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ESTABLISHING YOUR LABEL IN THE USA

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Presented by Frances Harder

Author “Fashion For Profit” Founder of Fashion Business Inc.

Establishing Your Label in the USA

FRANCES HARDER

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• Frances is an entrepreneur and educator, who prior to self-

publishing Fashion for Profit and founding the Fashion Business

Incorporated (FBI) was a full time Assoc. Professor at Otis

College of Art and Design in Los Angeles. Frances conceived of

the FBI in 1998 to provide vital business development,

resources and education to creative designer/manufacturers,

who lack the critical business skills to become successful in

today's competitive environment. Frances studied art and

majored in fashion design in England.

• She is currently working with the United Nations to assist

women in business in Peru who are producing Alpaca products.

• Frances also serves as an apparel expert in legal disputes.


ABOUT FBI

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• Fashion Business Inc. (501c3) is a not for profit

educational organization which provides the fashion

industry with the resources and training to support its

growth and profitability. The FBI offers targeted

business education, job training and retraining,

sourcing, networking opportunities, marketing and

consulting services through its resource center and

business partnerships. The FBI exists to ensure the

ongoing vibrancy of the American fashion industry.

www.fashionbizinc.org


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Establishing Your Label in the USAR U READY?

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• Good management skills and including government regulations both domestic and US

• Financial expertise

• Knowledge of the market


Careful planning with a solid foundation to reach your company's goals

Building Your International Team

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Your team should consist of the following Professionals:o Designo Merchandising -- People who do Planning and have a good

understanding of US market

o Marketing

o Saleso Distribution

o Financial

Delivery

LDPCredit

FitMarkets

Follow-up

FashionDesignSales


Basic Knowledge

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• The knowledge that you might have accumulated through education, running your business or other means will certainly help you in foreign trade.

• Many smaller exporting companies depend on carriers, forwarders, Custom House brokers, bankers and insurance companies to assist them in preparing necessary documents.

• Larger more established companies have in-house experts who are knowledgeable in the foreign trade.


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Understanding US Demographic

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Where and who is your target market?

New York - Clean and business like

LA – Casual and item driven market – Trend

driven

Dallas – Sophisticated dressy

Miami – More glitzy and color driven

Seattle – Out doors, earthy

Chicago – More NY than LA

Southern markets – Plus sizes


Getting Started

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• US Market Research

• Choosing Your Market Niche


Demographic Revolution

•Changing workplace dress codes

•Increasing environmental awareness

•Casual lifestyles

•40-year-olds may purchase same styles and brands as a 20-year-old

•Mothers and daughters shop together

•Fathers and sons wear the same brands

•Aging Baby Boomers

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• Junior Market

• JR. Contemporary

• Missy Contemporary

• Plus Sizes

• Better wear

• Bridge

• Men’s

• Children’s


Most clothes are purchased from the following types of store (Approx %):

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Mass Merchants, e.g. Target, Costco, Wal-Mart, Kmart ………26%

Specialty Stores, e.g. Nordstrom, Neiman Marcus, Ann Taylor, Gap………19%

Department stores, e.g. Bloomingdale’s, May Co., Macy’s ………18%

Chain Stores, e.g. Sears, JC Penney ………10%

Online & Catalog, e.g. Lands’ End, L.L. Bean, Abercrombie & Fitch ………15% +

Off Price Stores ……..…7%

Factory Outlets ……….5%


Fit – what do you expect?

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• Every culture has different bodies for men and

children and ladies.

• A FACT is that the #1 size sold in the USA for

Ladies is size 14… This might be a XXL in Asia

but it is just a Large in America.

• Sending samples that fits an average 0 will NOT

work in the West.

• Men are taller and heavier which of course

means kids are also larger.


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Colors and Fabrics

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• Color is the 1st thing we notice about a fashion. Especially a bright color! In the US society – Caution with prints

• Today most designers introduce a large palette so as not to miss anything.

• In the USA we love Clean, Fresh and BRIGHT colors.

Europe will accept DULL and Dirty colors.


