2800 Final Review Costing Pre cost Initial Cost Final Cost Manufacturers Cost total real Direct Materials labor Retailer s Cost Manufacturer s Wholesale cost Retail consumer s price Cost markup Keystone Half of retail cost Indirect Merchandising design salaries rent administrative etc Includes Prestige and Mass products Beauty Spa Wellness Careers R D Research and Product Development Merchandising Marketing Account executives reps P R counter rep management Makeup Artists Fashion Designers Charles Worth is the founder of haute couture Flourished in the French empire Used a sewing machine for all but the most intricate designs Rose Bertin was the dressmaker to Marie Antoinette Le Roy was Napoleons dressmaker Coco Chanel is considered the most influential fashion designer of the 20th century Jeanne Levin First designer to create a shop for men Christian Dior Noted for his New Look that became popular after WW2 Vendor Whole Sale Careers A vendor is a resource to manufacturers International global industry Sales Representatives analyze selling tracks delivery takes orders works with retail buyers communicate and visit buyers attend markets 2 MAJOR TYPES OF REPS Corporate Company on payroll In house showroom Independent paid on a commission basis Sales Account Executive Sources and meets with accounts International Markets Market Physical place where the buyer and seller come together to do business purchase and sell goods Market Weeks are twice a year for couture jan july and 5 6 times a year for RTW mar sept Foreign Markets are important because they give buyers inspiration innovative ideas and new resources 4 Major Fashion Markets 1 Paris France Center of haute Couture Looked to for fashion direction 2 Milan Italy A leading center for mens womens fashion Known for knitwear and leather Alta Mode Italian Haute Couture 3 London England Known for wools Popular for menswear 4 New York New York Great market Hosts many showrooms and fashion shows Chambre Syndicale Created to organize the activities of the fashion industry Must have a workroom in Paris present twice a year have 75 designs and employ sewers There is no money in couture RTW makes the profit Conglomerates control houses Multiple brands under one company such as LVMH Dior Givenchy Lacroix Location where manufactures display their samples introduce new Domestic Markets lines and buyers place orders Market Calendar JANUARY SUMMER MARKET MARCH APRIL EARLY FALL MARKET MAY JUNE LATE FALL MARKET AUGUST SEPTEMBER RESORT OCTOBER NOVEMBER SPRING Buyers go to the mart to see new lines attend seminars study market conditions compare merchandise etc Manufacturers go to the mart to display sell lines determine what is to mass produced make fashion statements 5 Major Markets in the U S 1 New York Many Showrooms see above 2 Dallas Wholesale Known for Home Mart 3 LA Sportswear Swim wear and California style Primary market for S W and West region 4 Chicago Merchandise Mart Apparel Center open all year 5 Atlanta Serves Southeast with over 2000 showrooms Retailing Retail is the biggest business in the world bringing in 3 trillion dollars Provides jobs for 1 in 5 Americans and 20 million people Retailing All activities involved in selling goods and services to the consumer Last step in marketing pipeline Retailers can distinguish themselves by type of goods sold location organizational structure etc 2 Major types of retailers 1 Stored bricks mortar traditional store front 2 Non stored catalogs on line TV parties door to door etc 5 Major Division of Retail 1 Operations The physical place of sales 2 Merchandising Buying selling of goods for profit 3 Human Resources Employee matters hiring firing salary benefits 4 Finance Control Accounting loss prevention money matters 5 Promotion Marketing Publicity Visual merchandising fashion office Retail Formats 1 Department many departments under 1 roof 2 Specialty One particular type of merchandise Retail Operations Manages Sales and Merchandise to obtain a profit In store operations store management Characteristics leader self motivated people lover goal orientated Merchandising 5 Rights of Merchandising 1 Product 2 Place 3 Price 4 Time 5 Quantity Assistant Merchandiser is entry level General Merchandise Manager is top executive Buyer Responsible for the buying of goods and services Plans and forecasts Planner Allocators Responsible for maximizing stock efficiently and ensuring stores have the goods to produce the planned volume through locational planning and distribution of merchandise The process of promoting the sale of products by producing mental Visual Merchandising images that urge customers to make purchases Creates an image and atmosphere Image The Company s personality Atmosphere The emotional effects of the environment 4 Functions of display Promotion 1 Attract the customer 2 Inspire the customer 3 Persuade the customer 4 Convince the customer We display to educate sell entertain Introduce and Establish Support Services Auxiliary People or organizations that work with one or more of the major divisions of the fashion industry from a business perspective 2 major types of buying offices 1 Independent example Doneger 2 Store corporate owned example Federated Doneger is the largest buying office in the world Fashion Magazines Personal shoppers consultants Sales Promotion Hosts fashion shows advertising pr special events Stylists Fashion Advertising Basic Types 1 Image 2 Item 3 Special events 4 Promotional Media Term for all methods used to transmit a sales message Marketing Communicating a fashion image through various means