Fashion Buying Concepts

 Origins of fashion buying in Italy. France vs Italy.  

No real ready to wear garment industry in Italy (before the end of the 40s- after WWII) 

Copying models from French fashions 

Lively core of artisan and craft businesses 

Colony of travelers 

First italian buying offices representing the overseas department stores. 

Florence: Giovanni Giorgini and the birth of the Italian fashion  system.  

Giovanni Giorgini- the birth of Italian fashion 

The inspiration from the Renaissance and the excellence of Florence 

Pitti Sala bianca 

Held the 1st Italian High Fashion show in his home (1951)

“The Birth of Italian High Fashion”- Florence, 12 February 1951 

  • Immediate success in press and with buyers 

    • 2nd show in July; 51 more successful with 600 dresses 

    • The first group show of men’s fashions was held in 1963

  • In the 1980s- everything was to Milan but men’s fashion is still in Florence 

∙ Trends in retailing and retail mix 

Trends in Retailing: 

  • Secondhand apparel 

  • Personalizing the customer journey 

  • More investment in social platforms 

Retail Mix: 

  • Price- Cost 

  • Customer service 

  • size/space (store design, visual merchandising)

  • Location 

  • Variety- Assortment 

    • Satisfy the needs of significant segments and persist over time 

∙ The organizational structure of a fashion company and the Mazur  plan. 

Organizational Structure

Line People: decision- making power, direct authority, responsibility

Staff People: assistance and help, advisory and support 

Mazur Plan:management technique activities divided into four major areas or departments 

  1. Merchandising 

  2. Publicity 

  3. Store management 

  4. Accounting and control 

∙ GMM, DMM, Buyer: functions and responsibilities.  

GMM: Policy maker & Operating Officer.- 2nd to the CEO 

  • Merchandise DIRECTION 

  • Budgetary allocations for DMMs 

  • Meeting with merchandise Team and visits significant suppliers 

  • Visiting the wholesale market 

DMM: acts as a liaison between GMM and Buyers 

  • Assisting and advising the GMM

  • Distributing division’s budget to the Buyers 

  • Advising buyers on merchandise acquisitions 

Buyers:

  • Merchandise selection 

    • Pricing 

    • Assortment 

∙ Understanding customers and planning the purchase: the 5 key steps  that buyers go through when planning their purchases for a season. 

  • The sixth month pan

  • OTB 

  • Vender evaluation 

  • Timing the purchase 

∙ Sourcing merchandise resources: negotiations, relationships and  timing the purchase. 

Sourcing/selecting vendor: 

  • Open and fair Communication 

  • Production capacity 

  • Return history 

  • Cooperation with clients 

    • Wholesale market centers 

    • Meeting vendors at your company/ sales rep. 

Negotiations: 

  • Two-way communication designed to reach an agreement

    • Quality

    • pricing/discounts 

    • Purchase terms 

    • Don’t be afraid to say “no”! 

    • Don’t over negotiate 

Timing the purchase: 

  • Set Date- the day the goods need to be in the store  

  • Lead time-how long it will take to produce the product

    • 30-40 days* is the goal 

∙ Merchandising planning structures:  

o The 6-month plan: its purpose and use. How to plan sales and inventories.  

6-month plan; a financial plan, tool, and roadmap covering 26 weeks (half of the year) 

To PLAN and EVALUATE 

  1. Sales 

  2. Stock inventory 

  3. Stock reductions- Markdowns 

  4. The flow of purchase- OH (on Hand), OO (on order) 

How to plan sales and inventories 

  1. Procure a Net Profit 

  2. To research previous successes/failures to repeat/avoid

  3. To integrate the various merchandising activities

  4. To provide an estimate of the amount of capital required to be invested in inventory for a specific period

  5. An estimate of the planned sales ( for the period) translated into cash flow estimates 

o OTB: what it is and how to make calculations.  

OTB- Open to buy 

  • The amount of merch. $ available to spend during a specific period of time 

  • The consequence of the 6-month plan 

  • Helps merchandisers to make sure enough merchandise has been purchased 

Calculations: 

To calculate OTB for that Month: 

Planned EOM stock +

Planned monthly sales +

Planned MD for that month-

BOM stock = * Planned purchases for that month-

OO (On Order)=

*OTB for that Month 

∙ Global Sourcing and ethics. The 10 principles of the UN. 

10 Principles: 

Human rights 

Labor 

Environment 

Anti-corruption


Global Ethics: outlines the ethical principles based on the business organization’s core values