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

• Summarize strategies of market trips and merchandise selection

• Explain the process of writing orders

Markets

• Market weeks--scheduled time for showing new lines

• Regional Markets– Spring (October) – Summer (January)– Fall (April)– Winter/ holiday (June)– Resort (August)

Advantages of Market Weeks

• 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

NEW IDEA

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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.

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

Regional Apparel Marts Advantages and Disadvantages for Buyers

• 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)

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

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

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

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

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

Visiting Vendors• 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

STEP RIGHT UP…PLACE

YOUR ORDER WITH ME!!!

Making Buying Decisions

• Strategies– Prioritize the goods– Develop a rating system– Leave paper (write orders) at

end of weekTerms of sale• Discounts and payments• Transportation arrangements• Date of delivery• Point of merchandise transfer• Allocation of transportation

costs

Types of Orders

• 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

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?