1. COMPETENCY: 2.00 Understand the fashion merchandising process.
OBJECTIVE: 2.03
Understand Fashion Merchandise Buying

2. New York City, NY
Known as the U.S. fashion capital because it is the largest fashion marketing center in the U.S.
The theater, opera, art galleries and museums provide inspiration for new ideas.
Key designers preview their collections with fashion shows in large tents twice a year in Manhattan’s Bryant Park.
Dynamic and creative market center with the newest fashions.

3. California
Los Angeles and San Francisco are very different from NY, fashions are often innovative and trendsetting.
California-style sportswear and swimwear, as well as “Hollywood glitz” eveningwear are created here.
L.A. has the California Market Center that houses over 10,000 lines in 1,500 showrooms under one roof.

4. Dallas, Texas
Known for sportswear, moderately priced lines, and “western wear”.
Center of the southern apparel industry.
Dallas Market Center is the largest wholesale complex in the world.
Dallas market week trends are known to be representative of the entire U.S. If mainstream fashions are successful there, they will probably be popular throughout most of the country.

5. Chicago, Illinois
Not a major apparel production center but has a few women’s and men’s apparel-manufacturing companies.
Important wholesale market.
Houses the headquarters of some giant retail chain stores, such as Sears.
Attracts buyers from Midwestern states, as well as Canada.
The Market Center is downtown and consists of a 25 story apparel mart building and the Expocenter exhibit hall.

6. Miami, Florida
Known for reasonably priced childrenswear and “sunshine sportswear,” such as cruise fashions, swimsuits, and lightweight activewear.
Important link between U.S. apparel firms and low-wage offshore production in the Caribbean Islands and Central and South America.
The Miami International Merchandise Mart contains both apparel and giftwear showrooms that are open all year.

7. Atlanta, Georgia
AmericasMart serves major markets for home furnishings, floor coverings, apparel, and giftwear.
Includes the Atlanta Merchandise Mart, Atlanta Decorative Arts Center, and Atlanta Apparel Mart.
Contains a large, multistory theater, which is used for fashion shows and other market meetings.

8. Other Domestic Market Centers
Other fashion markets have developed throughout the U.S. to serve stores in their surrounding states.
These save retailers time and money by not having to visit the major market centers.
The regional markets especially meet the needs of small stores and emphasize local apparel design and production.
Ex: Seattle, Boston, Kansas City, Minneapolis, Las Vegas, Charlotte, Denver, and Portland.

9. Paris, France
World’s Fashion Capital and home of the latest high fashion ideas.
Buyers for renowned upscale retailers consider it necessary to travel to Paris for at least a portion of their buying.

10. Foreign Fashion Centers
Hold fairs in their countries for buyers to attend, as well as scheduling fashion fairs in America.
Importers shop in overseas markets either to find and buy specified goods that a certain store is seeking or to source their own “lines.”
They then sell to U.S. retailers who like what the retailers have imported.
Many American retailers do direct importing, often through commissionaires in foreign countries.

11. Resident Buying Office Services
Evaluate economic trends
Hold trend clinics and product seminars.
Locate and recommend vendors.
Assist with vendor negotiations.
Arrange delivery and payment schedules.
Follow up on shipments.
Place reorders.
Provide promotional assistance.
Put together group buying for quantity discounts.
Assist with international sourcing.

12. Visits to Vendors
Organized according to merchandise classifications and price lines.
Buyers are the agents of their companies in dealing with vendors. They should try to develop good relationships for long-term mutual benefits.
Viewings of collections are booked in showrooms.
Vendors provide buyers with order pads that list style numbers and often include sketches of the items.
Buyers hardly ever make purchases when they first see the goods.

13. Making Merchandise Decisions
After buyer visits to vendors they review their notes and make decisions on which items to buy from which vendors.
When orders are ready to be placed they compare them with their buying plan. This ensures proper matching of classifications, price lines, units, dollars, colors, sizes, and other important factors.
Vendor prices are firm but negotiations can be made on the terms of sale, delivery schedules, services to be included, and other options.

14. Writing the Orders
To finalize a merchandise purchase from a vendor the buyer provides a written contract to the vendor with an identifiable PO (purchase order) number.
When forms are completed and signed by both parties they become legally binding contracts.
Orders are subject to cancellation if the merchandise has not left the manufacturer by the completion date.

15. Types of Orders
Regular Orders specify style numbers, quantities, delivery dates, sizes, and colors.
Advance Orders have the same specifics as regular orders but allow for a longer lead time before the delivery date.
May be placed for specification goods that have style characteristics requested by a particular retailer.
Foreign goods often need more time to complete or receive.
Used for “long production goods” such as men’s suits or ladies’ knits, which require longer planning and production time.

16. Types of Orders
Reorders are used to replenish items that have sold well.
Usually placed for immediate delivery to maintain current stock.
Back orders are orders that have not been filled but are still in the vendor’s files to fill and have not been cancelled by the buyer.
When a close relationship exists between a buyer and a producer, the buyer may send an open order to the manufacturer that does not detail styles or colors.

17. Types of Orders
Special orders are placed to satisfy individual customers’ requests.
Blanket orders are promises to buy from a vendor over a long period of time. The retailer or RBO gives an estimate to the vendor of a needed amount for an entire season or year, which the vendor agrees to supply.
Approval buying can be arranged for the vendor to ship merchandise to a retailer for inspection before the retailer makes a final purchase decision.
Finally, an invoice from the supplier is received and must be paid!