Fashion Wholesaling: From Manufacturer to Retailer 9781350169838, 9781350169852, 9781350169876

Table of contents :
Cover
Contents
Preface
Introduction
1 The fashion wholesale business
Chapter objectives
Introduction
Wholesale selling as a career option
Structural overview of the fashion industry
Types of wholesale sales reps
Vendor–rep contracts
Summary
2 Fashion vendors and wholesale customers
Chapter objectives
Introduction
Wholesale manufacturers
Wholesale customers
Building a customer base
Summary
3 The wholesale selling environment
Chapter objectives
Introduction
Different types of selling environments
Fashion trade shows
Summary
4 The wholesale fashion selling process
Chapter objectives
Introduction
Making the sales presentation
Sales territories
Forecasting sales
The manufacturer’s role
Summary
5 Trends in fashion wholesale selling
Chapter objectives
Introduction
The changing environment for the fashion industry
Fashion market timing
Digital transformation
Sustainability
Summary
Conclusion
Glossary
Bibliography
Index

Citation preview

BASICS FASHION MANAGEMENT

115

Linda B. Tucker

Fashion Wholesaling From Manufacturer to Retailer

BLOOMSBURY VISUAL ARTS Bloomsbury Publishing Inc 50 Bedford Square, London, WC1B 3DP, UK 1385 Broadway, New York, NY 10018, USA 29 Earlsfort Terrace, Dublin 2, Ireland BLOOMSBURY, BLOOMSBURY VISUAL ARTS and the Diana logo are trademarks of Bloomsbury Publishing Plc First published in Great Britain 2022 Copyright © Linda Tucker, 2022 Linda B. Tucker has asserted her right under the Copyright, Designs and Patents Act, 1988, to be identified as Author of this work. Cover image © Stephen Chung/Alamy Stock Photo All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage or retrieval system, without prior permission in writing from the publishers. Bloomsbury Publishing Plc does not have any control over, or responsibility for, any third-party websites referred to or in this book. All internet addresses given in this book were correct at the time of going to press. The author and publisher regret any inconvenience caused if addresses have changed or sites have ceased to exist, but can accept no responsibility for any such changes. A catalogue record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Names: Tucker, Linda B., author. Title: Fashion wholesaling : from manufacturer to retailer / Linda B. Tucker. Description: London ; New York : Bloomsbury Visual Arts, 2021. | Series: Basics fashion management | Includes bibliographical references. Identifiers: LCCN 2021034500 (print) | LCCN 2021034501 (ebook) | ISBN 9781350169838 (paperback) | ISBN 9781350169869 (epub) | ISBN 9781350169876 (pdf) Subjects: LCSH: Fashion merchandising. | Clothing trade. Classification: LCC HD9940.A2 T83 2021 (print) | LCC HD9940.A2 (ebook) | DDC 746.9/2068–dc23 LC record available at https://lccn.loc.gov/2021034500 LC ebook record available at https://lccn.loc.gov/2021034501 ISBN: PB: 978-1-3501-6983-8 ePDF: 978-1-3501-6987-6 eBook: 978-1-3501-6986-9 Typeset by Integra Software Services Pvt. Ltd. To find out more about our authors and books visit www.bloomsbury.com and sign up for our newsletters.

Contents

Preface v Introduction vii

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Chapter objectives  1 Introduction  2 Wholesale selling as a career option  2 Structural overview of the fashion industry  3 Types of wholesale sales reps  7 Vendor–rep contracts  16 Summary  17

Chapter objectives  55 Introduction  56 Different types of selling environments  56 Fashion trade shows  62 Summary  77

The fashion wholesale business  1

2

Fashion vendors and wholesale customers  25 Chapter objectives  25 Introduction  26 Wholesale manufacturers  26 Wholesale customers  37 Building a customer base  43 Summary  46

The wholesale selling environment  55

4

The wholesale fashion selling process  85 Chapter objectives  85 Introduction  86 Making the sales presentation  86 Sales territories  95 Forecasting sales  99 The manufacturer’s role  101 Summary  102

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Trends in fashion wholesale selling  113 Chapter objectives  113 Introduction  114 The changing environment for the fashion industry  114 Fashion market timing  115 Digital transformation  118 Sustainability  125 Summary  131 Conclusion 140 Glossary 141 Bibliography 147 Index 148

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Preface

As of this writing, the COVID-19 pandemic and its variants are threatening the United States as well as the rest of the world. It appears that the virus will be with us for the long term; something like the flu. Vaccines help but are not the cure. As a result, the fashion industry has experienced an unexpected disruption and has been challenged as never before. Hard lessons have been learned. No one realized how fragile the industry was until now.

the results of this global pandemic may create some unprecedented changes. Nevertheless, the basics do not change. Everything presented in this book is built on the basics. The purpose of this book is threefold: 1 To bring awareness to an often unrecognized career path; 2 To describe the foundational principles of fashion wholesale selling; and

The fashion industry will survive, but perhaps with fewer players as there are companies whose financial foundations crumbled as the economy ground to a halt.

3 To highlight that the basic characteristic of fashion, regardless of the stage of its lifecycle or state of the economy, is change.

One thing is certain: changes will abound. The fashion industry is resilient. After all, it’s built on change. Seasons change, styles change, fabrics change. However,

Regardless of your career choice, your outlook and flexibility will serve you well, especially in a career in fashion wholesaling.

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vi

Introduction

How’d you like to make $300,000 per year by being a part of the fast-paced fashion industry? After about three years of running a handbag manufacturing business, my company sold $3 million in merchandise! Yep, that’s 3 with six zeros! But, the more impressive fact is that the same year, we paid a sales rep $300,000 in commission! And my handbag line was only one of five high performing lines she had in her showroom! My guess is that she made about $1 million in commission that year. My advice to you is, if you like fashion but can’t live on the low wages paid for selling retail, try wholesale selling. As an independent rep, you’re in control of how much money you make, and your income is a reflection of your motivation and attention to detail. I know what it’s like to work retail. I did it, too. You’re on your feet all day. You must be polite to customers no matter how much they’re yelling at you. And you’re always picking up and putting away the clothes that customers didn’t bother to return to you or the rack. And you’re probably doing this for close to minimum wage. All of that can change if you use the principles and practices described in this book. Here’s what you’ll learn: ●●

●●

the different types of wholesale sale reps and how they function with the other supply chain members what categories of merchandise a sales rep sells

●●

●●

●●

about the selling environment and where the selling opportunities are how to make a sales presentation with all the bells and whistles to make the sale the changes that are occurring in the fashion industry that are affecting the wholesale selling function.

In other words, you’ll learn all about the fashion wholesaling business and how to conduct your business so that you’re successful every time you make a sales presentation. I graduated from college with a degree in fashion design and retailing. I worked in retail until I met and married a man who, because of his hobby-turned-business, knew how to sew. We started sewing small scraps of fabric together and ended up making wallets, key cases, glasses cases, etc. My husband handled the production aspects, and I managed the sales and marketing. Before we knew it, we were a burgeoning business. All it took was a good idea, a dynamite sales rep, a few good accounts, and our little company grew exponentially! But my point is not to get you to manufacture fashion merchandise. It’s to realize the potential for a high paying, satisfying, exciting career in fashion wholesale selling. And you can do it. Read this book, follow the principles and practices, and grow your own fortune. Let’s start by finding out about the fashion wholesale business in Chapter 1.

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The fashion wholesale business Chapter objectives After reading this chapter, you will be able to 1 discover career options in fashion wholesale selling 2 distinguish between the wholesale and retail functions

3 explain the various types of sales representatives and their distinctive roles 4 identify and give examples of wholesale sales representatives’ typical tasks 5 recognize the characteristics of an excellent sales representative 6 list the features needed in a vendor–representative contract.

Figure 1.1 (facing page)  Window Dressing. Photograph by Albrecht Fietz, Pixabay.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Introduction Selling is the lifeblood of economies. Without sales, consumers would not have the goods and services they need, and companies could not thrive. As consumers, we are most familiar with business-to-consumer (B2C) selling. This is what we experience when shopping in a retail store. However, as consumers, we would have little to choose from without the services of the fashion wholesale business. Fashion wholesale is the b ­ usiness-to-business (B2B) link between the manufacturer of clothing and accessories and the retail store. This chapter begins with an overview of the career possibilities available in the field of fashion wholesale selling. These options consist of unique positions, each with distinct duties and responsibilities. The fashion industry is like many businesses except for some key differences that must be considered. In the following sections, the way a product gets from the maker to the seller will be examined first in terms of traditional marketing and then again as it pertains to fashion marketing. The wholesale fashion industry is characterized by sales representatives and their business relationship with manufacturers (also known as vendors). There are three basic types of sales representatives (commonly referred to as reps): (a) manufacturer’s or corporate reps, (b) independent reps, and (c) road reps. Next, we delve into the typical tasks of a sales rep with an emphasis on what it takes to be a successful sales rep. The vendor–rep relationship is distinct depending on the type of rep and differs still more based on the policies and procedures defined by vendors. However, there are standard practices that are common

among most vendors and, therefore, important to know. These practices are captured in a vendor–rep contract, which specifies the business relationship and defines the duties and responsibilities of both sides. As previously stated, the information presented in this book is derived from the traditional methods of wholesale selling. These methods represent fundamental principles and practices that remain constant across time and situations. In other words, the application and/or operationalization of the methods may be different, but the basics persist.

Wholesale selling as a career option If you like working with people and are passionate about fashion, wholesale sales may be for you. Unlike retail selling, wholesale selling involves being on the front line. You see upcoming fashions at least six months before the consumer. Being ahead of the fashion adoption curve, wholesale works months in advance of the consumer selling season and even well before retailers receive the merchandise. As a wholesale sales rep, your income and benefits depend on the company you work for and the contractual relationship. Income potential is often the primary factor for would-be wholesale sales reps. As a wholesale sales rep who is an employee of a company, you earn a salary as well as fringe benefits. However, if you choose to be an independent rep, you own your business and have greater control over your income. In other words, you have a choice between stability or independence.

THE FASHION WHOLESALE BUSINESS

Unlike retail selling, wholesale selling involves being on the front line. You see upcoming fashions at least six months before the consumer. In 2016, the median salary for wholesale and manufacturing sales representatives was $61,270.1 The Economic Research Institute agrees with that evaluation, describing the average salary for a clothing sales rep as $60,363, within a range between $34,880 and $76,270 in the USA. The Institute also projects that the average salary will increase by 16 percent to $69,997 by the year 2024.2 However, the salary can be much more lucrative based on the company and your expertise. Comparatively, the median income of retail sales workers in 2018 was $24,340.3 Therefore, in wholesale selling, you can earn as much as three times (or more) than that of retail jobs. If you are a successful independent rep offering popular apparel lines and with a well-established list of retail accounts, you can often earn more than $100,000 a year.4 Armed with this information, one can see that the wholesale sales business is a better financial option than similar fashion careers. To learn more about each type of sales rep, keep reading.

Structural overview of the fashion industry Fashion is not marketed in the same way as other commodities. Fashion is handled much like produce; if allowed to sit too long, it spoils. Therefore, a strategy to get the product to market quickly is the key to providing goods where and

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when needed without compromising the desirability. In this section, comparisons and contrasts will be presented between the traditional and the fashion industry marketing model. In the traditional marketing distribution channel, goods travel from the manufacturer, to the wholesaler, to the retailer, and finally to the consumer (see Figure 1.2). In each step of the process, the channel member buys the goods, takes possession of them and warehouses them. Therefore, with each step of the process, the channel member owns

TRADITIONAL FLOW OF GOODS MANUFACTURER

SALES REP

RETAILER

CONSUMER Figure 1.2  Traditional Channel of Distribution Model. In the traditional marketing distribution channel, goods travel from the manufacturer, to the wholesaler, to the retailer, and finally to the consumer.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

the goods, which requires expenditure and financial risk. This process is also time-consuming and costly. This adds to the mark-up making the goods more expensive down the line. In the fashion business, the Traditional Channel of Distribution Model does not work well to get goods to the consumer as quickly as possible. Therefore, the Fashion Channel of Distribution Model puts the traditional wholesale operation outside of the distribution channel but does not omit the function. In this distribution model, the sales rep performs the duties of the wholesaler in a traditional marketing chain but does not act as a channel member (i.e. own the goods). In the Fashion Channel of Distribution Model, the wholesale function is

FASHION FLOW OF GOODS MANUFACTURER

SALES REP

conducted by a selling agent, who then is paid a fee for connecting the vendor and retailer. In this model, the wholesale sales rep acts as a selling agent without owning the goods or taking possession. Fashion is handled much like produce; if allowed to sit too long, it spoils. Therefore, a strategy to get the product to market quickly is the key to providing goods where and when needed without compromising the desirability.

Fashion retail versus fashion wholesale Although selling occurs at two steps in the overall process (wholesale and retail), there are key differences to understand. In this section, we use the four Ps (Figure 1.4) to distinguish the differences between selling at retail versus selling at wholesale. In both of these selling environments, understanding the target market is essential in efficiently matching a product to the customer. We also define key terminology for each category.

Figure 1.3  Fashion Channel of Distribution Model. In the Fashion Channel of Distribution Model, the sales rep acts as an agent outside of the distribution channel but does not own or take possession of the goods.

the amount the customer is willing to pay for the product

the goods or services for sale

RETAILER

CONSUMER

Price

Product

TARGET MARKET Place

the location where the product is to be sold

Promotion

the method by which the customer is informed of the product’s existence

Figure 1.4  The four Ps: Product, Price, Promotion, and Place.

THE FASHION WHOLESALE BUSINESS

Table 1.1  The four Ps perform slightly different roles when wholesale and retail functions are compared. Application of the four Ps at wholesale and retail Four Ps

Wholesale

Retail

Product

Fashionoriented t-shirt

Fashionoriented t-shirt

Price

Cost

Cost plus mark-up

Place

Sales rep’s showroom; trade show; retailer’s store

Retail store; retailer’s website; catalog

Promotion

Trade publications

Newspapers; consumer fashion magazines; radio; TV

The basic theory of the four Ps was developed to achieve the desired objectives and meet the target market needs. They are considered important tools in the selling of products and services. The four Ps function in both the wholesale and retail levels of the fashion industry. At both levels, the product being sold is either apparel or accessories. From this point, the process is different depending on whether the transactions are done at the retail level or the wholesale level.

Retail price Whatever the retailer has paid for the goods, there is a specified amount added to it called mark-up. The mark-up is usually expressed as a percentage added to the wholesale price. Retail stores “can develop their own retail price regulations as long as they comply with all applicable

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laws. For example, manufacturers are free to set MSRPs, or manufacturer’s suggested retail prices, which retailers can observe or choose to ignore.”5 Standard mark-up at retail is commonly between 46 percent and 62 percent. That means that if an item has a wholesale cost of $10, it will have a retail price between $18.50 and $26.00. Mark-up is decided by the individual retail store and is not regulated by law. A commonly used phrase in pricing is keystone. This means that the cost of the merchandise is doubled to obtain an approximate selling price. Buyers often use keystone as an estimate to determine if a selling price is appropriate for their target market customer.

Retail place The selling venue for fashion retail is usually a store; however, retail selling can also take place in a variety of locations, catalogs, direct mail, mall kiosks, home parties, and through websites. Increasing in popularity are direct-to-consumer websites. For example, the underwear brand Jockey maintains a website of both men’s and women’s products, which is designed for consumers to order directly from them rather than buy from a retail store. There is no wholesale selling activity in this instance. Other websites are created by retailers such as Macy’s, Kohl’s, or Nordstrom. These e-tailers sell merchandise using the internet in a process similar to a brickand-mortar store. As such, they obtain merchandise with the assistance of a wholesale sales representative.

Retail promotion Retail promotion is directed to the consumer in the form of advertising.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Figure 1.5  Fashion merchandise that is available in a retail store has been purchased at wholesale cost with a mark-up added to arrive at the retail price. © Oliver Rossi via Getty Images.

Common vehicles are newspapers, consumer magazines, radio, and television. Some promotions exist as flyers or inserts sent through the mail. More recently, promotion has used the internet or texts via smartphones. All of these mediums are focused on getting the attention of their target market—the fashion consumer.

wholesale price is what will be charged to the retail buyer. In the wholesale arena, the wholesale price is referred to simply as cost. For example, the cost of highly fashionable or trendy merchandise may be higher due to its relative scarcity, whereas basic fashion merchandise may be a lower cost due to competition with other manufacturers.

Wholesale price The wholesale price is set by the manufacturer. They have their expenses to consider when producing the product, and the company needs to make a profit, too. That profit margin is unique to the company as well as the specific category of merchandise produced. Some companies use an equation or percentage added to their costs. Others will set a ballpark figure based on what they believe the customer will pay. Either way, the

Wholesale place The place of business for wholesale can be a showroom in an apparel mart (or a similar business building), an apparel trade show, or at the retailer’s premises. (Note: apparel marts and trade shows are discussed in more detail in Chapter 3.) Regardless of location, merchandise is presented to the buyer for consideration while the selling task is performed by sales representatives.

THE FASHION WHOLESALE BUSINESS

The internet has introduced another option for wholesale selling. Businesses have emerged that offer merchandise from a group of manufacturers in the manner of a wholesale marketplace. While these websites are available for viewing by anyone, buyers must be verified and approved to make purchases. (More on this selling environment will be discussed in Chapter 5.)

Wholesale promotion Promotion in the wholesale arena is done through media directed to retail businesses, whether they are brickand-mortar or e-tailers. There are trade publications, newspapers, and magazines written specifically for the fashion trade. Examples include Women’s Wear Daily (WWD), California Apparel News (CAN), and Apparel Magazine. In addition, there are other trade publications aimed at specific categories of merchandise, such as Accessories magazine.

Types of wholesale sales reps Now that we have had an overview of the differences between retail and wholesale selling, we will focus on wholesale. Specifically, we delve into the career opportunities for sales in the wholesale side of the fashion supply chain. Occupational Information Network (O*NET) is a database developed by the US Department of Labor/Employment and Training Administration (USDOL/ETA) to define hundreds of occupations. O*NET refers to Sales Representatives as people who provide selling services from wholesalers or manufacturers to other businesses such as retailers. In addition, they obtain orders from their customers, which

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requires knowledge of the products being sold.6 The website details information such as tasks, knowledge, skills, abilities, work activities, work context, interests, and work values in the general context of a sales representative’s job. Although known as sales reps in the USA, they may bear different titles based on companies and countries. Sales reps may also be known as selling agents, wholesale sales managers, account executives, or brand managers, for example. To better understand the general job tasks of a sales rep, let’s apply these tasks to a specific industry. Sales reps may have other titles such as selling agents, wholesale sales managers, account executives or brand managers.

In the fashion industry, sales reps are intermediaries between manufacturers and retailers. As such, they are the link to get the product from the maker to the seller. The way these links are formed is dependent upon the relationship between the sales rep and the manufacturer. The manufacturers, or vendors, operate independently from each other because each manufacturer can create their own business model. For example, a large apparel manufacturer would most likely have sales reps who were employees, whereas a small apparel manufacturer would most likely have self-employed sales reps. As such, the vendor–rep relationship varies with policies and procedures defined by the individual companies’ needs. However, there are standard practices common among most vendors, which are presented here. These relationships define the duties and responsibilities of the reps and vendors. Additionally, whereas most fashion manufacturers are small to medium-sized, they have limited abilities to perform wholesale

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

tasks. Therefore, a wholesale sales rep becomes a necessity.7 We begin this section with a description of three basic types of sales reps: the manufacturer’s rep, the independent rep, and the road rep. Also included is information about who employs each type of rep and how their income is determined. We then delve into the typical tasks of a sales rep with additional emphasis on what it takes to be a successful one.

Manufacturer’s rep The manufacturer’s rep, occasionally known as a corporate rep, usually works for a large company or corporation. In Europe, these reps may be known as commercial agents. In this scenario, you are part of a sales team with a sales manager orchestrating your work tasks. Your salary is likely the same every month with customary employee benefits. As employees of a large company, such as Levi Strauss & Co., there are certain structures in place. This position can also be referred to as direct to retailer sales, meaning a sales rep that facilitates the sale to the retailer, but in the capacity of a company employee. A corporate rep who works strictly with large retail accounts that place large, bulk orders is often referred to as an account manager. The wholesale function is not eliminated but is merely subsumed within the role of a company employee. In the fashion industry, sales reps are intermediaries between manufacturers and retailers. As such, they are the link to get the product from the maker to the seller.

Advantages The biggest advantage of being an employee is the implied stability. As employees, reps get a consistent paycheck

each pay period. They may also receive company benefits such as sick pay, vacation pay, health insurance, discounts on purchases, and possibly a pension. There is also a company ­structure that enables employees to advance in their career within the company.

Disadvantages The corporate sales rep’s job is highly structured. As employees, these sales reps work for one employer and are not free to work for any other company. In this way, they are captive agents. Although they are paid a salary, the commission that they can earn is very small (usually around 2 percent of sales) which limits their ability to increase income through effort. Companies that hire only manufacturer’s reps have the authority to structure their employee’s duties and responsibilities. In so doing, the vendor controls the sales rep’s schedule and requires that the rep account for how and where (office, showroom, road) their time is spent.

Income potential As already mentioned, the manufacturer’s rep is paid a salary plus a small commission. Of the major fashion wholesale cities in the USA, Ziprecrutier.com reports the following average salaries for such sales reps (Table 1.2). Table 1.2  Average annual salary for apparel sales reps. Salaries can vary from city to city. Wholesale average annual salaries by major fashion wholesale city

Chicago

$56,682

Dallas

$55,563

Los Angeles

$66,473

Manhattan

$59,854

Nationwide (USA)

$62,813

THE FASHION WHOLESALE BUSINESS

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Table 1.3  Specific salaried sales rep positions show a range of potential income. The symbol + indicates additional compensation based on commission. (Positions ­sampled from various websites during the period December 2019–January 2020.) Salaried positions—sales rep position announcements Type of company

Compensation (per year)

Territory

Job source

Accessories

$50,000 to $100,000

New York

Glassdoor.com

Apparel

$35,000 to $75,000+

California

Ziprecruiter.com

Fashion jewelry

$50,000 to $100,000

California

[not identified]

Fine jewelry

$65,000

California

Ziprecruiter.com

Footwear, apparel, and accessories

$80,000+

Based in Los Angeles

[not identified]

Luxury women’s

$35,000 to $65,000

California

Ziprecruiter.com

Private label

$40,000 to $49,000

California

Ziprecruiter.com

Safety apparel

$45,000 to $65,000

Texas

Ziprecruiter.com

Similarly, according to Glassdoor.com, a full-time apparel sales rep makes between $40,000 and $90,000 per year.8 Salaried positions may include commission; however, the commission amount is not indicated in the job description.

Independent rep Outsourcing selling is the most common relationship between vendors and sales reps. Raines states that “manufacturers are increasingly farming sales work to independent agencies or self-employed representatives.”9 For this reason, the majority of wholesale sales representatives working in fashion are independent reps. When hiring independent reps, most companies seek experienced sales reps who can bring accounts with them. The independent sales rep is just as it sounds: independent from the restrictions

and benefits of being an employee. They are self-employed, allowing them to create their business the way that works best for them and their retail buyers. An independent rep is legally an independent contractor. The People’s Law Dictionary defines an independent contractor as one who performs duties under contract with specific aspects of the agreement described in detail, such as pay, type of duties performed, and other matters as deemed necessary.10 As an independent sales rep, you are basically an entrepreneur. You own the business and have control of your working environment and hours. You determine which companies you represent and the income from each company based on a contractual agreement. You are also free to work for several companies at the same time. Independent reps often design their business to cater to a particular niche in the fashion market. For example, a rep may choose

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

to specialize in handbags and will represent several handbag companies each at a different, non-competing price point. In this way, the rep can meet with retail buyers and stores that specialize in handbags and have something to offer in every price point. On the other hand, the rep may want to specialize in accessories and represent several different accessory companies. In this scenario, the rep can represent a jewelry company, a handbag company, a belt company, a hat company, and so forth. It is possible for sales reps to develop successful long-term relationships with manufacturers and retail buyers, which allows them greater ability to use these contacts to sell multiple lines to multiple customers thereby increasing their sales commissions.11 Rather than the superior–subordinate relationship in a manufacturer’s rep position,

independent reps work as partners with their vendors. The vendor provides the products: the independent sales reps provide the sales. They have a synergistic relationship because the success of one affects the other. Since this type of rep is paid a percentage of sales, their income is only restricted by their motivation to sell. In other words, the sky’s the limit.

Advantages By being independent of a company, this type of rep is her own boss. Independent reps also have the freedom to operate their business the way they want. They may decide to work one day a week in the office and the other days in the stores. They can also hire sub-reps (called road reps) to help them cover their territory.

Figure 1.6  Independent reps are entrepreneurs and act as their own boss. © Westend61 via Getty images.

THE FASHION WHOLESALE BUSINESS

The independent rep can represent any vendor. They can represent a single line (one vendor) or multiple lines (several vendors). By representing several vendors, these reps have several sources for potential sales which presents opportunities for increased business and higher income. Another significant advantage is that, compared to manufacturer’s reps, the independent rep is paid a higher commission.

Disadvantages Independent reps must conduct all aspects of their business. They need to establish a place of business, often a showroom in an apparel mart, which can be expensive. They need to decide which trade shows they will participate in and pay the fees as well as all transportation and decoration. The expense of promoting their business also falls largely on them. Since, the independent rep is promoting several brands, most vendors are not willing to spend money on promoting other brands. Independent

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reps may ask vendors for contributions towards advertising and promotion, but that is negotiable, and part of the vendor–rep contract. Furthermore, since they are self-employed, independent reps pay their own taxes (because they have no automatic withholding) and provide their own health and retirement benefits.

Income potential According to RepHunter.net, an independent sales rep makes a gross commission of between 7 percent and 15 percent, less operating expenses.12 Since this type of rep is paid a percentage of sales, their income is only restricted by their motivation to sell. In other words, the sky’s the limit. In 2013, the average earnings of independent sales reps who sell apparel was at $76,370, whereas reps who sold footwear averaged a $90,320 income.13 Table 1.4 provides a number of ­different compensation scenarios available for

Table 1.4  Specific commission-based sales rep positions show a wide range from estimated annual commission to a percentage of sales. (Positions sampled from ­various websites during the period December 2019–January 2020.) Commission-only positions—sales rep position announcements Type of company

Compensation

Territory

Job source

Apparel

$4,000–$5,000+/ month

Open–US

Indeed.com

Fabric/notions

$50,000–$100,000/ year

Mississippi

Indeed.com

Fitness apparel

10% commission

Open–US

Fitnessindustryjobs.net

Men’s wear

$15.50–$20/hr

California

Ziprecruiter.com

Women’s wear

5–7% commission

Germany and Hungary

Upinsales.com

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

commission-only positions in which independent reps might be interested. Keep in mind, independent reps can work for multiple vendors.

Road rep Road reps are an extension of independent reps and often represent a path to becoming an independent rep. A road rep (or sub-rep) works for an established independent sales rep and travels the sales rep’s territory making sales calls. The independent sale rep retains the road rep through an independent contractor agreement. The agreement is similar to a vendor–rep agreement. The business relationship may look something like this: the independent rep works in the showroom, and the road rep works those retail accounts that don’t come to the showroom. Some retail buyers, particularly small chains (often referred to as SMEs) or single unit “mom-and-pop” stores, are an integral part of the day-today operations of their stores. It is usually a hardship for this type of buyer to leave the store, so the road rep goes to them to make a sales call. SME stands for small-medium ­enterprise. The acronym refers to small- and ­medium-sized retailers that have few stores and few employees.

The road rep is outfitted with a set of samples and everything needed to make the sales presentation similar to a “showroom on wheels.” The advantage for the road rep is that the accounts are already established by the independent rep. The disadvantage is that the road rep, as a sub-rep, is paid a slightly reduced commission.

Income potential The independent rep provides the road rep with the accounts and territories to be visited. As an extension of the independent rep, the road rep is paid a portion of the independent rep’s commission. For example, if the independent rep is paid 10 percent commission, the road rep might be paid 8 percent.

Other wholesale sellers of apparel There are two other types of wholesale sellers in the apparel industry: importers and jobbers. These are mentioned here only as a point of information. Although they act like wholesale sellers, they are not considered as such because they operate strictly within the traditional channel of distribution. Importers purchase goods produced by foreign manufacturers, often located in Asia. Once importers own the goods, they transport and warehouse them, after which they find buyers. By assuming these additional costs, they add a mark-up before selling to the retailer. Since the merchandise is immediately available, they are also called “cash-and-carry” vendors. Jobbers are similar to importers in that they purchase goods from other manufacturers, but these manufacturers could be US makers as well as importers. Jobbers usually carry overstock or excess inventory at the end of the traditional selling season. With the advent of off-price ­retailers such as TJ Maxx (also known as TK Maxx in the UK and Australia), jobbers are less common because off-price retailers buy end-of-season goods directly from the manufacturer, thereby eliminating the need for jobbers.

THE FASHION WHOLESALE BUSINESS

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go out of business or may change their target customer demographic.

Essential roles Regardless of the business relationship, wholesale sales reps have certain tasks they must perform. These tasks are for the benefit of the company as well as for the rep to increase sales, build the business, and provide exceptional customer service. To meet this objective, sales reps perform eight different roles. Table 1.5  Sales reps perform these tasks for the company as well as for themselves to increase sales, build the business, and provide exceptional customer service. Eight roles of wholesale sales reps

Create new customers

Provide solutions to customers’ problems

Sell more to present customers

Provide service to customers

Build long-term relationship with customers

Help customers resell products to their customers

Build goodwill with customers

Provide the company with market information

Source: Adapted from Charles Futrell, ABC’s of Relationship Selling Through Service, 8th edn. (Boston: McGraw Hill, 2005).

Create new customers A sales rep must create new customers, known as p ­ rospects. Prospecting means that the rep is continually looking for new stores to add to the customer base. By adding stores, the rep will increase sales, which benefits both the company as well as the rep’s potential income. In addition, prospecting helps replace customers that have been lost. Losing stores as accounts is a natural occurrence because stores will

Sell more to present customers A main goal of most businesses is growth. In order to grow, businesses must increase sales. A sales rep can assist in achieving this goal in a couple of ways. First, the sales rep can increase the amount of each sale. Within their current list of accounts, the rep can nudge the amount of each order by increasing the amount of merchandise the buyer purchases. This technique works particularly well when the merchandise is selling well. Also, if the buyer often sells out of merchandise too quickly, it makes sense to order more so that does not happen. Another technique is to make sales calls more frequently. By increasing the number of sales calls, an increase in sales may also occur. For example, if the rep makes a sales call every two months, changing to making the call once a month could increase sales. Again, this works best if the merchandise was frequently out-of-stock.

Build long-term relationships with ­customers Selling is a people-oriented business. It’s about building relationships and trust, which are best done in face-to-face interactions. “Relationship selling is all about building a friendship or relationship with your prospects and listening to their needs. Once you’ve built that relationship, shown you care, and earned their trust, you are on the road to making them a customer.”13 Building relationships happens when you listen to what they are saying, care about helping them with their businesses, and sell them merchandise you know they can sell to their customers. If you sell just to make a sale, you are not

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

looking after your customers’ best interests. Retail buyers will remember if you have talked them into buying something they were uncertain about. They will also definitely remember if you appeared to be less concerned about what was best for their store and focused on simply making a sale. Negative impressions do not build trust, and, if that occurs, the retail buyer is not likely to buy from you again.

Build goodwill with customers Related to building long-term relationships is the concept of goodwill. Goodwill, in this case, is the feeling of cooperation for the benefit of both parties. Sales reps are the “face of the company” in that they represent the company or companies for which they work. The reputation of the sales rep reflects upon the company (and vice versa). Providing the retail

buyers with quality products and reliable customer service creates goodwill. In turn, this gives the buyer the confidence to rely on the sales rep and the vendor for continued quality and service.

Provide solutions to customers’ ­problems Part of relationship selling is helping provide solutions to problems. As a wholesale sales rep, your customer is the retail buyer. However, you also need to think about their customers, the consumer. For the retail buyer to be truly happy, the merchandise they buy from you needs to appeal to their retail customers. Customer needs vary based on the image of the store. For example, if the retailer is a fashion-­forward store, their need is for the latest merchandise either shown in the fashion magazines or worn by

Figure 1.7  Sales reps provide service to retail buyers, which helps in establishing trust and goodwill and builds long-term relationships. © vgajic via Getty Images.

THE FASHION WHOLESALE BUSINESS

Hollywood celebrities. If the merchandise you are selling can satisfy that need, then you are solving the problem for both the retail buyer and the store’s consumer. As a wholesale sales rep, you will be challenged to know your stores (known as your accounts) and their customers. Much of this information can be learned by observing the types of people who shop at the store and by talking to the retail buyer.

Provide service to customers Customer service includes many tasks that are designed to enhance the customer’s experience beyond the sale. In wholesale selling, these tasks focus on the experience of the retail buyer. As will happen, retail buyers may occasionally be dissatisfied with the products. Typical complaints can be that the shipment received, either in whole or in part, differs from the order the buyer placed. Occasionally, damaged goods may be received by the store. In such instances, errors are corrected, and damaged goods are usually returned for replacement or credit. Beyond helping to solve problems, sales reps also provide additional services. For example, if a buyer represents a chain store, samples may be requested to show to other store personnel. Or samples may be photographed for a catalog or advertisement. If a buyer is new or inexperienced, she may request recommendations from the sales rep. If a sales rep is trusted to give a recommendation, honesty is paramount. The sales rep should only recommend those items that have sold well in other stores. The sales rep’s recommendation is no guarantee the merchandise will sell, but sales trends are worthy of note. Large manufacturing companies with an extensive product offering may have their corporate rep act as a merchandiser.

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A merchandiser monitors inventory in the store and places orders to fill in inventory so that the assortment remains at an optimum level. Independent reps usually do not do this task unless paid a higher commission rate.

Help customers resell products to their customers A sales rep may be willing to help a store resell products in several ways. One type of aid is a display fixture, which may be provided with the placement of a minimum order. The fixture may be hangers with the brand’s logo or a counter-top tray for small accessory items. If the merchandise is innovative, consumers may need a demonstration of how it works. An example would be a scarf ring that can create multiple looks depending upon how the scarf is threaded through the ring. This can also be accomplished by the sales rep training the store’s sales associates. The sales associates, in turn, are able to show customers how to use the product. Another approach to helping stores resell the products is to create an event that will attract customer traffic in the store. The event could be a personal appearance to feature merchandise such as a fashion show, a trunk show, or an in-store seminar.

