Fashion Merchandising 2.01 Understand the role of distribution in the fashion industry

Strategies of Distribution Within Fashion Retailing

Role of Distribution in Fashion Retailing Each of the distribution channels has distinct characteristics and different strengths and weaknesses: Manufacturer Owned stores - brand is strongest, but requires investment in property, stock and sales people Independent fashion stores - offers a unique or more specialized sales channel, but carries a limited amounts of stock. Also, the costs of processing, e.g. for delivery and administration, are relatively higher for smaller orders. Role of Distribution in Fashion Retailing

Role of Distribution in Fashion Retailing Department stores - will buy centrally but may want discounts if they order in bulk, reducing profitability Some stores share its marketing information about what types of customers are purchasing and which products are most in demand. This will enable the company and department store to provide the relevant stock to maximize revenue. Role of Distribution in Fashion Retailing

Textile/Apparel Pipeline Soft Goods Chain Textile/Apparel Pipeline The Soft Goods Chain Textile/Apparel Pipeline Soft Goods Chain Natural and manufactured fiber production Yarn production Textile Segment Fabric manufacturing, finishing Apparel Segment Apparel design Apparel manufacturing Apparel sales Retail quantity buying Retail Segment Single-item selling to consumer

Textile/Apparel Pipeline Soft Goods Chain The soft goods chain is the channel of distribution for apparel and home decorating textiles. It is also called the textile/apparel pipeline. Textile/Apparel Pipeline Soft Goods Chain

The Textile Segment The Textile Segment starts with fiber production. The next step is yarn production. Next is fabric manufacturing which is done in textile mills. The final step in textile production is fabric finishing. This is done by bleaching, dyeing, printing , or applying special coatings. These processes impart color, texture, pattern, ease of care, and other characteristics to fabrics. They change the appearance, feel, and/or performance of each fabric to suit various end users.

The Apparel Segment produces finished garments and accessories. First the apparel must be designed. Then they must be manufactured. Almost all are mass produced in factories. Apparel sales involves selling the manufactured garments in large quantities to retail stores. This serves as the wholesale sales step in the chain since apparel does not have a separate wholesale segment the way many other industries do. The Apparel Segment

Most garments are sold and shipped directly from the manufacturers at a wholesale price, to retailers. The lack of a separate wholesale segment also helps to keep prices low since fewer middle men are involved. Inexpensive accessories and small, non- fashion products do go through wholesalers, often referred to as resellers. The Apparel Segment

The Retail Segment sells the merchandise directly to consumers. Retailers buy in large quantities at wholesale prices and then mark up the goods in order to cover costs of heat, lights, taxes, sales help, and other expenses. They then sell individual items to the consumer. The retail price also includes some profit for the retailer. Consumers are at the end of the soft goods chain, but satisfying their wants and needs is the objective of all the preceding companies in the pipeline. The Retail Segment

The process of distribution in fashion retailing Distribution channels provide a link between production and consumption. Each layer of marketing intermediaries that performs some work in bringing the product to its final buyer is a "channel level". The figure below shows some examples of channel levels for consumer marketing channels. The process of distribution in fashion retailing

Intermediaries of Distribution in Fashion Retailing Intermediary Channels Manufacturers: a person or company that makes goods for sale. Agents: Intermediaries who assist in the sale and/or promotion of goods and services but do not take title to them Wholesalers: Organizations that purchase products from suppliers, such as manufacturers or other wholesalers, and in turn sell these to other resellers, such as retailers or other wholesalers. Retailers: Organizations that sell products directly to final consumers. Intermediaries of Distribution in Fashion Retailing