2007 Fairchild Publications, Inc.

1. 2007 Fairchild Publications, Inc.

2. 2007 Fairchild Publications, Inc.

3. Marketing Terminology Markets Where goods are produced and sold to buyers at wholesale prices during market weeks • The major domestic market centers are: • New York • By far the largest and most important market • Los Angeles • Miami • Dallas 2007 Fairchild Publications, Inc.

4. Sales Representatives • The original link between the New York fashion scene and the provinces • Sales representatives evolved from lonely traveling salesmen showing only one line to groups of salesmen showing multiple, non-competing lines • Ultimately, this developed into regional market centers, known as marts 2007 Fairchild Publications, Inc.

5. Marts • Consist of exhibition spaces that house wholesale markets • The Merchandise Mart in Chicago is the oldest of the marts • Today, there is a mart in most major cities 2007 Fairchild Publications, Inc.

6. Services of Market Centers and Marts • Publicity: fashion shows, parties • Information Services: buyer’s directory, publications • Educational Services: seminars, conferences 2007 Fairchild Publications, Inc.

7. Trade Shows • Periodic events in regional market centers • They are smaller than market weeks • MAGIC International, is the exception • Mens Apparel Group In California, the largest show of its kind, is like a market week minus the permanent facilities, and held in Las Vegas • Today, women, children, and accessories are included in the MAGIC International shows 2007 Fairchild Publications, Inc.

8. New York City • Has many advantages: • It is the nation’s fashion capital • New York City offers, by far, the largest selection of manufacturers’ showrooms • It is the fashion publishing, buying, and retailing center • It is the cultural center of the United States, the best place for designers to draw inspiration from all forms of art 2007 Fairchild Publications, Inc.

9. New York City • In 1993, Seventh on Sixth originated to provide a platform for American designers to become leading players in the global fashion business • An off-shoot of the Council of Fashion Designers in America (CFDA), in 2001, they were acquired by IMG and produce Olympus Fashion Week in New York • Today, IMG is the producer of Mercedes-Benz Fashion Week in Los Angeles and Sunglass Hut Swim Shows Miami • Internationally, they produce, manage and represent Fashion Fringe (London), Lakmé India Fashion Week, Thai Supermodel Search and Pakistan Fashion Week 2007 Fairchild Publications, Inc.

10. Regional Market Centers • Each market center has their own unique flavor and fashion • The Los Angeles Market • Easy-living, casual lifestyle, colorful • The Dallas Market • Southwestern looks, handcrafted styles • The Miami Market • Latino and Caribbean flavor, colorful • Best known for children’s wear 2007 Fairchild Publications, Inc.

11. Foreign Fashion Markets France • France first emerged as a fashion showcase during the reign of Louis XIV (1643–1715) • Textile production in Lyons and lace works in Alençon were established to meet the needs of the royalty at court at Versailles • France originated haute couture in 1858 when Charles Frederick Worth opened his doors as the first couturier 2007 Fairchild Publications, Inc.

12. Chambre Syndicale de la Couture Parisienne • Established in 1868, the Chambre Syndicale de la Couture Parisienne sets the standards and dates for the haute couture shows • The Chambre Syndicale’s most valuable contribution is that it represents its members in arbitration disputes and seeks regulation of wages and working hours 2007 Fairchild Publications, Inc.

13. Gowns by John Galliano for Dior Haute Couture • By itself loses money but creates profitability through: • Franchising • Licensing arrangements • Prêt-à-porterlines 2007 Fairchild Publications, Inc.

14. Prêt-à-Porter • Includes designs for the ready-to-wear portion of the market • This is the the money making section of the fashion industry, giving designers access to large markets • Standardized sizing and mass manufacturing created profitability 2007 Fairchild Publications, Inc.

15. Semiannual “Pret” Shows Held in the major European fashion capitals: • London • Paris • Milan 2007 Fairchild Publications, Inc.

16. Foreign Fashion Markets Italy • France’s most serious rival in the fashion industry, the Italians have made massive inroads during the last quarter of the 20th century • Italian designers are renown for their superb knitwear, accessories, and textiles • Designers use innovative and beautiful textiles to launch themselves in the luxury markets • Italian designers have also capitalized on the highly skilled domestic laborers 2007 Fairchild Publications, Inc.