Provide the company with market ­information Sales reps are in the marketplace where retail selling activity takes place. Therefore, they are in a prime position to observe the products offered by other companies and listen to what the industry professionals have to say about other companies. Some of these other companies are competitors. The activities of competitors are critical to business

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

success in order to keep up with the competition. Manufacturing companies also want to know what retail buyers are saying about their product line. They want to know if the retail buyers are placing orders. They want to know if there are any complaints about their products. They need to know if there is a color missing from their colorways. Other concerns include: Are there too many returns? Are returns due to fit? Or quality? Additionally, sales reps are in the best position to recognize market opportunities. For example, are there new stores opening? Are current customers expanding and opening more stores? Has a competitor introduced a style concept that has been overlooked or missed? Are buyers asking for something specific in styles or colors? This kind of market information can give the sales rep’s manufacturer a competitive advantage and keep their customer base satisfied. This market information is a form of industrial espionage, a term which might imply illegal activities. On the contrary, it is business research otherwise known as commercial intelligence. Sales reps, just like consumers, can “check on prices and products of competitors by comparative shopping. Equally fruitful, are regular lines of communication, such as salesmen’s reports, trade magazines, newsletters, business conventions, trade fairs and exhibits, and contacts with suppliers.”14 In sum, it is industry information that is of benefit in gaining competitive advantage.

Vendor–rep contracts Vendor–rep contracts are common in relationships between vendors and independent sales reps. “Most clothing sales reps work on a contract basis that

includes commission on sales and guaranteed territories.”15 These agreements have developed out of necessity to reflect a business relationship which legally protects both parties. They are written documents known by several names, including sales rep agreements or sales contracts. The website RepHunter.net outlines ten features that should be in every vendor– rep contract.16 These features clearly define the expectations on both the rep’s and the vendor’s side of the agreement: 1 Responsibilities. These statements define the roles of both parties. 2 Definition of Independent Contractor. Independent sales reps are ­independent contractors which means they are a business separate from the vendor and are not an employee. 3 Compensation and Commission. Sales reps must know how they will be paid. Independent reps are usually paid on commission; therefore, the contract must stipulate the amount of commission. Commission based on a percentage of sales is most common; however, the sales order that is written by the sales rep may not be the same as what merchandise is shipped. Unfortunately, in the apparel industry, vendors do not regularly ship the entire order as it is written. Therefore, the contract must address whether the sales rep is paid on the amount of the order as written or on the amount of the order as shipped. Also, it should be stipulated in the contract that the sales rep will receive a copy of the vendor’s invoice so the quantity and styles that were shipped will be known. A draw on the monthly commission may be a consideration as well as compensation for attending trade shows.

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4 Termination. The contract can be terminated by either party; however, the dispensation of final commissions must be defined. “The contract may include residual commissions that continue after the representative leaves the position and are based on the work and contacts originally set up by the rep.”17 5 Non-compete. This clause is ­primarily meant to protect the vendor. It prohibits a sales rep from leaving the company to work for a competitor and thereby taking established customers away from the company. 6 Territory. Territories can be defined either by geography or store type (for example, a department store, a specialty store chain, a mom-andpop store, etc.). Sales reps want to know their territory is protected. This prevents reps from the same company attempting to sell in a defined territory. 7 Product Improvements. Sales reps will often provide a company with ideas of product improvements or new products to be added to the line. It should be clear in the contract that these products will be owned by the company. 8 Confidentiality. At times, there may be trade secrets that need to be protected. This clause prohibits sales reps from revealing these secrets to others. 9 Liability. General liability issues may exist regarding product use or other matters. 10 Dispute Resolution. If there should be a dispute between two parties, the resolution of the dispute should be described. A dispute could occur between the company and the sales rep or between the company and a store.

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Summary Fashion wholesale selling can be a lucrative option for fashion merchandising career seekers. Wholesale sales reps are intermediaries between the apparel manufacturer and the apparel retail stores. This type of sales rep can be an employee of the vendor, as a manufacturer’s sales rep, or self-employed, as an independent sales rep. In either instance, the wholesale sales rep’s primary responsibility to the vendor is to provide the service of selling to retail store buyers. Typical tasks of the wholesale sales rep are to (1) create new customers, (2) sell more to present customers, (3) build long-term relationship and (4) goodwill with customers, (5) provide solutions to customers’ problems, (6) provide service to customers, (7) help customers resell products to their customers, and (8) provide the company with market information. Vendor–rep contacts, also known as sales rep agreements, are a necessary component in a vendor-sales rep relationship. There are ten features which should be included in any vendor–rep contract: (1) responsibilities, (2) definition of independent contractor, (3) compensation and commission, (4) termination, (5) non-compete, (6) territory, (7) product improvements, (8) confidentiality, (9) liability, and (10) dispute resolution.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Interview Leo Hu, AutoKNIT, China Leo Hu is a Merchandiser for China Whole Garment, also known as AutoKNIT, a whole garment knitting factory in JiaXing, ZheJiang, China. AutoKNIT produces seamless knitwear of all kinds. The current demand, however, is for knitted masks. Using the KNITify technology of Shima Seiki computerized knitting machines, the company produces customized masks according to any specification. Hu has worked for AutoKNIT for seventeen years. He graduated from JiaXing University with a major in Economics. He also studied logistics and website design while at the university, which is helping him with his current role at AutoKNIT. Hu states that “China has its own clothing industry and retail industry. We only help European and American buyers to do some processing of OEM.” China Whole Garment does not have a website, but the knit mask operation does at https://www.­knittingmask.com/.

What are your job duties? I deal with getting new customers, obtaining new orders, and receiving payment for the orders. How do you get your apparel to the retail store? We deal with an import agency. Some retailers develop new styles and work with us directly. Do you use an independent selling agent? How are they paid? We do not hire anybody. We pay commission to a middleman or agency of between 5 percent and 8 percent. The middleman tells us how much they charge.

What is your selling process? We sell only through trade shows (like texworld). We work directly with stores, but also through middlemen who are also our customers. The middlemen work similarly to traditional wholesalers in that they buy the garments from our company and resell them to retailers. The company also sells directly to retail stores. Middlemen work for other factories as well as ours.

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Interview David Bolado, Fashion Nova, USA David is the Senior Buyer of Men’s and Kid’s at the retail store chain and website, Fashion Nova, which is headquartered in Vernon, California. He supervises a staff of four people: two data entry people, one Assistant Buyer, and one Associate Buyer. He attended California State University, Pomona and majored in Apparel Merchandising & Management with a specialization in Apparel Production. After graduating in 2013, he worked for True Religion for five years, beginning as an Assistant Buyer of Men’s and Kid’s and then being promoted to Buyer of Men’s.

Your major in college was Apparel Production. How did you make the transition to being a buyer? Originally, I was focused on fashion design. But my first internship was at Ross, which of course, is retail. It was a little harder for me to start out, but I learned most of it on the job at Ross. I discovered I could do both jobs in one. I manage sales and inventory. Inventory can either [be] your biggest downfall or your biggest success. I’m involved in development where we do private label directly with vendors who only do production for Fashion Nova, especially denim, outwear, and custom graphics. I also go out into the market to see what I may be missing. I don’t work with wholesalers in the traditional sense; their margins are too high. I only work with vendors who do private label. The label must read Fashion Nova. That’s what our customers expect. It represents a certain image and quality that the customer seeks. Fashion Nova is a very scrappy company. We’re in Fast Fashion. You have to be

willing to roll up your sleeves and do the work. What does a typical day look like? The first thing each day is that I look at my business; run my numbers. On market days, I’ll see five to eight vendors a day for new buys. On certain days, I work on fit approvals. I work with Assistants on POs that need to be written. I cull through the website and look at inventory to determine sales and necessary markdowns. I work directly with quality control because I buy so many styles, it leaves it open for issues. I will sometimes work on photo shoots. I thrive on chaos! What is the process of meeting with vendors? For men’s, it’s different from women’s. LA Men’s Market Week is just two times a year (Women’s Market Weeks are five times a year). I go to trade shows, especially the Vegas shows, Platform, Liberty, and Agenda. I sometimes go to New York.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

I don’t work virtually. I need to be able to feel the quality of the fabric, work out costing, and sometimes the colors can be off. Vendors send line sheets to me where I can choose from the line sheet or do color or style changes. If a vendor shows me the whole line, I need to know what will be exclusive to me. Anything I buy, it needs to have a unique presence for my customers. One of the biggest mistakes for a buyer is to buy for your own closet. What presentation style do you prefer? Thorough one-by-one presentation? Or a “this-or that” style? I love it when a rep gives me direction on trends. I prefer that the rep stands back and lets me go through the rack. It works better for fast fashion to do it quickly. Then, we talk cost later. It’s a waste of time to talk cost with every style. We haggle once we’ve selected the styles we like. Fashion Nova is very aggressive on cost!

I like it when a rep says, “Don’t get that one. It’s doing bad in my other stores.” I like very honest reps.

In your opinion, what makes a good sales rep? They definitely need to do their homework. Study the looks on the website and know the attitude and my focus. It’s important that they build a relationship from the start. Some reps can be a little pushy. They need to take a step back and let the buyer lead where they want to go. Trust is a huge factor. I like it when a rep says, “Don’t get that one. It’s doing bad in my other stores.” I like very honest reps. What do you like best and least about your job? I like that I can be in every situation in dealing with my job: product development, in showrooms, marketing meetings, photo shoots. I get to work with celebrities, which is cool and fun. It’s kinda the cherry on top. Sometimes, though, I think we’re moving too fast. That can lead to mistakes. If we could slow down, we could get a better grasp on the business. With the rate of fashion, the view is that it’s disposable. I would love for that to change. I want to give customers the best product at the best price.

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Activities The buying experience This activity will give you a buyer’s perspective on how they make wholesale purchases for their store. You probably have several small retail fashion stores in your local area. Select one of these small stores and talk to the owner about their wholesale buying experiences. 1 How often do they buy merchandise for their store? 2 Do they buy the same brands every time they make purchases? 3 Do they work with a sales rep or buy online when making purchases for the store? 4 What are the characteristics of their favorite sales rep? 5 Are any of these characteristics similar to those presented in the chapter? 6 Do you think being a wholesale sales rep might be a career for you? Examine a store This activity will give you an idea of what merchandise a wholesale sales rep might handle. Visit your favorite fashion retail store. Take some time to look around, not as a shopper but as a potential sales rep. Generally assess how the store is merchandised. 1 How many brands are represented in the store? One brand? Several brands? Many brands?

2 Within a particular brand, how many different styles of garments are there? 3 What are the size ranges? How many colors are there in a single style? Becoming a sales rep From your learning in in this chapter, you may already have ideas about what type of sales rep you would like to be. 1 Do you prefer a steady paycheck? Or are you more attracted to an unlimited income potential? 2 Would you rather work for someone who manages your work tasks? Or would you rather be your own boss? 3 Are you attracted to becoming a product expert and selling a single brand? Or do you like the idea of representing several complementary brands that appeal to a broader target market? If you agree with the first question in each of these question sets, you are more attuned to being a corporate rep. However, if the second question in each question set sounds more interesting to you, then you are more inclined to be an independent rep. Answers to these questions will set the course for further thoughts and planning in the ongoing activities presented in Chapter 2.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Notes 1 Christopher Raines, “The Average Commission Rate for Sales Reps in Apparel,” Chron.com, http://work.chron.com/averagecommission-rate-sales-reps-apparel-30416. html (accessed August 16, 2020). 2 Economic Research Institute, “Clothing Sales Representative Salary,” https:// www.erieri.com/salary/job/clothing-sales-­ representative/united-states (accessed December 12, 2019). 3 U.S. Bureau of Labor Statistics, “Occupational Outlook Handbook,” https:// www.bls.gov/ooh/sales/home.htm (accessed January 18, 2020). 4 Linda Ray, “How to Be a Clothing Line Representative,” https://careertrend.com/ clothing-line-representative-41847.html (updated December 27, 2018) 5 Dennis Hartman, “Retail Price Regulations,” Chron.com,https://smallbusiness.chron.com/ retail-price-regulations-15255.html (accessed January 15, 2020). 6 O*NET, “Sales Representatives, Except Retail and Scientific and Related Products and Services,” Occupational Information Network, https://occupationalinfo. org/27/270357014.html (accessed January 30, 2020). 7 Rohan Agarwal, “Why Don’t Retailer [sic] Buy Directly From Manufacturers?” http://www.yourarticlelibrary.com/ retailing/why-dont-­retailer-buy-directly-frommanufacturers/48306 (accessed November 17, 2019). 8 “Sales Rep Apparel Salaries,” Glassdoor. com,https://www.glassdoor.com/Salaries/ sales-rep-apparel-salary-SRCH_KO0,17.htm (accessed January 20, 2020). 9 Raines, “The Average Commission Rate,” para. 1. 10 Gerald Hill and Kathleen Hill, “Independent Contractor,” Law.com, http://dictionary.law. com/Default.aspx?typed=independent%20 contractor&type=1 (accessed January 30, 2020). 11 Ray, “How to Be a Clothing Line Representative,” para. 11.

12 “Determining Commissions for Independent Sales Reps.,” RepHunter.com, August 5, 2010, https://www.rephunter.net/blog/ determining-commissions-for-­independentsales-reps/ (accessed September 6, 2021). 13 Lee Obringer, “How Sales Techniques Work: Relationship Selling,” How Stuff Works, https://money.howstuffworks.com/­businesscommunications/sales-technique2.htm (accessed January 11, 2020). 14 “Industrial Espionage,” Encyclopedia Britannica, June 6, 2016, https://www. britannica.com/topic/industrial-espionage (accessed October 6, 2021). 15 Ray, “How to Be a Clothing Line Representative,” para. 2. 16 “Ten Features of a Sales Rep Agreement,” RepHunter.net., https://www.rephunter. net/blog/ten-features-sales-rep-agreement/ (accessed December 12, 2019). 17 Ray, “How to Be a Clothing Line Representative,” para. 2.

For further reading Agarwal, Rohan. “Why Don’t Retailer [sic] Buy Directly from Manufacturers?” Your Article Library.com. http://www.yourarticlelibrary.com/ retailing/why-dont-­retailer-buy-directly-frommanufacturers/48306 (accessedNovember 17, 2019). Futrell, Charles. ABC’s of Relationship Selling Through Service. 8th edn. Boston: McGraw Hill Irwin, 2005. Obringer, Lee. “How Sales Techniques Work: Relationship Selling.” How Stuff Works. https://money.howstuffworks.com/­businesscommunications/sales-technique2.htm (accessed January 11, 2020). Ray, Linda. “How to Be a Clothing Line Representative.” https://careertrend.com/ clothing-line-representative-41847.html (updated December 17, 2018). U.S. Bureau of Labor Statistics. “Occupational Outlook Handbook.” https://www.bls.gov/ooh/ sales/home.htm (accessed January 18, 2020).

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Fashion vendors and wholesale customers

2

Chapter objectives After reading this chapter, you will be able to 1 define the term vendor and explain the different types of vendors 2 describe the different categories of merchandise 3 strategically select prospects who are appropriate to the products being offered 4 explain account selection based on segmentation strategies 5 relate the importance of building business relationships.

Figure 2.1 (facing page)  Due to economics, manufacturers tend to produce narrow types of products such as fashion apparel, accessories, or footwear. Each of these product types requires different materials, equipment, and operator skills, so diversifying means increased expenses. Photograph provided by Open Clipart-Vectors, Pixabay

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Introduction Manufacturers produce the merchandise that sales reps sell. Occasionally, manufacturers are referred to as vendors. Manufacturers vary in what and how much they produce, which determines sales reps’ possibilities. The sales reps’ customers are retail buyers purchasing merchandise for their stores. Therefore, it is vital for the sales rep to have a customer base correctly matched to the products being sold. This chapter explains the different types of manufacturers and how the relative size of the manufacturer relates to the sales rep’s customers. Throughout this chapter, the importance of matching the merchandise to the appropriate customer base is emphasized. These fundamental concepts form the basic practices in developing a wholesale selling strategy.

through labor costs. However, due to this trend, the definition of manufacturer shifted. The manufacturer became the vendor, and the producer of the apparel was in a foreign factory, hence the term offshore production. However, not all fashion merchandise is produced offshore—a small percentage of manufacturers are still located in the United States. Over time, domestic manufacturing discovered a competitive advantage in speed to market. By producing closer to need, US manufacturers can quickly adapt to trends and deliver this trend-driven merchandise much faster than offshore counterparts. In mass-market apparel production, the single most expensive line item in producing apparel is labor.

Fashion manufacturers

Wholesale manufacturers

Fashion manufacturers can be large corporations or small cottage-industry sole proprietorships. They may own factories that cut and sew fashion products or hire contractors to provide the labor in either domestic or foreign locations. Ninety-seven percent of apparel and 98 percent of shoes sold in the USA are made overseas.1 Domestic apparel manufacturing is challenged by higher labor expense but tends to produce higher quality products. Therefore, if retail buyers are looking for lower prices, they will typically buy apparel products made overseas, primarily in Asia and Mexico.

In mass-market apparel production, the single most expensive line item in producing apparel is labor. From the 1990s, the US fashion manufacturing companies realized a competitive advantage in utilizing labor from less-developed countries. This new practice presented a big savings

Fashion manufacturing is expensive. For the mass market, it is the labor. For the luxury market, it is materials. For all markets, a broad product offering increases costs exponentially. Therefore, the nature of fashion manufacturing is for companies to narrow the types of

The global apparel market is projected to grow in value from 1.5 trillion U.S. dollars in 2020 to about 2.25 trillion dollars by 2025. M. Shahbandeh, https://www. statista.com/topics/5091/ apparel-market-worldwide/

FASHION VENDORS AND WHOLESALE CUSTOMERS

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products they produce to fashion apparel, accessories, or footwear. Each of these product types requires different materials, equipment, and operator skills, so diversifying means increased expenses. Further, this classification of fashion products allows manufacturers and retailers to organize like products together for various purposes such as maintaining inventory levels, tracking sales, analyzing sales performance, and aggregating data for reporting.

Table 2.1  Apparel price points (lowest to highest)

Fashion apparel

Haute Couture

Beyond product type, manufacturers tend to also specialize in categories. These categories are generally women’s wear, men’s wear, children’s wear, and accessories. Even in the accessories area, there is further specialization, such as shoes, handbags, jewelry, hosiery, etc. As an independent wholesale sales rep, you want to offer your retail buyers a concisely curated collection of merchandise from a variety of manufacturers within the chosen category that matches your customer types.

Source: Adapted from Kathleen Fasanella, “Apparel Price Point Categories,” Fashion Incubator, April 16, 2009, fashion-incubator.com/ apparel-price-point-categories (accessed October 6, 2021).

Another consideration for the ­independent rep is how to assemble that curated collection for your retail buyers. You can choose to concentrate on a single price or a broad range of price points (see Table 2.1). For example, if you are a handbag sales rep, you could choose to offer only bridge handbags which would be suitable for bridge price range (between ‘better’ and ‘designer’) stores. Or you could choose to offer handbags in several price points to have a broader appeal to stores that cater to a broader range of product prices.

Women’s wear Women’s wear is characterized by customer types and categories of merchandise. The customer types are presented in Table 2.2.

Discount (also known as off-price) Budget or mass market Moderate Contemporary Better Bridge Designer

Women’s wear customer types tend to be categorized using a style name that signifies a body type and fashion preferences. For example, a Missy customer has a more fully developed figure, while a Junior has a more youthful, less curvy figure. Adding the term Contemporary signifies a more trend-conscious consumer. If you choose to be a women’s fashion apparel rep, you need to represent Table 2.2  Women’s wear Customer type

Ages

Sizing

Contemporary juniors

15–30

3–13

Missy

25 and up

4–14

Contemporary missy

20–40

2–12

Large sizes

18 and up

1X–4X

Designer ready 25 and up to wear

2–12

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

manufacturers that produce apparel for one of these customer types. By doing so, you are able to cater to a niche market and concentrate your efforts on the stores targeting that customer type. If you choose to represent a broader range of customer types, you will dilute your focus and exert more effort. Within each customer type are ­categories of merchandise and the types of ­fashion apparel in each category. Table 2.3 outlines these categories and fashion apparel types. Elaine Stone also includes other categories such as bridal wear, uniforms, and clothing for special needs.2 These are smaller categories but may be of interest to potential wholesale sales reps.

Men’s wear Men’s wear is more straightforward in its sizing, mostly based on body

measurements. This is especially true in suits, dress shirts, and jeans. Table 2.4 shows the relationship between men’s wear categories, the type of clothing in each category, and how the sizes are determined. Notice that men’s wear is not categorized like women’s wear. This is because men’s wear and women’s wear are mutually exclusive types of apparel, with neither attempting to coordinate with the other. In addition to the categories shown in Table 2.4, there is outwear, work wear (work shirts, pants, and overalls), and uniforms. Tailored clothing is suits and tailored jackets and pants. Tailoring implies that the garments are fitted to the individual and adjusted by taking in or letting out seams. On suits and tailored jackets, the jacket size is determined by the

Table 2.3  Categories of women’s fashion signify a type of fashion apparel. Within the types, more specific styles are indicated. Women’s fashion apparel Women’s wear categories

Types of fashion apparel

Dresses

One-piece dresses

Social apparel

Special occasion wear, gowns, and cocktail apparel

Outerwear

Coats, rainwear, jackets

Sportswear

Spectator sportswear: pants, shorts, tops, sweaters, skirts, shirts, jackets, casual dresses

Activewear

Participatory sportswear: tennis wear, running wear, cycling shorts, exercise wear, skinwear

Swimwear

One- or two-piece swimsuits and accessories

Lingerie

Sleepwear, bras, panties, shapewear, and other intimate apparel

Source: Adapted from Elaine Stone, The Dynamics of Fashion, 2nd edn (New York: Fairchild Publications, 2004).

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Figure 2.2  The Contemporary men’s wear category has become a more popular choice for office wear. Photograph by R. A., Pixabay.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Table 2.4  Men’s wear categories are grouped using a style name that places more emphasis on fashion preference. For example, Designer men’s wear is more expensive, classic styling, and has a designer label. On the other hand, Contemporary men’s wear is a slimmer cut with more trendy details. Men’s wear Men’s wear categories

Types of clothing

Sizing

Tailored clothing

Suits, tailored jackets, pants

Chest measurement and length

Contemporary men’s

Professional clothing including Pants: waist and length fashionable sportswear measurements; otherwise S, M, L, and XL

Youth/Young men’s

Boys and young men aged 4–16+

XS, S, M, L, and XL

Designer

Designer RTW

Chest and length measurement; or S, M, L, and XL

Men’s furnishings and accessories

Dress shirts, underwear, ties, socks, pyjamas, etc.

Neck and sleeve length measurement; and S, M, L, and XL

chest measurement and the customer’s height. The same applies to tailored jackets. For suit pants and tailored pants, the waist and hem are adjusted to fit the customer. Men’s Furnishings and Accessories is a mixed category of dress shirts and everything else. Dress shirts are sized by neck measurement and sleeve length while underwear is sized S, M, L, and XL based on waist measurement or chest circumference. Ties are unsized, as are wallets, cuff links, tie tack, tie bars, and suspenders. Socks come according to shoe size, while belts are sized according to waist measurements.

Children’s wear Children’s wear types are based on age, as shown in Figure 2.3. Children’s wear is a mixed category because it includes both girls and boys.

In this category, as children age, they advance through the sizes. In other words, an infant wears size 0–3 months, then size 3–6 months, then size 6–9 months, and so forth. By the time they are wearing size 18–24 months, they shift to Toddler size 2T. Another change comes when a child outgrows the Toddler sizes and moves to either a Boy’s or Girl’s size, which do not directly correspond with a child’s age. The distinction becomes more pronounced as a child grows into Young Juniors or Young Men’s. Fashion manufacturers not only specialize by the category of apparel, but also by the fabrication. Knit fabrics require different equipment and skills from woven fabrics. Therefore, manufacturers of sweaters will produce only sweaters and garments using knit fabrics. Seldom will there be a manufacturer, especially a small manufacturer, that produces both knit and woven apparel.

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Figure 2.3  Children’s wear spans from Infants to Young Juniors and Young Men’s. BJI/Blue Jean Images, courtesy of Blue Jean Images via Getty Images.

­ able 2.5  Children’s wear customer T types are defined by age and gender. The size ranges are much like women’s wear in that they do not designate an actual measurement. Children’s wear Customer Ages types

Infants

Sizing

0-24 months 0-24 months

Table 2.6  Children’s wear categories are further defined by the type of clothing in each category. Children’s categories Children’s wear categories

Types of fashion apparel

Girls’ dresses

One-piece dresses

Boys’ traditional wear

Shirts, pants (schoolwear)

Sportwear

Pants (often denim), shirts, shorts, knit tops, sweaters

Swimwear

One- or two-piece swimsuits and accessories

Outerwear

Coats, rainwear, jackets

Toddlers 2-4 years

2T-5T

Children 3-6 years

Girls: 3-6X Boys: 3-7

Girls’ wear

7-14 years

Girls: 7, 8, 10, 12, 14, and 16

Boys’ wear

7-14 years

Boys: 8, 10, 12, 14, 16, 18, and 20

Juniors

14-20 years 1-19 (odd numbers) and XS-XXL

Sleepwear

14-20 years 6-20 (even numbers) and XS-XL

Pyjamas, night gowns, robes

Underwear

Underpants, bras, slips

Young men’s

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Figure 2.4 Knitwear requires special materials and equipment. Therefore, knitwear manufacturers tend to produce only apparel and accessories using knit fabrics. Photograph by Melanie Tickell, Pixabay.

Fashion manufacturers not only s­ pecialize by the category of apparel, but also by the fabrication.

Accessories Within each category (women’s, men’s, and children’s), there will be a designation for accessories. Accessories can be divided into subcategories: jewelry, footwear, hosiery, handbags and small leather goods, belts, headwear, handwear, and neckwear. In most cases, each of these subcategories is produced by a different manufacturer due to the specialized materials, equipment, and fitting necessary for each. Table 2.7 summarizes the examples within each subcategory, followed by a brief description of these subcategories. Jewelry. Jewelry includes rings, bracelets, necklaces, brooches, watches, and earrings. All of these items are produced at a price point that reflects the materials and the relative cost. Fine jewelry is the most expensive, of the highest quality, and made of fine metals such as gold, silver, and platinum and using

precious stones (diamonds, rubies, emeralds, and sapphires) or semi-precious stones (turquoise, topaz, and garnet). Bridge jewelry is made to look like fine jewelry but uses less expensive materials and labor. It is called bridge because it bridges the gap between costume jewelry and fine jewelry and uses metals of lesser value such as gold-filled or silver and semi-precious stones such as turquoise, jade, and freshwater pearls.3 Costume jewelry is the least expensive to produce and the most popular due to its lower price point. It uses gold- or silver-plated over nickel or brass set with manmade, simulated stones. Small businesses making handmade jewelry using local resources and traditional techniques have become more popular in recent years. However, as these artisan pieces are usually neither mass-produced nor widely available, wholesale sales reps are rarely able to source them in sufficient quantities to be viable.

FASHION VENDORS AND WHOLESALE CUSTOMERS

Table 2.7  Accessories are an extensive group of unrelated items. The accessory category, therefore, is further divided by subcategories, which are defined by examples in this table. Accessories Subcategories

Examples

Jewelry

Rings, bracelets, necklaces, earrings, brooches, watches

Footwear

Shoes, boots, sandals, athletic shoes

Hosiery

Pantyhose, stockings, socks

Handbags and small leather goods

Clutches, satchels, tote bags, shoulder bags, women’s wallets, checkbook covers, eyeglass cases

Belts (women’s) Rope, sash, cummerbund, belts with buckles Headwear

Hats, caps, visors, hair accessories

Handwear

Gloves, mittens, work gloves

Neckwear

Scarves, shawls, ties

Miscellaneous Accessories

Umbrellas, eyewear

Hosiery. Pantyhose, stockings, and socks make up the hosiery subcategory. Not only women’s socks are called hosiery but also men’s and children’s. Handbags and small leather goods. Hand­ bags include clutches, satchels, tote bags, and shoulder bags. Manufacturers of handbags often produce small leather goods as well, such as women’s wallets, checkbook covers, and eyeglass cases.

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Belts. Belts are purchased separately and often called rack trade. (Belts made to coordinate and sold with an apparel item are not part of this subcategory.) Belt types are rope, sash, cummerbund, and belts with buckles. Headwear. Headwear includes visors, hats, and caps. Many manufacturers of hats produce styles for both men and women. Handwear. Handwear includes gloves, mittens, and work gloves. Children’s gloves and mittens tend to be character-related and are often branded by Disney or Marvel. Neckwear. Neckwear encompasses several style options ranging from men’s neckties to women’s scarfs. The most coveted of ties and scarves are those made of silk, due to their lustrous sheen and ability to create a perfectly formed knot. Miscellaneous accessories. Other notable accessories are umbrellas and eyewear. Although usually more functional, umbrellas have become more fashionable with colors and prints. Eyewear includes sunglasses and “readers.” Eyewear has become extremely popular with well-recognized manufacturer names. Apart from prescription eyewear, sunglasses are the most popular type of glasses.

Footwear Footwear is made for men’s, women’s, and children’s wear and is comprised of dress shoes, casual shoes, slippers, athletic shoes, sandals, and boots. With over three hundred variations in length and width and over ten thousand styles, the shoe industry is uniquely complex due to a shoe’s construction and materials. Footwear is produced globally, primarily in China, India, and Vietnam4 for mass market selling, and in Italy for the luxury market.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Figure 2.5  Jewelry is a popular accessory that buyers of specialty stores often purchase to help consumers complete outfits, but also to increase sales. Photograph courtesy of CoffeeAndMilk via Getty Images.

Figure 2.6  Handbags are an important subcategory of fashion accessories. Photograph by Skive by Sonali, Pixabay.

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Figure 2.7  Footwear has risen to a level of importance where it is often shown separately from accessories at market weeks and trade shows. Photograph by Michael Blann, courtesy of Getty Images.

As a sales rep, in order to provide a merchandise offering for your customer base (retail buyers), you should choose one type of fashion apparel (women’s wear, men’s wear, children’s wear, or accessories) and one category within each type (see Tables 2.3, 2.4, and 2.6). Most often, but not always, sales reps for ­footwear only rep footwear ­manufacturers. The same is true for accessories. By doing so, reps can service only the retail buyers for those subcategories rather than spreading themselves too thin by attempting to cater to fashion apparel, accessories, and footwear. As a sales rep, in order to provide a merchandise offering for your customer base (retail buyers), you should choose

one type of fashion apparel (women’s wear, men’s wear, children’s wear, or accessories) and one category within each type

Size of fashion manufacturers and its implications In very general terms, fashion manufacturers can be classified as small, medium, or large. A small manufacturer will have a smaller production capacity, which decreases the amount of product to distribute, and will, therefore, restrict its distribution geographically. In contrast, a large manufacturer will have a greater production capacity, a larger amount of product to distribute, and will therefore be able to distribute to larger geographic areas.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Small manufacturers Small-sized manufacturers produce a single or limited line of apparel. This means that they will produce just one subcategory of merchandise. For example, a small manufacturer may produce only blouses which represents a production

Examples of small, medium, and large companies Shawl Dawls (shawldawls.com) An example of a small company is eightyear-old Shawl Dawls; located in San Dimas, California. The design concept is versatile: convertible shawls and coverups in a one-size to fit petites to plus size. There are eleven styles that can be worn in as many as fifteen different ways. They have an estimated annual salary revenue of $5.4m.5 Eileen Fisher (eileenfisher.com) Headquartered in Irvington, New York, Eileen Fisher is an example of a medium-sized company. They produce well-made clothes that are classic in design. Committed to a circular system, Eilleen Fisher takes back their wornout clothes and transforms them into new designs. The 36-year-old company employs over 1,100 employees with an annual revenue of over $300m.6 VF Corporation (vfc.com) The 120-year-old corporation owns such well-known brands as The North Face®, Nautica®, Vans®, and 7 For All Mankind®. According to their 2020 Annual Report, the corporation earned $10.5 billion revenue with fifty thousand associates (employees). Its most recent structuring change involved a spin-off of the jeans business to create Kontoor Brands headquartered in Greensboro, North Carolina. The global headquarters for VF Corp and five of the brands are in Denver, Colorado.

limitation by size and fit. Or they may use only denim which is a fabrication limitation. These choices are made based on economics. It is much more expensive to produce a wide range of subcategories or use multiple materials due to the time and inventory commitment. Because their ability to produce in large quantities is limited, the distribution of small manufacturers is either regional (perhaps the western United States) or national (distributing to the entire United States).

Medium manufacturers In terms of level of production, medium-sized manufacturers share some characteristics with small-sized manufacturers. They will produce a single or limited line of apparel for the same reasons. The advantage of medium-sized manufacturers is their ability to produce larger quantities. For this reason, they have a broader distribution potential and are more likely to deliver nationally.

Large manufacturers Large-sized manufacturers generally produce multiple lines of merchandise. They likely have diversified product offerings. These lines could be related (all women’s wear) or unrelated (men’s wear, women’s wear, accessories, cosmetics, or home goods). Their product line may consist of both tops and bottoms or offer a variety of fabrications. The company may have grown large enough to become a corporation. Due to their level of production, they are able to distribute more broadly and could be delivering nationally or internationally.

Brand goals Regardless of size, fashion manufacturers want to be successful. To achieve

FASHION VENDORS AND WHOLESALE CUSTOMERS

success, manufacturers use brand goals or brand objectives to set the course for achieving their idea of success. The values of the manufacturer are the basis of brand goals. By stating values as goals, there is a greater chance that the objectives will be reinforced and reviewed. For example, Adidas states that one of its values is Performance. Since sports are the foundation of their product line, they strive for excellence as a core value.7 Regardless of size, fashion manufacturers want to be successful. To achieve success, manufacturers use brand goals or brand objectives to set the course for achieving their idea of success. Common brand objectives encompass identity and image, recognition, awareness, engagement, brand loyalty, brand advocates, brand equity, market share, and margins.8 Table 2.8 shows commonly used brand objectives and how they meet brand goals. Brand objectives relate to the overall goals and mission statement for each company and guide the development of strategies to achieve them. The best way for a manufacturer to boost recognition is through reputation. First impressions are imperative. Often, a business doesn’t have an opportunity to improve a bad impression. Although not shown in Table 2.8, social media is a contemporary brand goal for every company. Many consumers think that if fashion manufacturers are not on social media, they don’t exist. This is especially true for online shopping. Clothing companies will share photos of people wearing their garments as a way to gain followers, especially if those

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Table 2.8  There are several common brand objectives that are universal and found in many companies’ mission ­statements. In this table, these brand objectives are further defined as to what they mean to consumer and the ­company. Brand objectives Objectives

What does it mean?

Identity and image

How the consumer views the brand

Recognition

Number of consumers who recognize the brand

Awareness

How many consumers identify the brand within the brand’s category

Engagement How many times the consumer deals with the brand Advocate

Number of consumers who recommend the brand

Equity

Value of the brand

Market share Percentage of target market who are consumers Margins

Revenue

Source: Data compiled from John Spacey, “9 Types of Brand Objectives,” Simplicable, July 3, 2017, https://simplicable.com/new/ brand-objectives (accessed October 6, 2021).

people are celebrities or fashion influencers.9 Creating a following is a success moniker.

