FM: 2.03 Understand fashion merchandise buying

Going to Market Many stores buy a lot of their merchandise by attending market weeks. These are times during the year where fashion centers have 3-5 day “weeks” that they are open to store buyers from around the country to shop in showrooms for new merchandise. In Charlotte, many boutique owners travel to Atlanta, New York, and Las Vegas to go to Market.

Atlanta Apparel Market This is the inside of America’s Mart in Atlanta. It is very large and each floor is devoted to a different target market such as formal, contemporary, childrens, etc.

Going to Market (Cont’d) Market centers – concentrated areas where goods are produced, sold, and bought at wholesale prices; a geographic area where buyers and sellers meet to exchange money for products and services Market weeks – schedules periods of time during which producers officially introduce their new lines of merchandise and retail buyers shop various lines

Why Attend Markets? YOUR COMPETITORS WILL BE THERE. Gaining a sense of the market Seeing entire lines of vendors’ latest merchandise Fashion Shows to see new styles. Discovering new sources of lines from previously unused manufacturers Getting special terms and purchases including lower prices Gaining promotion or selling help from manufacturers Networking with other buyers Getting ideas for merchandise displays Attending educational seminars, meetings, and other planned events

Domestic & Foreign Fashion Centers and Apparel Marts New York, NY Los Angeles, CA Dallas, TX Chicago, IL Miami, FL Atlanta, GA Paris Milan Italy Hong Kong China London

Market and Ordering Terms Completion date – the date designated by the retailer on the purchase order specifying when the goods are needed and should be delivered Invoice – a detailed list of goods shipped or services rendered, showing the money amount due; an itemized bill for materials sent Line sheet - a wholesale sales sheet used by a manufacturer in the garment/fashion industry providing information on a product. It allows a garment to be listed with the sizes in its size range, great for inventory tracking

Example of Invoice

Example of Line Sheet

More Terms Terms of Sale – the conditions governing a sale, as set forth by the seller Vendors – suppliers of goods; resources Reorder points - the level of inventory which triggers an action to replenish that particular inventory stock.

Types of Orders Special Orders – orders for merchandise to satisfy individual customers rather than for regular stock Example: You normally carry shoe sizes 6-11 but a customer comes in that is size 13 and wants the shoe. You order just one pair special for them.

Types of Orders (Cont’d) Reorders – additional orders of the same merchandise as ordered previously. Example: You had 20 brown suede boots that sold out and it is only September so you order more of the same thing. Regular orders – stock order for line merchandise, just regular old orders.

Types of Orders (Cont’d)) Open order – an order placed with a vendor with no restrictions as to style, color, price, or delivery. Blanket orders – The customer places an order for merchandise that will arrive in different deliveries over a period of time instead of arriving all at once. This helps control stock (so you don’t have too much at once) and usually gets you a discount.

Types of Orders (Cont’d) Advance orders – merchandise orders with a longer lead time before the delivery date. Example: You know that it takes a long time for personalized necklaces to be made and delivered so when you re-order BEFORE you run out to avoid having a long time without the item being available to customers.

Types of Orders (Cont’d) Back orders – merchandise orders that have not been filled within the time specified and have not been canceled by the buyer. Example: Last Christmas YETI was on backorder at Dick’s Sporting Goods- The store ran out and the manufacturer did not have any more to send so they had to physically make more product to fullfill all the store orders that were waiting on YETI products.

Types of Orders (Last page!) Purchase Order (PO) – a written contract authorizing the delivery of certain goods at specific prices and time *This is a general term. Any order is a purchase order. This is just what we call the agreement.*

Strategies for fashion retail buyers to be successful during market trips Don’t buy collections in a vacuum without considering relevance to similar brands Don’t operate without a solid strategic plan in place Don’t over buy or order too much – communicate with your sales team Have a plan in place