Wholesale Apparel Marketing and

Distribution

APPAREL

Objectives:

Discuss inventory management of goods Explain benchmarking and quality programs Describe trademark protection Identify technological advances in apparel

manufacturing Explain how and where apparel producers sell

their finished goods Describe the distribution of fashion items Summarize apparel industry trade

information

Inventory Management Inventories are goods held

on hand for production or for sale

Manufacturers’ inventories:– Raw materials– Work-in-progress– Finished goods

Maintain inventory levels to prevent stockouts and keep down storage or warehouse (holding) costs

Inventory Planning

Inventory control prevents…– Shortages– Overstocking– Wrong selections

Technology has positively impacted inventory…– Accuracy– Efficiency– Accounting– Receiving and distribution

Benchmarking for Quality Products

Process of measuring goods, services, and practices against world-class leaders

Proactive Builds high-quality

work for error-free goods

Quality Programs Total Quality Total Quality

Management (TQM)Management (TQM)– Long-term commitment Long-term commitment

for continuous for continuous improvement of service improvement of service and satisfaction beyond and satisfaction beyond customers’ expectationscustomers’ expectations

– Quality controlQuality control– Employee Employee

empowermentempowerment

Quality Work By Empowered Employees

Achieving Top QualityAchieving Top Quality Create consistency Adopt a new

philosophy for top quality

Do it right the first time

Do not award lower price points

Strive to improve Provide on-the-job

training

Leadership at all Leadership at all levelslevels

Avoid fear and Avoid fear and conflictconflict

Eliminate Eliminate unrealistic quotasunrealistic quotas

Self-improve with Self-improve with incentivesincentives

Keep everyone Keep everyone involvedinvolved

Trademark Protection

Word, name, logo, or device used to identify and distinguish goods

Registering or Registering

trademark provides legal ownership and prevents copying

Companies need to protect trademark

R TM

Why isn’t this the “official” trademark logo for Calvin Klein?

Technological AdvancesComputer Integrated Manufacturing

(CIM) Computerized

– Sewing machines– Automated work stations– Forecasting– Design– Robotics– Integrated Manufacturing

Demand flow manufacturing– Customized garments on

demand

Computer Aided Design

Data

Processing

Computer Aided

Manufacturing

Data Processing

CIMCIM Combination of

all 3

Selling Finished Apparel

Apparel producers present lines to retail buyers at market

Presentations in fashion cities– Formal, well-prepared

showings– Presented in showrooms

at apparel marts or vendor sites

Sales Promotion Apparel producers

help retailers with– Advertising– Selling aids– Trunk shows

»Complete collection of samples brought to store

»Designer or wholesaler comes to take orders

– Fashion shows

Distribution of Finished Apparel

Planning, implementing, Planning, implementing, and controlling the and controlling the physical flow of goodsphysical flow of goods

Involves sales and Involves sales and logistics (details of logistics (details of storing and moving)storing and moving)

Confined Confined goods sold to goods sold to only one retailer in a only one retailer in a specific trading areaspecific trading area

Order Processing and Shipping

Electronic Data Interchange (EDI)– Warehouse scans

and tracks– Bar coded– Quick Response

Shipping– Within U.S., mostly

by truck

Apparel Industry Trade Information

American Apparel and Footware Association and The Fashion Association

International Apparel Federation

Apparel Industry Magazine

Women’s Wear Daily (WWD)

Daily News Record (DNR)

Apparel Marketing Digest

Do You Know . . .

What kind of advantages does air freight have over land freight?

What type of information can be found in WWD?

Who should subscribe to DNR?