Wholesale customers Fashion retail store merchandise reflects the image and identity of their target market, so the retail buyer must know these characteristics. Although the

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retail store is the target market of the wholesale sales rep, an understanding of the store’s consumer is critical in offering the buyer appropriate merchandise. If that match is not made, neither the store nor the sales rep will be successful. Therefore, it is essential that the sales rep understands the store as a target market, but also the store’s customers—the consumer.

Target market A target market is usually defined as a group of customers who represent the demographics and psychographics for whom the product has been produced. These are potential consumers of the goods. A more contemporary concept of target markets has evolved known as lifestyle marketing. Defining a lifestyle market involves appealing to the attitudes, interests, and opinions (AIO) of the target market, which is closely akin to psychographics. More importantly, the sales rep seeks the retail store buyers who cater to certain target markets. Although the retail store is the target market of the wholesale sales rep, an understanding of the store’s consumer is critical in offering the buyer appropriate merchandise.

Discounters to luxury According to the Organisation for Economic Co-operation and Development (OECD), the growth of the middle class has stagnated. In their study reported in 2019, they noted that the middle class is increasingly bettering its lifestyle by spending more on housing, education, and healthcare.10 The fallout from this

trend is that the lower and upper classes are growing. For consumer goods, this means there is more demand for less expensive as well as more expensive items, which impacts fashion retail. As a result, fashion retail sales have grown more at the discount and luxury ends of the buying curve. Conversely, in the middle are the moderately priced retailers, which offer value to consumers through a balance of price and promotion. However, according to Lobaugh et al., these retailers are doing worse than either the discount or luxury retailers.11

Discount stores Sales at Walmart and Target, the most recognized discount department stores, are surging. These two stores are the go-to destinations for most price-minded consumers. Not only do they offer lower prices, but both stores have created a one-stop shopping experience that appeals to time-starved professionals. Some discount stores may also be considered mass retailers. Also occupying this segment are the budget-priced stores, including the fast-fashion boom leaders Zara and H&M, which dominate consumers’ demand for instant fashion at affordable prices. These stores’ popularity have given a muchneeded boost to the retail industry that has struggled with long supply chains associated with offshore production. Discounters and off-price retailers are often thought to be the same. However, the source of the merchandise is different. Discount merchandise is clothing that was offered at a higher original price but is now selling at a reduced price.12 Conversely, off-price stores can include a

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Figure 2.8  Walmart has been the #1 retailer in the world for six consecutive years (2013–19). Source: “Fortune 500,” Fortune, https://fortune.com/fortune500/2019/walmart/ (accessed September 30, 2020). Photograph courtesy of Getty Images and VIEW press.

combination of discount and merchandise that is made specifically for the discount market and has never been offered for sale at any other retailer.13

store. An international discounter is YOOX, which claims to be a global online lifestyle store featuring fashion, design, and art.14

Discount fashion retailers tend to be online stores in order to keep their overhead low. Marshall’s, Ross, and TJ Maxx are the best-known off-price retailers in the USA operating both brick-and-mortar stores and websites. Another example is Depop, which is based in London but has physical locations called Depop Space in Los Angeles and New York. Nordstrom Rack is the outlet counterpart of Nordstrom. It is a brick-and-mortar store, which carries discounted merchandise from the regular-priced

Discount stores allow the savvy consumer to find high-end merchandise without the high price tag. The biggest difference the consumer notices with discount and off-price retailers is that they do not offer a full assortment like full-price retailers which means they won’t have a full-size run or a full complement of the colors available. The sales rep who sells to this type of store will offer discontinued, end-of-season, or excess inventory items that would not otherwise sell at full-priced retailers.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Figures 2.9, 2.10, 2.11  The top three discount stores are Marshall’s, Ross, and TK Maxx. Photographs courtesy of Getty Images, Bloomberg, Education Images.

Luxury stores In contrast to discounted goods, luxury goods are more expensive types of merchandise that are typically purchased by consumers who have a higher disposable income.15 Luxury goods evoke status. McKinsey’s “The State of Fashion 2019: A Year of Wakening” report showed the slowest growth in the midmarket value segment as compared to the luxury and discount segments. The best-performing segment is luxury due to fast-growing economies in the AsiaPacific region.16 Brand value is what all brands aspire to be: valuable. Nothing exemplifies brand value as much as luxury goods. Seth Godin identified brand value as the consumer’s perception of their personal fashion image which is gained through how much they are willing to spend to maintain that image and lifestyle.17 Luxury

brands excel at having brand value since customers are willing to pay a premium to buy the brand. Table 2.9 shows the relative brand value of the world’s most valuable luxury brands. With the trend in online consumer spending, Luxe Digital asserts that “the share of online interest is a reliable indicator of future sales.”18 Taking into account the brand value, share of search interest, and social media conversations, they created a top 15 most popular luxury brands online in 2019, as shown in Table 2.10. There are some comparisons between brand value and online purchases, notably Gucci, Louis Vuitton, and Hermès. As such, these legacy brands are expanding their appeal from exclusive to being more inclusive with the objective of attracting other consumer groups.19 And so, it appears, it is not only the affluent who purchase luxury goods. It is the young consumers, 18–35-year-olds, who are

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Table 2.9  Luxury brands excel at having brand value since customers are willing to pay a premium to buy the brand.

Table 2.10  Luxury brands continue to rank high in popularity with consumers who shop online.

Luxury brands of 2019

15 most popular luxury brands online in 2019

10 most valuable

Brand value (in billions)

LVMH

$47.21

Chanel

$37

Hermès

Rank

Brand

Category

1

Gucci

Fashion

2

Chanel

Fashion

3

Louis Vuitton

Fashion

$30.97

4

Hermès

Fashion

Gucci

$25.27

5

Rolex

Watches

Rolex

$8.39

6

Tiffany

Jewelry

Cartier

$5.99

7

Dior

Fashion

Burberry

$4.70

8

Armani

Fashion

$4.66

9

Prada

Fashion

Christian Dior

10

Balenciaga

Fashion

Yves Saint Laurent

$3.57

11

Cartier

Jewelry

Prada

$3.51

12

Burberry

Fashion

13

Lancôme

Beauty

14

Yves Saint Laurent

Fashion

15

Bulgari

Jewelry

Source: Emma London, “The 10 Most Valuable Luxury Brands in the World for 2019,” Ceoworld Magazine, August 8, 2019, https://ceoworld. biz/2019/08/08/the-10-most-valuable-luxurybrands-in-the-world-for-2019/ (accessed October 6, 2021).

driving growth. Most notable is Gucci, whose 23 percent increase in sales was due to this new market. Luxury brands’ new strategy is to make a connection with the consumer, and using social media is one of the more successful promotion tools.20

Luxury fashion retailers Among the luxury retailers, there are the specialty designer stores such as Gucci and Hermès, as well as retail department store chains like Bergdorf Goodman in New York and Harrods in the UK. Many of

Source: Florine Beauloye, “The 15 Most Popular Luxury Brands in 2019,” https://luxe.digital/ business/digital-luxury-ranking/most-popularluxury-brands-2019/ (accessed October 6, 2021).

the top luxury specialty retailers are in Europe, most especially in London (see Table 2.11). Luxury goods are also found in some of the best-known retail department stores. Established in 1901 in New York City, Bergdorf Goodman became the premiere luxury shopping destination for the elite. Although never expanding to multiple locations, the store became the iconic provider of innovative new fashion

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Table 2.11  Luxury fashions are also sold in specialty retail stores as shown here. Top luxury fashion specialty retailers for 2019 Store

Category

Location

Alexander McQueen

Fashion Apparel

London

Balenciaga

Fashion Apparel

London

Balmain

Fashion Apparel

Paris

Bottega Veneta

Fashion Apparel

Tokyo

Burberry

Fashion Apparel

London

Canada Goose

Fashion Apparel

Montreal

Escada

Fashion Apparel

London

Gucci Garden

Fashion Apparel

Florence

Matchesfashion

Fashion Apparel

London

Mulberry

Fashion Apparel

London

Reformation

Fashion Apparel

New York

Stella McCartney

Fashion Apparel

London

The Curated

Fashion Apparel

New York

The Maiyet Collective Concept Store

Fashion Apparel

London

Tod’s Sloane Apartment

Footwear and Accessories

London

Source: Adapted from Cate Trotter, “30 Top Luxury Retail Stores for 2019,” LinkedIn, April 12, 2019, https://www.linkedin.com/pulse/30-top-luxury-retail-stores-2019-cate-trotter (accessed October 6, 2021).

designers and, to date, carries fashions from hundreds of designers from Armani to Valentino and Brunello Cucinelli to Tom Ford. With 190,000 square feet on nine floors and over $600 million in sales, Bergdorf Goodman is historically one of the most successful US stores.21

exemplary customer service has created the reputation of being the best department store in Britain.23 With 80,000 square meters over seven floors, Harrod’s is not only a well-known luxury department store but an international tourist destination.

Harrod’s was initially founded as a grocery store in 1849 in London. Whereas it continues to sell gourmet foods, it emphasizes high-fashion apparel. The store’s motto, Omnia Omnibus Ubique, translates to All things, for all people, everywhere.22 As such, the store sells everything one could imagine. Its

When considering a luxury shopping experience, the natural choice is Paris.24 Created in 1894, the first Galeries Lafayette store opened in Nice in Southern France.25 Now, they have fiftyseven stores around the world including Doha, Beijing, Berlin, Istanbul, and Jakarta with 4.6 million visitors annually.26 As

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Figure 2.12  Harrods Department Store, London, is one of the top luxury stores in the world. Photograph by Matthew Lloyd, courtesy of Getty Images.

a 100 percent family-owned business, Galeries Lafayette “enjoys a long-standing, emotional connection with its clients both online and in store, to provide them with the best possible experience in retail and creation.”27 Founded in 1673, Ginza Mitsukoshi is the oldest surviving department store chain in Tokyo.28 The store started by selling kimonos and three centuries later offers food to fashion and accessories to kimonos. Adopting the concept of “Japanese Senses,” the store employs Japanese traditional arts to enhance the product

quality and value. The merchandise presented in Ginza Mitsukoshi communicates the culture and sophistication that is Japan.29

Building a customer base Across industries, having a well-defined customer base is the gateway to reaching sales goals. Building a reliable customer base helps a sales rep reach the appropriate target market. In this section, steps and considerations to building a customer base will be addressed along with the

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Figure 2.13  Galeries Lafayette Department Store, Paris, is one of the top luxury stores in the world. Photograph by Kristy Sparow, courtesy of Paris Getty Images.

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Figure 2.14  Mitsukoshi Ginza in Tokyo is one of the top luxury stores in the world. Photograph by Christopher Jue, courtesy of Getty Images.

importance of building effective business relationships.

customer base helps a sales rep reach the appropriate target market.

Selecting good prospects

Defining the target market

There are three primary steps before any prospects, or potential ­customers, can be identified. Firstly, sales reps must know the relevant segment of the fashion industry in which they operate. They must also understand the product offered for sale. Lastly, they must be able to define the suitable target market that would most likely be customers for the product.

Relationship selling is about understanding and meeting the needs of your customers. If you don’t know all there is to know about your customers, you will not have the knowledge to meet their needs. Every company has already defined their ideal customer. Find out who that customer is. As defined earlier, the target market is the groups of customers that are most likely to buy the product being offered. For sales reps, that would be the type of stores that sell to that target market.

Across industries, having a well-­defined customer base is the gateway to reaching sales goals. Building a reliable

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Account selection A sales rep’s territory is composed of existing customers as well as potential customers. These customers are called accounts. A sales rep needs enough accounts to achieve several business goals: Specifically, to make enough sales to (1) meet the sales goal assigned by the manufacturer, (2) allow for the manufacturer to grow as projected, and (3) make enough personal income for a living wage. Sales goals are assigned by a manufacturer’s sales managers. For corporate sales reps, these goals are called sales quotas. The company depends on the sales reps to achieve these quotas for the company to grow as anticipated. For independent sales reps, these goals are strongly suggested. As independent reps, a manufacturing company cannot mandate a particular sales expectation. However, the sales rep’s continued relationship with the company depends on meeting the manufacturing company’s expectations, both in terms of customer satisfaction and achievement of expected sales revenue. An important aspect to achieving these goals is to build a customer base and select good prospects that will produce the desired results. The current customer base can be analyzed in terms of demographics, psychographics, and lifestyle characteristics. These same characteristics will predict prospective customers. Therefore, when looking for prospects, you should be thinking of these characteristics. The store image and merchandise mix are other indicators of potential customers. Consumers are attracted to stores that reflect their concepts of themselves. Retailers strive to appeal to predefined

customer types. If the customers’ characteristics match the product lines the sales rep sells, the store is considered a prospect. Once the sales rep secures an appointment with the store buyer, the prospect becomes a hot prospect, which means there is good potential for the store becoming a customer. To turn a prospect into a hot prospect, you need to prequalify the account. Prequalifying goes beyond matching the store with the product and includes looking at the other products the store carries. Are they compatible with the sales rep’s products? What are the price points of comparable products? Is the buyer interested in viewing the sales rep’s line and possibly adding to their current merchandise mix? The answers to these questions could indicate the potential success of the sales rep’s products. Preapproach. Before meeting with your potential customer, you need to do your homework. This means you need to find out as much about your customer as you can. Internet searches are the best start. Does the company have a website? If so, search all the tabs especially the “About Us” tab. Look at their product line, their services, and the various store locations. Also, check LinkedIn, Twitter, blogs, and YouTube videos to see if there is more information there about the company. The sales rep should display knowledge of both the company and its products to help build trust between the rep and the customer.30

Summary Fashion manufacturers are responsible for making the products sold to retailers and, ultimately, the retailers’ consumers.

FASHION VENDORS AND WHOLESALE CUSTOMERS

The size of the manufacturer relates to the range of products and the quantities. The sales rep can then decide if there are limitations to what orders a manufacturer is able to fill. The sales rep’s target market is defined by the wholesale products available for sale. To make selling efforts more efficient and productive, it is wise for the sales rep to decide what price point or what product they will sell. Target markets based on price point range from discounters to luxury markets. Target markets based on product can appeal to all price ranges with something to offer each type of retailer.

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A well-defined customer base is important to sales reps reaching their sales goals. Once you have defined your target market, you can make informed account selections based on the demographics and psychographics of the store’s customers, the store image, and the merchandise mix. The appropriate customer base allows for the sales rep to cater to the needs of an established group of retail store buyers. While the retailers on this list may be fairly constant, there is always a need to increase customers by periodically adding new retail stores.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Interview Lynn Girard, Independent Sales Rep, USA Lynn is one half of the duo affectionately known as “Flynn.” She and her business partner, Florence Ratzsch, have combined forces to provide top-notch customer service to the retail buyers who purchase from the Lynn Girard Showroom. The showroom is located at The New Mart, Suite 1203 at 127 E. Ninth St, downtown Los Angeles, CA. They also have a showroom at the Dallas Market Center, Suite WTC 15785 in Dallas, TX.

What is your background? What prepared you to be in the apparel business? Through my parent’s camera store, I grew up around retail. My focus on fashion began because, rather than hire a babysitter, my parents enrolled me in a sewing class where I learned everything there was to learn about clothing construction. Later, I worked in a fabric store while obtaining a Bachelor of Fine Arts degree in Art and French at UCLA. After graduation, I went back to France, where my parents lived, and worked for Pier 1 Imports. This move was fateful in my life: I met my husband at Pier 1 and, at a trade show in Paris, met a woman who became my mentor and lifelong friend. I took a job with Cacharel, a French company, to represent their children’s line and later took on the women’s line in their Los Angeles showroom. I had no experience in wholesale selling, so I simply talked about what I knew: I went overboard and talked about stitches per inch because I didn’t know selling at all.

Ultimately, I learned by listening to others. When I had the opportunity, I took over the showroom with lines I obtained from wholesale friends in the industry. How many lines are you carrying now? We try to stay around six. Any more than that, you don’t know the lines well. What do you take into consideration when you’re adding a new line to the showroom? 1 Is it going to sell to the buyer? (The hardest part is getting customers in the showroom.) 2 What am I needing? I have a pant line, so I don’t want another one. 3 I have to feel like I can wear it. I have to like it. 4 Have they made something before? Do they know what they’re doing? 5 Do I like the people? 6 I like keeping lines forever. Lines tend to have a ten-year growth spurt, and then they begin to fail.

FASHION VENDORS AND WHOLESALE CUSTOMERS

How many accounts to you sell to? On our account list, we have three thousand but don’t sell to all of them. Eighty percent of our business comes from about 20 percent. We roughly have about three hundred accounts. Now that you’re semi-retired, what role do you play in the operation of the showroom? My business partner, Florence, has responsibility for the day-to-day operation of the showroom. Florence’s forte is finding new ways to do business. She does all of the paperwork, email blasts, talking to customers—lots of time is spent on the phone because the showroom is doing lots of “little shows” like in San Diego and San Mateo (FMNC, Fashion Market Northern California). Other 2020 shows are scheduled for Portland, Denver, Palm Desert, and Phoenix. I don’t work the road but have three people in the showroom to do the daily work. When they do trade shows, they

49

will often ask for a contribution towards the expenses and have also taken separate booths for each line at MAGIC. My main, main business … is keeping up with Dillard’s. We sell them two lines and customize one of those lines for Dillard’s. I also help Florence pick out other lines to make sure [potential] lines have value and hang well with the other lines. What are the steps in presenting a line? The most important job is listening. I always ask, “Who’s your lady?” Keep in mind who’s your customer. We customize the presentation to the buyer. The style of presentation depends on the store and the line. Each line is a little different. It’s important to get the buyer excited. Buyers want you to tell them what’s selling; what’s hot. What is the most important task you do? Talking to customers. You need to keep on top of the customer.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Activities Ongoing project activities Becoming a successful independent wholesale sales rep

to know about fashion wholesaling. After that, all you have to do is do it!

The activities at the end of this and each chapter hereafter are part of a single hypothetical project: that of becoming a successful wholesale sales rep. In the Activity section of each chapter, you will be guided through the decision-making process on concepts presented in the chapter.

Activities by chapter

Some of these activities may also relate to the job of a corporate rep; however, each company has its own set of procedures and practices that may or may not relate to the process presented in this book. Therefore, the focus here is on preparing you to become an independent rep. These activities are presented as they relate to each chapter. If you complete all of the activities, you will learn all there is

Chapter 2 Target market Merchandise selection Who are the manufacturers? Chapter 3 Market center and/or apparel mart representation Trade show participation Chapter 4 Outline of style presentation Preparation of customer account list Establishing a sales goal and sales ranges Designing a line sheet Sales forecasting Chapter 5 Online marketplaces

FASHION VENDORS AND WHOLESALE CUSTOMERS

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Activities Target market All of the manufacturers (aka brands) you represent must fit with your target market(s). Before you get too far into this series of activities, you need to identify your target market(s). Review the reading in this chapter to be clear on how to determine and describe a target market. If you are a price point type of rep, you have a simple job of defining one target market. If, on the other hand, you are a category type of rep, you will have several target markets, each one of which is a potential customer for one of your brands. Define your target market(s) in terms of: ●●

demographics

●●

psychographics or lifestyle.

Merchandise selection As an independent rep, you need to decide what type of merchandise you want to carry in your showroom. 1. Do you want to carry one category of merchandise, such as junior dresses? If this is your choice, you will look for manufacturers of junior dresses that span all price points. You will have a

larger number of brands to offer the retail buyer at all price points with the common factor of a single merchandise type. 2. Or do you want to carry a particular price point, such as budget accessories? If this is your choice, you will look for manufacturers of accessories that are priced in the budget category. You will have a larger selection of a variety of accessories with the common factor of price.

Who are the manufacturers? To coincide with the decisions you made for “Merchandise selection,” you can decide which brands you would like to carry. Whatever well-known brands you select, they are probably already represented by a wholesale sales rep or have in-house corporate reps handling their retail accounts. Nevertheless, this is a good exercise in getting to know a brand before you commit to representing it. 1. What are the brands you would like to represent? 2. Are these companies sole proprietorships, partnerships, or corporations? 3. In what countries do these brands manufacture their products?

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Notes 1 Robert Farley, “Yes, Donald Trump, Some Clothes Are Made in the USA,” Huffpost. May 11, 2016, https://www.huffingtonpost. com/entry/donald-trump-clothes-usa_ us_5733508ce4b096e9f0935956 (accessed October 6, 2021). 2 Elaine Stone, The Dynamics of Fashion, 2nd edn (New York: Fairchild Publications, 2004). 3 Kingfisher, “Bridge Jewelry the Affordable Alternative,” Streetdirectory. com, https://www.streetdirectory.com/ travel_guide/34957/jewelry/bridge_jewelry_ the_affordable_alternative.html (accessed March 15, 2020). 4 “Footwear Market Size, Share & Trends Analysis Report by Type (Athletic, Non Athletic), By End User (Men, Women, Children), By Region (North America, MEA, APAC, Europe, Central & South America), and Segment Forecasts, 2019–2025,” Grand View Research, August 2019, https://www. grandviewresearch.com/industry-analysis/ footwear-market (accessed October 6, 2021). 5 Owler, “Shawl Dawls’s Competitors, Revenue, Number of Employees, Funding, Acquisitions & News,,” https://www.owler. com/company/shawldawls (accessed May 14, 2021). 6 Matt Tenney, “‘Be a ‘Don’t Knower:’ One of Eileen Fisher’s Secrets to Success,” Huffpost, May 15, 2015, https://www. huffpost.com/entry/be-a-dont-knower-one-ofe_b_7242468 (accessed October 6, 2021). 7 Heryati R., “190 Brilliant Examples of Company Values,” The 6Q Blog 9 (blog), https:// inside.6q.io/190-examples-of-company-values/ (accessed March 1, 2020). 8 John Spacey, “9 Types of Brand Objectives,” Simplicable, July 3, 2017, https://simplicable.com/new/brand-objectives (accessed October 6, 2021). 9 “Long-Term Company Goal Examples,” Examples, https://www.examples. com/­business/long-term-company-goals-­ examples.html (accessed March 10, 2020). 10 Organisation for Economic Cooperation and Development (OECD), Under Pressure: The Squeezed Middle Class (Paris: OECD Publishing, 2019), https://doi.

org/10.1787/689afed1-en (accessed October 6, 2021). 11 Kasey Lobaugh, Christina Bieniek, Bobby Stephens, and Preeti Pincha, “The Great Retail Bifurcation,” Deloitte Insights, March 14, 2018, https://www2.deloitte.com/us/ en/insights/industry/retail-distribution/ future-of-retail-renaissance-apocalypse.html (accessed October 6, 2021). 12 “Apparel Industry Price Point Definitions – Terms of Interest to the Fashion Industry,” Apparelsearch, https://www.apparelsearch. com/terms/a/apparel_industry_price_point_ definitions.html (accessed February 25, 2020). 13 Ibid. 14 “Shopping – About Us,” Yoox Net-A-Porter Group, https://www.ynap.com/store/yoox/ (accessed February 25, 2020). 15 “What is Luxury Goods?,” https://www. igi-global.com/dictionary/recommercing-­luxurygoods/51676 (accessed October 21, 2021). 16 Imran Amed et al., “The State of Fashion 2019: A year of Awakening,” McKinsey & Company, November 28, 2018, https://www. mckinsey.com/industries/retail/our-insights/ the-state-of-fashion-2019-a-year-of-awakening (accessed October 6, 2021). 17 Steve Olenski, “Brand Value: What It Means (Finally) and How to Control It,” Forbes, September 15, 2015, https://www. forbes.com/sites/steveolenski/2015/09/15/ brand-value-what-it-means-finally-and-howto-control-it/#2a147c6c13b2 (accessed October 6, 2021). 18 Florine Beauloye, “The 15 Most Popular Luxury Brands in 2019,” Luxe Digital, https:// luxe.digital/business/digital-luxury-ranking/ most-popular-luxury-brands/ (accessed March 22, 2020). 19 Limei Hoang, “Luxury Brands are Reshaping Their Boards. Here’s Why,” Luxury Society, October 12, 2021, https://www. luxurysociety.com/en/articles/2021/10/luxurybrands-are-reshaping-their-boards-heres-why (accessed October 21, 2021). 20 Ibid. 21 Spencer Cain, “10 Things You Never Knew About Bergdorf Goodman,” Style Caster, May 3, 2013, https://stylecaster.com/secretsof-bergdorf-goodman-10-things/ (accessed October 6, 2021).

FASHION VENDORS AND WHOLESALE CUSTOMERS

22 “History of Harrods Department Store in London,” Guidelines to Britain, July 10, 2019, https://guidelinestobritain.com/shopping/ history-of-harrods-department-store-in-london/ (accessed October 6, 2021). 23 “Harrods,” Encyclopedia Britannica, May 2, 2013, https://www.britannica.com/topic/ Harrods (accessed October 6, 2021). 24 Hannah Lewis, “21 of the Best Luxury Stores in Paris,” Global Blue, April 2, 2014, https:// www.globalblue.com/destinations/france/ paris/21-of-the-best-luxury-stores-in-paris (accessed October 6, 2021). 25 “Our History,” Groupegalerieslafayette.com, https://www.groupegalerieslafayette.com/ group/#profile (accessed March 29, 2020). 26 Galeries Lafayette Group, Web Presentation Leaflet, https://static1.squarespace.com/ static/5c9b3eafd74562d4deb03335/t/5e4bf31471f6217a28f7745d/1582035741774/ Galeries+Lafayette+Group++Web+presentation+leaflet+2020.pdf (accessed March 30, 2020). 27 Ibid. 28 “Ginza Mitsukoshi,” Time Out, https:// www.timeout.com/tokyo/shopping/ ginza-mitsukoshi (accessed March 29, 2020). 29 “Mitsukoshi,” Ginza Mitsukoshi, https:// mitsukoshi.mistore.jp/store/ginza/foreign_ customer/index.html (accessed March 29, 2020). 30 Andrew Davis, “How to Build Better Business Relationships,” Shweiki Media, August 5, 2016, http://shweiki.com/ blog/2016/08/building-business-relationships/?utm_source=YouTube&utm_medium=Ad&utm_campaign=Building%20 Business%20Relationships (accessed April 1, 2020).

For further reading Amed, Imran, Anita Balchandani, Marco Beltrami, Achim Berg, Saskia Hedrich, and Felix Rölkens. “The State of Fashion 2019: A year of Awakening.” McKinsey & Company. November 28, 2018. https://www.mckinsey. com/industries/retail/our-insights/the-state-offashion-2019-a-year-of-awakening (accessed October 6, 2021). Apparel Search. “Apparel Industry Price Point Definitions – Terms of Interest to the Fashion

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Industry.” https://www.apparelsearch.com/ terms/a/apparel_industry_price_point_definitions.html (accessed February 25, 2020). Davis, Andrew. “How to Build Better Business Relationships.” Shweiki Media. August 5, 2016.. http://shweiki.com/blog/2016/08/ building-business-relationships/?utm_ source=YouTube&utm_medium=Ad&utm_ campaign=Building%20Business%20 Relationships (accessed April 1, 2020). Fasanella, Kathleen. “Apparel Price Point Categories.” Fashion Incubator. April 16, 2009. https://fashion-incubator.com/ apparel-price-point-categories/ (accessed October 6, 2021). Lobaugh, Kasey, Christina Bieniek, Bobby Stephens, and Preeti Pincha. “The Great Retail Bifurcation.” Deloitte Insights. March 14, 2018. https://www2.deloitte.com/us/ en/insights/industry/retail-distribution/ future-of-retail-renaissance-apocalypse.html (accessed October 6, 2021). Olenski, Steve. “Brand Value: What It Means (Finally) and How to Control It.” Forbes. September 15, 2015. https://www.forbes. com/sites/steveolenski/2015/09/15/ brand-value-what-it-means-finally-and-how-tocontrol-it/#2a147c6c13b2 (accessed October 6, 2021). Owler. “Shawl Dawls’s Competitors, Revenue, Number of Employees, Funding, Acquisitions & News.” https://www.owler.com/company/ shawldawls (accessed May 14, 2021). Shahbandeh, M. “Global Apparel Market— Statistics & Facts.” January 22, 2021. https://www.statista.com/topics/5091/ apparel-market-worldwide/#dossierSummary (accessed October 6, 2021). Stone, Elaine, and Sheryl A. Farnan. The Dynamics of Fashion. 5th edn. New York: Fairchild Publications, 2018. Tenney, Matt. “‘Be a ‘Don’t Knower:’ One of Eileen Fisher’s Secrets to Success.” Huffpost. May 15, 2015. https://www.huffpost.com/ entry/be-a-dont-knower-one-of-e_b_7242468 (accessed October 6, 2021). VF Corporation. Annual Report: Fiscal Year 2020. https://d1io3yog0oux5.cloudfront. net/_1e6cfb04278321c72d4b91e535105b6c/ vfc/db/409/70380/annual_report/VF_FY2020_ ShareholderLetter-DIGITAL-FINAL.pdf (accessed September 30, 2020).

3

The wholesale selling environment Chapter objectives After reading this chapter, you will be able to 1 define the different types of selling environments

2 describe major market centers, Market Weeks, and selling seasons 3 explain the purpose of a showroom and showroom operations 4 summarize fashion trade shows, venues, services, and expenses 5 list the major apparel trade shows in the USA and internationally.

Figure 3.1 (facing page)  A selection of wedding themed high heeled shoes in fashion designer Jimmy Choo’s showroom on Cannaught Street. © Mark Makela/Corbis via Getty Images.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Introduction Retail store buyers need to purchase merchandise on a continuous basis. New York and Europe were once the only places where buyers could see and purchase fashion and apparel goods. However, buyers had limited time and budgets to routinely travel to these distant locations. Other major US cities began to develop their own manufacturing hubs with showrooms. In this chapter, we define the different types of fashion wholesale selling environments and explore today’s major market centers. In describing the selling environment, we discuss the purpose of showrooms and the activities occurring there, as well as the nature of fashion trade shows. Major US and international trade shows are highlighted. Please note that this chapter focuses on the traditional supply chain while, in Chapter 5, we discuss wholesale selling and future directions.

Different types of selling environments The activities of fashion wholesale selling can take place in several distinct environments with the New York Fashion District and the regional apparel marts representing the primary locations. These locations contain permanent showrooms staffed by wholesale sales reps who show the merchandise to retail buyers and take orders. Fashion trade shows are another key environment where wholesale selling takes place. The difference is that the trade shows offer a temporary location and occur only during specific times of the year.

New York City New York City naturally became a major fashion center due to immigrants from Europe who were talented tailors. Small apparel businesses grew into an industry with New York becoming the major fashion market center in the USA and a “must visit” for all retail buyers annually. In New York City, apparel showrooms are located all over the city because, historically, manufacturers had their showrooms adjacent to their manufacturing facilities. Recently, there has been an attempt to organize the showrooms more conveniently so that they are concentrated around Seventh Avenue and Broadway between Thirty-Third and Forty-Second Streets. In doing so, the showrooms are usually grouped in buildings according to the merchandise classification and price points. For example, the addresses for designer apparel are 530 and 550 Seventh Avenue. Moderately priced women’s wear can be found on Broadway. Madison Avenue has lingerie and intimate apparel. And the Empire State Building is where textiles and men’s furnishings are located. Figure 3.2 shows the section of New York City, where the Garment District is located. New York City naturally became a major fashion center due to immigrants from Europe who were talented tailors. Small apparel businesses grew into an industry with New York becoming the major fashion market center in the USA and a “must visit” for all retail buyers annually.

Regional fashion apparel marts All too often, retail store buyers could not feasibly travel to New York City to see the new fashion lines, so a more convenient

THE WHOLESALE SELLING ENVIRONMENT

W. 40t hS t.

W. 42n Miles dS t.

in existence.2 Because apparel manufacturing was previously established in a city, it also became a wholesale selling center. The regional market center made it more convenient for retail buyers to visit showrooms by condensing most of the wholesale selling showrooms in one location. Large buildings called marts were developed to house showrooms for local, national, and foreign manufacturers.

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57

Figure 3.2  Map of New York City’s Garment District in Manhattan.

location became important. The buyers’ needs reinforced the development of regional market centers. Researchers Summers and Church characterized regional fashion apparel marts as a type of service organization catering to a buyer’s interests with a comfortable, convenient location with nearby travel accommodations.1 The three major domestic apparel markets are New York, Los Angeles, and Dallas, and their importance in the fashion hierarchy occur in that order. Once New York schedules its Market Week, the regional market centers are free to schedule theirs. The market centers outside of New York developed differently by being organized in a more concise location, often a single building.

Market centers Ultimately, regional market centers sprang up where important apparel manufacturing and retailing were already

Los Angeles is the second most important fashion market center in the USA. Prior to the development of a market center here, buyers would spend days wandering around greater Los Angeles ready to place orders and seeking appropriate manufacturers.3 Harvey and Barney Morse seized the opportunity, bought property in downtown Los Angeles, and in 1964 opened the first mart building, The California Mart, now known as the California Market Center (CMC). Los Angeles has several market center buildings—namely The New Mart, Cooper Design Space, and The Gerry Building— which are located on four adjacent corners and comprise what is called The Intersection. Although the Los Angeles regional market center carries all categories of merchandise, it is best known for glamour clothes (due to the presence of Hollywood), sportswear (due to the laidback lifestyle of California residents), and swimwear (due to beaches, sun, and the year-round moderate climate).

Dallas At almost the same time, developers Trammell Crow opened the Dallas Apparel Mart in 1964 as part of a large business and commerce complex known as the Dallas Market Center. For over forty years,

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

the Dallas Market Center hosted trade shows for women’s, men’s, and children’s apparel and accessories. The Dallas Market Center is best known for evening wear, bridal, and western fashion.

Kansas City, MO; Portland, OR; the Massachusetts Northeast Market Center; and more.

Chicago

Whereas Fashion Week consists of runway shows, Market Week is created for retail buyers to view the new lines of manufacturers/brands (aka vendors) and plan their purchases for the coming season. There are a few fashion shows, but they are not the norm. Market Weeks are strictly business. It is a time when buyers travel to a market location to plan and make purchases for the coming season.8 Buyers attend Market Week to view the lines of manufacturers they’ve done business with in the past, but also to look for new vendors.

In Chicago, the site of the Merchandise Mart was a building constructed in 1930 for the famed retailer Marshall Field’s to house all thirteen of its warehouses into one wholesale center.4 In 1977, The Chicago Apparel Center opened next to the Merchandise Mart, which now includes the Chicago Sun-Times newspaper and the Illinois Institute of Art – Chicago.5 The Merchandise Mart shows many Canadian lines and primarily serves the Midwest.

Atlanta The Atlanta Merchandise Mart, also known as AmericasMart, opened in Atlanta in 1979.6 It has showrooms for not only apparel but also home and gifts. There are three buildings that make up the AmericasMart, with Building 3 housing the fashion and jewelry showrooms.

