APPAREL MERCHANDISING

Retail/Wholesale Marketing Strategies

�Relate to Channel distribution.
� Developing retail strategies
�Selling distressed merchandise in outlet store.
� Examples: VF Corp. using Dual-distribution system (own
stores+
traditional discount, specialty, or department store), Lands’ End
(Internet + catalogue)
� Developing wholesale market strategies
� A place where a group of apparel manufacturers is showing
their
product lines for sale at wholesale.
� MAGIC International trade show in Las Vegas (twice a year)
� Target of the wholesale force-> Retailers ->target consumers.
� Sale reps (2 types)
� Inside sales rep.
� Outside sales rep.
� QR Partnering arrangement

DOMESTIC AND INTERNATIONAL MARKETS

Domestic marketing is the marketing practices within a marketer's home country. Foreign
marketing is the domestic operations within a foreign country (i.e., marketing methods used
outside the home market). Comparative marketing analytically compares two or more
countries' marketing systems to identify similarities and differences.

International marketing studies the "how" and "why" a product succeeds or fails abroad and
how marketing efforts affect the outcome. It provides a micro view of the market at the
company level.

Multinational, global, and world marketing are all the same thing. Multinational marketing
treats all countries as the world market without designating a particular country as domestic
or foreign. As such, a company engaging in multinational marketing is a corporate citizen of
the world, whereas international marketing implies the presence of a home base. However,
the subtle difference between international marketing and multinational marketing is
probably insignificant in terms of strategic implications.

Domestic marketing is usually considered easier because a company already understands

local/country customs and norms. The focus, then is effective marketing.

International marketing is usually more difficult because literal translation often can turn off
prospects. My favorite example of this is when I was doing work for a Japanese company
 that was outlining their "scheme". They meant "plan"...and the two terms area
synonomous, but "scheme" carries a very negative connotation in the US.

Domestic trading:
Trading that is aimed at a single market, the firms domestic trade, is referred to
as domestic trading. In domestic trading, the firm faces only one set of
competitive, economic, and market issue and essentially must deal with only one
set of customers, although the company may have several segments in this one
market. The part of a nation's market that represents the systems of trading
securities of entities located within that nation.
Gross National Product - GNP. GDP plus the income accruing to domestic
residents as a result of investments abroad, minus the income earned in domestic
market accuring to foreigners abroad.
internal market - The mechanisms for issuing and trading securities within a
nation, including its domestic market and foreign market.

WHOLESAILING

Wholesaling is a distribution channel function where one organization buys products from
supplying firms with the primary intention of redistributing to other organizations (but, in
general, not to the final consumer). A wholesaler is an organization providing the necessary
means to: 1) allow suppliers (e.g., manufacturers) to reach organizational buyers (e.g.,
retailers, business buyers), and 2) allow certain business buyers to purchase products which
they may not be able to otherwise purchase. According to the 2002 Census of Wholesale
trade, there are over 430,000 wholesale operations in the United States.

While many large retailers and even manufacturers have centralized facilities and carry out
the same tasks as wholesalers, we do not classify these as wholesalers since these
relationships only involve one other party, the buyer. Thus, a distinguishing characteristic of
wholesalers is they offer distribution activities for both a supplying party and for a
purchasing party. For our discussion of wholesalers we will primarily focus on wholesalers
who sell to other resellers such as retailers. Selling of merchandise to anyone other than a retail
customer. The term may include sales to a retailer, wholesaler, broker, distributor, or business
enterprise. Wholesaling usually involves sales in quantity and at a cost significantly lower than the
average retail price. It has become an important step in the supply chain since the introduction of
mass production and mass marketing techniques in the 19th century. Without wholesalers,
manufacturers would have to market their products directly to a huge number of customers at high
unit costs, and buyers would have to deal with an inconveniently large number of suppliers. There are
three major categories of wholesalers. Merchant wholesalers, the most important category, are
independent businesses that buy merchandise in great quantities from manufacturers and resell it to
retailers. Manufacturers' sales branches are businesses founded by manufacturers to sell directly to
retailers. Merchandise agents and brokers represent various manufacturers; they usually do not buy
the merchandise they handle but instead arrange for shelf space and the display of merchandise. So-
called warehouse stores sell large quantities of goods at near-wholesale prices. Wholesaling is the
process of selling goods and services to a client who will in turn resell those products to other consumers.
Wholesalers can include retailers, organizations who market services to members, and companies that sell
the purchased products under their own brand. Generally, wholesaling involves providing the customer with
a discounted rate per item in exchange for buying the item in large amounts. Wholesaling offers a number
of benefits to a customer. First, the customer does not have to maintain manufacturing facilities to produce
goods or services that are offered to the general public for sale. This can make it possible for the wholesale
customer to maintain a relatively low overhead in the market, which in turn increases the customer’s ability
to be competitive with larger companies. The wholesale client also saves money in terms of employee
wages and benefits, since the company can operate with a smaller work force.