17. Foreign Fashion Markets Italy • As a result, designers like Giorgio Armani developed tremendous influence • Today’s luxury market is greatly influenced by Gucci and Prada 2007 Fairchild Publications, Inc.

18. Foreign Fashion Markets Great Britain • Best known for handcrafted suits from Savile Row • Many of today’s most important designers are from Britain: • LVMH Moët Hennessy, employs John Galliano for Dior, Alexander McQueen for Givenchy, and set up Stella McCartney with her own line • Vivienne Westwood has been setting design trends for over 20 years • Philip Treacy is today’s most recognized hat designer • Julien Macdonald has a stellar reputation 2007 Fairchild Publications, Inc.

19. Foreign Fashion Markets Germany and Scandinavia • Formerly nonexistent on the fashion tour, Germany surfaced with the ascendance of Hugo Boss, Escada, Mondi, and Jil Sander • Leather apparel, specifically in menswear, is a popular Swedish product • Sweden and Norway are among the most important suppliers of mink and other furs to countries around the world 2007 Fairchild Publications, Inc.

20. Foreign Fashion Markets Japan • The 70s saw the first wave of Japanese designers—Issey Miyake, Hanae Mori, Kenzo Takada, and Kansai Yamamoto—with daring and provocative designs • The second wave arrived in the 80s, with Rei Kawakubo, Matsuhiro Matsuda, and Yohji Yamamoto leading the way • In the 90s, designers focused on retro pop cultural influences such as hippie beads and T-shirts and 1970s punk • Hiroake Ohya produced a limited edition of dresses packaged in books that were sold in bookshops 2007 Fairchild Publications, Inc.

21. Foreign Fashion Markets Elsewhere’s… • China is one of the largest exporters of both raw materials and finished products • In 2000, the U.S. gave China normal trader status, which gave China entry into the WTO • India has the most handlooms in the world, 13.5 million, making it a formidable textile producer • India’s fashion industry is growing since the 1999 Lakmé India Fashion Week in New Delhi • Mexico benefited greatly from NAFTA, becoming one of the United States largest trading partners in a short period and making it an even more attractive offshore location for domestic manufacturers 2007 Fairchild Publications, Inc.

22. Global Sourcing • Describes the process of shopping for and purchasing imported goods • U.S. buyers rely on the help and experience of specialists. Foreign made goods can be purchased at and by the following: • Foreign fashion markets • Store-owned foreign buying offices • Commissionaires or independent agents • Import fairs held in the United States • Importers 2007 Fairchild Publications, Inc.

23. Private Label Buying • Retailers make their own assortment to set them apart from the competition • Private label has two actual “types” of buying • One type consists of the manufacturer designing for the retailer, such as Federated Merchandising Group • Both domestic and offshore production are used to complete private label goods 2007 Fairchild Publications, Inc.

24. Specification Buying • Is the other type of private label manufacturing • It consists of a store, or retailer, actually designing the product to be manufactured • JCPenney’s and the Gap provide standards and guidelines for everything from material quality to workmanship styling and cost 2007 Fairchild Publications, Inc.

25. Specification Buying Apparel for Wal-Mart being manufactured in India 2007 Fairchild Publications, Inc.

26. Counterfeit Goods • Inferior imitations are counterfeit goods, much like counterfeit currency • Luxury goods are the chief objects of counterfeiters 2007 Fairchild Publications, Inc.

27. Black Market or Bootleg • Are more of a problem to designers • They are made by the same manufacturers, but sold on the black market • The quality is not that of a cheap rip-off and it is tough to distinguish them from real items 2007 Fairchild Publications, Inc.

28. Black Market or Bootleg Cartons of counterfeit goods that have been confiscated by the police Confiscated “fakes” 2007 Fairchild Publications, Inc.

29. U.S. Penetration of Foreign Markets • Looms as a solution to the trade deficit • U.S. companies will not benefit from any laws in foreign countries promoting imports • However, U.S. exports have expanded using reputation for quality and trendiness • American influence accelerates the “homogenization” of fashion • As U.S. companies develop foreign markets the international sales will become part of every fashion houses’ sales 2007 Fairchild Publications, Inc.

30. U.S. Penetration of Foreign Markets • Globalization will continue to be a factor going forward Reasons: • Technology available to enhance communication and production • Increased production needs of large manufacturers • Licensing opportunities • As more people are involved in the industry, from producers to consumers, then you need more facilities 2007 Fairchild Publications, Inc.