Wholesale Apparel Marketing and Distribution APPAREL

Objectives: Discuss inventory management of goods Explain benchmarking and quality programs Describe trademark protection Identify technological advances in apparel manufacturing Explain how and where apparel producers sell their finished goods Describe the distribution of fashion items Summarize apparel industry trade information

Inventory Management Inventories are goods held on hand for production or for sale Manufacturers’ inventories: – –Raw materials – –Work-in-progress – –Finished goods Maintain inventory levels to prevent stockouts and keep down storage or warehouse (holding) costs

Inventory Planning Inventory control prevents… – –Shortages – –Overstocking – –Wrong selections Technology has positively impacted inventory… – –Accuracy – –Efficiency – –Accounting – –Receiving and distribution

Benchmarking for Quality Products Process of measuring goods, services, and practices against world-class leaders Proactive Builds high-quality work for error-free goods

Quality Programs Total Quality Management (TQM) Total Quality Management (TQM) –Long-term commitment for continuous improvement of service and satisfaction beyond customers’ expectations –Quality control –Employee empowerment Quality Work By Empowered Employees

Achieving Top Quality Create consistency Adopt a new philosophy for top quality Do it right the first time Do not award lower price points Strive to improve Provide on-the-job training Leadership at all levels Avoid fear and conflict Eliminate unrealistic quotas Self-improve with incentives Keep everyone involved

Trademark Protection Word, name, logo, or device used to identify and distinguish goods Registering or Registering trademark provides legal ownership and prevents copying Companies need to protect trademark R TM Why isn’t this the “official” trademark logo for Calvin Klein?

Technological Advances Computer Integrated Manufacturing (CIM) Computerized – –Sewing machines – –Automated work stations – –Forecasting – –Design – –Robotics – –Integrated Manufacturing Demand flow manufacturing – –Customized garments on demand Computer Aided Design Data Processing Computer Aided Manufacturing Data Processing CIM CIM Combination of all 3

Selling Finished Apparel Apparel producers present lines to retail buyers at market Presentations in fashion cities –Formal, well-prepared showings –Presented in showrooms at apparel marts or vendor sites

Sales Promotion Apparel producers help retailers with – –Advertising – –Selling aids – –Trunk shows » »Complete collection of samples brought to store » »Designer or wholesaler comes to take orders – –Fashion shows

Distribution of Finished Apparel Planning, implementing, and controlling the physical flow of goods Involves sales and logistics (details of storing and moving) Confined goods sold to only one retailer in a specific trading area

Order Processing and Shipping Electronic Data Interchange (EDI) – –Warehouse scans and tracks – –Bar coded – –Quick Response Shipping – –Within U.S., mostly by truck

Apparel Industry Trade Information American Apparel and Footware Association and The Fashion Association International Apparel Federation Apparel Industry Magazine Women’s Wear Daily (WWD) Daily News Record (DNR) Apparel Marketing Digest

Do You Know... What kind of advantages does air freight have over land freight? What type of information can be found in WWD? Who should subscribe to DNR?