Seattle The Seattle Mart (previously the Pacific Market Center) has set the trend for mixed-use wholesale centers. Specifically, it houses over forty product categories from gifts to housewares to stationery while also including fashion.7

Other regional market centers In addition to those already mentioned, there are other regional market centers located in major cities all over the United States. Some of these locations are in Miami, FL; Denver, CO; Charlotte, NC; Woburn, MA; Minneapolis, MN;

Market Weeks

Whereas Fashion Week consists of runway shows, Market Week is created for retail buyers to view the new lines of manufacturers/brands (aka vendors) and plan their purchases for the coming season. There are a few fashion shows, but they are not the norm. Market Weeks are strictly business. Market Weeks occur five times a year in what are known as seasons. Seasons are named after the time of year when the apparel being shown would be sold by retailers and worn by consumers. Seasons coincide with Market Weeks. There are five seasons in the US wholesale and retail marketing calendar, which are presented in Table 3.1.

Seasons A common colorway for Summer is red, white, and blue. This is followed by Early Fall or Fall I, and the fabrications and

THE WHOLESALE SELLING ENVIRONMENT

Table 3.1  Market Weeks generally occur five times per year, three to six months before the consumer selling season. These Market Weeks are defined by the season in which the merchandise will be selling. The below schedule is based on the Los Angeles Market Week Calendar. Typical Market Week calendar Season

When Market Week occurs

Summer

Usually shown in January

Early Fall (Fall I)

Usually shown in late February or early March

Fall II

Usually shown in June

Holiday/Resort

Usually shown in August

Spring

Usually shown in October or November

colors in Fall I are a gradual change in that the colors become slightly darker and the fabrics slightly heavier. Fall II has the much darker colors of Fall I (usually black, browns, navy, dark gray, burgundy or wine, perhaps rust) and decidedly heavier fabrics. Fall II coincides with winter in most parts of the country that experience snow. Holiday/Resort is a very short season and includes glamour clothes meant for holiday apparel (Thanksgiving, Christmas, Chanukah, Kwanzaa, New Year’s Eve) and swimwear. Lastly is Spring, with apparel meant to inspire consumers to buy the freshness that results from the end of winter. Furthermore, there are general trends that occur with each season regarding colors

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and fabrications. Summer’s colors are bright and clear, usually bolder hues of the previous Spring. For example, if baby blue is a color presented in Spring, then Summer will have bolder cobalt blue. Fall I uses those Summer colors and deepens the hue. So, that cobalt blue from Summer becomes darker to a midnight blue. Fall II will darken the cobalt blue to be navy blue. Holiday/Resort tends to have a color palette all its own, with a sparkle of gold and silver mixed with some of the Fall II shades. As for fabrics, the lightest weights are used in Spring and become heavier for Fall I and heavier still for Fall II.

There is a movement away from scheduled seasons toward a strategy of continually renewing the product offering to entice the buyer to shop more frequently … making the markets more trend-driven rather than season-driven.

However, as noted in 2012 by Giuseppe Pilotto, the concept of seasons lends itself to the opportunity to refresh the product offering throughout the season’s lifecycle and create more buying interest from the retail buyer and consumer.9 There is a movement away from scheduled seasons toward a strategy of continually renewing the product offering to entice the buyer to shop more frequently. The Junior category is a good example of lifestyle marketing as the Junior customer is characterized as

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

being capricious in their fashion tastes. Therefore, manufacturers of Junior merchandise must change their style offerings as often as their customer’s fashion whims—leading to more seasons per year. In this way, the market is more trend-driven rather than season-driven.

Vendor’s line releases Line releases refer to the target dates for completion of new collections. These dates are often dictated by the wholesale market calendar rather than by the manufacturer itself. Most apparel manufacturers have five line releases per year in order to offer retail buyers something new each time they come to market. For women’s wear, the new line release is usually a completely new collection with some carry-over styles (or models as they are known in Europe) that have proven to sell well. In contrast, traditionally, men’s and children’s wear release two to four lines annually. However, men’s and children’s wear manufacturers may find it necessary to release five new lines per year in order to retain the buyer’s interest. Regardless of category, new fabrications and new colors are added to the collection as are appropriate to the season.

Showrooms Within fashion apparel marts are showrooms. A showroom is the place where wholesale sales reps show sample merchandise to prospective retail buyers. It must be a room large enough to accommodate the merchandise being shown. For single line reps, the space may be small, such as shown in Figure 3.3. However, the more lines a rep carries (i.e. an independent rep), the more space will

be required to merchandise the lines in an attractive way. As you walk down the aisles of an apparel mart, it is like walking through a mall with well-displayed windows. However, a showroom only has sample merchandise to show (i.e. a limited number of styles and colors), which presents its own challenges. Another challenge is the art of displaying dissimilar merchandise in an interesting, creative way that is ultimately simple, clean, and well organized (see Figure 3.3).

Samples A sample is one piece of merchandise representing one style number (see Figure 3.4). The purpose of the sample is to show the buyer the details of the style, the quality of construction, and the fabrication. Since a sample is a single representation of a style, there is not an array of size ranges. Instead, the sample is usually determined by the average size in the product offering’s range of sizes. Women’s wear is shown in sample size 6 or 8, men’s wear is shown in Medium, and children’s wear is shown in size 4. Occasionally, during Market Weeks, wholesale sales reps may have a fit model in the showroom as well. Unlike a retail store, showroom samples usually are shown in one color. Other color options are shown with either fabric swatches or a color card.

Role of visual merchandising in creating the showroom The showroom must be as attractive to the retail store buyer in the same way that a retail store is attractive to its customers. It may not seem important initially, but it must be well designed, taking into consideration the organization of product placement, the traffic flow throughout the showroom, and lighting to best show the

THE WHOLESALE SELLING ENVIRONMENT

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Figure 3.3  Showroom Design: Lynn Girard Showroom in Los Angeles. As an independent rep, Lynn sells several brands. Shown here are M Made in Italy and UP! Pants. Photograph courtesy of Lynn Girard.

Figure 3.4  Cavallo De Ferro Brasil Samples, Düsseldorf. Samples in a showroom come in one color and one size per style. Photograph by Mathis Wienand, courtesy of Getty Images.

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product details.10 The front of the showroom space is usually a glass wall, making it appear as a big display case. The showroom must be as attractive to the retail store buyer in the same way that a retail store is attractive to its customers. To carry out its business operations, the showroom is outfitted with display racks, sometimes mounted on walls for greater visibility; tables for sales presentations and for buyers to take notes; and chairs for the buyer’s comfort. How these components are visually designed leaves a lot of room for creativity. An additional challenge is the showroom design must appeal to the target customer. For example, in a high-end showroom, the design is clean and spacious. The colors are neutral, and there is more clear space which gives a relaxed, refined feeling. On the other hand, a showroom of kid’s merchandise is likely to be colorful with every space used for merchandise display, creating a visual feeling of excitement.

Fashion trade shows In general, a trade show is an industryfocused exhibition that showcases the most current products and is a place where one can meet the industry’s buyers, discover the activities of competitors, and learn up-to-date market trends.11 In countries other than the USA, they are called trade fairs, trade exhibitions, or expos. Trade shows are important for business networking because trade show exhibitors and attendees meet people and companies within their own supply chain level, as well as meet potential suppliers and customers.12 Although open to all

retail store buyers, the key trade show attendees are local and SME retailers. In addition, there may be “cash-and-carry” or “see-now-buy-now” booths where retail buyers can buy merchandise on-site and take it with them. This type of booth, however, represents only a small fraction of the trade show business and is located in a separate section away from the main trade show floor. Fashion apparel trade shows are similar in that their purpose is to sell merchandise. However, fashion apparel trade shows are specifically designed for the trade: retail buyers, fashion press, and apparel distributors. Attending a trade show allows retailers to assess the quality of a product in person, shop for exclusive styles unavailable anywhere else, and, most importantly, be the first with new trends and brands. The show is an opportunity for the buyer to see multiple vendors in the same location, which makes buying decisions easier. Trade shows became increasingly important as the global economy recovered from an economic downturn that started in 2008. The hype associated with fashion trade shows and their temporary existence can boost sales and offset the expense of the show itself. Trade shows are an excellent opportunity to enhance brand awareness among the retail buyers, increase sales, and allow for networking with other professionals in the fashion industry.13 Therefore, the brands you carry in your showroom can benefit from the additional visibility that a trade show provides. According to Forbes magazine, there are over ten thousand trade shows just in the USA every year.14 Nevertheless, the fashion trade show business is an international business, which has eclipsed Market Weeks in many instances. Buyers

THE WHOLESALE SELLING ENVIRONMENT

who attend trade shows are more likely to place orders than at fashion apparel marts. This, in part, relates to the temporary nature of a trade show. Once the trade show ends, it’s gone. As a retail store buyer, you are not able to go back and see what you missed as you might be able to do at a market center. The other motivator is what is referred to as being first to market. Retailers compete with other retailers. Whichever store has the latest trends or the most desired brands will capture the consumer’s attention, leading to purchases.

Venues and services Fashion apparel trade shows, requiring a vast amount of space, are housed in large facilities, such as city convention centers, hotel conference and convention centers, or large tents. Occasionally you may encounter a trade show that is highly selective in terms of which vendors can apply and be accepted to exhibit. Companies involved in fashion apparel trade shows invest a considerable amount of time and money to participate. Costs include booth space rental, booth design and layout, as well as its construction and displays, electrical and technical requirements, transportation, lodging, and the production of “swag,” which is free merchandise or promotional materials given to the trade show attendees.15 Fashion apparel trade shows, requiring a vast amount of space, are housed in large facilities, such as city convention centers, hotel conference and convention centers, or large tents. Trade shows are essentially a leasing business with some service enhancements provided. It is imperative that a vendor

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signs a show contract stipulating exactly how the booth will be equipped, including a list of the people authorized to access the booth (employees, sales reps, guests, etc.). Any changes after the contract has been initiated will incur additional costs. Included in booth rental fee may be certain events that are added to the trade show program and that boost the attraction, especially for the buyers. Many trade shows offer seminars that are either free (e.g. at the trade show MAGIC) or for a fee for the show attendees. These forums can be in the form of interviews or panels which involve major apparel industry professionals sharing information with the trade show attendees. Often there are fashion shows featuring merchandise from various vendor booths, as well as presentations of future style, fabric, and color trends.

Keynote speakers There may also be keynote speakers who deal with current topics in the apparel industry, such as the CEOs of major fashion companies. Topics include best practices, business trends, and regulations.

Entertainment For both the vendors and the buyers, the trade show may include music performances and art demonstrations. For example, a booth may be occupied by a DJ who issues ambient sounds to hype the trade show experience. Also, there may be visual artists, such as a graffiti artist painting a mural to capture the attention of the attendees.

Celebrities Entertainment celebrities have become involved in the fashion industry through their own named brand apparel. For

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example, Kim Kardashian has her own beauty line called KKW as well as SKIMS Solutions shapewear. If Kim Kardashian makes an appearance, the sales rep who carries her line will have the busiest booth at the show!

power to impact consumer buying. For example, Julie Sarinana, who became a fashion blogger in 2009, is one of the top 10 fashion influencers in 2019 with over 5.3 million followers.16 Fashion influencers also frequently collaborate with major brands with their styling suggestions.

Fashion bloggers Fashion influencers have become celebrities in their own right and may attend such shows. They have achieved the status of fashion icons and have the

Trade show space The trade show floor is usually laid out in rows with the booths (also known as

THE WHOLESALE SELLING ENVIRONMENT

stands in Europe) aligned along the rows, much like hotel rooms are arranged in a hallway. Generally, similar product categories are grouped together, making it easier for buyers to navigate. Another aid to navigation is the numbering of each aisle and booth. Figure 3.5 shows a simple version of a fashion apparel trade show floorplan. There are spaces for food service, attendee lounges, and seminars, along with very large booth spaces, smaller booth spaces, and everything in between.

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Booths The first consideration when selecting a booth is the location so that you will have the most visibility. Being next to a major aisle is ideal. Next, you will want to have as many openings as possible. For example, a corner booth has two openings, which means you will have more exposure. Also, being close to heavy traffic areas like the restrooms, the food court, the information booth, or well-known brands can bring extra attention to your booth.17

Figure 3.5 Trade show floorplan example. Source: Freeman, https://www. freeman.com/resources/ (accessed October 6, 2021).

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Figure 3.6  This overview of the International Jewellery Fair show floor gives an idea of the size of some fashion trade shows. Photograph by Jeff Greenberg, courtesy of Getty Images.

The first consideration when selecting a booth is the location so that you will have the most visibility. The basic booth space is known as “raw space.” From these basic layouts, additional features can be added for a cost. Booth packages may feature carpet, walls, table, chairs, shelving, wastebasket, overhead lighting, booth vacuuming, drayage, and WiFi connection. Figure 3.6 shows the use of basic booth design. Booth rent is based on square footage, which includes other expenses for the venue such as cleaning, security, and basic booth furnishings, such as a table and chairs. Exhibitors can decide to use the pipeand-drape provided, or the booth can be “built out” to resemble a showroom.

Whichever option is chosen, it must be stipulated in the contract and may incur additional costs. As part of the services provided by the venue, there are basic provisions stipulated by the contract. For example, the following list is what the contract provides vendors at The Trends Show in Arizona: 1 Each booth comes with one skirted table and two chairs. 2 Each booth is draped with 8 ft. curtains in black and 2 ft. bars on the side (aka pipe-and-drape). 3 Buyer pre-register list one week before the show. 4 Complete list of attended buyers. 5 Showbook and website listing.

THE WHOLESALE SELLING ENVIRONMENT

6 Opportunities for free brand awareness online and through email campaigns and social media posts.18 Some larger trade shows have an exhibitor’s manual, which contains the deadlines, rules, and details required of vendors that wish to participate in the show. Often there are regulations regarding shipping booth design enhancements, fixtures, and merchandise; accepted shipping companies; and details about when, where, and how to ship items. Usually, one electrical outlet is provided in each booth, with additional electrical outlets available for a fee. Also available for rent may be racks, shelves, and garment steamers. Gene Friedman, CEO of Infinity Exhibits, suggests that you bring your own lighting. Depending on overhead lighting may be risky. Bringing your own lighting allows you to focus on the products you want your customers to see. The right kind of lighting can attract customers to your booth.19 Most trade shows have restrictions regarding “move ins” due to unions. For example, power tools, including saws and hammers cannot be used due to local union labor laws. As an exhibitor, it is important to know about these issues before you sign a trade show contract.

Booth space Booth space costs depend upon size with the most common size of 10 feet by 10 feet or 10 feet by 20 feet. Standard booth sizes are shown in Table 3.2. However, sizes can be slightly different based on the trade show venue. Booth décor The image of a company is important to its marketing efforts, brand identification, and target market customers. It must be consistent throughout the communication

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Table 3.2  Standard booth size configurations vary. Vendors and reps rent booths based on the amount of space needed and their trade show budget. Standard booth sizes 6 feet x 10 feet 10 feet x 10 feet 10 feet x 20 feet 10 feet x 30 feet 10 feet x 40 feet 20 feet x 20 feet Custom-built

channel, whether it be a logo design, a color combination, or a series of words or a phrase. Therefore, the booth design must be consistent with the company image and can either attract or detract from its selling potential. The visual enhancements to the basic space are at the booth renter’s discretion. Corporate booths will more than likely be designed by outside companies that specialize in booth design. Independent reps may find it necessary to showcase the merchandise rather than a brand, since several vendors are represented in the same booth space. For example, Blackstone has a clean, basic image, which is depicted in Figure 3.7. Most apparel trade shows use pipe and drape displays for booth boundaries. From those basics, you can build out the booth by either building your own display, renting trade show displays, or buying a custom-built display, which is often the tactic of a corporate showroom. But, if you are an independent sales rep, you may decide to let the merchandise be the focal point as shown in Figure 3.8.

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Figure 3.7  Corporate booths use custom design services to help create and support their image like this Blackstone booth at Global Destination for Shoes & Accessories Tradeshow in Duesseldorf. Photograph by Andreas Rentz, courtesy of Getty Images Entertainment.

Figure 3.8  An example of the merchandise as the focal point of the booth at the Agenda trade show in Long Beach, CA. Photograph from MediaNews Group/Orange County Register, courtesy of Getty Images.

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Some booth designs are very simple, such as that shown in Figure 3.9, or the booth can be a custom-built design such as Figure 3.7, where actual construction is required to achieve the desired image. Regardless of the creative approach to booth design, the objective is for the booth to attract the type of retail store buyer who will identify with the company image and choose that merchandise.

Booth design services The company hired to build a booth for a trade show must understand the company’s image. Designing and setting up a booth is a complex endeavor. The booth design company that you hire must offer a full range of services that includes not only the booth display but also signage and graphics.20 Full-service booth design companies can offer custom design trades show displays; installation and

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dismantle services; logistic and shipping services; printing and graphic design services; between-show storage; and rental displays.21 For example, Happy Socks, the iconic sock brand, lets its product create its image. The Happy Socks booth at the Bread and Butter trade show (see Figure 3.10) precisely reflects its fun, ­playful vibe with its patterns and colors.

Fixtures and signage Fixtures and signage for trade shows are different from a retail store. First and foremost, they must be mobile, so the construction will be lighter in weight. There will still be mannequins and clothing racks, but they will have decidedly more of a festive twist. Some trade shows provide signage a part of the booth rental, but they are simple black block letters on card stock, which may not be ideal to catch a buyer’s attention.

Figure 3.9  Jeans are presented in this simple booth display at the Bread and Butter trade show in Berlin. Photograph by Michael Gottschalk, courtesy of Photochek.

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Figure 3.10  Happy Socks brands are displayed at their booth at the Bread and Butter trade show. Photograph by Michael Gottschalk, courtesy of Photochek via Getty Images.

One minor fixture of worthy of note are hangers. Every hanger used in your booth should be the same style, color, and size (see Figure 3.11). Another symbol of poor design and poor quality is over-crowded clothing racks.

Mannequins Mannequins are an easy way to catch buyers’ attention. They show how the merchandise fits which is often more attractive than seeing it on a hanger. The mannequin can be stylized to fit the image of the company and the booth design. There are many styles of mannequins in many poses. A combination of live and stationary mannequins can surprise and attract attention, especially if used in a sportswear booth. The use of live

mannequins is particularly popular in the UK. Luxury brands can use mannequins designed like dress forms since they are similar to what designers use in their salons during the creation process. By being headless, the mannequins give a feeling of elegance and do not detract from the dresses themselves.

Trade show expenses Trade shows are expensive events. Before you decide to participate in an apparel trade show, you need to gain firsthand knowledge of what is involved and how it operates. Also, it helps to see other booth designs, which in turn helps you decide how you want your booth to look. However, most booth reps do not allow for you to take photos so err on the side

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Figure 3.11  Using all the same hangers gives a look of quality and doesn’t distract from the merchandise. Photograph by Kinga Krzeminska via Getty Images.

of caution and always ask permission before taking any pictures. Trade shows are expensive events. Before you decide to participate in an apparel trade show, you need to gain firsthand knowledge of what is involved and how it operates.

According to Nimlok, there are five main costs associated with participating in a trade show: ●●

exhibit space

●●

exhibit design

●●

exhibit transit

●●

Rather than spend a lot of money upfront, start modestly. Perhaps a well-designed banner and some custom display fixtures would be a good start. Once you become involved with numerous trade shows, you can plan to invest in a portable booth design that you can use multiple times. Not only does a portable booth save time during the set-up process, but it presents the same image regardless of the trade show. This will help you establish a brand identity.

●●

drayage (materials handling such as delivery or transporting of goods a short distance via ground freight) installation and dismantle services (also known as I&D).22

E&E Exhibit Solutions adds a few other cost considerations: travel expenses (which includes lodging), cost of personnel, and collateral and giveaways.23 Before attending, you need to establish a budget. The average cost to purchase

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a custom trade show booth display is $100 to $150 per square foot of booth space.24 For example, using that estimate, a 10 foot by 10 foot booth display would cost between $10,000 and $15,000. That may sound like a lot of money; however, if you participate in several trade shows per year, that cost gets amortized over a period of time. The average lifetime of a booth display is five years.25 So, if you were to participate in five shows per year, over a five-year period, you would have ­twenty-five uses. Therefore, the true cost of the booth design would be $400 to $600 per show, which is much more reasonable. According to EXHIBITOR magazine, the allocation of your trade show budget should look like Table 3.3. Table 3.3  Budget allocation for trade show participation. Budget allocation for trade show participation Expense

Percentage of budget

Space

33

Booth design and graphics (cost per show, not total investment)

18

Travel and expenses

18

Show expenses (electricity, cleaning, drayage, I&D)

12

Shipping

9

Promotion

8

Miscellaneous

2

Source: Adapted from “Costs of a trade show,” E&E Exhibit Solutions, https://www.exhibitsusa. com/average-costs-to-display-attend-tradeshows (accessed September 14, 2019).

The best investment is to work with a reputable trade show design company. They are familiar with most trade show venues and their requirements. Most likely, they already have established relationships with the venue personnel. They can build a booth display that is lightweight and portable, therefore costing less to ship and may provide storage for the display for the times between shows. In addition, you will want a booth design where the teardown is simplified. Additional expenses can be expected, depending on the trade show venue and location. In general, you can expect expenses for insurance, advertising, enhanced technology, and costs associated with booth set-up. While operating in a public space, you need to provide insurance such as workers compensation for employees, property insurance for the items in your booth, and commercial general liability (CGL) insurance. A certificate of insurance will be a contractual requirement. Trade shows do quite a bit of advertising on their own behalf. This type of promotion attracts vendors, which in turn attracts retail buyers. The trade show may offer print advertising for a fee on their website, newsletter, and/or showbook. Many trade shows offer enhanced technology to the exhibitors. For example, an optional handheld scanner may be available whereby the sales rep can scan the barcode on the buyer’s badge and get information about the buyers and their stores. With this information, the sales rep can follow up with the buyer after the trade show is over. Other expenses may include drayage, additional electrical, additional security, and internet services. In this context, drayage involves the moving of exhibitor’s booth

THE WHOLESALE SELLING ENVIRONMENT

decoration and merchandise into the booth space. Labor unions usually control this activity and, as such, a vendor is prohibited from doing it themselves. Electrical services are needed if there is special lighting or video that is part of the booth design. Free Wi-Fi has become the norm at trade shows for both the vendor’s and buyer’s use. Transportation services are important in getting the booth and displays to the trade show venue in a timely manner. Some outside companies offer booth set-up services as well as transportation. Trade show software is as versatile as software technology itself. As already mentioned, many tradeshows offer their own software in the form of a scanner that captures each booth attendee’s information. There are several different types of programs, such as: ●●

●●

●●

●●

morphing your mobile device into a potential customer file systems that analyze information into useful data personalized dashboards for gathering trade show information spatial mapping to navigate trade shows.

Some of these software programs are offered through the trade show venue, and others are available for purchase through software companies. A vendor may purchase this software to quickly render its contacts into usable information. The trade show mapping software is usually provided by the venue in the form of an app. Attendees can utilize this software to pinpoint the location of desired vendors within the trade show venue or document information about merchandise for later use.

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Trade show promotional supplies Trade show promotional supplies, also known as collateral materials or swag, are the free giveaways. These are meant to remind the retail buyer of the exhibitor and prompt them to revisit the booth and possibly place an order. There is some question, with the digital world we now live in, as to whether printed materials are a waste of resources. According to Johnny Marx, social media and networking expert, that is actually not true.26 Marx states that trade show promotional materials help guide customers through the process of purchasing from your company. It includes important information they need to know about the product, the company, and how to place an order.27 Trade show promotional supplies range from catalogs and line sheets to tote bags and pens to free sample products, and even candy. Surprisingly, candy can get potential buyers to stop and look at the merchandise in your booth. Gene Friedman, CEO of Infinity Exhibits, suggests that you create giveaways (aka swag) like decals; pens, pencils, and highlighters; keychains; flash drives; or a sample product, all with the company’s name on it. The target customer will indicate what type of swag is appropriate.28 The female youth market may like beaded elastic bracelets or hair ornaments. If that is part of your product line, think about giving out samples. Just make sure there is an identifying tag or charm on the sample so that the buyer will remember your brand. One of my favorite promotional techniques came from the Lynn Girard Showroom in Los Angeles. During Market Week, Lynn put foot massage machines in her showroom. The buyers would stop

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in for a foot massage, and while sitting there, would see the merchandise in the showroom. As a result, many buyers would then place an order.

must seek out the vendors and either visit their showrooms or shop their websites to replicate the same activities that can take place at the trade show.

There is more to wholesale collateral materials than just print media. Include videos, website, and blogs. Any technique you use to engage the buyer will be one step closer to making the sale. Be creative about how you get the buyer to stop and look.

There are significant trade shows that occur around the world that are worthy of note. However, there are so many trade shows that buyers need to be selective about which ones they attend. Studying the shows in terms of what their specialty is and what brands exhibit there is part of a buyer’s homework. As fun and glamorous as trade shows are, they are costly in terms of time and money.

A trade show organizer may offer to contact your customers for you to promote the show and your brands’ participation in it. This means that the show’s retail relations team will provide free promotion if you give them your account list. As a former sales rep, I do not advise this. Your customer list is proprietary information, which should not be given to anyone outside of the company. You definitely want to have your company or companies listed in the show book, but create your own promotional tools, including using social media. As you can see, there is much to be considered in participating in a trade show. A well-thought-out budget is the first step. It will dictate what size booth you rent, how it will be decorated, and the promotional supplies you will offer.

The following section introduces the major trade shows around the world, where they take place, and in what fashion apparel categories they specialize.

Top three US fashion trade shows MAGIC Las Vegas

Las Vegas, NV

Texworld USA

New York, NY

Footwear Show New York Expo

New York, NY

Source: Adapted from Tentimes, “Top 100 Apparel and Clothing Events,” https://10times. com/top100/apparel-fashion (accessed May 19, 2021).

Major trade shows Trade shows are an excellent way for retail buyers to see lots of vendors and brands in one place all at the same time. Because of their size, trade shows usually last several days so that buyers can peruse the entire show and visit the booths and, most importantly, place orders for new merchandise. The drawback of trade shows is that they are temporary. If buyers don’t properly work the show, their job becomes more difficult. They

United States The trade shows listed above have been recommended by members of the fashion community. Business writer Johnny Marx lists them in order of importance in Table 3.4; each serves slightly different audiences.

International Trade shows are staged on an international basis as well. However, in Europe

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Table 3.4  Some of the important trade shows in the USA occur across the country in prominent fashion markets. Some of these shows have a focus on a specific product offering. Important US trade shows Name

Location

Products

MAGIC

Las Vegas, NV

Men’s, women’s, and children’s apparel, footwear, accessories, and manufacturing

Fashion Industry Gallery (FIG)

Dallas, TX

Men’s, women’s, and children’s contemporary, as well as accessories and footwear

Chicago Collective

Chicago, IL

Men’s classic and contemporary apparel

World Shoe [Association] Las Vegas, NV (has merged with FN Platform at MAGIC)

Fast-fashion footwear, affordably priced footwear brands

New York Shoe Show

New York, NY

Footwear hosted by FFANY

TEXWORLD USA

New York, NY

Textile and accessories manufacturers from the Middle East, Asia, North America, and many other regions from around the world

STYLEMAX

Chicago, IL

Women’s accessories and apparel

Intermezzo

New York, NY

Major women’s fashion collections

Accessorie Circuit

New York, NY

Designer accessories, fine jewelry, handbags, scarves, belts, and gifts

Source: Adapted from Johnny Marx, “Fashion Trade Shows You Should Be Going To,” Handshake. com, September 3, 2015, https://site.handshake.com/blog/fashion-trade-shows-you-should-be-going-to (accessed October 6, 2021).

and Asia, trade shows are often called trade fairs or trade exhibitions.

Top three international fashion trade shows Texworld Evolution Paris—Le Showroom

Paris, France

MICAM Milano

Rho, Italy

International Apparel and Textile Fair

Dubai, UAE

Source: Adapted from Tentimes, “Top 100 Apparel and Clothing Events,” https://10times. com/top100/apparel-fashion (accessed May 19, 2021).

Expodatabase is a useful starting point for researching international trade fairs. They have developed a process by which you can find trade fairs that are appropriate to your merchandise category and target market. The steps in the process are described in the following paragraph. Select a country where you want to find leading international trade fairs and focus your search on this region. Next, you limit the search to a category of business sectors. Finally, this choice leads to selecting one specific business sector and

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to a hit list of all leading international trade fairs that correspond to the search criteria selected before.29 The top international trade fairs take place in major cities such as Paris, Munich, Milan, and Zurich. The list in Table 3.5 summarizes some of these prominent trade fairs by location. The purpose of becoming familiar with all these trade shows and trade fairs is to

increase your awareness that trade events feature particular categories of merchandise and/or cater to a particular region or part of the world. Your job is to determine which trade shows are most beneficial to your product mix. The combination of the type of merchandise and vendors you represent, the reach of your selling territory, and awareness of the various types of trade shows will help you make the decision on which trade events are best

Table 3.5  Various trade shows take place around the world Top apparel international trade fairs Country

Trade fair

City

France

Premiere Classe-International Fashion Trade Show— Accessories, Ready-to-wear

Paris

BIJORHCA PARIS—International Fine, Fashion Jewellery, and Watch Show

Paris

Salon International de la Lingerie

Paris

Paris sur Mode—The Women’s Fashion Trade Show

Paris

Bijoutex—Trade Fair for Costumer Jewellery and Fashion Accessories

Munich

ISPO MUNICH—The Leading International Sport Business Network

Munich

Milano Moda Donna—Ladies’ Fashion Show

Milan

Pitti Mimmagine Bimbo—Children’s Clothing and Accessories Collections Fair

Florence

Si Sposaitalia Collezioni—International Presentation of Bridal and Formal Wear

Milan

Pitti Mimmagine UOMO—Men’s Clothing and Accessories Collections Fair

Florence

HOMI—Fashion and Jewels—Costume Jewellery and Fashion Accessories Trade Fair

Milan

FIMI—International Fair of Children’s and Young People’s Fashion

Valencia

Germany

Italy

Spain

Switzerland ORNARIS—Trends—Innovations—Designs

Zurich

United Kingdom

Birmingham

Printwear & Promotion LIVE!—Exhibition for the Decorated Garment, Embroidery, and Promotion Products Industry

Source: m+a expocheck, “Global Trade Fair Advisor,” https://www.expodatabase.de/en/home/brand/ expocheck (accessed April 7, 2020).

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for the success of your wholesale selling business. The combination of the type of merchandise and vendors you represent, the reach of your selling territory, and awareness of the various types of trade shows will help you make the decision on which trade events are best for the success of your wholesale selling business.

Summary Market Weeks are designed to transact business and are intended for retail store buyers only. They usually occur five times per year. Market centers can be areas of a city or specific buildings called either market centers or apparel marts. The three most important market centers are New York City, Los Angeles, and Dallas. Within each fashion apparel mart are showrooms that house samples which are shown to retail store buyers during Market Weeks. The showroom setting

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and merchandising are important features in displaying the merchandise to attract target buyers and stores. Manufacturers plan their line releases to coincide with the following seasons: Summer, Early Fall or Fall I, Fall II, Holiday/Resort, and Spring. Fashion trade shows are designed to present the most current fashion merchandise available to retail store buyers, and the attendance is restricted to the fashion industry only, specifically retail buyers, fashion press, and apparel distributors. These shows and the booths within require a great deal of planning from the perspective of location, costs, and materials logistics. The popularity of trade shows has created a group of trade show organizers that stage and manage several fashion trade shows both in the USA and internationally. Among the bestknown fashion trade shows in the USA are MAGIC, Fashion Industry Gallery, and Chicago Collective. In Europe, Premiere Classe in Paris, ISPO Munich, and Milano Moda Donna in Milan are prominent fashion trade shows.

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Interview: Matthew Mathiasen, California Market Center, USA Matthew is the Manager of Buyer and Community Relations at California Market Center (CMC) in Los Angeles. He attended the Fashion Institute of Design & Merchandising (FIDM) in Los Angeles, where he received an Associate degree in Merchandise Product Development. Later, he attended UCLA and received a certificate in Human Resources Management.

How did you get started in the fashion industry? My career started in design and brand management for Elmer Ave and Skingraft Designs, two Los Angeles based fashion brands, and then transitioned into corporate brands within Retail Management with Betsey Johnson stores in Los Angeles and Southern California, as well as Brilliant Earth, which is a combination of brick-and-mortar showrooms and e-commerce sales. Between retail management roles, I took a few years as an independent designer and celebrity wardrobe stylist. I created my own women’s contemporary collection for three years, designed and produced in Los Angeles and sold in ten states across the USA.

operating LA Market Weeks, Label Array Trade Show, the LA Textile Show, and LA Majors Show with the help of a sales and marketing team. At the heart of my job is driving engagement between the CMC brands and showrooms to retailers and designers, as well as keep the CMC as the hub for the West Coast Fashion industry.

How long have you been with the CMC? Two years this Fall 2020.

You have a lot of job responsibility. What do you like best/least about your job? I enjoy creating spaces for fashion businesses to connect and create deals and designs. The fashion industry is very collaborative, both in sales and design, and being able to create the environments that foster this creative connection is exciting and motivating. There really isn’t much I don’t enjoy about my job. It is a nice combination of creative and analytics to balance my brain.

What are your job responsibilities as the Manager of Buyer and Community Relations at CMC? I oversee all aspects of attendees to all CMC events, trade shows and markets. That includes planning, selling, and

How many showrooms/brands are currently in the CMC? Building C is the new home of the CMC Showrooms with showrooms merchandised to allow for ease of shopping for Buyers and Visitors. There are hundreds

THE WHOLESALE SELLING ENVIRONMENT

of brands ranging from kids’, women’s, men’s and lifestyle brands, as well as textiles and industry offices such as fashion industry banks, trend and buying offices as well as staffing agencies. The building is arranged for ease and convenience: ●●

●●

●●

●●

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Floor 2C—Women’s Contemporary Floor 3C—Women’s and Men’s Contemporary and Lifestyle Floor 4C—Updated Contemporary Women’s and Missy Floor 5C—Kids’ Floor 6C—Young Contemporary and Trend Offices Floor 7C—Young Contemporary

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●● ●●

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Floor 8C—Textiles and Offices Floor 9C—Banks and Offices Floor 10C—40,000 square-foot event space.

What are the CMC’s plans for future development? The CMC is a 1.8 million-square-foot mixed-use complex currently being reinvented to appeal to the rising influx of technology, entertainment, media, food and beverage industries now heading to Downtown LA. Situated on the corner of Ninth and Main Streets in the heart of the Fashion District, the new CMC will build on an incredible legacy of passion and collaboration as it welcomes the next century’s creative visionaries.30

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Activities Market center and/or apparel mart representation For this activity, you will identify in which market centers and apparel marts your brands are represented. If the brands you plan to carry are represented in an apparel mart, they will be housed in a specific showroom. 1 Research online the three top market centers and apparel marts (New York, Los Angeles, and Dallas) to see if your brand is represented there. What showroom represents your brands in a. New York (market center)? b. Los Angeles (apparel mart)? c. Dallas (apparel mart)? 2 In addition, research two other apparel marts. Is/are your brand/s represented in either of these? Trade show participation Research online the trade shows mentioned in the reading. Identify whether

or not your brand is represented in any of these shows. If you are not able to find any information, call the brand and ask what trade shows they participate in. (If you call, make sure you prequalify yourself by describing that you are a student, and this is a class project.) 1 What is the #1 trade show your brand/s participate in? 2 What are the demographics/psychographics of that trade show? 3 Does this match your brand’s demographics/psychographics? 4 Other than this trade show, what other trade shows would be a good fit for your brand/s? Use demographics and psychographics to make your determination.

