15 Multiple Choice25 True/False Learn terms in the back of the chapters- matching Chapter 16- Markets • New York main market for US because most design studios are there• No mart• Open year round• Close to museums• Access to textiles, trims, and all kinds of suppliers• Major trade associations are there • Historically fashion center because of the garment district • Cultural center buyers like to go to museums, theaters, shopping, restaurants • Major market centers in US• New York• LA• Miami- swimwear• Dallas• Regional Marts • Chicago• Atlanta• Denver• Las Vegas- Tradeshow, temporary• France• Ready to wear = pret a porter • Worth established couture• Couture• Mostly hand sewn• Very expensive• Fit to the customer• Fit sessions • Chambre de Syndicale established in Paris • Know requirements for Chambre de Syndicale • Strict rules• By invitation only• Strong force in the industry • Register and copyright designs• Organize 2 shows per year • Couture houses make money through licensing• License anything from perfume, sunglasses** (Luxotica), shoes, handbags• Do not license garments, they manufacture themChapter 17- Global Sourcing• Balance of trade • Exporting more than importing, trade surplus • Exporting less than importing, trade deficit • Private label primarily done by retailers• Unique• Control costs- increase profits, decrease price • "Specification buying"• NAFTA- North American Free Trade Agreement• US, Canada, Mexico • Trends in Global Fashion Markets• 1. Mart Management and Trade Association Responding to Shifts in Population and Changes in Buying Habits• Marts are becoming more competitive with one another• Promotions, seminars, receptions, year round service and expansion of exhibition spaces• 2. Expense of Attending Shows has had an Impact on Business• Senior buyers only on trips- make decision for more departments and store units• 3. Developing Countries are Becoming Major Buyers• Primarily sources of materials and productions, but also importers/exporters of finished goods• 4. Increased World Wide use of Computer/Internet for Buying• Instant information• 5. US Commerce Department's International Buyer's Program• Does research needed to find likely buyers for American products and bring them together with American companies at trade shows• Increased foreign attendance Chapter 18- Retailing• Specialty- offer limited merchandise• Boutique • First ever department store was Bon Marche in Paris • Department stores identified carry a broad assortment of merchandise • Broad and shallow merchandise assortments • Known for full customer service• Work on full markup- 100% sometimes 120%• Discount stores • Deep and narrow assortments • No costumer service • Low prices• Low overhead• Minimal services• Chain Organizations • 4+ units• Centralized buying • Centralized merchandising in terms of visuals, etc. • Off-price retailing • Late rise or early peak in fashion cycle • EX. TJ Maxx, Nordstrom Rack Chapter 19- Retail Policies and Strategies• Narrow and deep- few styles, many sizes, many colors • Broad and shallow- wide variety of styles, few quantity• Sell two or three and they are gone• Ambiance • Sensory retailing Chapter 20• Advertising- paid, media• You have control • Publicity- free, 3rd party, news worthy• Not just to promote particular product or brand• No control • PR- strategy, long term, to create an image that you have control over• First fashion magazine- Godey's Lady Book• ***Editorial credit***• Publicity names manufacturer and gives credit to retailer• Based on who's advertising in magazine • Companies cannot buy editorial credit • Editors visit show rooms • Visual merchandising • Window displays• Planogram- layout of how the store is to do the product assortment• Holiday and seasonal• Coordinating outfits for display • Store design is different than visual merchandising• Adapt to American Disabilities Act• Wheelchairs, etc. • How people move through store• Ease of movement• Local building codes• Placement of display• Lighting• Buyers handle clearance and markdowns • When a buyer goes to market they go with a budget called open to buy• Categories already broken down• How much for shirts, coats, etc. • Based on previous years and how to best fill store• Independent multi-line sales representatives• Own showrooms and carry multiple lines• Work on commission• 12% of all orders they write• Work with several manufacturers• None of their lines conflict• i.e. Won't carry two shirt lines • Sole