Fairchild Books

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(No Transcript)
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?2007 Fairchild Publications, Inc.
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Marketing Terminology
Markets

• Where goods are produced and sold to buyers at
  wholesale prices during market weeks

• The major domestic market centers are
• New York
• By far the largest and most important market
• Los Angeles
• Miami
• Dallas

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Sales Representatives

• The original link between the New York fashion
  scene and the provinces
• Sales representatives evolved from lonely
  traveling salesmen showing only one line to
  groups of salesmen showing multiple,
  non-competing lines
• Ultimately, this developed into regional market
  centers, known as marts

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Marts

• Consist of exhibition spaces that house wholesale
  markets
• The Merchandise Mart in Chicago is the oldest of
  the marts
• Today, there is a mart in most major cities

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Services of Market Centers and Marts

• Publicity fashion shows, parties
• Information Services buyers directory,
  publications
• Educational Services seminars, conferences

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Trade Shows

• Periodic events in regional market centers
• They are smaller than market weeks
• MAGIC International, is the exception
• Mens Apparel Group In California, the largest
  show of its kind, is like a market week minus the
  permanent facilities, and held in Las Vegas
• Today, women, children, and accessories are
  included in the MAGIC International shows

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New York City

• Has many advantages

• It is the nations fashion capital
• New York City offers, by far, the largest
  selection of manufacturers showrooms
• It is the fashion publishing, buying, and
  retailing center
• It is the cultural center of the United States,
  the best place for designers to draw inspiration
  from all forms of art

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New York City

• In 1993, Seventh on Sixth originated to provide a
  platform for American designers to become leading
  players in the global fashion business
• An off-shoot of the Council of Fashion Designers
  in America (CFDA), in 2001, they were acquired by
  IMG and produce Olympus Fashion Week in New York
• Today, IMG is the producer of Mercedes-Benz
  Fashion Week in Los Angeles and Sunglass Hut Swim
  Shows Miami
• Internationally, they produce, manage and
  represent Fashion Fringe (London), Lakmé India
  Fashion Week, Thai Supermodel Search and Pakistan
  Fashion Week

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Regional Market Centers

• Each market center has their own unique flavor
  and fashion
• The Los Angeles Market
• Easy-living, casual lifestyle, colorful
• The Dallas Market
• Southwestern looks, handcrafted styles
• The Miami Market
• Latino and Caribbean flavor, colorful
• Best known for childrens wear

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Foreign Fashion Markets
France

• France first emerged as a fashion showcase during
  the reign of Louis XIV (16431715)
• Textile production in Lyons and lace works in
  Alençon were established to meet the needs of the
  royalty at court at Versailles
• France originated haute couture in 1858 when
  Charles Frederick Worth opened his doors as the
  first couturier

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Chambre Syndicale de la Couture Parisienne

• Established in 1868, the Chambre Syndicale de la
  Couture Parisienne sets the standards and dates
  for the haute couture shows
• The Chambre Syndicales most valuable
  contribution is that it represents its members in
  arbitration disputes and seeks regulation of
  wages and working hours

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Haute Couture

• By itself loses money but creates profitability
  through
• Franchising
• Licensing arrangements
• Prêt-à-porter lines

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Prêt-à-Porter

• Includes designs for the ready-to-wear portion
  of the market
• This is the the money making section of the
  fashion industry, giving designers access to
  large markets
• Standardized sizing and mass manufacturing
  created profitability

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Semiannual Pret Shows

• Held in the major European fashion capitals
• London
• Paris
• Milan

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Foreign Fashion Markets
Italy

• Frances most serious rival in the fashion
  industry, the Italians have made massive inroads
  during the last quarter of the 20th century
• Italian designers are renown for their superb
  knitwear, accessories, and textiles
• Designers use innovative and beautiful textiles
  to launch themselves in the luxury markets
• Italian designers have also capitalized on the
  highly skilled domestic laborers

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Foreign Fashion Markets
Italy

• As a result, designers like Giorgio Armani
  developed tremendous influence
• Todays luxury market is greatly influenced by
  Gucci and Prada