THE WHOLESALE SELLING ENVIRONMENT

Notes 1 Teresa Summers and Gabie Church, “The Regional Apparel Mart as a Service Industry: Measurements of Buyer Perceptions,” abstract, Clothing and Textiles Research Journal 5, no. 4 (1987): 7–13. 2 K. McLaren, “AMDT 108 Exam,” https:// quizlet.com/336640225/amdt-108-exam-2flash-cards/ (accessed April 15, 2020). 3 Edna Bonacich and Richard Appelbaum, Behind the Label (Berkeley, CA: University of California Press, 2000). 4 Encyclopedia Britannica, s.v. “Merchandise Mart,” https://www.britannica.com/topic/ Merchandise-Mart (accessed April 25, 2020). 5 “History of the Mart,” Marchitecture, https:// web.archive.org/web/20070602052539/ http://www.merchandisemart.com/marchitecture/history.html (accessed April 23, 2020). 6 Jeffrey Portman, “Leadership. Success. Family: For 60 years,” https://blogdotamericasmartdotcom.wordpress.com/tag/ atlanta-merchandise-mart/ (accessed April 15, 2020). 7 “Showrooms,” Seattle Mart, https://seattlemart.com/showrooms (accessed February 10, 2020). 8 . “Market Week: Fashion Market Week,” Apparel Search, https://www.apparelsearch. com/terms/m/market_week_term.html (accessed April 2, 2020). 9 Giuseppe Pilotto, “The World of Retail and Distribution in the Fashion Industry,” December 19, 2012, http://www.dse. univr.it/documenti/Avviso/all/all417579.pdf (accessed October 6, 2021). 10 Nicole Murray, “Merchandising: The Real ‘Science’ Behind Showroom Design,” Floor Covering News, January 25, 2018, https:// fcnews.net/2018/01/merchandising-the-real-­ science-behind-showroom-design/ (accessed October 6, 2021). 11 “Trade Fair & Fashion Runway Shows: Exhibitions for the Apparel & Textile Industry,” Apparel Search, https://www. apparelsearch.com/trade_show.htm (accessed April 25, 2020). 12 Ibid. 13 Johnny Marx, “Fashion Trade Shows You Should Be Going To,” Handshake.com,

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September 3, 2015, https://site.handshake. com/blog/fashion-trade-shows-you-shouldbe-going-to (accessed October 6, 2021). 14 Joseph DeAcetis, “WHITE Milano Develops a Global Fashion Platform for International Exhibitors and Consumers,” Forbes, August 23, 2018, https://www.forbes. com/sites/josephdeacetis/2018/08/23/ white-milano-develops-a-global-fashionplatform-for-international-exhibitorsbuyers-and-consumers/#6a1e02647d9d (accessed October 6, 2021). 15 “Trade Fair & Fashion Runway Shows,” Apparel Search. 16 Anne Steland, “The Top 10 Fashion Influencers to Follow in 2019,”https:// www.walldiscover.com/the-top-10-fashioninfluencers-to-follow-in-2019-the/ dGhlLXRvcC0xMC1mYXNoaW-uLWluZmx1ZW5jZXJzLXRvLWZvbGxvdy1pbi0yMDE5LXRoZXx8aHR0cHM6Ly-pbmZsdWVuY9VyZGIuY9-tL9Jsb9cvd3AtY9-udGVudC-1cGxvYWRzLzIwMTkvMDkvQmxvZy1oZWFkZXJfVGhlLXRvcC0xMC1mYXNoaW-uLUluZmx1ZW5jZXJz LTczMHgzNTAuanBn.html (accessed August 29, 2019). 17 Allen Yesilevich, “Help! Booth-space Selection,” Exhibitor, https://www. exhibitoronline.com/topics/article. asp?ID=2979&catID=32 (accessed May 17, 2021). 18 “Exhibitor Services,” The Trends Show, http://thetrendsshow.com/exhibitor-services (accessed August 29, 2019). 19 Gene Friedman, “10 Trade Show Booth Ideas Guaranteed to Attract Visitors,” Infinity Exhibits, March 1, 2019, https:// www.infinityexhibits.com/10-trade-showbooth-ideas-guaranteed-to-attract-visitors (accessed October 6, 2021). 20 “About Us,” Infinity Exhibits, https://www. infinityexhibits.com/about-us/ (accessed September 10, 2019). 21 Ibid. 22 “Five Big Trade Show Expenses in Your Trade Show Budgeting Worksheet and How to Save,” Nimlok, https://www.nimlok.com/ trade-show-budget-worksheet/?gclid=EAIaIQobChMIipD8xb7R5AIVBdVkCh3bkAOnEAAYASAAEgJYO_D_BwE (accessed September 14, 2019).

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23 “Costs of a Trade Show,” E&E Exhibit Solutions, https://www.exhibitsusa.com/ average-costs-to-display-attend-trade-shows (accessed September 14, 2019). 24 Ibid. 25 Ibid. 26 Johnny Marx, “Wholesale Marketing Collateral: Supporting the Customer Journey,” May 28, 2018, https://www. business2community.com/marketing/­ wholesale-marketing-collateral-supportingthe-customer-journey-02066491 (accessed October 6, 2021). 27 Ibid. 28 Friedman, “10 Trade Show Booth Ideas.” 29 “Global Trade Fair Advisor,” m+a expocheck, https://www.expodatabase.de/en/home/ brand/expocheck (accessed April 7, 2020). 30 Interview with Matthew Mathiasen conducted September 5, 2020.

For further reading Bonacich, Edna, and Richard Appelbaum. Behind the Label. Berkeley, CA: University of California Press, 2000. Marx, Johnny. “Fashion Trade Shows You Should Be Going To.” Handshake.com. September 3, 2015. https://site.handshake.com/blog/ fashion-trade-shows-you-should-be-going-to (accessed October 6, 2021).

Marx, Johnny. “Wholesale Marketing Collateral: Supporting the Customer Journey.” May 28, 2018. https://www.business2community.com/ marketing/wholesale-marketing-collateralsupporting-the-customer-journey-02066491 (accessed October 6, 2021). Murray, Nicole. “Merchandising: The Real ‘Science’ Behind Showroom Design.” Floor Covering News. January 25, 2018. https:// fcnews.net/2018/01/merchandising-the-realscience-behind-showroom-design/ (accessed October 6, 2021). Nimlok. “Five Big Trade Show Expenses in Your Trade Show Budgeting Worksheet and How to Save.” https://www.nimlok.com/ trade-show-budget-worksheet/?gclid=EAIaIQobChMIipD8xb7R5AIVBdVkCh3bkAOnEAAYASAAEgJYO_D_BwE (accessed September 14, 2019). Pilotto, Giuseppe. “The World of Retail and Distribution in the Fashion Industry.” December 19, 2012. http://www.dse.univr.it/ documenti/Avviso/all/all417579.pdf (accessed October 6, 2021). Tentimes. “Top 100 Apparel and Clothing Events.” https://10times.com/top100/apparelfashion (accessed May 19, 2021). Yesilevich, Allen. “Help! Booth-space Selection.” Exhibitor. https://www.exhibitoronline. com/topics/article.asp?ID=2979&catID=32 (accessed May 17, 2021).

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The wholesale fashion selling process

4

Chapter objectives After reading this chapter, you will be able to 1 execute an approach using an effective planning technique 2 demonstrate the various steps of a presentation 3 discuss the need for sales territories and how to develop a territorial sales plan 4 describe a sales forecast 5 summarize the activities that take place after the order is written.

Figure 4.1 (facing page)  The sales rep presents the retail buyer with the colorways of the line. Photograph by LeoPatrizi, courtesy of Getty Images.

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Introduction In this chapter, the selling process is presented in a step-by-step manner from prospecting for the appropriate retailers to closing the sale to following up after delivery. Developing and managing sales territories is crucial to meeting the needs of the retail buyer. This information also provides valuable information for forecasting sales using past sales data. Finally, the manufacturer’s role in fulfilling the order and communicating with the sales rep are significant aspects in continuing a professional relationship with the retail buyer and the manufacturer. The methods presented in this chapter are fundamental to the art of selling. Over time, technology may enhance these practices, but the basic principles remain the same.

Making the sales presentation The fundamental selling process introduced in this chapter is based on the framework described by Moncrief and Marshall1 and Dubinsky,2 which was identified as the PSP, Personal Selling Process. The changes Moncrief and Marshall made to Dubinsky’s research reflected the changes in the economy and the development of technology. Moncrief and Marshall emphasized a focus on relationship selling, which is the foundational approach of the selling techniques presented in this chapter.3 The steps discussed here incorporate modifications to the basic model to more directly apply to the wholesale selling process of fashion merchandise.

Tens steps of the wholesale selling presentation Futrell added three steps to the research of Moncrief and Marshal creating a ten-step

process for selling any product or service, which he claims can increase the possibility of a successful sale.4 This method works equally well for traditional selling as for the fashion wholesale selling process. On occasion, a step might be skipped. In general, however, adherence to these steps ensures clear communication and less chance of omitting pertinent information. The ten steps in the apparel wholesale selling process are illustrated in Figure 4.2.

Step 1: Prospecting The first step in the selling process is prospecting. It is the lifeblood of sales because it provides for the

Prospecting Preapproach Approach Sales Presentation Trial Close Determine Objections Meet Objections Trial Close Close Follow-up Figure 4.2  Ten steps in the fashion wholesale selling process.

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continuous growth of the customer base. Prospecting identifies potential customers. In other industries, a prospect may be referred to as a lead. The first step in the selling process is prospecting. It is the lifeblood of sales because it provides for the continuous growth of the customer base. A prospect in the context of wholesale fashion merchandise is a retail store. The store becomes a “hot” prospect after the sales rep has gone through the process of identifying or qualifying the prospect as a potential customer. This process also involves the matching of the merchandise offering to the demographics and psychographics of the store’s image and ultimate consumer. In the corporate environment, a dedicated prospecting team may be utilized to better use the skills of the sales rep in meeting the needs of current customers. However, independent sales reps must do their own prospecting. This rep will use proactive strategies such as a cold canvassing, prospect lists, referrals, e-prospecting, and trade shows. Cold canvassing involves contacting a retail buyer without an introduction or being announced. It could mean walking into a store that looks like it fits the merchandise’s target market customer or making a phone call to a store that seems to be a good fit. Prospect lists come from companies that compile lists of customers by type that can be used for cold calling, such as D & B Hoovers. Specific lists might give the contact details for junior fashion retail stores in Colorado, for example. These lists are for purchase and are priced either as a group of customers or per individual lead.

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Referrals may come from other wholesale sales reps or existing retail accounts. Occasionally, a sales rep may refer a store buyer to a sales rep who carries a sought-after product or price point. This emphasizes the necessity for wholesale sales reps to have congenial relationships with each other. Reps need not be competitive but can help each other in this way. Networking, with either other sales reps or with retail store buyers, is another method to gain referrals and to find prospects that may ultimately become new customers. A basic, but still effective, method to accomplish e-prospecting is through the online Yellow Pages listings. With the help of the internet, you can search any city to find prospects. A more contemporary method is LinkedIn, where you have access to people’s names and a target contact person. The best scenario for prospecting new accounts is at a trade show. Fashion trade shows attract retail store buyers who are looking for new merchandise, which may mean they are looking for new vendors. Interested buyers will find your booth just as orphaned customers will. Orphaned customers are those buyers who have previously bought within the same merchandise category, but, for whatever reason, are no longer purchasing from their previous vendor. These buyers are looking for what you are selling.

Step 2: Preapproach The preapproach is the process of planning how to make a prospect into a customer. This planning stage is necessary because it builds the rep’s self-confidence, reduces nervousness, and it demonstrates goodwill and professionalism by showing the buyer that

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you care enough about the store to be prepared.

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Customer profile To better know the retailer and their business, you need to develop a customer profile. The better you know the store, the better prepared you will be. To better know the retailer and their business, you need to develop a customer profile. The better you know the store, the better prepared you will be. ●●

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Who makes the buying decision? Presumably, it is the retail buyer. However, the large retail store chains tend to be more structured with several layers of management. If this is the case, the retail buyer is only the first level. Purchases may need the approval of a merchandise or store manager. What competitors does the store carry? Retail stores carry a variety of merchandise, and most likely they already carry the merchandise category you sell. It is imperative that you know what your competitors are doing so that you can identify what your vendors do better. This is called the competitive advantage. Perhaps, the competition offers a limited number of colors, and your vendor has twenty-one colors to choose from. That’s your competitive advantage. Or perhaps your competition has lower prices, but your vendor offers a higher quality fabrication and/ or better garment construction. That is your competitive advantage. By knowing what the competition is doing, you will be able to identify what your competitive advantage is. That’s a major selling point when it comes to the sales presentation.

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What is the retailer’s history? How long have they been in business? How many stores do they have? Where are their stores located? The answers to these questions can be talking points during your presentation. Remember, your preparation shows professionalism and a sincere interest in the retailer and its business. What are the store’s terms? The smaller retail stores will abide by the terms set forth by the vendor the sales rep represents. However, larger chain store operations, like Macy’s, for example, have a set of terms that they adhere to with every purchase and every vendor. These terms refer to discounts, payments, and delivery.

Planning the sales call The next steps in the preapproach are the actual planning for the sales call. First is determining the sales call objective. ●●

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What am I going to this store for? The obvious answer is to get an order. But in relationship selling, it goes deeper than that. It is the desire to help make the store’s business better. What need can I serve? You previously identified the store’s needs. Of the vendors you represent, what merchandise can fulfill that need. For example, perhaps the store’s need is to develop an accessories section. If you are an accessories rep, you are well equipped to address that need. What products are best? What specific styles will best satisfy the need while supporting the store’s image? This decision may also be based on price. Because you have

THE WHOLESALE FASHION SELLING PROCESS

created a customer profile, you know what price points they carry. Once you’ve answered these questions, you have planned what merchandise you will show in your sales presentation.

Developing an individualized sales presentation The last phase of the preapproach is developing a sales presentation tailored to the individual store. This is where the previous step of building a customer profile provides the necessary information to customize your sales presentation. You’ve studied the store image, the merchandise carried, and the price points of the merchandise. For example, the store might cater to a budget junior. This means the store image attracts a young female who is money conscious.

Step 3: Approach After the preapproach, it is time to set up the presentation. For all your sales calls, it is necessary to make an appointment. The only exception is a cold call. Once you have secured an appointed time and place, you will meet the prospect and begin the individualized sales presentation you have planned. Futrell suggests several methods, three of which are appropriate in selling fashion.5 Carefully select which one is most appropriate for you and your customer.

Memorized sales presentation This method assumes that the product will stimulate the need. If you have memorized what you will say, then you can be assured of a well-planned presentation. The drawback to this approach is that it is usually one-way communication. It leaves little room for buyer questions or feedback.

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Formula sales presentation The formula method ensures that all information will be presented logically. A sales rep has quite a bit of information to provide to the buyer making this type of presentation one of the best for fashion selling. The flow allows for reasonable seller–buyer interaction and a smooth handling of anticipated objections. Need–satisfaction presentation This flexible and interactive method is the most creative form of sales presentation. It starts with a probing question, which is meant to reveal the need. The need–development phase is where the buyer does most of the talking by explaining the need. Next, the sales rep restates that need to clarification and understanding, which is followed by the need–fulfillment phase where the sales rep shows which products will satisfy the buyer’s need. Step 4: Sales Presentation Once all the planning and preparation are done, it is time to meet with the retail buyer and deliver the sales presentation. The place in which the presentation is made varies. It could be in a showroom, at a trade show, or at the buyer’s store. You may have a table upon which to lay the merchandise, or you may only have the floor. This is where the benefit of preparation comes into play. Regardless of where you present, you already know what you plan to say, which will make any environment easier to deal with.

Greeting You will first greet the buyer with a smile, eye contact, and a handshake (or other appropriate form of acknowledgment). After the buyer is seated and comfortable, you begin your presentation. Assuming

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Figure 4.3  The presentation always begins with a greeting. Handshakes are customary, but not a necessity. Photograph by Ryan J Lane, courtesy of Getty Images.

the buyer has no previous experience with the brand, you give a summary about the company. This can include the history, the sales success, the company’s target market, and about the current collection. This should be very brief, only 20 to 30 seconds. At this point, it is advisable to ask the buyer if she is looking for anything in particular. Sometimes the buyer will need “immediates.” This is a type of merchandise that is already in inventory and can be shipped to the store within a week.

TERMS OF SALE Payment terms Shipping FOB Delivery date(s) Minimum order Size range Colorways Fabrications

Line sheet Next, you place the line sheet in front of the buyer. The line sheet contains all the important information about the terms of sale, including line drawings or photographs of the merchandise and style numbers. The terms of sale are specific information that will aid the buyer

in making a purchase decision, including payment terms, shipping FOB, delivery date(s), minimum order, size range, colorways, and fabrications. A sample line sheet is shown in Figure 4.4.

THE WHOLESALE FASHION SELLING PROCESS

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Figure 4.4  Line sheets have important information that is necessary for making buying decisions. The buyer will often take the line sheet to refer to after the sales presentation. Adapted from Line sheet created by Talia Gonzalez, 2020.

It is a good practice to go over the terms of sale before making your presentation in case there is a point that the store is unable to comply. For example, if the minimum order is $2,000, perhaps the store cannot place an order that large. At that point, the presentation may be over. Or, it may be possible to negotiate with the buyer. Another example might be the delivery date is too far in the future, and the buyer needs delivery sooner. Some companies choose to assemble their products in a group for sale at one price. These are called pre-packs, and they are a predetermined quantity of one style in a given size ratio. For example, a pre-pack of t-shirts may consist of six

pieces which might be distributed by the sizes two Smalls, two Mediums, and two Larges. This could be a problem if the store caters to mostly small customers and very few larges. These constraints may end the presentation. It is better for you to know these potential roadblocks before you have taken the time to make your presentation. If everything is acceptable, this is a good time to see if the buyer has any questions before you proceed with the line presentation.

Presentation As you present the merchandise, you want to be as thorough as possible in

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giving the merchandise details. The sizing was established on the line sheet; that does not need to be repeated. However, the style number and the wholesale price are unique to each item presented. You must orally give that information as you show the garment. You can then point out what colors the style comes in in case the color palette does not apply to every style. Then point out what is unique or special about the item. The language you use paints a mental picture of the garment’s details. Does it have ruffles? Is it lined? Does it have a unique type of closing? These are the selling features. Your description differentiates this item from any other item sold by another manufacturer. Before you proceed to the next style, place the garment in front of the buyer so that she can touch the fabric and examine the details. The objective is to give the buyer the necessary information in three modalities: seeing (visual), hearing (auditory), and feeling (kinesthetic). The objective is to give the buyer the necessary information in three modalities: seeing (visual), hearing (auditory), and feeling (kinesthetic). It may be appropriate to indicate when a style is a “best seller.” You will be able to determine this as a result of working with other buyers and obtaining feedback on what is “checking,” in other words, what is selling well in the stores. Do not, however, say this if it is not true. To gain the trust of the buyer, you should only speak truthfully. If you do not, the buyer will remember you and never buy from you again!

Step 5: Trial Close After you have presented several styles, it is time for a trial close. This is a pause in the presentation to get feedback from

the buyer. You do not ask for an order as the word “close” might suggest. Instead, you are attempting to reach agreement. Phrases that can be used are, “Do you like what you’re seeing?”; “Are these the styles you’re looking for?”; or “What do you think so far?” You want the buyer to tell you which styles are right for the store and which ones are not. Whatever the buyer does not like, remove from in front of her. Keep the styles the buyer likes in front of her.

Step 6: Determine Objections The trial close may bring up objections. It is crucial that you address the buyer’s concern using good communication skills. Objections indicate opposition or resistance. Therefore, you must plan to handle the concern as it arises. Listen to what the buyer says, make sure you understand the concern, and respond warmly and positively.

Step 7: Meet Objections An example of an objection might be the “no-need” objection. Here, the buyer is saying, “We’re happy with what we’re already carrying and don’t need anything else.” Your possible response could be: “What do you like most about what you already have?” or “If we could meet that (price, delivery, whatever the object pertains to) would you give us a try?” Another example of an objection is the “no-open-to-buy” objection. Open-to-buy, also known as OTB, refers to the amount of money the buyer has available to spend on merchandise for a given time period, usually a month. Your possible response could be:

THE WHOLESALE FASHION SELLING PROCESS

“Let’s try a small test order, and you specify the ship date” or “When would be a better time? I’ll leave you with the line sheet and make notes of the styles you liked best.” Meeting objections (sample statements) No need objection

No open-to-buy objection

“What do you like most about what you already have?”

“Let’s try a small test order, and you specify the ship date.”

“If we could meet that (price, delivery, whatever the object pertains to) would you give us a try?”

“When would be a better time? I’ll leave you with the time sheet and make notes of what styles suit you best.”

With the objections answered, your next statement might be: “Does that answer your concern?” or “That solves the problem, doesn’t it?” or “With that out of the way, are we ready to proceed?” After the objections are answered, you are free to proceed with the presentation.

Step 8: Trial Close Yes, another one. In fact, if you have fifty pieces to present, it would be advisable to have five to eight trial closes. The point is to not let merchandise pile up in front of the buyer before you check to

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see what she likes or does not like. Each trial close should only address the items that you have shown since the last trial close. By reviewing the items periodically, you prevent having to go over every item in the line at the end. This weeding out process will be a big advantage when you get to the end of your presentation. After each trial close, you proceed as before with your presentation until you reach the last piece in the line. At this point, you do one last trial close to determine which of the last few pieces the buyer likes. And, as always, remove the items the buyer does not like, leaving only the ones that she likes in front of her.

Step 9: Close Immediately after your last trial close is the close. You have shown all of the styles in the line, pointed out the selling features of each style, and answered all the objections. It is time to ask for the order. And here is the advantage of leaving the styles the buyer likes in front of her. Everything she likes is in front of her. And your statement can be as simple as “You seem to like all of these styles. Let’s write up an order.” See Figure 4.5 for a sample of an order form. At this point, stop selling. The buyer has made a decision. There is no need to keep selling. As the sales rep, you fill out the order form. You will naturally ask questions concerning sizes, colors, and quantities, but there is no need to sell anymore. The buyer will “leave paper” which is an expression indicating that a sales order has been written and left with the sales rep. The order can then be sent to the manufacturer to be filled. The manner in which it is sent differs depending upon the manufacturer. Some will have you phone in the order, others will have you fax it, others may want it mailed, and still others

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Sales Rep’s Name Rep’s Company Name

Sales Order

Phone Number Email Address Mailing Address/Physical Location City, State, Zip Code

Vendor: DATE: BILL TO: Store Name:

SHIP TO:

Address:

Store Name:

City, State, Zip:

Address:

Phone:

City, State, Zip:

Email:

PO#:

Order Date

Style #

Sales Rep

Description

Payment Terms

Size

Shipping Terms

Color

Total # of Pieces:

Qty.

Ship VIA

Completion Date

Unit Price

Extension

Order total:

Buyer: Buyer Signature: Special Instructions:

Figure 4.5  The order form has space to record specific information pertaining to the merchandise the retail buyer has selected, such as style numbers, description, colors, sizes, and quantities. Billing and shipping information is also included on the form. Adapted from Sales Order Form created by Courtney Davila, 2020.

THE WHOLESALE FASHION SELLING PROCESS

may have proprietary order entry software. Those details are covered in your sales rep agreement.

Step 10: Follow-up The sales rep’s job is not done when the order is written. The follow-up activities are equally as important as the sales presentation. The follow-up is what defines exceptional sales reps. These activities continue to build the relationship with the buyer and continue to meet the customer’s needs. The sales rep’s job is not done when the order is written. The follow-up activities are equally as important as the sales presentation. Periodic phone calls are an example of follow-up activity. A week after delivery, the sales rep could call the buyer to see if the shipment arrived “okay.” At the same time, you can ask how the merchandise is checking. If they are selling well, this is your opportunity to ask if the buyer would like to place a re-order. With one phone call, you can strengthen the relationship with the buyer by touching base and potentially increase your income at the same time. When making that follow-up phone call, be prepared to field complaints or solve problems if something is wrong as well as taking re-orders. The point is to make contact with the buyer, which helps to maintain the relationship.

Negotiation techniques As a sales rep, you need to be prepared for the possibility of negotiating. You may never know it is coming until it happens. Unless the sales rep has been given the authority to negotiate any deviation from the norm, do not enter into the discussion without consulting with the company. A representative of the company, the

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sales rep’s immediate supervisor or sales manager, must approve any concessions. Negotiating is meant to be a win-win situation: the buyer gets what they wanted and the sales rep gets the sale and secures the account. Occasionally, at the end of a sales presentation, the buyer may ask for special consideration. This request may be in the form of a price reduction, free shipping, or extended payment terms. The process of negotiating is a back-andforth conversation, which is meant to be a friendly exchange. A request is made, you will counter with an alternative, to which the buyer may make another offer. And eventually, a settlement is reached. It is of the utmost importance that you know your limits. On a price reduction negotiation, know the bottom line, in other words, how low can you go on price. Negotiating is meant to be a win-win situation: the buyer gets what they wanted and the sales rep gets the sale and secures the account. In most cases, whatever deal is reached, realize that it will be ongoing.

Sales territories A sales territory is a group of customers or a geographic area assigned to a sales rep. It contains present and potential customers. It may or may not have geographic boundaries. It is customary for independent sales reps to have a geographical territory such as the upper Midwest, which would further be defined by specific states. On the other hand, a corporate sales rep may be assigned a certain type of retail store. For example, a shoe rep may have the shoe department of major department stores as her territory, whereas another rep may have stores that only sell shoes as his territory.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Developing territorial sales plan As an independent sales rep or a sales manager, one key to success is developing a territorial sales plan. The reason for planning is to set goals and create strategies that set the course for the coming year. The plan is a guideline for how business will be conducted. It is a flexible working document that can be adjusted as the year progresses, pending unexpected events.

Six elements of developing a territorial sales plan Business planning is an important and common task. Without planning, you are counting on sheer luck to get you to a desirable outcome. As a corporate rep, lots of the planning is done for you. Your sales quota is determined by the sales manager, your selling schedule is determined by your sales manager or in coordination with your sales manager, and you are left to implement the plan. However, an independent rep is an entrepreneur, which means that all of the planning falls to the sales rep. Futrell refers to steps in developing a strategic plan for a territory,6 which have been revised into the following six elements.

Developing a territorial sales plan 1. Set the sales rep’s sales goal 2. Account analysis 3. Set account objectives ad sales goals 4. Territory-time allocation 5. Routing 6. Scheduling

Element #1: Set the sales rep’s sales goal All sales reps need a plan for achieving their sales goals. For a corporate rep, the vendor’s sales manager sets the goals, which are commonly referred to as a sales quota. Since the corporate rep is an employee, the sales quota is a requirement, the creation of which is coordinated between the sales rep and the sales manager. For the independent rep, a sales goal is an expectation that may be requested by the manufacturer, but the rep works out on her own. Successful independent sales reps will construct sales goals and forecasting plans as a desirable tool to ensure attainment of the goal. Element #2: Account analysis An account analysis examines the manner in which business with each retail store account will be managed. Each prospect or customer is analyzed to estimate their sales potential. There are two approaches for this analysis: the undifferentiated selling approach and the account segmentation approach. The undifferentiated approach assumes that all accounts in the territory are similar. Hence, the same selling strategy is used for all. A more effective approach, however, is account segmentation. The account segmentation approach assumes that all accounts are different, therefore each needing a different selling strategy. So, the sales rep develops sales objectives based on the overall sales and the sales of each product for each customer. Based on Futrell’s ELMS system,7 an excellent method of account segmentation is an ELMS strategy. This technique divides all customers into four sizes of accounts based on the dollar amount of orders placed: most profitable, moderately profitable, somewhat

THE WHOLESALE FASHION SELLING PROCESS

profitable, and least profitable. The most profitable account are the key accounts. Those stores place the largest orders every year. To lose a key account would substantially affect territory sales. The least profitable accounts place the smallest orders and are unlikely to change their buying practices. The moderately and somewhat profitable accounts fall in between the most profitable and the least profitable account. The accounts are further segmented into ELMS. E stands for Extra large, L is for Large, M is for Medium, and S is for Small. An example of ELMS segmentation is shown in Table 4.1. The next step in the ELMS account segmentation strategy is to determine how many customers fall into each segment and what percentage they are of the total. An example is shown in Table 4.2. An interesting factor that tends to occur in account segmentation is the Pareto Principle, also known as the “80/20 rule” (see Figure 4.6) Basically, the principle Table 4.1  Using the ELMS strategy, customer accounts are divided into four groups based on their annual order volume. This segmentation helps the sales rep determine what and how much resources to dedicate to each type of account. ELMS segmentation by annual sales Customer size

Annual sales

Extra large

Over $50,000

Large

$25,000–$50,000

Medium

$10,000–$25,000

Small

Under $10,000

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Table 4.2  Further segmentation by the number of customer accounts and the percentage each segment represents aids in determining sales effort. ELMS segmentation by number and percentage of accounts Customer Annual # of Products size sales ($) accounts (%) Extra large

Over 50,000

5

5.6

Large

25,000– 50,000

13

14.4

Medium

10,000– 25,000

23

25.6

Small

Under 10,000

49

54.4

TOTALS 90

100

The Pareto Principle (aka the 80/20 rule) “For many events, roughly 80% of the effects from 20% of the causes.” - Pareto

Effort 20% 80%

Results 80% 20%

Therefore 20% of the effort produces 80% of the results but the last 20% of the results consumes 80% of the effort.

Figure 4.6  The Pareto Principle (aka the 80/20 rule) Adapted from Yu-Han Chao blog, “4.15 Pareto Principle = 80/20 Rule, April 25, 2009. http://yuhanchao.blogspot.com/2019/04/415pareto-principle-8020-rule.html

suggests that 80 percent of sales come from 20 percent of accounts. The Extra large and Large accounts are the smallest in number but produce the most in sales.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

The opposite premise is that 20 percent of sales come from 80 percent of accounts. That 20 percent would constitute the Medium and Small accounts. The Pareto Principle is not always accurate, but the general assumption is, and it is an interesting concept to keep in mind.

Element #4: Territory-time allocation This has to do with the amount of time spent traveling around the territory and calling on accounts. Territory-time considerations are: ●●

●●

An interesting factor that tends to occur in account segmentation is the Pareto Principle, also known as the “80/20 rule.” Basically, the principle suggests that 80 percent of sales come from 20 percent of accounts. Further, the selling strategies in the ELMS segmentation approach suggest that different types of customers require different strategies. Larger accounts should receive top priority, such as booking early appointments during Market Week or receiving early delivery dates for new merchandise. More resources and personal attention should be invested in these key accounts, perhaps by providing them with samples when needed or occasionally taking the buyer to lunch.

Element #3: Set account objectives and sales goals An example of this might be that ABC store placed orders last year totaling $10,000. This year, we want to increase the sales by 5 percent. So, the sales goal for ABC store will be $10,500. Other examples of account objectives might be: ●●

●●

●●

●●

Increasing product distribution to prospects Increasing product assortment with current customers Increasing the number of sales calls per day, or Increasing the number of new accounts for the year.

The number of accounts in the territory The number of sales calls made to customers

●●

The time required for each sales call

●●

The frequency of each customer call

●●

The travel time around the territory

●●

Non-selling time

●●

The return on investment.

A territory can be quite a large area. It may be necessary to break it down into smaller geographic sections. Then, the sales rep can make travel plans to maximize coverage and efficiency. Typically, a sales rep invests time in direct proportion to the sales potential of the account. This is known as the “sales response function.” The implication is that the sales rep’s effort is in direct proportion to the value of the sales. Using the information from Tables 4.1 and 4.2, let us determine the time allocation for the accounts listed. Assuming that the Es and Ls are the most important, we will plan to contact them once a month. The Ms provide a substantial amount of sales, so we will contact them once a month, too. Orders from the Ss are small; therefore, we will call on them once every three months. Based on this time allocation plan, the number of calls per customer size would look like Table 4.3. Viewed on an annual basis, the time allocation would look like Table 4.4. Without question, every customer needs a face-to-face visit every season. With five seasons per year and ninety contacts

THE WHOLESALE FASHION SELLING PROCESS

Table 4.3  On a monthly basis, the Extra large and Large accounts require more time and attention due to the volume of orders placed. The Small accounts are not as profitable and require less time and attention. Planned number of calls per month based on ELMS Customer size

Month

Extra large

1

Large

1

Medium

1

Small

1/3*

*one call every three months

Table 4.4  Viewed annually, the EMLS strategy helps the sales rep plan the number of sales calls that are needed to provide exceptional service to the various customer sizes. Planned number of calls per year based on ELMS Customer size

Month

Year

Extra large

1

12

Large

1

12

Medium

1

12

Small

1/3*

4

*one call every three months

in the customer base, that is 450 sales calls per year or 1.7 face-to-face meetings per day. Market Weeks and trade shows accommodate many seasonal sales calls because most buyers will initiate the meeting themselves. However, there are still those customer accounts that do not

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or cannot attend Market Weeks or trade shows. For those accounts, the sales rep must go to the store’s location to meet with the buyer. This is when territory management becomes crucial.

Element #5: Routing and Element #6: Scheduling Planning your workday and managing your time and customers are key to your success. And managing your time and territory is the most important factor in selling. For those accounts that do not or cannot attend Market Weeks, these last two elements determine how these accounts will be serviced. The final pieces of developing a territorial sales plan, routing and scheduling, go hand in hand. It is impractical to do one without the other. Routing consists of planning a travel pattern around a select section of a rep’s territory. Scheduling refers to establishing a fixed time (say an hour) for making the sale call. In a corporate environment, management may determine the routing for a rep. The purpose of routing is to keep track of the sales rep and the rep’s activities. Whether for a corporate rep or an independent rep, routing improves territory coverage and minimizes wasted time. Routing is time-consuming, so plan carefully.

Forecasting sales Being able to predict sales is an art and a science. For the fashion business, sales forecasting provides a guestimate of future revenues and how that relates to projected inventory needs and workforce management. Wholesale sales reps need to be skilled in sales forecasting, too, especially the independent reps. The purpose of forecasting

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sales is to give you a good idea of what can be expected in the near future,8 usually a year. Designing strategies for meeting sales goals is a primary reason for sales forecasting in addition to anticipating income amounts and flows.