Merchandising for Success

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• Optimize your line by merchandising

• Five style can be merchandised into 15

• Three fabrications can be merchandised into 35 styles

• Plan for the same body in different lengths and treatments


Rules for COSTING

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1). Price – Determined by Market Price

2). Cost – Of the garment

3). Profit Margin – Do not lose MONEY


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Building The Brand

Create a signature look

• Consistency of look throughout line and seasons• Innovation each season• Retailers and customers come to recognizeand return to buy


Protecting Your Brand in the US

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• Name and Logo

• All countries are Brand Conscious

• The HOTTEST Asset that you have

• Trademark

• DBA

• LLC. Inc.


US Legal Requirements

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• Licenses-City, State and Federal

• IN – Tax ID

• RN #

• Resale #


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US Legal Requirements

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•New Federal Law - CPSA -VERY IMPORTANT FOR CHILDRENS CLOTHINGincrease,

you will need to revisit your product liability insurance


Payment Options

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• Payment mechanisms - Payment options including advance payment, open account, consignment, documentary collection and letter of credit

•Commercial document - Invoices, pro forma invoices, sales contracts.

•Transportation documents - Bills of lading, airway bills, certificates of inspection, carrier certificates and packing lists.

•Shipping - Containers, weights, inter-modals, carriers and less than container loads.


Important Documents

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• Airway Bills

• Commercial Invoices

• Bill of Lading

• Insurance Certificates

• Packing List

• Government documents - Certificates of Origin,

Consular Invoices, license requirements


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• Distribution channels - Agents, distributors, export management companies, direct and indirect channel, trading companies, wholesalers and retailers.

• Pricing product - Landed costs, hidden costs, incremental, discounts and allowances, price cuts and increases.

• Promotion - Types of advertising, sale promotion events, public relations, direct marketing, personal selling, media options.


Plan for Surprises

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• Becoming a successful trader depends upon the commitment and determination the entire company

• There are more chances that international transactions can go wrong. For example, goods might be held by Customs over payment discrepancies, missing documents and many other reasons.

• To successfully solve these challenges requires a firm commitment by management.


Relationship Cultural Differences

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• Understand Cultural differences when establishing international relationships. The hard sell that may be effective in the domestic market might not produce the same outcome in foreign markets.

• In the international markets, your buyer or supplier might be operating in a different legal, political, cultural and economic environment, including different businesses practices and languages.

• You will have to work hard to understand and gain your buyer or seller's trust.


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Delivery Dates

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• Timing is everything! Sending Spring merchandise during a Fall delivery can be a BIG Disaster… Delivering LATE = CHARGEBACKS

• There are two main seasons: Spring and Fall –Two minor seasons Summer and Holiday.

• The more you show the more you sell. Having new items for all the shows in the USA can only bring MORE sales!


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•80% of your business will be in 20% of your styles


Sales Representative

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• Road Reps

• Commission Payments

• Orders Writing

• Samples

• Trade Shows

• Showrooms Reps

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How to Find Reps!

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• Associations

• Rep Yellow Pages

• Advertising

• Word of Mouth

• Visit Shows

• Paid Head Hunters


How to get your “Pitch” across

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• You have 30 second elevator pitch

• Say what they want to hear

• Be Professional

• Answer their needs

•Prepare – Prepare – Prepare• Complete a thorough needs analysis

• Prepare notes on the most important things

• Be Sincere – Be Brief – Be seated!


Selling Online

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• Virtual Showrooms

• E-Commerce

• eBay

• Collecting Payment


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Social Media

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Brand Building using Social media changing traditional marketing methods.

• Twitter

• Facebook

• MySpace

• LinKedin

• Pintrest


Keep Your Market Analysis Updated

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Whether manufacturing domestically or internationally with global distribution, every World variable will have some effect on your costs.

• Constantly shop stores both locally and Internationally – (Internet)

• Check your demographics to make sure it is not changing

• Don’t forget your target market.


New Technology

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•Body scanning

•Mass Customization

•Direct from the manufacturer to customer

•Selling through online sales

What will happen to the retailer?


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Think ahead! Due to the many variables in our global economy, your current costs may need to be revised. The

revision will always be upward!

Remember! It is not only about creating beautiful clothes, but about running a

profitable business!

Thank you! Come & See US IN LA!!


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“The Center for the Business of Fashion”

110 E 9th Street, Suite A792

Los Angeles, CA 90079

(213) 892-1669

www.fashionbizinc.org


Membership InformationSpecial Rate for Australian Partners!

$175.00 Annual Membership ($75 discount)

Email: [email protected]
