los Angeles- sportswear, new trends, “Hollywood glitz”  Dallas- sportswear, western wear, menswear  Chicago- serves small Midwestern stores  Miami- lightweight sportswear, childrenswear  Atlanta- home furnishings, gifts, and decorative arts

Other Domestic Markets San Francisco and Seattle - Asian merchandise - Serve Pacific Northwestern states Las Vegas –Growing rapidly with 3 main buildings covering several acres Charlotte, Denver, Boston, Portland, Kansas City, Minneapolis Michigan, Ohio, Indiana, Wisconsin –Small regional markets

Foreign Fashion Markets Commissionaires –Independent buying agents that help domestic buyers with foreign purchasing Paris, France –World’s fashion capital Milan, Italy –Men’s fashions London, England –Men’s, tailored items, woolens, younger fashions

Resident Buying Offices Services provided by RBOs –Evaluate economic trends –Send out market information –Provide trend clinics, office space –Locate vendors –Make appointments, accompany buyers, place orders for buyers –Assist with vendor negotiations, international sourcing –Follow up on shipments, deliveries, returns, adjustments

Market Strategies for Buyers Think like your customers Be well prepared, organized Work with your RBO Confirm vendor appointments Attend fashion shows Visit local stores Know how much to order Take lots of notes Visit key vendors several times

Visiting Vendors Buyers are stores’ agents Make decisions based on store goals Promote good vendor relationships, ethics Don’t be overwhelmed Use hotel room or buyer office space to make buying decisions Don’t leave paper until you feel confident with order STEP RIGHT UP…PLACE YOUR ORDER WITH ME!!!

Making Buying Decisions Strategies –Prioritize the goods –Develop a rating system –Leave paper (write orders) at end of week Terms of sale Discounts and payments Transportation arrangements Date of delivery Point of merchandise transfer Allocation of transportation costs

Types of Orders Regular –Basic or fashion stock Advance –Longer lead time Reorders –Immediate delivery Back orders –On order due to stockout Open orders –Vendor’s judgment Special orders –Customer requests Blanket orders –Promises to buy (no specifics, approximate quantities) Approval buying –Inspection before acceptance

Do You Know... It is important to be organized before, during, and after market. What are some things to remember before leaving for market? After visiting with a vendor? Open orders can sometimes be risky for the retailer and the manufacturer. Why?