Table 4.5  Sales forecast worksheet Annual sales forecast Jan*

Feb**

Mar*

% of sales

12

12

12

Use of data in forecasting

Plan

$144,000 $144,000 $144,000

Sales forecasting is a method of predicting a company’s future sales.9 The sales data from last year is used as a basis to predict potential sales for this year. This is known as historical forecasting.10 Taking into consideration current economic factors and financial trends in the fashion industry increases the overall accuracy of the model. These forecasts generally are developed on a monthly, quarterly, or annual basis.

Actual

The fashion industry runs in cycles, known as seasons, which creates sales peaks during certain times of the year. Each season is launched with a renewed look, which generates demand and drives sales up. When a sales rep receives a sales goal for the year, the first task is to predict the feasibility of attaining that goal using sales forecasting tools. A spreadsheet is your best friend to accomplishing this task. The fashion industry runs in cycles, known as seasons, which creates sales peaks during certain times of the year. Each season is launched with a renewed look, which generates demand and drives sales up. Let’s use an example of how to create a realistic sales forecast for a wholesale fashion sales rep. After each month, the actual sales would be entered in the blank row (see Table 4.5) to be compared and/or adjusted based on planned sales.

Apr

May

Jun*

% of sales

6

3

15

Plan

$72,000

$36,000

$180,000

Actual Jul

Aug* **

Sep

% of sales

12

12

12

Plan

$72,000

$120,000 $72,000

Actual

Oct

Nov*

Dec

Sales Goal

% of sales

12

12

12

100%

Plan

$60,000 $120,000 $26,000 $1,200,000

Actual *market month **major trade show

Ideally, a spreadsheet shows the months of the year across the top with the planned percentages of sales on the next horizontal row. These percentages are generated from the Market Weeks and trade shows occurring in those months. With January, March, June, August, and November as

THE WHOLESALE FASHION SELLING PROCESS

market months, a surge in sales can be anticipated. With each successive month following a market month, sales steadily decline until the next market month, where there is another peak. The higher sales percentages for February and August are due to MAGIC, a major trade show. For the sales goal of $1,200,000, the percentages are applied to render the monthly sales goals. January represents 12 percent of annual sales, which is $144,000, and so on. The last horizontal row is for recording actual sales. If in January, actual sales are $150,000, then February’s sales could be decreased to $138,000. Or if January’s actual sales are $140,000, then February’s sales would need to be increased to $148,000. Thus, the sales forecast becomes a fluid tool that is part of the sales rep’s monthly plan.

The manufacturer’s role As already mentioned, once the order is written, the sales rep’s job continues. The order is out of your hands, but you still need to know what happens next. Even though the manufacturer is in charge of fulfilling the order, the sales rep’s intervention may be needed during the process.

Key points of communication There are several key points of communication between the manufacturer and the sales rep. The first point of contact in confirmation of receipt of the order. The next points are when the order is due to be shipped. Shipping schedules are usually determined by the factory. The sales reps know this information in advance. If there are any problems along the way, the sales rep must know as soon

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as possible. Prompt attention to problems keeps them from becoming a crisis. On occasion, the problem may turn into a negotiation. For example, if the order will be shipped late, the sales rep will contact the buyer for late shipment approval. If the buyer seems hesitant to approve, the sales rep may offer to pay for shipping if the original shipping terms were FOB store. Other examples might be if the manufacturer ran out of a certain color, the style has been discontinued, or the price has changed. Armed with this information, the sales rep can work with the most current information and prevent a problem that could potentially damage the vendor/ sales–rep/buyer relationship.

Communication between vendor and sales rep How does the production strategy affect the sales rep’s selling process? When making a sales presentation, one important piece of information is delivery time. If the product is made to order, the quoted delivery time needs to indicate when that will be. For example, delivery terms of A/R 4–6 weeks mean the shipment will be sent as ready sometime between four to six weeks. If the product is made to stock, the quoted delivery time can be “immediate.” However, usually there is a specific ship date, such as 5/30 (which means May 30) or 9/1 (which means Sept 1). Delivery dates can have an impact on the buyer’s decision to buy. If the products are made to order, several orders get consolidated into one cut order, fabric is cut according to cut order, the production order gets generated according to cut order. If products are made to stock, the pick ticket goes directly to the shipping department, and since merchandise was

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made in advance, the inventory is readily available, and the order is prepared for shipment.

shipment was received satisfactorily and selling well, it may be a good time to ask if a reorder is needed.

After the order is shipped, a copy of the invoice is provided to the sales rep. This copy serves as confirmation of shipment including what items were shipped. It also notifies the sales rep of the expected commission for that shipment.

This follow-up phone call is another justification for communication between the sales rep and the manufacturer. The sales rep may be unable to troubleshoot problems if there is no knowledge of the manufacturer’s operations. The sales rep must be knowledgeable about all of these processes in order to adequately service the customer.

Delivery follow-up Even after the delivery, the sales rep is still involved with the customer, ensuring buyer satisfaction. Outcomes from the rep’s follow-up phone may uncover problems with the shipment or generate a reorder. If there are complaints from the buyer, it is the sales rep’s responsibility to handle and resolve them. Possible complaints are shown in Table 4.6. If the Table 4.6  Possible buyer complaints and their meaning Complaint

Meaning

Incorrect shipment

Sent the incorrect items; items that were not ordered

Short-shipped

Invoiced for items not received

Damages

Items received were damaged; either shipped already damaged or damaged during shipment

Charge-backs

Payments to be withheld due to non-compliance with specific instructions on the purchase order or the sales order

Summary The selling process is a vital link in the supply chain of fashion merchandise from the manufacturer to the retail buyer. In this chapter, you have learned the best practices of fashion wholesale selling, which are prospecting; preapproach; approach; the sales presentation including the trial closes, determining and meeting objections, and the close; and the follow-up. The ELMS segmentation plan for developing and managing sales territories was set out along with a model for forecasting sales. Finally, communication with the manufacturer was shown to be an essential part of maintaining a professional relationship with the sales rep’s accounts.

THE WHOLESALE FASHION SELLING PROCESS

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Interview: Alexandria Merchant, Frank Lyman Design, USA Alexandria is the Sales Rep for Frank Lyman Design, a corporate (single-line) showroom located in the California Market Center in downtown Los Angeles. “Frank Lyman Design is the first corporate showroom that I have had the pleasure of working for.” She attended college to study Mass Communications but considers that her career in fashion started long before college.

What is your background? My fascination with fashion began as a child living in Burbank, California. Like most girls, I had a healthy obsession with Barbie dolls. However, I often decided that the clothes she came with just were not going to cut it. Quickly I formed a hobby of creating mini collections using scraps of fabric, candy wrappers, and any other materials I could get my hands on. Soon, Barbie was decked out in custom fashions made by nine-year-old me, and my classmates were lined up to place orders worth five dollars and under. At the time, I did not realize that this was the beginning of me leaving my footprint in this everchanging world of fashion. My retail experience spans over ten years starting as a lingerie expert at Victoria’s Secret, a denim specialist at Nordstrom, and a seasoned bridal stylist. Although my degree in Mass Communications has helped in my profession, it was my eagerness to further my education in fashion merchandising that lead to my position as a corporate sales representative.

What made you decide to become a sales rep? I didn’t choose this job; this job chose me. Being completely honest, talking about fashion comes second nature. My gift of the gab, combined with my longing to help people of all walks of life feel good about who they are and then to represent that confidence through clothing is what ultimately propelled an organic career as a sales rep. What’s a typical workday like? First things first is to brew a pot of coffee while I check emails and reply to any inquiries left unanswered from the night before. The next thing I do is go over my booking reports. Then I make appointments with clients who are missing certain seasons or “Hot Styles.” I’ll usually send out a few promotional emails, and lastly, I’ll end the day by pulling sold out items from the floor so that they aren’t mistakenly sold to a customer.

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How do you schedule your week? Paperwork? Phone calls? Working on the road? For easy accessibility, all paperwork is filed in alphabetical order. Phone calls are scheduled by the level of importance, and paperwork is filed in a chronological manner. When it comes to scheduling appointments for the road, this is typically done in accordance with the territory. A rep has a developed sales territory with established retail accounts. As a sales representative for the western region, I specifically work with accounts based in Northern and Southern California, Arizona, and Las Vegas. How do you typically present the line? Presenting the line to buyers starts with location. This can happen in the showroom, in a mutual space such as a trade show or at the client’s turf—in their clothing store. We then present the line based off season which is broken down into two groups: Fall/Winter and Spring/Summer. Each season is made up anywhere upward of four hundred pieces and then narrowed into about fifty mini collections. The mini collections are comprised of jackets, dresses, pants, and tops from the same color palette and material. When presented this way, the buyer has a better understanding of how to merchandise the clothing and also how to sell a complete head to toe look. What is your commission? In general, a sales representative can make out at 5 percent on the low end or as much as 50 percent, if the business has implemented a commission only structure. Most of my colleagues receive 14 percent commission plus a comfortable monthly salary. In literal terms, this means that if an account placed an order

for $1,500 worth of goods for the month, 14 percent of that is $210, which would be the commission. And this is just one account. In your opinion, what’s the most ­important task that you do? The most important tasks that I do are follow-ups! Overall, people need reassurance that you care about them more than just taking their money. It is important for me to follow up with my clients not only to see how an item sold (from which I can then better assist how they buy in the future) but to see how they’re doing in general. Communication builds trust. Trust builds more business, and a solid business foundation builds longevity. Do you do trade shows? If so, who pays for the expenses? I have the great pleasure of being able to attend the WWIN tradeshow in Vegas twice a year. This organization allows designers, sales reps, and buyers to network with convenience. All expenses, including travel costs, are paid for by the company. In the long run, the tradeshows are an opportunity to attract new business and increase in sales revenue. Does Frank Lyman adhere to the traditional seasons and Market Weeks Market Week marks the kicks off for every season. There are five markets in a year which correlate to five seasons. Frank Lyman Design never fails at establishing a presence at every Market Week. What are your pre-market show promotional efforts? As a former communications major, my ideal of an effective promotional tactic is to flood any existing accounts by reaching out via voicemail, email, and mail. This

THE WHOLESALE FASHION SELLING PROCESS

looks like a combination of sending flyers, reiterating useful information, and fostering incentives for clients to stop by our booth. The worst thing someone can ever say is “no,” but my unwavering efforts generally work out in my favor.

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How has the pandemic affected your business? Like most companies, we have learned how to adapt with the times. We are currently making face masks to match some of our hottest selling pieces, and we have also become well equipped as it pertains to virtual appointments.

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Activities Outline of style presentation Once you’ve determined the brands you want to represent, it’s time to think about making a style presentation to a potential buyer. This chapter teaches you a lot about the sequence of your presentation and words you can use to communicate more effectively. Use that information to set up a sample style presentation. 1 Select one brand and five styles from that brand as the focus of your sample presentation. List those five styles. 2 Next, determine the sequencing of each style. In other words, which piece will you present first, second, third, and so on. List that sequence. These decisions form the outline for presenting those five styles. When you actually present a line, you will use more complete information as to style numbers, colors, sizes, price points, delivery dates, minimums, etc., as described earlier in this chapter. Preparation of customer account list In the Chapter 1 activity, you defined the target market for the brands you want to represent. For this activity, you will assemble a Customer Account List of retail stores. The retailers on the list could already buy your product lines or could potentially buy the lines. 1 Select twenty-five stores within a defined area. This area can be a city, a county, a state. You determine the area. 2 Assure that the store’s buyer (the buying office or company headquarters) is housed in your area.

3 List twenty-five retail stores that already carry your product line or that cater to your product’s demographic. Include the location of the retail store’s headquarters. Remember that 20 percent of your stores should be L (Large) and E (Extra large). The other 80 percent should be M (Medium) and S (Small). See earlier in this chapter for a discussion on how to determine store sizes. 4 Set up a spreadsheet that looks like the below, listing the stores in alphabetical order: Retail store’s name

Headquarters (city)

e.g. ABC Store

e.g. Los Angeles

Establishing a sales goal and sales ranges As an independent rep, your income is based on commission. This activity begins with your desired income and works backward to determine your sales goal for each size of account (retailer). 1 Establish a desired sales goal. 2 It might be easier if you decide what income you’d like to receive. Based on 10 percent commission, for example, if you want to make $75,000 per year, you would need to sell $750,000 worth of merchandise to your retail accounts.

THE WHOLESALE FASHION SELLING PROCESS

3 Next, categorize your stores as one of the following: E, L, M, or S. Create another spreadsheet that looks like this: ELMS

your Customer Account List. In this case, the Es have annual sales between $240,000 and $480,000. The Ms will have sales between $120,000 and $240,000, and so forth.

# of Accounts

E L M S Total

4 Further planning then is to establish sales ranges for each E, L, M, and S. Continue to use the $750,000 sales goal and the Pareto Principle as a guide. a Separating the Es and Ls from the Ms and Ss, let’s make the Es and Ls 80 percent of sales and the Ms and Ss 20 percent of sales. Do the math. b Within this 80 percent and 20 percent, let’s apply the Pareto Principle again. In other words, we’ll have the Es as 80 percent and the Ls 20 percent. So your spreadsheet looks like this: c Determine the sales ranges like this. Size

Total

Total

E & L/M &

Sales ranges

sales

sales ($)

S adjusted

($)

(%) E

80

Designing a line sheet The purpose of a line sheet is to provide information to the prospective buyer in a visual format. It should contain all of the information necessary for the buyer to place an order. The line sheet acts as documentation of what the buyer saw during your presentation, and the buyer may use the line sheet to make reminder notes. The line sheet should be concise and visually pleasing. You will need to work on the layout of your line sheet to find the most effective placement of all the information to be included. Refer to Figure 4.4 for guidance. What information should be on the line sheet? ●●

Primary information: {{

{{

(%) 600,000

60

240,000– 480,000

L

40

120,000– 240,000

M

20

150,000

60

{{ {{

30,000– 120,000

S

40

Totals

100

Up to 30,000

750,000

d The Pareto Principle makes the sales ranges too broad, so adjust them to be 60 percent and 40 percent. Again, do the math. e There you have the targeted sales ranges for each customer size on

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{{

A drawing, flat, or photograph of each style shown. Limit yourself to five styles for this activity. Each style needs an identifying style number or name along with the wholesale price. Size range. Colorways with the colors shown either by using Adobe Illustrator/ Photoshop, paint chips, or fabric swatches. If the colors are the same for all styles shown, this information needs to be stated only once. Fabrications. If the fabrics are the same for all styles shown, this information needs to be stated only once.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Terms of sale:

●●

{{

Delivery date(s)

{{

Payment terms

{{

Shipping FOB

{{

spreadsheet indicating your sales expectation each month, for each account, for an entire year. Based on the product category you’ve chosen, determine which market months are the most significant in terms of sales. Then, establish sales percentages per month between markets.

Minimum order (if there is no minimum, state it as such).

Sales forecasting The purpose of this activity is to establish the peak months on your sales forecast and the percentage of sales per month. It gives you practice on how to manage a sales territory to achieve the expected sales goal.

Steps: 1 For this activity, use only five of the accounts (stores) you identified for your Customer Account List. Make sure to select one account from each E, L, M, and S designation. 2 Create a fifteen-column, eight-row spreadsheet template. Enter the headings as indicated below.

Using the information from the “Establishing a sales goal and sales ranges” activity above, you will create a

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Totals

% Store

Size

3 Under “Store,” list the five stores you chose. Remember to list them in alphabetical order. 4 Under “Size,” enter the ELMS size moniker you’ve decided on. Jan

Feb

Mar

Apr

May

Jun

5 In the “Totals” column, enter the top dollar value you determined in the “Establishing a sales goals and sales ranges” activity. See the example below. Jul

Aug

Sep

Oct

Nov

Dec

Totals

% Store

Size

AAA

M

$72,000

BBB

E

$240,000

DDD

S

$15,000

HHH

L

$120,000

MMM

S

$15,000

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THE WHOLESALE FASHION SELLING PROCESS

6 In the “%” row, allocate a percentage of sales for each month based on market months. Market months represent peak sales periods, which are followed by successively lower sales until the next market month. For this activity, let’s designate January, March, June, August, and November as market months.It’s easier to look at the year in terms of quarters (January through March, April through June, July through September, and October through December). So, January, being a market month, should have a higher percentage of sales than February or March. However, March is also a market month, and there is a major trade show (MAGIC) in February. So perhaps the allocation of sales per month will be the same.

example, March and June (especially June) are traditionally big market months for Back-To-School (BTS). August is usually a lesser market because it’s a short season that specializes in glamour wear and swimwear. So, determine which market months are MOST IMPORTANT for your product line. Allocate percentages of sales for each month of the year. And remember, ●●

●●

●●

Store

The higher percentages will be market months. Each successive month following a market month will decrease in the percentage of sales.

Your sales forecast calendar may look something like this:

What’s the determining factor? The important markets for your product. For

%

The highest percentage will be the MOST IMPORTANT market month.

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

12

12

12

6

3

15

6

10

6

5

10

3

Totals 100

Size

AAA

M

$72,000

BBB

E

$240,000

DDD

S

$15,000

HHH

L

$120,000

MMM

S

$15,000

7 Now you will get down to the dollars. In this step, you will enter the dollar monthly sales goal for each store. Once you’ve established the monthly percentages, it’s a simple matter of doing the math. Using the percentage of sales for each month, calculate the dollar sale

per month based on the annual sales goal for each account. For example, if January is 12 percent of sales with an annual sales goal of $72,000, then $72,000 x.12 = $8,640 $8,640 is January’s sales goal.

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FASHION WHOLESALING: FROM MANUFACTURER TO RETAILER

Your sales (in dollars) forecast calendar may look like this: % Store

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Totals

12

12

12

6

3

15

6

10

6

5

10

3

100

8,640

8,640

4,320

2,160

10,800 4,320

7,200

4,320

3,600

7,200

2,160

Size

AAA

M

8,640

BBB

E

28,800

72,000 240,000

DDD

S

1,500

15,000

HHH

L

24,000

120,000

1,500

15,000

MMM S

8 You will continue your calculations until all stores have been assigned a monthly sales goal for each month of the year.

Notes 1 William Moncrief and Greg Marshall, “The Evolution of the Seven Steps of Selling,” Industrial Marketing Management 34, no. 1 (January 2005): 13–22, https://www-­ sciencedirect-com.proxy.library.cpp.edu/ science/article/pii/S0019850104000525 (accessed October 6, 2021). 2 Alan Dubinsky, “A Factor Analytic Study of the Personal Selling Process,” Journal of Personal Selling & Sales Management 1, no. 1 (1981): 26–33, http://web.a.ebscohost. com.proxy.library.cpp.edu/ehost/pdfviewer/ pdfviewer?vid=1&sid=576d1d36-36d2-48ac8df3-17d15a0dba55%40sdc-v-sessmgr03 (accessed October 6, 2021). 3 Moncrief and Marshall, “The Evolution of the Seven Steps.” 4 Charles Futrell, ABC’s of Relationship Selling Through Service, 8th edn. (Boston: McGraw Hill Irwin, 2005), 198. 5 Ibid. 6 Ibid. 7 Ibid. 8 Victoria Duff, “The Advantages of Sales Forecasting,” AZ Central, April 16, 2018, https://yourbusiness.azcentral.com/­ advantages-sales-forecasting-10308.html (accessed October 6, 2021). 9 Susan Ward, “How to Create a Sales Forecast,” The Balance, April 8, 2020, https:// www.thebalancesmb.com/sales-forecasting2948317 (accessed October 6, 2021).

In the real world, you would do a similar sales forecast for every account on your Customer Account List. 10 Aja Frost, “The Ultimate Guide to Sales Forecasting,” Hubspot, updated May 14, 2020, https://blog.hubspot.com/sales/ sales-forecasting (accessed October 6, 2021).

For further reading Chou, Yu-Han. “4.15. The Pareto Principle = 80/20 Rule.” April 25, 2019. https://yuhanchao. blogspot.com/search?q=pareto+principle (accessed October 6, 2021). Duff, Victoria. “The Advantages of Sales Forecasting.” AZ Central, April 16, 2018. https://yourbusiness.azcentral.com/­ advantages-sales-forecasting-10308.html (accessed October 6, 2021). Frost, Aja. “The Ultimate Guide to Sales Forecasting.” Hubspot. Updated May 14, 2020. https://blog.hubspot.com/sales/ sales-forecasting (accessed October 6, 2021). Futrell, Charles. ABC’s of Relationship Selling Through Service. 8th edn. Boston: McGraw Hill Irwin, 2005. Moncrief, William, and Greg Marshall. “The Evolution of the Seven Steps of Selling.” Industrial Marketing Management 34, no. 1 (January 2005): 13–22. https://wwwsciencedirect-com.proxy.library.cpp.edu/ science/article/pii/S0019850104000525 (accessed October 6, 2021). Ward, Susan. “How to Create a Sales Forecast.” The Balance. April 8, 2020. https://www. thebalancesmb.com/sales-forecasting-2948317 (accessed October 6, 2021).

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Trends in fashion wholesale selling

5

Chapter objectives After reading this chapter, you will be able to 1 describe the potential changes for the fashion industry brought on primarily by COVID-19, but also affected by social unrest and a failing economy 2 explore ideas in fashion market timing, digital transformation, and sustainability 3 summarize how these changes will affect fashion wholesale selling 4 discuss the future of the fashion industry based on current shifts and trends.

Figure 5.1 (facing page)  Jean-Paul Gaultier’s Haute Couture interpretation for Spring/ Summer 2020. Photograph by Peter White, courtesy of Getty Images.

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Introduction In 2020, at the time that I was writing this book, the entire world was shaken up with several challenges, unlike any previous historic event—the fashion industry was not spared. Early in that year, a health crisis in China quickly spread to the rest of the world, becoming a global pandemic. COVID-19, as the virus was named, was aggressive and deadly. With no vaccine to protect people, businesses shut down, schools closed, and the wearing of masks and social distancing became the norm. Stay-at-home orders were issued by health professionals attempting to curb the rate of infection. Nonetheless, hospitals were flooded with the sick and the dying. Along with the social isolation came an economic crisis. On a shut-down status, people were not going to stores to buy clothes, to restaurants to dine out, to beauty shops, nail salons, or barbershops. Only essential services remained open. The result was widespread unemployment and economic distress. At the same time, the tragic death of a Black man at the hands of a Minneapolis police officer in the USA enraged people of all races. This act of insult and injustice was more than people could endure. There were several days of violence against property with the destruction and looting of stores. However, the most impactful occurrences were the worldwide protests against racial inequality. In just six months, the world as we knew it changed. It became obvious that nothing would ever be the same. Since this chapter is about the future and the future is so uncertain due to the scientific, social, political, and economic duress of the times, the sole speculation presented focuses on the current conversations and

their implications. No one really knows for sure; however, my goal here is to synthesize the dominant conversations about the fashion industry’s future. As such, I have included a number of discussion questions to prompt your own thinking as to what is next in the fashion industry. The traditional methods presented throughout the book are facing the implementation of technological advances as well as new ways of thinking about how the fashion industry should emerge from unforeseen challenges. Nonetheless, the basic practices persist, albeit in a more updated manner.

The changing environment for the fashion industry Early in 2020, life came to a screeching halt. Fashion business trends predicted at the beginning of the year no longer applied. They were replaced by unexpected trends such as “The Zoom Shirt” (see Figure 5.2). The concept of casualization emerged as people’s wardrobes and behavior became more relaxed. With closed retail stores, merchandise simply sat dormant. Face-toface meetings were replaced with virtual meeting platforms. Those businesses that could accommodate online sales through their websites experienced more business than anticipated, contributing to supply chain issues. Traditional buyer–seller relationships were challenged as fashion manufacturers, wholesale sales reps, and retailers scrambled to re-envision a new normal. As the fashion industry grappled with how to conduct business during a pandemic, several ideas emerged. With the shutdown, designers and company executives had time to think about necessary business practice changes. European designers

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Figure 5.2  Zoom meetings require dressing only from the waist up, leading to the trend called the “Zoom Shirt.” Courtesy of Getty Images, pixelfit.

complained about the pressure to meet fashion market deadlines. Industry partners were forced to expand their digital platforms to do business. The new fashion consumer reiterated their desire for sustainability. Many of these trends were already rumbling at the beginning of 2020. However, the pandemic was like rocket fuel, accelerating the development of them.1 Many of these trends were already rumbling at the beginning of 2020. However, the pandemic was like rocket fuel, accelerating the development of them.

Fashion market timing Since the beginning of the fashion industry in the early 1900s, the calendar for premiering new styles was the

same—traditional couture markets were twice a year, Spring/Summer and Fall/Winter; and ready-to-wear Market Weeks were five times a year: Spring, Summer, Fall I, Fall II, and Holiday/Resort. For designers and manufacturers alike, it was a stressful race that required time, resources, and energy to get the collections and lines ready to meet the deadlines. If a designer, manufacturer, or brand missed showing a new collection or a new line, it could raise doubt in the buyer’s mind as to the viability of the company. So, the industry was in a constant scramble to produce the next new style. Of course, not everyone agreed with upholding such a tradition, and 2020 provided an unprecedented catalyst to critique the traditional calendar. For example, Anthony

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Figure 5.3  Dries Van Noten proposed moving “the autumn/winter season back to winter … and the spring/summer season back to summer … ” Courtesy of Gamma-Rapho via Getty Images, Victor VIRGILE.

Vaccarello, Creative Director at YSL, noted that the reasoning behind following a strict fashion calendar has lost its meaning. Everything about the fashion industry has changed.2 Other designers agreed. The Belgian designer Dries Van Noten (Figure 5.3) wrote an open letter calling for a fundamental reassessment of the fashion industry’s operations.3 The letter was endorsed by several fashion leaders in both retail and design. Two issues were underscored for needed change: the timing of deliveries and discounts. The letter proposed moving the Autumn/Winter season back to August through January and the Spring/Summer season back to February through July. This move would allow for discounts to be taken in the same season and make it

possible to capture more full-price ­selling.4 The end result would be increased profit margins. Francesca Bellettini, CEO at YSL, supported the newly proposed calendar5 since retail stores and production facilities had been closed for some time, which caused the current collections to be pushed into a buy-now-wear-now scenario.

Designer brands are rethinking the ­fashion week calendar Michael Kors I’ve “always believed the calendar needed a facelift.” “It’s exciting for me to see the open dialogue … about ways in which we can slow down the process and improve the way we work.” “ … it’s time for a new approach for a new era” (Penrose).

TRENDS IN FASHION WHOLESALE SELLING

Giorgio Armani They postponed June shows and plan to present both his men’s and women’s collections in September (Penrose) and later will be going all-digital (Fashionista). Alexander Wang Since 2018, Alexander Wang has been presenting two season-less collections a year, in June and December (Fashionista). Marc Jacobs He had to halt production because of fabric delays from Italy. “Until we discover a new way to work – until we create a new way to work – or a new goal to work towards, we really have nothing to do” (Penrose). Gucci They’re “ready to ditch the worn-out ritual of seasonalities and shows to regain new cadence.” The old terms (such as “cruise” and “pre-fall”) “do not stimulate creativity” (Penrose). Saint Laurent They announced in April that it will no longer follow the traditional two shows a year model … [and] will instead “take control of its pace and reshape its schedule” (Penrose). “Now more than ever, the brand will lead its own rhythm, legitimating the value of time and connecting with people globally by getting closer to them in their own space and lives” (Penrose). Ralph Lauren It was announced that they would debut autumn in April “breaking with the see-now-buy-now structure it has been following for several seasons” (Fashionista).6

At the same time, a joint message from the Council of Fashion Designers of American (CFDA) and the British Fashion Council (BFC) urged designers,

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manufacturers, and retailers to give up the fast pace currently in practice and to slow down.7 Further, the organizations encouraged makers to gauge their deliveries closer to customer need, in other words, closer to the season for which it was designed.8 This move would prevent the production of excess inventory, which often ended up in a landfill and to deliver fashions to consumers closer to need. According to Van Noten, these changes would permit the industry to operate more responsibly with its customers, the planet, and the fashion public. They would also allow the creativity and allure fashion brings to have a far-reaching influence.9 McKinsey & Company called for several changes to the fashion industry. Key among them was in-season retail and seasonless design. McKinsey & Company called for several changes to the fashion industry. Key among them was in-season retail and seasonless design.10 Francesca Bellettini, CEO at YSL, said as a result of stores being closed and the waning desirability of the clothes, the industry was turning toward the concept of buy-now-wear-now.11 Business as usual was not an option.

Effect on fashion wholesale selling Despite the large overall effect of changing the fashion calendar, such shifts would have only a limited effect on fashion wholesale selling. The process of presentations and transactions would remain the same, with the exception that the manufacturer’s inventory would be preplanned and in stock due to the decreased delivery time. Fashion manufacturers would need to be diligent in the level of consumer demand. Once the styles were produced, the selling season

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would be underway, and there would be no time to produce more. An interesting side benefit would be similar to Zara’s artificial scarcity model, where there would a limited supply and consumers would scramble to be first to buy it. There is potential for high gross margins in this scenario.

Questions to ponder: Market timing With Europe possibly changing its fashion calendar, will the USA follow suit? Will all the couture shows eventually go virtual? Will avatars put runway models out of work? How will buyers coordinate their trips/ purchases with no regular schedule? How will a shift in the fashion calendar affect the “discount mindset”12of the decades-long, bargain shopping consumer when there are no longer end-of-month and inventory clearance sales?

Digital transformation Beyond the changes that 2020 might bring to the fashion calendar, we will now examine what this year meant for evolving our selling practices. The future of the fashion business is digital. COVID-19 has forced a digital transformation.13 Consumers actually paved the way to this new era of buying/selling. With Millennials so closely connected to their devices, their choice of shopping locations was digital. COVID-19 brought on a movement already in motion: the future of

shopping is e-commerce.14 According to Forbes magazine, there has been a 146 percent increase in online retail orders in North America since the onset of the pandemic.15 The future of the fashion business is digital. With businesses shut down, communications and transactions were handled using technology-based platforms. Meetings were conducted using digital conference tools because no face-to-face contact was allowed. In the wholesale selling environment, personal sales presentations were out of the question. We should consider then: Will the pandemic be the cause for fashion to move towards a more modern and mindful future?16

Direct-to-consumer (DTC) Fashion consumers were ahead of the crisis by gradually becoming fervent online shoppers. The shift to digital shopping was already well underway and moving towards experiences that didn’t include stores.17 In the absence of physical store shopping, some manufacturers and retailers have gone direct to the consumer to capture lost sales. What the pandemic did was to accelerate trends that were already in motion. Fashion consumers were ahead of the crisis by gradually becoming fervent online shoppers. Transitioning from showrooming to e-commerce on mobile apps, the new fashion consumer was ready for the changes brought on by humanitarian, economic, and social chaos. Being attracted to technology, the youth had already embraced the virtual world. The fashion industry had been moving in that

TRENDS IN FASHION WHOLESALE SELLING

direction, but the changing environment thrust it on businesses, whether they were ready or not. Manufacturers’ first response to the mass shutdown of business was to sell direct to the consumer (DTC). This solution shortened the supply chain by eliminating the middleman, the wholesale sales rep. Selling DTC, however, meant that manufacturers would have to assume all of the business roles from design to distribution.18 For many of the fashion producers, operating as retailers fell outside of their mission and beyond their skill set. On a temporary basis, this strategy worked, but would not likely be a long-term solution.

Effect on fashion wholesale selling Obviously, omitting the role of the fashion wholesale sales rep would affect the rep’s livelihood. Being left out of the supply chain, the wholesale sales rep would not earn a commission on sales. At the same time, the manufacturer would take on the role of the sales rep. While this may be a short-term fix, it would not be Table 5.1  Well-known brands are seeking to increase their DTC sales to enhance their connection with the consumer. Brands increasing DTC Adidas Coach Hugo Boss Levi’s Nike Source: Adapted from Jasmin Malik Chua, “Direct-to Consumer’s Lasting Impact on Fashion,” Vogue Business, February 2, 2020, https://www.voguebusiness.com/consumers/ direct-to-consumer-lasting-impact-on-fashionlevis-nike-samsonite (accessed October 6, 2021).

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a viable long-term solution. The goal of the manufacturer is to sell large quantities of merchandise to retail stores. By essentially operating their own store, the manufacturer would be challenged in fulfilling the roles of the wholesale sales rep and retail store. Not to mention, they would be selling one item at a time which, with their already low profit margins, would stretch them too thin.

Questions to ponder: Digital transformation Would a DTC trend omit the omnichannel problems of the past? If manufacturers become their own retailers, will there be a need for wholesale sales reps or multi-line retail stores? Would manufacturers suspend sales to retail buyers? Would retailers resort to creating and selling private label only? Would brick-and-mortar stores become fewer? Extinct?

Supply chain efficiency Prior to the COVID-19 pandemic, the fashion industry was predicted to face some formidable challenges. Supply chain efficiency, specifically the lack of collaboration, was among them (see Figure 5.4). The global supply chain fell apart in a truly short period of time, compromising the trust and goodwill between manufacturers and retailers. It will take time for these relationships to recover.19 The fragile nature of the current business model had revealed the weaknesses. By every player operating in its own silo, relationships have suffered, and trust has been eroded. Since its inception,

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Figure 5.4  Container shipping operations in Dublin. Ocean transit slows down the supply chain in favor of cost savings. Photograph by NurPhoto, courtesy of Getty Images.

the fashion industry has kept secrets: secrets about their design ideas, their suppliers, their business operations. Each company was forced to develop its own processes and supply channel members. Collaboration, by sharing data and strategies, was needed all along the supply chain. What we need is data-sharing that keeps everyone in the loop with a single source of truth that allows everyone to collaborate in real time.20 According to Joe Bellini, COO of One Network Enterprises, most channel members operate with proprietary software, which limits visibility leading to inefficient operations and longer lead times.21 Consultant and strategic advisor Joe Skorupa recommended transforming to real-time digital so that every member of the chain has accurate, up-to-date information

all the time. He also suggested simplifying and shortening the supply chain.22 What the industry needs is a single, dynamic source of data.23 Cloud-based, real-time data and collaboration would allow all viewers to see the same information. This means the wholesale sales reps would also be looped into the system in order to have the real-time data needed to drive sales. What the industry needs is a single, dynamic source of data. Sharing proprietary information can be controlled through trusted partnerships with vendors using permission-secured access. Allowing vendors to participate in the planning and ordering process24 will create more sustainable supply chains.

TRENDS IN FASHION WHOLESALE SELLING

A trend predicted by McKinsey is nearshoring, which moves production closer to home25 to gain greater control over supply chain fulfillment problems. Billy Thompson, Co-Inventor and President of Thompson Tee, Inc, agrees. To plan for supply chain resiliency, a company must include as part of the supplier mix the use of onshoring or reshoring.26 Bringing suppliers closer to home would mitigate the potential disruption of importing from a foreign country. During this pandemic is a perfect time to reset the supply chain process for more sustainable practices in the future. Through collaboration, there can be a more positive environment and stronger connections with supply chain partners. In addition, bringing suppliers logistically closer would reduce supply chain timing and potential disruption. Again, this is an example of a potential silver lining for the fashion industry that has resulted from the global crisis.

