Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Chapter 12: Purchasing in the Domestic and Off-Shore Markets

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Three Major Concerns Regarding Order Placement Geographic location of vendors Appropriate timing Personal market trips or Internet resources

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Why the Domestic Market Is Important: Delivery reliability Price guarantee Chargeback adjustments Economic advantage Reliability of ‘fit’

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved US Fashion Markets New York City Los Angeles San Francisco Chicago Dallas Miami

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved New York City/Garment Center Largest number of fashion manufacturers in U.S. Geographically spread out 34 million square feet 5,100 showrooms 4,500 factories 7 th on Sixth

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Foreign Market Resource Advantages Fashion forward design Prestige Value Exclusivity Product quality

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Major Foreign Markets Paris Milan London Spain Germany Japan Hong Kong Canada Mexico

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Paris, France Chambre Syndicale De La Couture  Membership criteria Couturiers Haute couture shows  Caution fee

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Market Week The time when major buyers in the industry arrive in the market to visit vendor resources.

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Advantages of Early Decision Making See the line in its entirety Guarantee early delivery Obtain exclusive agreements Obtain seasonal discounts

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Disadvantages of Early Decision Making Purchased items may be eliminated if vendor does not receive minimum order level ‘Winners’ are yet to be determined

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Lead Time Requirements Definition: the amount of time it takes to receive the order once the order is placed Greater for fashion items; less for staple items May require six months Delivery must coordinate with catalog presentation

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved While in the Marketplace, Buyers: Can feel the pulse of the marketplace Enjoy the privileges of the earliest possible delivery dates Gain insight from market representatives Trade information with noncompeting buyers

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved RBO Preparation for Buyer Visits Locate new resources Prescreen fashion collections Analyze market conditions

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved RBO Duties Present overview of market Provide list of scheduled appointments Alert retail buyers of new resources Answer questions about market conditions Make themselves available to retail buyers

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Market Visit Alternatives Fashion Representative Visits Web sites

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Writing the Order Includes  Price  Discounts  Allowances  Delivery  Shipping  Chargebacks

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Robinson-Patman Act Designed to limit price discrimination All purchases must pay same price except under certain circumstances  Merchandise is job lot or closeout  Done to meet competitor pricing  Production savings for an order are passed on to the customer

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Discounts Cash discounts Anticipation discounts Quantity discounts Seasonal discounts

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Trends in Purchasing Purchasing in atypical arenas Purchasing domestically produced products Using intermediary buying services