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Foreign Fashion Markets
Great Britain

• Best known for handcrafted suits from Savile Row
• Many of todays most important designers are from
  Britain
• LVMH Moët Hennessy, employs John Galliano for
  Dior, Alexander McQueen for Givenchy, and set up
  Stella McCartney with her own line
• Vivienne Westwood has been setting design trends
  for over 20 years
• Philip Treacy is todays most recognized hat
  designer
• Julien Macdonald has a stellar reputation

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Foreign Fashion Markets
Germany and Scandinavia

• Formerly nonexistent on the fashion tour, Germany
  surfaced with the ascendance of Hugo Boss,
  Escada, Mondi, and Jil Sander
• Leather apparel, specifically in menswear, is a
  popular Swedish product
• Sweden and Norway are among the most important
  suppliers of mink and other furs to countries
  around the world

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Foreign Fashion Markets
Japan

• The 70s saw the first wave of Japanese
  designersIssey Miyake, Hanae Mori, Kenzo Takada,
  and Kansai Yamamotowith daring and provocative
  designs
• The second wave arrived in the 80s, with Rei
  Kawakubo, Matsuhiro Matsuda, and Yohji Yamamoto
  leading the way
• In the 90s, designers focused on retro pop
  cultural influences such as hippie beads and
  T-shirts and 1970s punk
• Hiroake Ohya produced a limited edition of
  dresses packaged in books that were sold in
  bookshops

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Foreign Fashion Markets
Elsewheres

• China is one of the largest exporters of both raw
  materials and finished products
• In 2000, the U.S. gave China normal trader
  status, which gave China entry into the WTO
• India has the most handlooms in the world, 13.5
  million, making it a formidable textile producer
• Indias fashion industry is growing since the
  1999 Lakmé India Fashion Week in New Delhi
• Mexico benefited greatly from NAFTA, becoming
  one of the United States largest trading partners
  in a short period and making it an even more
  attractive offshore location for domestic
  manufacturers

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Global Sourcing

• Describes the process of shopping for and
  purchasing imported goods
• U.S. buyers rely on the help and experience of
  specialists. Foreign made goods can be purchased
  at and by the following
• Foreign fashion markets
• Store-owned foreign buying offices
• Commissionaires or independent agents
• Import fairs held in the United States
• Importers

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Private Label Buying

• Retailers make their own assortment to set them
  apart from the competition
• Private label has two actual types of buying
• One type consists of the manufacturer designing
  for the retailer, such as Federated Merchandising
  Group
• Both domestic and offshore production are used to
  complete private label goods

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Specification Buying

• Is the other type of private label manufacturing
• It consists of a store, or retailer, actually
  designing the product to be manufactured
• JCPenneys and the Gap provide standards and
  guidelines for everything from material quality
  to workmanship styling and cost

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Specification Buying

• Apparel for Wal-Mart being manufactured in India

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Counterfeit Goods

• Inferior imitations are counterfeit goods, much
  like counterfeit currency
• Luxury goods are the chief objects of
  counterfeiters

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Black Market or Bootleg

• Are more of a problem to designers
• They are made by the same manufacturers, but sold
  on the black market
• The quality is not that of a cheap rip-off and it
  is tough to distinguish them from real items

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Black Market or Bootleg

• Cartons of counterfeit goods that have been
  confiscated by the police

Confiscated fakes
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U.S. Penetration of Foreign Markets

• Looms as a solution to the trade deficit
• U.S. companies will not benefit from any laws in
  foreign countries promoting imports
• However, U.S. exports have expanded using
  reputation for quality and trendiness
• American influence accelerates the
  homogenization of fashion
• As U.S. companies develop foreign markets the
  international sales will become part of every
  fashion houses sales

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U.S. Penetration of Foreign Markets

• Globalization will continue to be a factor going
  forward
• Reasons
• Technology available to enhance communication and
  production
• Increased production needs of large manufacturers
• Licensing opportunities
• As more people are involved in the industry, from
  producers to consumers, then you need more
  facilities