Effect on fashion wholesale selling Sharing information through one source could improve communication between all channel members and remove unnecessary roadblocks. If the shift to production closer to need is adopted, information sharing would be even more important. The sales rep would be able to view the inventory in stock and sell out of that available inventory. Sales reps, especially independents, must be sure their vendors can deliver. Otherwise, there is no point in making a sales presentation. The less desirable alternative is writing orders for inventory that is sold out and no longer available. This scenario leads to buyer dissatisfaction, which ultimately damages goodwill and trust. The negative reputation primarily reflects on the sales rep.

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Virtual showrooms and online marketplaces The COVID-19 pandemic gave the fashion industry a pause during which there was time to think about how things could be done better. The greatest impact, however, was on retailers and their consumers. Now, we’ll look at how the stay-at-home orders and the suspension of physical interaction affected the buying and selling of fashion merchandise.

Questions to ponder: Supply chain efficiency With a more condensed supply chain, would consumers be limited in their selection of styles? Would shorter lead times support the idea of a seasonless, or closer to market, fashion calendar?

The pandemic hit businesses and the consuming public suddenly and without alternatives to the social isolation and lack of commerce to follow. The wholesale side of the fashion industry was dependent on face-to-face meetings, which were no longer possible. The entire behind-the-scenes practices of buying and selling, that of traveling to market and face-to-face selling, were no longer safe.27 For many showrooms and sales reps, this shift in direction created yet another crisis of survival. The presentation style needed to change, and digital was the viable option. Sales reps turned to email, digital meeting platforms, and virtual showrooms to bridge the gap in face-to-face presentations. Many sales reps were already using email to send their retail buyers lookbooks and line sheets containing information

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and photos of new styles. Others were using FaceTime, Instagram, and other forms of social media. The virtual meeting platforms, such as Zoom and Microsoft Teams, gave both buyers and sales reps the closest alternative to a physical sales presentation. Proprietary virtual showrooms were non-existent up to this time, whereas online marketplaces (like JOOR and FashionGo) had been slowly and silently developing. The sudden shutdown brought them to the forefront. These online marketplaces were multi-line formats which offered many categories of fashion merchandise. Currently, a general search for online wholesale fashion websites reveals several iterations. The sites vary as to the types of fashion they sell, to whom they sell (consumer or retailer or both), and how they are managed. To maintain their brand identity, some manufacturers, as well as some sales reps, chose to host their own websites to connect with retail buyers. Showrooms were compelled to create their own digital solutions.28 Online showrooms provide a virtual space to display products. Buyers may visit the website at any hour on any day. Often, buyers can complete purchases at the same time on the website. Considering the traditional approach, buyers would need to travel to the showroom during normal business hours to see new products and place orders. With virtual showrooms, there were no restrictions of time or geography.29 Not only are virtual showrooms cost-effective, they are also sustainable, helping to reduce the process’s carbon footprint. Some brands have initiated virtual fashion shows live-streamed or modeled by

avatars. In July 2020, Hermès was the first to livestream a digital-only format for their Spring 2021 collection.30 Days later, the Federation de la Haute Couture et de la Mode (FHCM) hosted a virtual couture fashion week for the first time ever.31

HANIFA Although the traditional 2020 Fashion Weeks were canceled due to the COVID-19 pandemic, Hanifa live-streamed its Democratic Republic of the Congo-inspired collection on Instagram. The fashion show was the first of its kind presenting garments in 3D on invisible avatars in a mesmerizing display of ghost-like models strutting down the runway. The eight-year-old company is headed by Anifa Mvuemba, the founder and designer of the DTC label.32 “Through shape, style, and custommade fabric prints, the Pink Label Congo collection references the country’s stuning geography, the ethical and environmental concerns around its mining sites, and her own family history.”33

Both virtual showrooms and online marketplaces are using avatars to show styles in a different manner foregoing the runway. For example, JOOR (see Figure 5.5) and others have the technology to show a 360-degree view of styles shown on 3D, AI-created models. There have been mixed reviews on these shows. Some think the technology gets in the way of seeing the actual fashions. However, this experience is in its infancy and is bound to improve as time goes on. These online marketplaces offer fashion merchandise from numerous manufacturers for a fee.

TRENDS IN FASHION WHOLESALE SELLING

Other vendors choose to be part of an internet wholesale group operated by thirdparty vendors known as a marketplace. These online marketplaces offer fashion merchandise from numerous manufacturers for a fee (see Table 5.2). The Buying Show, Bamboo Rose, and FashionGo were pioneers in offering a platform for wholesalers, which operated much like a consumer website. Currently, the most publicized of these multi-line internet wholesale sites are NuORDER and JOOR.

NuORDER NuORDER made possible one central place for sales teams and buyers to access real-time sales and inventory information and place orders from any device, any hour of the day, every day of the week, all year long.34 They offer manufacturers a place to display their lines

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through digital lookbooks, line sheets, and showrooms with 360 degree, interactive capabilities.35 The buyer can place orders and make payment all at the same time making it a seamless experience for buyers and sellers alike.

JOOR JOOR offers a virtual showroom with product interaction, including dynamic videos and 360-degree imagery, dynamic video, and virtual appointments. Their newest addition is The Edit, whereby the brand can create a curated collection for a specific buyer. The buyer can then drag and drop the styles selected to a styleboard for the final selection. The manufacturer’s membership also has order management capabilities for a seamless digital selling experience.36

Figure 5.5  Online marketplace, JOOR, provides an online platform for brands to connect with retail buyers, as well as hosting virtual trade shows. Image courtesy of JOOR.

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Table 5.2  Several established online marketplaces are based in the USA as well as internationally Company name

Est.

Location

URL

Bamboo Rose

2001

Gloucester, ME

www.bamboorose.com

Brandboom

2006

Los Angeles, CA

www.brandboom.com

The Buying Show

1996

Dublin, Ireland

http://buyingshow.com

Fashion Domino

2018

Los Angeles, CA

www.fashiondomino.com

FashionGo

2002

Los Angeles, CA

www.fashiongo.net

Fimka

1984

Istanbul, Turkey

www.fimkastore.com/en/

JOOR

2010

New York, NY

www.joor.com

LeNewBlack

2009

Paris, France

www.lenewblack.com/en/lenewblack/

Modalyst

2012

San Francisco, CA

www.modalyst.co

NuORDER

2011

Los Angeles, CA

www.nuorder.com

Rainbowave

2002

London, England

www.rainbowave.com

Virtual platforms allow buyers to buy smaller quantities but make their purchases more frequently, thereby reducing risk. This strategy echoes Justin-Time (JIT) retail practices from several decades ago. JIT reduced the need for storage rooms and brought all saleable merchandise to the selling floor. An extension of this practice is a current buying trend. Many retail buyers are moving away from buying ahead of the season to buying in season.37 According to Heath Wells and Olivia Skuza, founders of LA-based NuORDER, there will be no going back once this technology is widely accepted.38 The old way is more expensive, time-consuming, and unsustainable. However, Hillary France, founder of Brand Assembly, disagrees. France states that the combination of the digital and physical selling formats is essential.39 Further, she doesn’t think digital will ever

entirely replace physical.40 Nastos, chief commercial officer of Informa, agrees, saying it’s important that we have both. People want to see, feel, and touch.41 Informa (the owner of MAGIC, Project, Coterie, and other trade shows) has contracted a partnership with NuORDER to produce virtual tradeshows as a result of the forced cancelation due to the coronavirus. Rather than the usual three- to four-day tradeshow, NuORDER will sell an eight-week subscription to its vendors.42 The charge only applies to the seller and not retailers. Tom Nastos, chief commercial officer of Informa, says the services of NuORDER will complement the trade show experience, not replace it.43 Taking showrooms one step further, PixelPool is developing software to complement its 3D Fashion Innovations (see Figure 5.6).44 Dovetailing with the

TRENDS IN FASHION WHOLESALE SELLING

gaming explosion, PixelPool is working with virtual reality (VR) to put together merchandise in a virtual environment where multiple persons can work together at the same time, in the same environment, to judge assortments and plan stores.

Effect on fashion wholesale selling Virtual showrooms could be proprietary for a sales rep or a manufacturer. The difference could be critical. A virtual showroom managed by a sales rep would not jeopardize the sales rep’s role. However, there might be a concern if the virtual showroom was managed by the manufacturer. The sales rep’s role would be dependent upon to agreement with the manufacturer as to whether or not sales commission would be earned. It may necessitate virtual territories.

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Questions to ponder: Virtual showrooms and online marketplace questions Will all showrooms be forced to go virtual to maintain a competitive advantage? Will virtual showrooms eventually replace market centers? Will market centers simply become office buildings? If all manufacturers use online marketplaces, what will be the role of the wholesale sales rep?

Sustainability The shifting fashion calendar and digital showrooms address how the fashion industry is reacting to these

Figure 5.6  PixelPool’s Virtual Showroom app provides the ability to sell products in a realistic way, showing style numbers and prices on the screen. It can help buyers set up assortments in a virtual store environment. Image courtesy of PixelPool.

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unprecedented times, but the consumer has been making demands of their own about what they want to buy. And its overwhelming sustainability—­sustainable fashions and sustainable business practices. So, now we’ll address the other elephant in the room—that of sustainability. The biggest issue facing fashion prior to COVID-19 was sustainability, and the pandemic has only made this issue more paramount. Women’s Wear Daily (WWD) recognized the importance of sustainability, having created the position of a special reporter for Sustainability Solutions. And in their letters, both Van Noten and CFDA/BFC expressed concern for the environment. Aditi May, a sustainable fashion advocate and journalist, states that the pandemic exposed the flaws in the system. Consumers are becoming more aware of the negative impact of their current habits of consumption.45 The idea of fast fashion is losing favor due to its high waste factor. Sustainability is often thought of as applying to the environment. However, it is a much broader concept. Sustainability is about meeting the needs of the present without doing irreparable harm to the future needs of generations to come.46 Sustainability is often thought of as applying to the environment. However, it is a much broader concept. The three tenants of sustainability are environment, social, and economic as shown in Figure 5.7.

Social The fashion industry has been criticized for many decades for operating substandard working conditions. Ever since the

Triangle Shirtwaist Fire in 1911, manufacturers have struggled with both that perception and reality (see Figure 5.8). Most have taken measures to improve their workroom practices largely due to legislation. However, the operation of foreign manufacturers continues to be problematic. Several brands such as Nike have created a Code of Conduct which details requirements regarding age, compensation, health and safety, and forced labor.47 However, many have not. Ayesha Barenblat, founder of Remake, has a wish for the fashion supply chain to have more protections for workers. She would like to see a partnership between sustainable brands and worker-owned factories to build protection for those who work throughout the fashion supply chain.48 Consumers, meanwhile, are becoming more attuned to these social justice issues. Another wasted resource is the utilization of time. Time has become a commodity. Relating to the change in the fashion calendar is the concept of time. The operation of the existing fashion calendar makes time scarce. Time is a constant pressure with the realization that time is passing, time is running out, and time is being wasted.49 Perhaps as a way of thinking, fashion marks the history of civilization as it is affected by technology. However, as we’ve discovered, the timing of the fashion calendar is not sustainable.50 When discussing their move away from Paris Fashion Week, Anthony Vaccarello, creative director at YSL, explained their decision, stating that it’s a matter of acknowledging the value of time and reclaiming it.51 Having the time to be creative is of utmost importance to designers.

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ECONOMIC

ENVIRONMENTAL

SOCIAL

TRENDS IN FASHION WHOLESALE SELLING

Social Sustainability Social sustainability is the ability of a social system such as a country, family, or organization, to function at a defined level of social well being and harmony indefinitely.

Environmental Sustainability Environmental sustainability is the ability of the environment to support a defined level of environmental quality and natural resource extraction rates indefinitely.

Economic Sustainability Economic sustainability is the ability of an economy to support a defined level of economic production indefinitely. Figure 5.7  The Three Pillars of Sustainability: Social Sustainability, Environmental Sustainability, and Economic Sustainability. Source: Adapted from Thwink.org. https://thwink.org/sustain/glossary/ ThreePillarsOfSustainability.htm

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Figure 5.8  Employees of Still Nua’s textiles factory in Tangiers work to create fashion for the rest of the world. Photograph by Fedal Senna, courtesy of Getty Images.

Environmental Fashion is the second-­largest polluter in the world,52 and consumers are demanding change.53 They are insisting on newer business models that focus on sustainable products. In addition to exhaust emission from cars and trucks, consumers are concerned about the wastewater from the dyeing process (Figure 5.9), microfibers floating in the ocean, pesticides which end up in the water system, and fabric waste and excess inventories from overproduction which ends up in landfill. Sustain Your Style has some suggestions for how fashion can improve its environmental impact. Manufacturers can select factories in countries with stricter environmental regulations such as the EU, Canada, and the USA. Organic and natural fibers can be used, which require fewer chemicals in their production. Smarter choices in

pesticides can reduce toxicity in the water system. Perhaps the biggest idea, however, is that consumers can buy less, buy better quality, mend clothes, and recycle.54 Perhaps the biggest idea, however, is that consumers can buy less, buy better quality, mend clothes, and recycle. Overproduction is part of the problem. Each season, overproduction is running 30 to 40 percent with more than 70 percent of these clothes ending up in a landfill.55 Celine Semaan, founder of Slow Factory, asserts that a new production model is needed that doesn’t lead to overproduction. The current system cannot last. The public will not allow a return to business as usual.56 Moving the fashion calendar closer to need may prevent the production of excess inventory, keeping it from ending up in a landfill.

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Figure 5.9  A residential area is flooded with a textile mill’s waste in Dhaka, Bangladesh. Photograph courtesy of Getty Images; SOPA Images.

Some 125 brands have committed to the Circular Fashion Pledge. The pledge asks brands to commit to one of three practices by the end of 2020: 1) enable take-back or resale, 2) increase recycled content, and/or 3) design for durability.57 This unique concept demonstrates a collective spirit in supporting each other’s efforts. Design ideas range from tote bags made from discarded tents to upcycling from worn and damaged apparel. Vanessa Barboni Hallik, founder and CEO of sustainable fashion brand Another Tomorrow, said the challenge will be getting consumers to think of fashion as an investment.58 Amina Razvi, Executive Director of Sustainable Apparel Coalition (SAC), predicts that consumers, especially Generation Z consumers, will demand that companies embrace environmental and

social issues and will subsequently buy fewer clothes made of higher quality that will last longer.59

Economic Overproduction not only affects the environment but also has a financial impact on manufacturers (see Figure 5.10). Sustainability decisions often affect profitability. Investors shy away from manufacturers that generate lesser profit. The economic ramifications of sustainability will be big. Manufacturers will need to spend more to produce sustainable fashion due to the increased cost of sustainable raw materials. The design process may also be affected. Smaller collections and lines may negatively impact sales. However, consumers may

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Figure 5.10  The results of overproduction are unsold apparel which has an economic impact on both manufacturers and retailers. The upcycling movement turns these garments into other useable items such as clothing, home fashions, and building materials.  Photograph by Don Emmert, courtesy of AFP via Getty Images.

buy higher-priced fashion if it is sustainable. Purchasing less does not necessarily mean lower retail sales and lower sales commissions. If the consumer is buying less of higher-priced fashion, the net result could be zero. As companies move to digital platforms, there will be less need for office space, retail store space, and showroom space. This will impact real estate values. It may transform market centers into multi-use buildings, as we have seen at the Dallas Apparel Mart and the California Market Center. There will be less pollution of automobile exhaust emissions due to reduced

travel to showrooms and an increased use of virtual showrooms and e-tailing. Although the economic outlook may be grim, the winners for competitive advantage will be the companies that embrace sustainability. Razvi emphatically states that in order to pull through the pandemic and continue to build strong business relationships, companies need to embrace the value of sustainability including the health and safety of its workers.60 She further supports her opinion by saying that 90 percent of Generation Z consumers expect companies to act responsibly regarding environment and social issues.61

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Companies who do not follow the sustainability movement will not last, failing to keep up with what the consumer so passionately wants.

Effect on fashion wholesale selling Sustainability is a hot topic with consumers. As such, sustainable products are in demand. Sales reps who carry sustainable brands will have a competitive advantage when it comes to merchandise selection for retail buyers. In this case, the level of business for sales reps could increase. On the other hand, sustainable products appear to cost more to produce, which translates to higher price points at retail. The deciding factor will be if retail buyers believe their customers will pay the increased cost of sustainable products.

Questions to ponder: Sustainability Will more manufacturers turn to sustainable production practices due to increased consumer demand? Will sustainable fashions cost significantly more than those that are not? How will higher prices affect consumers’ plans to purchase? Will consumers adopt the “less is more” attitude about building their wardrobes?

Summary As I introduced in the beginning of the chapter, my goal was to bring you, my readers, into the current conversations and top issues impacting fashion. Let’s now organize the key ideas. It appears that nothing will be the same once this crisis has passed. The fashion

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calendar may ultimately readjust its timing to suit consumer need. Wholesale venues are going virtual or joining online marketplaces to better reach their retail buyers. Supply chains are learning to be nimbler and more proactive in planning for unexpected demand. And the continuity of retail stores will undoubtedly change to a greater online presence. Fast disposable fashion, toxic waste from clothing processing, the environmental impact, and substandard working conditions have been brought to our attention. The youth of our world has taken a stand on fashion’s pollution. Eighty-seven percent of Millennial consumers are reported as being more loyal to companies that support social and environmental issues.62 Strong post-pandemic leaders in apparel, footwear, and textile must include sustainability in their strategies to stabilize and grow.63 The message is to buy less, buy better quality, mend clothes, and recycle. Mara Hoffman, a sustainable fashion designer, asserted that people need to put the planet first rather than profit.64 Nobody needs twelve pairs of jeans and who knows how many sweatpants.65 The resulting changes in the apparel industry systems will focus on quality and agility rather than the lowest costs.66 During a crisis, such as this global shutdown, is a perfect time to stop, think about what can be improved, and implement ideas to make the fashion industry better: design better products, create more efficient supply chains, establish better store operations, and invest in happier employees. While the fashion industry is on pause, it is time to create solutions. Manufacturers must adopt lean manufacturing

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techniques. Supply chains must collaborate and streamline to be more efficient. Wholesale sales reps must adopt digital strategies to complement face-to-face meetings. Retailers must scale back the number of physical locations and create better designed omnichannel operations. And consumers, as the driving force demanding more sustainable practices, must adopt the “less is more” attitude to include the size and quality of their wardrobes.

What role will you play in moving the field of fashion forward? The well-known designer Kenneth Cole said that the industry needs to be leaner and greener and prioritize its corporate social responsibility. That’s how it will change its fashion footprint.67 My question to you is: What role will you play in moving the field of fashion forward?

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Interview Loree Lash-Valencia Loree is the Vice President of North America Sales for JOOR, the virtual marketplace headquartered in New York City. She wanted to be a fashion designer. She attended the University of Delaware and transferred to the Fashion Institute of Technology (FIT) in New York City. After graduating, she worked as an assistant designer, found a great mentor, traveled overseas, and did what she calls a “deep 360,” meaning she’s had a crazy background where she’s done everything. Ten years ago, she “popped” into digital just at the time when e-commerce was coming in.

How did your background/education prepare you for working at JOOR? Digital makes me happy. JOOR presented a way for brands to go all the way through to processing the order with the retailer. Understanding what a brand goes through helped a lot. This is a whole new experience for both the retailer and the brand. They need our help all the way through. My experience with digital made it possible for me to communicate the process for them. My knowledge of fashion design can help retailers make decisions. Since there is no universal for fit (how a garment fits according to size), it’s the “Wild West” out there! Tell us about your job I joined the company three weeks before the COVID-19 lockdown. With no physical market weeks or trade shows, the demand for services like JOOR has gone through the roof. It’s been a crazy time! As VP of North America Sales, I supervise a team that works directly with the retailers and the brands. Virtual is what we do. Half of JOOR, however, is made up of technology people.

We have an imaging partner, “Ordre,” that provides a 360-degree view of garments. This helps to get a sense of drape and fabric. What are your overall responsibilities to the company? The VP of Sales is responsible for revenue. The business is largely consultative, so I’m involved in educating my team using lots of webinars to train for using “Passport,” a new feature on the website, which is the trade show reimagined. What does a typical day look like? It’s really busy. I juggle internal and external meetings and work with the larger prospects. The team does most of the selling. I manage more than sell right now. I’m curious about what they (brands and retailers) are struggling with. This year caught everyone off guard. They’re concerned with what will happen with COVID. What will be next? The more you talk to people, you develop ideas that can help them. What the most challenging part of your job? It’s so busy; we can’t help everyone. We just try to be as helpful to as many people as we can.

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What is the most rewarding part of your job? Innovation. Tech can enable the industry to move forward. Companies are adopting change. I love watching sales grow and pondering what’s next. What are the advantages/disadvantages of a virtual marketplace in general and JOOR specifically? Virtual marketplaces are more democratic. More people can be involved. Brands can reach more retailers because the global barriers are broken down. And with travel bans, what other choice do you have? It’s about “discovery.” JOOR has always seen itself as virtual. We’re “built for the industry, by the industry.” With “Edit,” our virtual style board, we’ve fast-tracked the process. It sits on top of the management platform and allows for real-time collaboration. The downside is we miss people! But the relationships will still be there. There will be reasons to get together; it will evolve. How does a virtual marketplace and traditional wholesale selling work together? There is a reason for both. Virtual will always have a place. It connects people

in a way that enables discovery. B2B is doing what e-commerce does for consumers. The market appointment has reinvented itself. JOOR makes it possible for the sales reps to do their job better. The mundane tasks of paperwork are eliminated because everything is digitized in one place. What do you see in the future for virtual marketplaces after the pandemic? I don’t see it going back. Buyers will see how helpful it is. If you were a retail buyer right now, how would you approach the buying task? I’d use JOOR! I’d use digital tradeshows, shop Instagram. Fashion has always been an innovative field. Now, we’re discovering new ways to do it. It’s been a really hard time for a lot of people. Everyone has been forced to adapt. The beautiful thing, though, is creative things have come out of this. It has brought out a sense of authenticity.68

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Activities Online marketplaces Throughout this book, you have learned there are several ways retail buyers can purchase merchandise for their stores: ●●

●●

●●

in showrooms at their stores (i.e. sales rep makes a presentation on store premises) at trade shows.

But what if a buyer can’t get to any of these options, or their store is too remote for a sales rep to visit? What is another option for purchasing merchandise at wholesale? Conversely, as a wholesale sales rep, consider if you would contract with an online marketplace to augment your showroom, trade show, and website efforts.

1 What is the name of the company, and what is the website address? 2 What is the history of this company (when founded, owners, etc.)? 3 Does it have a physical address/location? Phone number? 4 Does it require membership? If so, what is the cost? What are the perks of membership? 5 How would a retail store buyer make a purchase from this company? 6 What are the benefits of working with this company as opposed to traditional wholesale buying and selling? 7 What are the risks or challenges of working with this company? 8 What are the features of the website? Customer service? Online chat?

For this activity, you will research what internet wholesale resources are available to retail store buyers. In this chapter, these are referred to as online marketplaces. These resources are not available in any format other than online (i.e. no showrooms or brick-and-mortar locations; no other presence other than on the internet).

10 Can consumers also buy from this website?

Select one of the online marketplaces discussed in this chapter. Research the company and prepare answers to the following questions:

12 Based on what you found in your research, would you work with this company? Why or why not?

9 What specific types of merchandise do they sell?

11 What other internet wholesale companies are competitors? Give the company name and website address for two or three of these competitors.

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Notes 1 Lisa Johnston, “Retail’s Influential Peer into Their Crystal Balls for PostCOVID-19 Predictions,” RIS, June 5, 2020, https://risnews.com/retails-influentialspeer-their-crystal-balls-post-covid-19-­ predictions-0?utm_source=omeda&utm_­ medium=email&utm_campaign=NL_ RIS+Weekender+Insights+%26+Reports& utm_keyword=&oly_enc_ id=7576G2128245I5B (accessed October 6, 2021). 2 Joelle Diderich, “Saint Laurent to Skip Paris Fashion Week, Will Make Its Own Schedule,” WWD, April 27, 2020,https://wwd.com/ fashion-news/designer-luxury/saint-laurentto-skip-paris-fashion-week-set-own-­scheduledue-to-coronavirus-crisis-1203621408/ (accessed October 6, 2021). 3 Andrew Nguyen, “It’s Time to Reset the Fashion Calendar,” The Cut, May 13, 2020,https://www.thecut.com/2020/05/ dries-van-noten-and-fashion-industry-leaderscall-for-change.html (accessed October 6, 2021). 4 Ibid., para. 3. 5 Diderich, “Saint Laurent to Skip Paris Fashion Week,” para. 51. 6 Adapted from Fashionista, “These Are the Brands That Have Ditched the Traditional Fashion Show Calendar,” July 1, 2020. Nerisha Penrose, “Here Are the Designers Ditching the Fashion Week Calendar,” Elle, June 16, 2020. 7 Ellie Bramley, “’The Fashion System Must Change’: BFC and CFDA Call for an Industry Reset,” Guardian, May 21, 2020, https:// www.theguardian.com/fashion/2020/may/21/ the-fashion-system-must-change-bfc-andcfda-call-for-an-industry-reset (accessed October 6, 2021). 8 Ibid., para. 4. 9 Nguyen, “It’s Time to Reset,” para. 5. 10 Imran Amed et al., “It’s Time to Rewire the Fashion System: State of Fashion Coronavirus Update,” McKinsey & Company, https://www.mckinsey.com/industries/retail/ our-insights/its-time-to-rewire-the-fashionsystem-state-of-fashion-coronavirus-update (accessed May 25, 2020).

11 Diderich, “Saint Laurent to Skip Paris Fashion Week,” para. 51. 12 Amed et al., “It’s Time to Rewire the Fashion System,” para. 12. 13 Linda Tucker, “The Fashion Industry: Post COVID-19 Opportunities,” Fashion Manuscript, June 1, 2020, http://www.mannpublications.com/ fashionmannuscript/2020/06/01/the-­fashionindustry-post-covid-19-opportunities/ (accessed October 6, 2021). 14 Slavica Grgic and Mario Stipetic, “2021 Top 17 Fashion Retail eCcommerce Industry Trends /w Covid19 situation included,” SUPERSUPER, https://www. supersuperagency.com/blog/top-10-fashione-commerce-trends-for-2020 (accessed May 25, 2020). 15 Joe Bellini, “The Consumer-Direct Strategy Part 1: Why You Need to Strengthen Your Direct-to-Consumer Channels,” May 22, 2020, https:// supplychainbeyond.com/the-consumerdirect-strategy-why-you-need-to-strengthenconsumer-direct-channels/ (accessed October 6, 2021). 16 Shannon Adducci, “Fashion Is Over – As We Know It,” April 21, 2020,https://­ footwearnews.com/2020/fashion/designers/ fashion-month-is-over-designer-seasons-­ calendar-pandemic-1202970535/ (accessed October 6, 2021). 17 Johnston, “Retail’s Influential Peer into Their Crystal Balls,” para. 21. 18 Grgic and Stipetic, “2021 Top 17 Fashion Retail eCcommerce Industry Trends /w Covid19 situation included,” para. 25. 19 GlobalData, “Apparel Supply Chains Must Reset for the Future,” Supply & Demand Chain, May 11, 2020, https://www.sdcexec. com/warehousing/press-release/21132727/ globaldata-apparel-supply-chains-must-resetfor-the-future (accessed October 6, 2021). 20 Lydia Mageean, “The Future of Fashion is Digital, post-Covid-19,” WhichPLM, April 9, 2020, https://www.whichplm.com/the-­ future-of-fashion-is-digital-post-covid-19/ (accessed October 6, 2021). 21 “The Consumer-Direct Strategy for Manufacturers & Shippers,” One Network Enterprises, https://www.onenetwork.com/

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landing-pages/consumer-direct-strategyfor-manufacturers-shippers/ (accessed June 4, 2020). 22 Joe Skorupa, “Time to Break Up a Broken Supply Chain,” RIS, June 10, 2020, https:// risnews.com/time-break-broken-supply-chain (accessed October 6, 2021). 23 “The Consumer-Direct Strategy for Manufacturers & Shippers,” One Network Enterprises. 24 Emma Cosgrove, “Canceled Orders, Delayed Payments: How Supplier Collaboration Could Reverse Apparel’s Nose Dive,” Supply Chain Dive, May 21, 2020, https://www. supplychaindive.com/news/coronavirus-­ apparel-fashion-sourcing-suppliers/578403/ (accessed October 6, 2021). 25 Ibid. 26 Thompson Tee, “How the Direct-toConsumer Shift Accelerated Overnight,” (webinar from WWD Fairchild Live, July 8, 2020), https://vimeo.com/437949820 (accessed October 6, 2021). 27 Dhani Mau, “Moving Forward, What Does Wholesale Buying Look Like for Fashion?” Fashionista, May 19, 2020,https://www. yahoo.com/lifestyle/moving-forward-doeswholesale-buying-140000143.html (accessed October 6, 2021). 28 Ibid. 29 Madeleine Streets, “The Future of Buying: Virtual Showrooms & Their Long-Term Impact on the Fashion Industry,” MSN, June 16, 2020, https://www.yahoo.com/ lifestyle/future-buying-virtual-­showroomslong-183108359.html (accessed October 6, 2021). 30 Steff Yotka, “Paris Defines Its Digital Fashion Week Plan,” Vogue, May 7, 2020, https:// www.vogue.com/article/paris-fashion-weekmens-july-2020 (accessed October 6, 2021). 31 Elisee Browchuk, “Digital Fashion Weeks and Virtual Shows: Rundown of Fashion’s New Rhythm,” Vogue, June 29, 2020, https:// www.vogue.com/article/digital-­fashionweeks-2020 (accessed October 6, 2021). 32 Elizabeth Segran, “3D Fashion Shows are the Future, and we have Hanifa Designer Anifa Mvuemba to Thank,” Fast Company, August 23, 2020, https:// www.fastcompany.com/90525902/

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most-creative-people-2020-anifa-mvuemba (accessed October 6, 2021). 33 Devine Blacksher, “The Designer who Sent Ghost Models Down the Runway; Anifa Mvuema Always Does Things Her Own Way,” The Cut, September 14, 2020, https://www.thecut.com/2020/09/ hanifa-designer-anifa-mvuemba-on-her-pinklabel-congo-show.html (accessed October 6, 2021). 34 NuORDER, “The Sales Executive’s Guide to B2B eCommerce Solutions,” https:// go.nuorder.com/sales-execs-guide-to-b2becommerce-platforms (accessed July 6, 2020). 35 NuORDER, “The Buying Process Reimagined,” https://www.nuorder.com/ retailers/ (accessed October 21, 2021). 36 JOOR, “The Industry Standard Virtual Showroom,”https://joor.com/virtual-­ showroom (accessed August 25, 2020). 37 NuORDER, “The Sales Executive’s Guide.” 38 Mau, “Moving Forward,” para. 9. 39 Ibid., para. 15. 40 Ibid., para. 16. 41 Jean Palmieri, “Informa Partners with NuOrder on Digital Marketplace Initiative,” FN, May 27, 2020, https://footwearnews. com/2020/business/retail/informa-nuordertrade-show-digital-1202995144/ (accessed October 6, 2021). 42 Ibid. 43 Ibid. 44 “Fashion Innovation in the Near Future: A Case Study,” PixelPool, November 11, 2019,https://pixelpool.com/fashion-­ innovation-in-the-near-future-a-case-study/ (accessed October 6, 2021). 45 Ellie Bramley, “’Lockdown Has Been a Wakeup Call for the Industry’: What Next for Fashion?” Guardian, April 22, 2020, https:// www.theguardian.com/fashion/2020/apr/22/ lockdown-fashion-wakeup-call-­coronaviruslockdown (accessed October 6, 2021). 46 Mitchell Grant, “Sustainability,” Investopedia, April 5, 2020,https://www.investopedia.com/ terms/s/sustainability.asp (accessed October 6, 2021). 47 Nike, “Advancing Labor Conditions in Our Supply Chain,”http://hrlibrary.umn.edu/links/ nikecode.html (accessed July 18, 2020).

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48 Bramley, “’Lockdown Has Been a Wakeup Call for the Industry.’” 49 Tim Blanks, “The End of the (Fashion) World as We Know It,” BoF, March 24, 2020, https://www.businessoffashion.com/ opinions/luxury/the-end-of-the-fashion-worldas-we-know-it/ (accessed October 6, 2021). 50 Ibid. 51 Diderich, “Saint Laurent to Skip Paris Fashion Week.” 52 “The fashion industry is the second largest polluter in the world,” Sustain Your Style, https://www.sustainyourstyle.org/en/ whats-wrong-with-the-fashionindustry#anchor-environmental-impact (accessed July 12, 2020). 53 CGS, “Increasing Consumer Value Through Digital Transformation,” CGS 2020 Annual Report: Supply Chain Trends & Technology, 20, https://act.cgsinc.com/rs/756-XUI-889/ images/cgs-supplychaintrends-2020-report. pdf (accessed June 20, 2020). 54 “The Fashion Industry Is the Second Largest Polluter,” Sustain Your Style. 55 Emily Cegielski, “How the Current Crisis Could Impact the Future of Fashion Forever,” Worth, https://www.worth.com/ how-the-current-crisis-could-impact-thefuture-of-fashion-forever/ (accessed July 1, 2020). 56 Bramley, “’Lockdown Has Been a Wakeup Call for the Industry.’” 57 Adam Siegel and Asheen Phansey, “Advancing the Circular Fashion Movement,” CFDA, https://cfda.com/resources/ industry-insights/industry-insight/­advancingthe-circular-fashion-movement (accessed July 20, 2020). 58 Cegielski, “How the Current Crisis Could Impact the Future of Fashion.” 59 Sacha Brown, “Rebuilding a More Sustainable Fashion Industry After COVID19,” CFDA, May 27, 2020, https://cfda.com/ resources/industry-insights/industry-insight/ rebuilding-a-more-sustainable-fashion-­ industry-after-covid-19 (accessed October 6, 2021). 60 Ibid. 61 Ibid. 62 Deniz Mutlu, “Orta Spring/Summer 2021, Denim + Biomimicry = Denimimicry, Biomimicry and Circular Thinking for

63

64 65 66 67

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Denim-Positive Futures,” Apparel News, http://apparelnews.media.clients. ellingtoncms.com/Newsletter2/102319/ Orta_102319-3a.pdf(accessed November 1, 2019). Catharina Martinez-Pardo et al., “Weaving a Better Future: Rebuilding a More Sustainable Fashion Industry After COVID-19,” April 30, 2020, https://apparelcoalition.org/wp-content/uploads/2020/04/ Weaving-a-Better-Future-Covid-19-BCG-SACHigg-Co-Report.pdf (accessed October 6, 2021). Bramley, “’Lockdown Has Been a Wakeup Call for the Industry,’” para. 35. Ibid., para. 2. Martinez-Prado et al., “Weaving a Better Future.” “Biggest Takeaways from Fashinovation Worldwide Talks 2020,” Fashion Manuscript, April 27, 2020, http://www.mannpublications.com/fashionmannuscript/2020/04/27/ biggest-takeaways-from-fashinnovationworldwide-talks-2020/ (accessed October 6, 2021). Interview with Loree Lash-Valencia conducted September 10, 2020.

