Fashion Retailing: Where is Fashion Sold?

1. Fashion Retailing: Where is Fashion Sold? HNB 4MI

2. Remember • The primary market is the most technical and scientific of the three segments and involves research and development in the areas of fibres, yarns, fabric construction, and fabric dyeing and finishing etc. • The secondary market is responsible for both the manufacturing and distribution of fashion items. Remember that while manufacturing involves the production of apparel at the couture, ready-to-wear, or mass produced level, distribution involves the transition from wholesale to retail. • The tertiary market is essentially the retail industry. Retailing is the link between fashion producers and the consumer.

3. Retail Categories • A retailer's category will determine: • - method of operation • - merchandise assortment

4. Department Stores Characteristics: • A large flagship store typically located in the downtown area of a city which oversees the branch stores. • Branch stores typically serve as anchor stores in shopping malls. • Merchandise is grouped according to specialty such as cosmetics, lingerie, apparel, accessories, furniture, food, electronics etc. • Services such as bridal registry, delivery, interior decorating and design, appliance installation and maintenance etc. are offered. • Apparel is organized into different departments according to gender, size, apparel category (evening wear, career wear etc.), and price. • Designer collections are typically offered. For example, the Hudson's Bay Company flagship store on Queen Street in Toronto has The Room an exclusive area that offers designer clothing. • Apparel categories include the store's private label. • In an effort to compete with specialty stores, many department stores in the United States are opening smaller stores with limited merchandise assortments. These stores are referred to as spinoff or twig stores

5. Specialty Stores • Have you ever shopped in a specialty store such as Old Navy, H &M, or Guess? • These establishments can typically offer a very wide assortment of very restricted and specific apparel categories. • For example, think about Victoria's Secret. The focus of this specialty store is lingerie. • Besides assortment, shopping in specialty stores may also be faster and more convenient for the busy consumer as there is such an availability of choice in both styling and size. • This retail grouping typically captures the purchasing power of the fashion-minded consumer.

6. Boutiques • Boutiques are typically one-unit operations that feature upscale and fashion-forward merchandise. • Assortment selection is restricted in terms of sizing and number of items. • The boutique customer is guaranteed the latest in fashion innovation and is typically assisted by a trained sales associate and/or the owner. • Often the sales associate will inform the customer about new items and sales, often acting as a personal shopper.

7. Off-Price Retailers • Have you ever purchased clothing, shoes, or jewellery at Winners? • Winners is an example of an off-price retailer. • Off price retailers are among the most successful retailers today. • These retailers typically buy late in the season when manufacturers are reducing their line prices. • As well, off-price retailers are constantly trying to expand their inventory to meet the needs of the fashion bargain consumer. • Often labels such as Jones New York, Calvin Klein, DKNY, and Liz Claiborne can be found in such retail establishments. • These retailers will sometimes purchase a line of goods, for example handbags, and ask for a designer label to be attached.

8. Factory Outlet • The factory outlet is quite the fashion phenomenon in the United States. • Essential manufacturers open their own units as a means to dispose of season leftovers and slow-selling current season merchandise. • Usually items are sold at a lower cost and size variances are not always as readily available. • Another avenue for selling such merchandise is the Shopping Channel on television

9. Direct Retailers • Catalogue companies have increased in relation to the number of women working full-time outside the home. • Catalogue shopping offers every conceivable apparel item at numerous different price points. • Direct retailing is not new in Canada. • Traditionally, Canadian department stores, such as Eaton's and Simpson's, offered their customers catalogue shopping which was advantageous for those who lived in Alberta, Saskatchewan, and Manitoba. • These two companies disbanded their catalogue departments prior to closing their businesses.

10. Category Killers • Category Killers include retailers such as Toys R Us, or specialty discounters. • These retailers carry a very large selection of one merchandise classification typically at discounted prices and typically take business away from other retailers who carry similar merchandise. • In response, department stores have often seen the need to eliminate some merchandise categories such as the toy department, the food floor, etc.

11. Mass Merchandise Discounters • The greatest impact on apparel retailing today is the mass merchandiser. • Wal-Mart is an example of such a retailer. Because big – box retailers sell in such volume, manufacturers will gladly produce for these retailers, realizing that manufacturing loyalty is not in the business terminology of these companies. • These retailers offer limited service including sales assistance. • Typically customers make their own selections and take to the cash, which resembles the traditional grocery store check out.

12. Interactive Retailers • A new breed of retailers has emerged called the interactive retailers. • These retailers include the shopping channel on televisions and the ever-expanding e-shopping. • Interactive retailers can sell high-fashion apparel at numerous price points and appeal to those consumers who have limited shopping time or wish to shop from home.

13. Resale Stores • Resale retailers specialize in used or second-hand clothing. • Prices are typically less than new apparel items and items cannot be returned. • Vintage clothing is typically purchased in resale stores or online and can vary in price from being very reasonable to extremely expensive. • You can thank Hollywood for the jump in price of vintage clothing. • Also in this category are thrift and consignment stores. • Thrift stores are owned by a charity or a church that offer clothing in less than perfect condition. • On the other hand, consignment stores offer clothing that is in good shape at reduced prices. • The original owner will typically make money through the consignment practice and their clothing is being reused rather than ending up in a landfill.