1. FM: 2.03 Understand fashion merchandise buying

2. Merchandise Ordering
Purchase Order (PO) – a written contract authorizing the delivery of certain goods at specific prices and times
Regular orders – stock order for line merchandise
Special orders – orders for merchandise to satisfy individual customers rather than for regular stock
Reorder points - the level of inventory which triggers an action to replenish that particular inventory stock.

3. Types of Orders
Advance orders – merchandise orders with a longer lead time before the delivery date.
Back orders – merchandise orders that have not been filled within the time specified and have not been canceled by the buyer
Blanket orders – promises to buy from favored vendors over a period of time, with no detail of colors, sizes, or shipment until later
Reorders – additional orders of the same merchandise as ordered previously
Open order – an order placed with a resident buyer or vendor with no restrictions as to style, color, price, or delivery

4. Determine The Appropriate Type Of Order For Buying Fashion Merchandise
Regular orders: Line merchandise
Advance orders: Have longer lead time
Reorders: Placed for immediate delivery
Back orders: Still in vendor’s files and have not been canceled
Open orders: Manufacturer fills and delivers what is deemed best for the retailer; can be used to get new hot sellers
Special orders: Satisfies individual customer’s request
Blanket orders: Estimates/promises to buy over a period of time

5. Purchase Order Terms
Terms of Sale – the conditions governing a sale, as set forth by the seller
Completion date – the date designated by the retailer on the purchase order specifying when the goods are needed and should be delivered
Vendors – suppliers of goods; resources
First cost – the wholesale price for goods in a foreign country or origin, exclusive of shipping costs and duties

6. Purchase Order Terms
Leave paper – retail buying term for writing completed orders with vendors, usually during market week
Invoice – a detailed list of goods shipped or services rendered, showing the money amount due; an itemized bill for materials sent

7. Purchase Order Terms
Line sheet - a wholesale sales sheet used by a manufacturer in the garment/fashion industry providing information on a product
allows a garment to be listed with the sizes in its size range, great for inventory tracking

8. Key Terms
Approval buying – an arrangement in which merchandise is shipped to the retailer’s store for inspection before the final purchase decision is made
Line buying – buying from a resource who has maintained a reputation for dependable, quality, appropriate styling, price, and a national brand name.
-Category captains – trusted suppliers of specific categories of goods to retailers
Commissionaires – independent buying agents who help domestic buyers with foreign purchasing
Procurement – buying at the wholesale level for resale at the retail level

9. Merchandising
Macro-merchandising – focuses on the same image throughout the store/chain
Micro-merchandising – focuses on customizing assortments, quantities, and displays at each store

10. Benefits of fashion retail buyers participating in major fashion events
Gaining a sense of the market
Seeing entire lines of vendors’ latest merchandise
Discovering new sources of lines from previously unused manufacturers
Meeting and consulting with manufacturing firm management
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

11. Domestic Fashion Centers
New York, NY
Los Angeles, CA
Dallas, TX
Chicago, IL
Miami, FL
Atlanta, GA
NY Fashion Week 2015
Known for:
New York: largest fashion marketing center in US
Dallas: western & bridal fashion
Miami: world’s largest swimwear show

12. Foreign Fashion Centers
Paris
Italy (Rome, Milan)
Hong Kong
London
Hong Kong Fashion Week
Known for:
Paris: considered the world fashion leader

13. Market Centers
Concentrated areas where goods are produced, sold, and bought at wholesale prices
-AmericasMart (Atlanta)
- International Apparel Mart (Dallas)
-CaliforniaMart (Los Angeles)

14. Market Weeks
Scheduled periods of time during which producers officially introduce their new lines of merchandise and retail buyers shop various lines

15. Strategies for fashion retail buyers to be successful during market trips
Don’t buy collections 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

16. Helpful Buying Resources for Fashion Retail Buyers
Resident Buying Officers (RBO) – a service organization located in a major market center that reports market information, acts as a market representative, and performs other related services to a group of noncompeting stores
operate in the major fashion market centers
report on what products are available from suppliers, and they select merchandise for their member retailers
are the eyes and ears of the market for their retail clients

17. Helpful Buying Resources contd.
Merchandise brokers – work on commission, paid by producers when retail buying is arranged for that vendor’s goods
few today due to strong presence of regional marts
Reporting/consulting services – collect, tabulate, and report information on product lines and/or merchandising activities, charging fees for their reports
Example: The Doneger Group
Manufacturer’s traveling sales representatives – sell their lines by making calls on various retailers