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Merchandise Buying

Merchandise Buying. Objectives:. Summarize the activities of market weeks and trade shows List domestic fashion market centers and apparel marts State factors involved in buying foreign goods Describe the market resources available to buyers

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Merchandise Buying

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  1. Merchandise Buying

  2. Objectives: • Summarize the activities of market weeks and trade shows • List domestic fashion market centers and apparel marts • State factors involved in buying foreign goods • Describe the market resources available to buyers • Summarize strategies of market trips and merchandise selection • Explain the process of writing orders

  3. Markets • Market weeks--scheduled time for showing new lines • Regional Markets • Spring (October) • Summer (January) • Fall (April) • Winter/ holiday (June) • Resort (August) Holiday

  4. Advantages of Market Weeks NEW IDEAS • Buyers gain a sense of the market • See vendors’ entire lines of latest merchandise • Discover new sources • Meet and consult with manufacturers • Get special terms and purchases • Gain promotional or selling help • Networking • Ideas for displays • Attend seminars and fashion shows

  5. Other Industry Events • Trade Shows • Periodic, temporary exhibits at trade centers • For one specific type of product, such as golf wear • Apparel Marts • Some open year-round • Rent showroom space during market weeks • Buyers meet with vendors • Fashion shows • Fashion publications Apparel marts are in large single buildings or a complex of buildings.

  6. Market Timeline • 1 year ahead • Work starts on new seasonal line for market • International manufacturing and buying • 6 months ahead • Apparel samples at market for retail buying • 3-6 months ahead • Market orders turned in for manufacturing

  7. Save money Save time Convenient (usually one building) Merchandise suited to area Services cater to small retailers More relaxed Used as test markets so may have order problems Inexperienced reps Unusual or newer items may not be there Promotional sales not available Few RBOs (if any) Regional Apparel Marts Advantages and Disadvantages for Buyers

  8. Domestic Fashion Markets • New York- latest fashions • Los Angeles- sportswear, new trends, “Hollywood glitz” • Dallas- sportswear, western wear, menswear • Chicago- serves small Midwestern stores • Miami- lightweight sportswear, childrenswear • Atlanta- home furnishings, gifts, and decorative arts U.S.

  9. Other Domestic Markets • San Francisco and Seattle - Asian merchandise - Serve Pacific Northwestern states • Las Vegas • Growing rapidly with 3 main buildings covering several acres • Charlotte, Denver, Boston, Portland, Kansas City, Minneapolis • Michigan, Ohio, Indiana, Wisconsin • Small regional markets

  10. Foreign Fashion Markets • Commissionaires • Independent buying agents that help domestic buyers with foreign purchasing • Paris, France • World’s fashion capital • Milan, Italy • Men’s fashions • London, England • Men’s, tailored items, woolens, younger fashions

  11. Resident Buying Offices • Services provided by RBOs • Evaluate economic trends • Send out market information • Provide trend clinics, office space • Locate vendors • Make appointments, accompany buyers, place orders for buyers • Assist with vendor negotiations, international sourcing • Follow up on shipments, deliveries, returns, adjustments

  12. Market Strategies for Buyers • Think like your customers • Be well prepared, organized • Work with your RBO • Confirm vendor appointments • Attend fashion shows • Visit local stores • Know how much to order • Take lots of notes • Visit key vendors several times

  13. Visiting Vendors STEP RIGHT UP…PLACE YOUR ORDER WITH ME!!! • Buyers are stores’ agents • Make decisions based on store goals • Promote good vendor relationships, ethics • Don’t be overwhelmed • Use hotel room or buyer office space to make buying decisions • Don’t leave paper until you feel confident with order

  14. Making Buying Decisions • Strategies • Prioritize the goods • Develop a rating system • Leave paper (write orders) at end of week Terms of sale • Discounts and payments • Transportation arrangements • Date of delivery • Point of merchandise transfer • Allocation of transportation costs

  15. Regular Basic or fashion stock Advance Longer lead time Reorders Immediate delivery Back orders On order due to stockout Open orders Vendor’s judgment Special orders Customer requests Blanket orders Promises to buy (no specifics, approximate quantities) Approval buying Inspection before acceptance Types of Orders

  16. Do You Know . . . • It is important to be organized before, during, and after market. What are some things to remember before leaving for market? After visiting with a vendor? • Open orders can sometimes be risky for the retailer and the manufacturer. Why?

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