For further reading Amed, Imran, Anita Balchandani, Jakob Jensen, Achim Berg, Saskia Hedrich, and Felix Rölkens. “It’s Time to Rewire the Fashion System: State of Fashion Coronavirus Update.” McKinsey & Company. https://www. mckinsey.com/industries/retail/our-insights/ its-time-to-rewire-the-fashion-system-stateof-fashion-coronavirus-update (accessed May 25, 2020). Bramley, Ellie. “‘Lockdown Has Been a Wakeup Call for the Industry’: What Next for Fashion?” Guardian. April 22, 2020. https:// www.theguardian.com/fashion/2020/apr/22/ lockdown-fashion-wakeup-call-coronaviruslockdown (accessed October 6, 2021). Bramley, Ellie. “‘The Fashion System Must Change’: BFC and CFDA Call for an Industry Reset.” Guardian. May 21, 2020. https:// www.theguardian.com/fashion/2020/may/21/ the-fashion-system-must-change-bfc-and-cfdacall-for-an-industry-reset (accessed October 6, 2021).

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CGS. “Increasing Consumer Value Through Digital Transformation.” CGS 2020 Annual Report: Supply Chain Trends & Technology. https://act.cgsinc.com/rs/756-XUI-889/images/ cgs-supplychaintrends-2020-report.pdf (accessed June 20, 2020). “Fashion Innovation in the Near Future: A Case Study.” PixelPool. November 11, 2019. https:// pixelpool.com/fashion-innovation-in-the-nearfuture-a-case-study/ (accessed October 6, 2021). GlobalData. “Apparel Supply Chains Must Reset for the Future.” Supply & Demand Chain. May 11, 2020. https://www.sdcexec. com/warehousing/press-release/21132727/ globaldata-apparel-supply-chains-must-resetfor-the-future (accessed October 6, 2021). Johnston, Lisa. “Retail’s Influential Peer into Their Crystal Balls for Post-COVID-19 Predictions.” RIS. June 5, 2020. https://risnews.com/retailsinfluentials-peer-their-crystal-balls-post-covid19-predictions-0?utm_source=omeda&utm_ medium=email&utm_campaign=NL_ RIS+Weekender+Insights+%26+Reports& utm_keyword=&oly_enc_id=7576G2128245I5B (accessed October 6, 2021). Martinez-Pardo, Catharina, Javier Seara, Amina Razvi, and Jason Kibbey. “Weaving a Better Future: Rebuilding a More Sustainable Fashion Industry After COVID-19.” April 30,

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2020. https://apparelcoalition.org/wp-content/ uploads/2020/04/Weaving-a-Better-FutureCovid-19-BCG-SAC-Higg-Co-Report.pdf (accessed October 6, 2021). Nguyen, Andrew. “It’s Time to Reset the Fashion Calendar.” The Cut. May 13, 2020. https:// www.thecut.com/2020/05/dries-van-notenand-fashion-industry-leaders-call-for-change. html (accessed October 6, 2021). Siegel, Adam, and Asheen Phansey. “Advancing the Circular Fashion Movement.” CFDA. https://cfda.com/resources/industry-insights/ industry-insight/advancing-the-circular-fashionmovement (accessed July 20, 2020). Skorupa, Joe. “Time to Break Up a Broken Supply Chain.” RIS. June 10, 2020. https:// risnews.com/time-break-broken-supply-chain (accessed October 6, 2021). Streets, Madeleine. “The Future of Buying: Virtual Showrooms & Their Long-Term Impact on the Fashion Industry.” June 16, 2020. https://www.yahoo.com/lifestyle/future-­ buying-virtual-showrooms-long-183108359. html (accessed October 6, 2021). Tucker, Linda. “The Fashion Industry: Post COVID-19 Opportunities.” Fashion Manuscript. June 1, 2020. http://www.mannpublications. com/fashionmannuscript/2020/06/01/the-­ fashion-industry-post-covid-19-opportunities/ (accessed October 6, 2021).

Conclusion

You’ve just spent time absorbing the contents and completing the activities in this book because something intrigued you about the possibilities. But how do you get started with a career in fashion wholesale selling? Where do you begin? One thing for sure is that you can be an exceptional sales rep. By reading this book, you know the basics. Now you need to apply them to your chosen situation. Let’s review what you’ve learned in these five chapters. Do you want to be a corporate rep? There’s more financial security as a corporate rep but less freedom. On the other hand, an independent sales rep is an entrepreneur. You’re running your own business the way you want to, but you need to make sales to generate an income. There’s a trade-off. Where do you feel more comfortable? What type of merchandise do you want to sell? Again, if you’re a corporate rep, the product will already be decided for you. However, if you’re an independent rep, you can choose what categories of merchandise you want to represent and what companies you want to work with. Where do you want to work? In an office? In a showroom? At home? Out of your car? Online? Fashion wholesale selling can be done from any of these environments, and there are advantages and disadvantages to all of them. You’ll definitely want to learn how other reps work by interning or volunteering to help during Market Weeks. See what it’s like. Where do you fit in?

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Wholesale selling is best learned by doing. You can study the process, but until you put it into practice, you won’t really understand how it works. That’s a good enough reason to work for someone else first before you strike out on your own. It’ll give you a chance to observe others selling, practice your selling skills, and build a following— that group of retail buyers who know and trust you. Soon, selling will become second nature. The most important thing to remember about wholesale selling is that it is all about helping retail buyers make the best selections of merchandise for their stores and their customers. And, lastly, fashion is a moving target. Styles are always changing to suit the seasons. But more so lately, fashion has jumped into the world of technology, creating new opportunities to buy and sell fashion online with either wholesale websites or online marketplaces. Recognize, too, that consumer demands change. Sustainability is a hot topic for the fashion consumer now and will influence what they demand and what retail buyers buy. The COVID-19 pandemic has affected the world in ways yet unknown. However, it has given the fashion industry a moment to pause, take stock of the status quo, and decide that changes are needed. Expect that mindset to continue in the future. Be prepared for it by reading the fashion press, technology news, and consumer publications. Stay informed, and you’ll keep up to date. Good luck with your career in fashion wholesaling.

Glossary

“80/20 rule” Also known as the Pareto Principle (see Pareto Principle). Account manager An employee who manages the details of a particular customer’s account with that business. Accounts Synonymous with clients/customers. In the fashion wholesale selling business, accounts are retail stores, specifically, retail store buyers. Account segmentation approach Assumes that all accounts are different, therefore, each needing a different selling strategy. Apparel industry Synonymous with the fashion, garment, or clothing industry. Apparel mart A building that holds permanent showrooms and temporary exhibits of apparel lines for the purpose of sales reps displaying such lines to potential buyers. Best seller Literally means it sells the best among all the styles offered. Booth A designated area where a company or sales rep can set up a temporary showroom. Brand identity The visually obvious characteristics of a brand, including color, design, and logo. Brand value Considered to be valuable compared to the competitors. Brick-and-mortar store A physical store that offers products and services in a face-toface environment. Built out Synonymous with constructed or created. Business-to-business (B2B) Selling of products or services from one business to another business. Business-to-consumer (B2C) Selling of products or services from a business to a consumer. Casualization The process of people’s wardrobes and behavior becoming more relaxed and less formal. Checking Selling well. For example, a sales rep might ask the retailer, “How is it checking?” This means how is it selling? Close The time when the sales rep asks for the order.

Cold canvassing Walking into a store that looks like it fits the merchandise’s target market customer without an appointment; another approach is making a phone call to a store that seems to be a good fit. Colorways Colors or color choices for a select season. Competitive advantage A set of qualities such as colors, prices, quality, and selection that give a vendor leverage over their competition. Competitor A company that is within the same industry and provides a similar product or service and is, therefore, competing for the same customers. Contractor A company that provides contract cutting and/or sewing services on materials owned by fashion manufacturers. Corporate rep (see Manufacturer’s rep). Cost In the wholesale arena, the wholesale price is referred to simply as cost. Demographic Descriptor or characteristic of a group of people (such as age, income, gender) that is used to describe or identify trends or markets. Direct-to-consumer (DTC) Selling directly to the consumer thereby omitting the retailer. Direct to retailer sales A type of sales where a vendor deals directly with a retailer. This is commonly done by a vendor employee known as an account manager. Discount store A store that sells low-priced merchandise. Discount merchandise clothing is new and varies in the original price range but sells for significantly less. Display fixture A non-merchandise item that assists in selling the apparel and can also help in identifying the brand. Drayage Materials handling such as delivery or transporting goods a short distance via ground freight. DTC See definition of Direct-to-consumer (DTC). ELMS strategy An account segmentation selling strategy that divides accounts into types based on the size of orders placed on an annual basis. E stands for Extra large, L for Large, M for Medium, and S for Small.

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GLOSSARY

E-tailing Retail activities conducted on the internet—often called e-commerce. Fashion apparel trade shows Periodically scheduled events where fashion designers and brands exhibit and market their new fashions to potential clients. These are typically held in large facilities like convention centers. Fashion Channel of Distribution Model The flow of goods from manufacturer to retailer with the selling assistance of a wholesale sales rep who does not own the goods. Fashion-forward At the forefront of fashion; very fashionable. Fashion industry Synonymous with the apparel, garment, or clothing industry. First to market Refers to being first to have a desired product or trend. This provides a competitive advantage. For the trade A product or service meant specifically for fashion businesses such as retail buyers, fashion press, and apparel distributors. Full-size run Where all of the merchandise is available in all of the sizes offered by the manufacturer. Goodwill The feeling of cooperation between business partners for the benefit of both parties. Handwear Any item worn on the hands including gloves, mittens, and work gloves. Headwear Any item worn on the head and which has a structure such as visors, hats, and caps. High-end Merchandise of high quality and, typically, also high in price. Hot prospect A retail store that caters to the demographic/psychographic/lifestyle characteristics of the product line a sales rep sells and is, therefore, a possible customer. Immediates This is a type of merchandise that can be shipped to the store within a short period of time. Usually this type of delivery means that the inventory is in stock and ready to ship. Importer Purchaser of goods that are produced by foreign manufacturers and often located in Asia.

Independent contractor Someone who is not a permanent employee but is hired on a contractual basis to perform a clearly defined set of services and duties. Just-in-Time (JIT) A strategy where retail buyers order merchandise when needed throughout the season rather than making one large purchase at the beginning of a season. Prior to JIT, retail stores had back-stock that was held in a storage room and later brought to the selling floor when needed to fill-in the merchandise assortment. Risking errors in consumer demand, these large buys at the beginning of a season were usually followed markdowns and lost profit margin. Jobber Similar to importers in that they purchase goods from other manufacturers, but these manufacturers could be US makers as well as importers. Keystone Pricing that is double the cost of wholesale. Lean manufacturing Streamlining processes that lead to reduced costs, waste, and production time. Leave paper When an order is written and left with the sales rep following a sales presentation. Lifestyle marketing A marketing technique where a product is targeted to a group of people who possess a particular set of aesthetics, values, and ideals. Line A collection of clothing a manufacturer produces for a specific category. Line release The action of making a clothing line available to retail buyers for purchase; this usually occurs prior to market weeks. Line sheet A document given to the buyer that lists all the pertinent information about the terms of sale, including line drawings or photographs of the merchandise and style numbers. LinkedIn® A social networking platform focused on creating professional networks. Members share work-related information with other users.

GLOSSARY

Lookbook A compendium of photographs to display a set of clothing styles and used as a promotional tool. Luxury goods These are not necessities but are considered desirable and are typically bought by wealthy individuals. Examples of brands include Cartier, Hermès, and Rolex. MAGIC A major apparel trade show in the USA. An acronym for Men’s Apparel Guild in California, the show originated in 1933. Originally, the show only included men’s wear. It now features women’s and children’s apparel as well as footwear and accessories. The show outgrew the available convention center space in Los Angeles and moved to Las Vegas. Manufacturer A company that makes and sells merchandise. They may cut and sew fabrics or fabricate materials into apparel and accessories, or they may work with contractors who provide these services. Manufacturer’s rep Works as an employee of usually a larger company or corporation and must abide by the policies and procedures of that company. Market center A location where fashion wholesale is sold—usually a major city. Market Week One of the weeks during a year when showrooms exhibit seasonal fashion lines for retail buyers. Mark-up The amount added to the cost of products to cover overhead and provide a profit. Mass retailer This type of retailer sells large quantities of diverse types of products that appeal to a wide target market. Due to their large buying power, their product pricing is usually lower. Merchandise mix The mix or assortment of products that a retail store offers to consumers. Merchandiser Responsible for merchandise inventory and display in order to otimize sales. Model Synonymous with the term Style; often used in Europe. “Mom-and-pop” store Usually a single-unit retail store that is operated by the owners.

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The owners also work as the buyers, the sales staff, and the maintenance crew. The business would not operate without the hands-on presence of these owners. MSRP Abbreviation for manufacturer’s suggested retail price. Neckwear Scarves, shawls, and ties. Objections Statements that indicate opposition or resistance. The objection statement is not meant to be a challenge but instead is asking for more information. Off-price store A store which sells a combination of discounted merchandise and merchandise that is made specifically for the discount market and has never been offered for sale at any other retailer. Offshore production Manufacturing or assembling products in another country. The decision for offshore production is typically motivated by cost: lower wages and fewer labor regulations. Omnichannel A multichannel sales approach which gives customers an integrated shopping experience. This can occur online or in brick-and-mortar stores. Open-to-buy (OTB) Refers to the amount of money available to purchase merchandise for a given time period, usually a month. Orphaned customer A buyer who has previously bought a particular merchandise category but, for whatever reason, is no longer purchasing from their previous vendor. Out-of-stock If an item is deemed out-ofstock, the inventory has been exhausted and is no longer available. This is not a desirable situation, especially for a retailer, because no more sales can be made. Pareto Principle Suggests that 80 percent of sales come from 20 percent of accounts. The opposite premise is that 20 percent of sales come from 80 percent of accounts. It is also known as the “80/20 rule.” Pipe-and-drape A combination of curtains suspended from a pipe-type structure (either PVC or metal) which define and demark the perimeter of a booth. The vertical height is usually three feet or eight feet tall.

144

GLOSSARY

Preapproach The process of planning how to make a prospect into a customer. Pre-pack A package of a specific number of pieces of a single garment style assorted in predetermined sizes and/or colors. Prequalify Determining the compatibility of the sales rep’s products to the price points, merchandise mix, and the buyer’s interest in viewing the product lines. Price point A hypothetical or potential price at which merchandise is offered for sale. Prospects Potential customers that are likely to have an interest in a service or pro. Prospecting The process of recruiting new customers or clients for one’s business. Psychographic The qualitative method for classifying consumers on personality, values, and lifestyle choices. Rack trade Refers to manufacturers of belts sold as separate fashion accessory items Regional market center A major city, serving a particular geographic area, where fashion goods are sold to retail store buyers at wholesale prices. Relationship selling A selling technique in which the sales rep seeks to establish rapport and trust by successfully meeting the buyer’s needs. The end goal is to form a long-term relationship and increasing sales. Reorder A repeated order for the same goods. Retail store A place of sales to consumers, including brick-and-mortar stores, websites, and catalogs. Returns Merchandise returned to the vendor for reasons such as damages or styles not ordered. Road rep (aka sub-rep) A sales rep usually contracted by an independent sales rep to cover a particular set of accounts and/or regions. Sales call Contact with a retail buyer for purposes of getting an order, usually done in person at either the sales rep’s showroom or the retailer’s store but can also be done by phone. Sales forecasting The process of predicting one’s future sales.

Sales rep An intermediary between the manufacturer and the retailers. Sales rep agreement A legal agreement between an independent sales representative and a manufacturer or vendor defining the working relationship. Similar to a Vendor–rep contract. Sales goal A targeted amount of sales over a specified time period that are suggested by a manufacturer. A sales goal is used for directing the sales of independent sales reps. Sales quota A targeted amount of sales over a specified time period that are expected by a manufacturer. A sales quota is used for directing the sales of corporate or manufacturer’s sales reps. Sales territory A group of customers or a geographic area assigned to a sales rep. Sample An actual example of the garments as they will look after the buyer places an order and the clothing is delivered to the store. A sample is one piece of merchandise representing one style number. Scarcity model A belief that there is not enough of an item. In other words, it is in short supply. Season-driven Guided by the seasons; in this context, movement in fashion is dictated by changes in the season. Seasons Named after the time of year when fashion is being shown and sold to retail buyers. The seasons in fashion are Spring, Summer, Fall I, Fall II, and Holiday/ Resort. Share of search interest The amount of online attention a brand receives in comparison to similar brands. Shipping FOB The responsibility for transport costs and liability in transit. The acronym FOB stands for “free on board.” There is always another word following FOB: FOB factory means the buyer is responsible for transportation costs and is liable for any damage while in transit; FOB store means the factory is responsible for transportation costs and is liable for any damage while in transit.

GLOSSARY

Showbook A guide to the exhibitors, vendors, and sales reps participating in the trade show as well as their location in the trade show. Seminars, workshops, and fashion events may also be listed in the showbook. Showroom A space where fashion samples are shown for wholesale selling. Showrooming A process where a consumer visits the store to explore features and prices and then shops online to make the purchase. SME Stands for small and medium-sized enterprise and refers to retailers that have few stores and few employees. “Mom-and-pop” stores are an example. Specialty retailer A retailer who focuses on a particular brand or a specialized product. Speed to market The amount of time that it takes for a company to launch a product and make it available to consumers. Stand A term used in Europe, which is the equivalent of booth; see Booth. Store image The impression or perception of a store in the minds of customers. This can refer to both customers’ perceptions of the products and the experience of shopping at the store. Style Design elements (line, shape, color, and texture) arranged in a unique manner. (Often called model in Europe.) Style number A number given to fashion styles for the purpose of identification. Sub-rep (see Road rep) Supplier A company that offers wholesale fashions for sale to retail buyers. This term is synonymous with manufacturers, vendors, and sources. Supply chain The process link from the raw materials to the production factories to the distribution network of wholesaling and retailing to reach the final consumer. Swag Originally meant the “stuff we all get.” At trade shows, swag is a free giveaway of either sample merchandise, a pen or pencil, a notepad, product catalogs, tote bags, etc., all emblazoned with the company’s logo so that the

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attendee doesn’t forget about the product offering. Target market A group of customers who represent the demographics and psychographics, including lifestyle, for whom the product has been produced. Teardown The process of deconstructing a booth after a trade show. Terms of sale Specific selling information found on the line sheet. These include payment terms, shipping FOB, delivery date(s), minimum order, size range, colorways, and fabrications. Territory A group of customers or a geographic area assigned to a sales rep which contains present and potential customers. Trade fair Synonymous with trade show; a term often used Europe and Asia. Trade show A special event for the purpose of bringing together members of an industry so that they can share and discuss recently developed products and services as well as sell these products and services to their target customer. Trade exhibition Synonymous with trade show; a term often used Europe and Asia. Traditional Channel of Distribution Model The flow of goods from manufacturer to wholesaler to retailer to consumer. Ownership transfers in each stage of the process. Trend-driven Guided by trends; in this context, movement in fashion is dictated by changes in trends. Trial close A pause in the presentation to get feedback from the buyer. It is not meant as a time to ask for an order as the word “close” might suggest; rather, it is an attempt to reach agreement. Undifferentiated selling approach This assumes that all accounts in the territory are similar, and therefore, the same selling strategy is used for all. Union An organization of workers from a particular trade or profession created to protect or secure their rights and interests.

146

GLOSSARY

Unsized Having no designated size; often referred to as one size fits all or one size fits most. Upcycling To reuse a product into a new product, which is typically perceived to be a better quality. Examples include using discarded products to produce trendy jewelry. Vendor A company that supplies products and services.

Vendor–rep contract A legal contract between a company and the sales representative. This would include the rate of compensation. Similar to Sales rep agreement. Work the show To move through the different areas of the trade show, taking notice of up-to-date trends and events.

Bibliography

Bagli, Charles. “New York Seeks to Consolidate Its Garment District.” New York Times, August 19, 2009. https://www.nytimes. com/2009/08/20/nyregion/20garment.html (accessed October 6, 2021). Beauloye, Florine. “The 15 Most Popular Luxury Brands Online in 2021.” Luxe Digital. https:// luxe.digital/business/digital-luxury-ranking/ most-popular-luxury-brands/ (accessed March 22, 2020). Bonacich, Edna, and Richard Appelbaum. Behind the Label. Berkeley, CA: University of California Press, 2000. Dubinsky, Alan. “A Factor Analytic Study of the Personal Selling Process.” Journal of Personal Selling & Sales Management 1, no. 1 (1981): 26–33. http://web.a.ebscohost. com.proxy.library.cpp.edu/ehost/pdfviewer/ pdfviewer?vid=1&sid=576d1d36-36d2-48ac8df3-17d15a0dba55%40sdc-v-sessmgr03 (accessed October 6, 2021). E&E Exhibit Solutions. “Costs of a Trade Show.” https://www.exhibitsusa.com/average-coststo-display-attend-trade-shows (accessed September 14, 2019). e4 Design. “6 Strategies to Design Your Exhibit Around Your Goals.” https://www. marketingsource.com/post/6-strategiesto-­design-your-exhibit-around-your-goals (accessed April 25, 2020). Forbes. “World’s Most Valuable Luxury Brands.” https://www.forbes.com/pictures/fgdi45elhfm/ the-luxury-brands-that-b/#494749944125 (accessed March 22, 2020). Futrell, Charles. ABC’s of Relationship Selling Through Service. 8th edn. Boston: McGraw Hill Irwin, 2005. Marx, Johnny. “Fashion Trade Shows You Should Be Going To.” Handshake.com. September 3, 2015. https://site.handshake.com/blog/

fashion-trade-shows-you-should-be-going-to (accessed October 6, 2021). m+a expocheck. “Global Trade Fair Advisor.” https://www.expodatabase.de/en/home/brand/ expocheck (accessed April 7, 2020). Moncrief, William, and Greg Marshall. “The Evolution of the Seven Steps of Selling.” Industrial Marketing Management 34, no. 1 (January 2005): 13–22. https://www-­ sciencedirect-com.proxy.library.cpp.edu/ science/article/pii/S0019850104000525 (accessed October 6, 2021). Palmieri, Jean. “Informa Partners with NuOrder on Digital Marketplace Initiative.” FN. May 27, 2020. https://footwearnews.com/2020/business/retail/ informa-nuorder-trade-show-­digital-1202995144/ (accessed October 6, 2021). Spacey, John. “9 Types of Brand Objectives.” Simplicable. July 3, 2017. https://simplicable. com/new/brand-objectives (accessed October 6, 2021). Summers, Teresa, and Gabie Church. “The Regional Apparel Mart as a Service Industry: Measurements of Buyer Perceptions.” Abstract. Clothing and Textiles Research Journal 5, no. 4 (1987): 7–13. Stone, Elaine, The Dynamics of Fashion. 2nd edn. New York: Fairchild Publications, 2004. Thwink.org. “The Three Pillars of Sustainability.” https://www.thwink.org/sustain/glossary/ ThreePillarsOfSustainability.htm (accessed October 6, 2021). Trotter, Cate. “30 Top Luxury Retail Stores for 2019.” InsiderTrends. April 4, 2019. https:// www.insider-trends.com/30-top-luxury-retailstores-for-2019/ (accessed October 6, 2021). Ziprecruiter.com. “Apparel Sales Rep Salary in Los Angeles, CA.” https://www.ziprecruiter. com/Salaries/Apparel-Sales-Rep-Salary-in-LosAngeles,CA (accessed January 18, 2020).

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Index

accessories 32–5 account analysis 96–8 account managers 8 account objectives 98 account segmentation approach 96 account selection 46 accounts 9, 15 apparel see fashion apparel approach 89 Armani, Giorgio 117 Atlanta 58 attitudes, interests, and opinions (AIO) 38 AutoKNIT 18 Barenblat, Ayesha 126 Bellettini, Francesca 116, 117 Bellini, Joe 120 belts 33 Bergdorf Goodman 41 “best sellers” 92 Blackstone 67, 68 bloggers 64 Bolado, David 19–20 booths 64–70, 72 Brand Assembly 124 brand goals 36–7 brand identity 71 brand value 40, 41 Bread and Butter trade show 69–70 brick-and-mortar stores 5 bridge jewelry 32 building a customer base 43, 45, 47 account selection 46 defining the target market 45, 47 ­selecting good prospects 45 “built out” booths 66 business-to business (B2B) 2 business-to-consumer (B2C) 1 California Market Center (CMC) 78–9 “cash-and-carry” vendors 12 casualization 114 Cavallo De Ferro Brasil 61 celebrities 63–4 channels of distribution 3 “checking” 92 Chicago 58 children’s wear 30–1 Circular Fashion Pledge 129

148

close 93 cold canvassing 87 Cole, Kenneth 132 colors, seasons and 58–9 commission 8, 9, 11, 12, 16 competitors 15 competitive advantage 26, 88 complaints 102 confidentiality 17 contractors 26 contracts 2, 11, 16–17 corporate reps 8–9 cost price 6 costume jewelry 32 Covid pandemic 114–15, 118, 119, 121, 126, 131, 133 customer base see building a customer base customer profile 88 customer service 15 Dallas 57–8 delivery dates 101 ­delivery follow-up 102 demographics 38 digital transformation 118–25 direct-to-consumer (DTC) 118–19 direct to retailer sales 8 discount retailers 38–40 display fixtures 15 dispute resolution 17 distribution channels 3 drayage 71, 72 Dubinsky, Alan 86 Early Fall 58 e-commerce 118–25 economic sustainability 127, 129–31 Eileen Fisher 36 ELMS strategy 96–8, 99 entertainment 63 environmental sustainability 127–9 e-prospecting 87 e-tailers 5, 130 ethnic jewelry 32 Expodatabase 75 eyewear 33 fabrication 30, 32 fabrication limitation 36

INDEX

Fall I 58–9 Fall II 59 fashion apparel 27 accessories 32–5 children’s wear 30–1 knitwear 30, 32 men’s wear 28–30 price points 27 women’s wear 27–8 fashion bloggers 64 Fashion Channel of Distribution Model 4 ­fashion-forward stores 14 fashion industry 2 structural overview 3–7 fashion manufacturers 26–7 apparel see fashion apparel brand goods 36–7 size 35–6 Fashion Nova 19 fashion trade shows see trade shows fine jewelry 32 first to market 63 flow of goods 3–4 follow-up 95, 102 footwear 33, 35 forecasting sales 99–101 formula sales presentation 89 four Ps 4–5 France, Hillary 124 Frank Lyman Design 103, 104 Friedman, Gene 67, 73 full-size run 39 Galeries Lafayette 42–3, 44 Generation Z 129, 130 Ginza Mitsukoshi 43, 45 Girard, Lynn 48–9, 61, 73 goodwill 14 greeting 89–90 Gucci 117 Hallik, Vanessa Barboni 129 handbags 33, 34 handwear 32, 33 Hanifa 122 Happy Socks 69, 70 Harrod’s 42, 43 headwear 32, 33 high-end showrooms 62 historical forecasting 100 ­Hoffman, Maria 131 Holiday/Resort season 59

149

hosiery 33 “hot” prospects 46, 87 Hu, Leo 18 “immediate” 90 importers 12 income potentials 3, 8–9, 11–12 independent contractor agreement 12 independent reps 9–12 individualized sales presentation 89 Infinity Exhibits 67, 73 Informa 124 insurance 72 International Jewellery Fair 66 inventory 15 Jacobs, Marc 117 jewelry 32, 34 jobbers 12 JOOR 122, 123, 133–4 Junior merchandise 59–60 Just-in-Time (JIT) 124 keynote speakers 63 Keystone 5 knitwear 30, 32 knock-offs 32 Kors, Michael 116 labor costs 26 labor laws 67, 73 landfill 117, 128 large manufacturers 36 Lash-Valencia, Loree 133–4 lean manufacturing 131 leather goods 33 “leave paper” 93 lifestyle marketing 38 ­line releases 60 line sheet 90, 91 LinkedIn 87 long-term relationships 13–14 lookbooks 121 Los Angeles 57 luxury market 26 luxury retailers 38, 40–3 Lynn Girard Showroom 48, 61, 73 mannequins 70 manufacturers 2, 26, 101–2, see also vendors; wholesale manufacturers manufacturer’s reps 8–9

150

INDEX

manufacturer’s suggested retail prices (MSRPs) 5 market information 15–16 market timing 118 Market Weeks 58, 59, 77, 98 marketing models 3 mark-up 5, 12 Marshall, Greg 86 Marshalls 39, 40 marts 56–8 Marx, Johnny 73, 74, 75 mass market 26 mass retailers 38 Mathiesen, Matthew 78–9 May, Aditi 126 McKinsey & Company 117, 121 medium manufacturers 36 memorized sales presentation 89 men’s wear 28–30 merchandise mix 46 merchandisers 15 Merchant, Alexandria 103–5 Millennial consumers 118, 131 Mitsukoshi, Ginza 43, 45 ­models 60 “mom-and-pop” stores 12 Moncrief, William 86 MSRPs 5 Nastos, Tom 124 neckwear 32, 33 need-satisfaction sales presentation 89 negotiation techniques 95 networking 87 New York City 56 non-compete clauses 17 NuORDER 123, 124 objections 92 off-price retailers 12, 38–9 offshore production 26 online marketplaces 121–5 online shopping 41 118–25 open-to-buy (OTB) 92–3 orphaned customers 87 out-of-stock merchandise 13 outsourcing selling 9 overproduction 128, 129, 130 Pareto Principle 97–8 Personal Selling Process (PSP) 86 Pilotto, Giuseppe 59 pipe-and-drape 66

PixelPool 124–5 place 4, 5 retail place 5 wholesale place 6–7 preapproach 46, 87–9 pre-packs 91 pre-qualifying 46 price 4, 5 retail price 5 wholesale price 6 ­price points 10, 27, 32 product improvements 17 production limitation 36 products 4, 5 profit margin 6 promotion 4, 5 retail promotion 5–6 wholesale promotion 7 promotional supplies 73–4 prospecting 86–7 prospects 13, 45 “hot” prospects 46, 87 psychographics 38 rack trade 33 Ralph Lauren 117 “raw space” 66 Razvi, Amina 129, 130 regional fashion apparel marts 56–7 reorders 102 reputation 37 reselling 15 retail place 5 retail promotion 5–6 retail selling 2, 3, 4 retail stores 38 returns 16 road reps 10, 12 Ross 39, 40 routing 99 Saint Laurent (YSL) 116, 117, 126 salaries 3, see also income potentials sales calls 12, 13, 88, 98–9 sales forecasting 99–101 sales goal 46, 96, 98 sales orders 93–4 sales presentation 86, 89–92 approach 89 ­close 93–5 determine objections 92 follow-up 95 meet objectives 92–3

INDEX

preapproach 87–9 prospecting 86–7 trial close 92, 93 sales quotas 46, 96 sales rep agreements 2, 11, 16–17 sales representatives 2, see also sales process; wholesale selling communication with vendor 101–2 sales territories 95–9 sample merchandise 60 scarcity model 118 scheduling 99 search interest 40 season-driven market 60 seasons 58–60, 77, 100 reassessment of the fashion calendar 115–18 Seattle 58 selling environments 56, 77 Atlanta 58 Chicago 58 Dallas 57–8 Los Angeles 57 Market Weeks 58, 59, 77 New York City 56 regional fashion apparel marts 56–7 seasons 58–60, 77 Seattle 58 showrooms 60–2 trade shows see trade shows vendor’s line releases 60 selling process 86, 102 forecasting sales 99–101 ­manufacturer’s role 101–2 sales presentation see sales presentation sales territories 95–9 Semaan, Celine 128 share of search interest 40 Shawl Dawls 36 showbooks 72 showrooms 60–2 transitioning from showrooming to e-commerce 118 sizing 27, 28, 30, 31 unsized items 30 Skorupa, Joe 120 Skuza, Olivia 124 small manufacturers 36 small-medium enterprises (SMEs) 12 social media 37 social sustainability 126–7 specialty retailers 41, 42 speed to market 26 Spring season 59

151

store image 46 style numbers 60 styles 60 sub-reps 10, 12 Summer season 58 sunglasses 33 suppliers 62 supply chain 62 supply chain efficiency 119–21 sustainability 125–31 “swag” 63, 73 tailored clothing 28 Target 38 target market 4, 38, 45, 47 ­teardown 72 termination of contract 17 terms of sale 90–1 territorial sales plan 96–9 territories 17 territory-time allocation 98–9 Thompson, Billy 121 TJ Maxx/TK Maxx 12, 39, 40 trade secrets 17 trade shows 62–3, 77, 87 booths 64–70, 72 budget allocation 72 celebrities 63–4 entertainment 63 expenses 70–4 fashion bloggers 64 floorplan 64, 65 insurance 72 international 74–6 keynote speakers 63 major trade shows 74–7 promotional supplies 73–4 showbooks 72 software 73 teardown 72 territory 76 transportation 73 United States 74, 75 venues and services 63–4 Traditional Channel of Distribution Model 3–4 trend-driven market 60 trends 114–15 casualization 114 changing environment for the fashion industry 114–15 digital transformation 118–25 ­fashion market timing 115–18

152

INDEX

pandemic effects 114–15, 118, 119, 121, 126, 131, 134 sustainability 125–31 trial close 92, 93 umbrellas 33 undifferentiated selling approach 96 unions 67, 73 unsized items 30 upcycling 129, 130 Vaccarello, Anthony 115–16, 126 Van Noten, Dries 116, 117, 126 vendor-rep contract 2, 11, 16–17 vendors 2, 26 communication with sales reps 101–2 vendor’s line releases 60 VF Corporation 36 virtual showrooms 121–5 visual merchandising 60–2 Walmart 38, 39 Wang, Alexander 117 Wells, Heath 124 wholesale customers 37–8 discounters 38 luxury 38 target market 38 wholesale manufacturers 26 fashion manufacturers 26–7

apparel see fashion apparel brand goals 36–7 size 35–6 wholesale place 6–7 wholesale price 6 wholesale promotion 7 wholesale selling 2–3, see also selling process ­essential roles 13 building goodwill 14 building long-term relationships 13–14 creating new customers 13 customer service 15 help with reselling 15 market information 15–16 providing solutions 14–15 selling more to present customers 13 trends see trends types of wholesale sales reps 7–8 importers and jobbers 12 independent reps 9–12 manufacturer’s reps 8–9 road reps 10, 12 wholesale selling environment see selling environments women’s wear 27–8 YSL (Saint Laurent) 116, 117, 126 Zara 118 “Zoom Shirt” 114, 115