Going with a wholesaling solution also allows the customer to secure goods and services for resale at a
lower unit price. Assuming the terms for payment are agreeable, this means that a wholesaler can resell
the products at a reasonable profit and use payments from consumers to pay the wholesale provider in a
relatively short period of time. This has the advantage of not tying up the assets of the wholesaler in
covering Accounts Payable items, since the turnaround on the Receivables is adequate to handle the cost
of securing products for resale.

The wholesale provider also benefits from this type of transaction. Wholesaling usually involves selling
products in bulk. This means that more products are moved out quickly and do not languish in warehouses.
As a result, the wholesaler can maintain a smaller inventory and incur fewer taxes than would be possible
otherwise.

There are a number of different wholesaling jobs available in many different industries. The
telecommunications field is full of wholesalers who purchase long distance services, Internet access, and
teleconferencing services from major providers and re-brand those services as their own. In like manner,
retail and electrical wholesaling is not uncommon at all. The advent of the Internet has led to the
development of virtual wholesaling opportunities, where businesses offer virtual products that were
purchased from a supplier and re-branded for sale as a distinct product line.

Types of wholesale market

Secondary wholesale markets are generally found only in developing countries these days.
They are located in district or regional cities and take the bulk of their produce from rural
assembly markets located in production areas, where the transactions are small scale and
usually take place between farmers and traders. The distinction between rural assembly
markets and secondary wholesale markets is that secondary wholesale markets are in
permanent operation (rather than being seasonal in nature or dealing in specialized produce),
larger volumes of produce are traded than at the rural assembly markets and specialized
functions may be present, such as commission agents and brokers.

Terminal wholesale markets are located in major metropolitan areas, where produce is finally
channelled to consumers through trade between wholesalers and retailers, caterers, etc.
Produce may also be assembled for export. In some countries, such as India and China,
terminal markets also supply other parts of the country. For example, New Delhi serves as a
distribution centre to the south of India for apples grown in the Himalayan foothills. The
problems of terminal wholesale markets are usually ones of congestion caused by an
unsuitable location or by an inappropriate mixture of wholesale and retail functions.
Traditionally, wholesale markets were built adjacent to city centres, located at a focal point of
the inter-city transport facilities and close to the main retailing areas. Population growth,
changes in urban land-use patterns and the development of modern transport systems have all
influenced the suitability and functionality of existing sites.
RETAILING
Retailing consists of the sale of goods or merchandise from a fixed location, such as a
department store, boutique or kiosk, or by mail, in small or individual lots for direct
consumption by the purchaser.[1] Retailing may include subordinated services, such as
delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods
or products in large quantities from manufacturers or importers, either directly or through a
wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often
called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers
see the process of retailing as a necessary part of their overall distribution strategy. The term
"retailer" is also applied where a service provider services the needs of a large number of
individuals, such as a public utility, like electric power.

Shops may be on residential streets, shopping streets with few or no houses or in a shopping
mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial
or full roof to protect customers from precipitation. Online retailing, a type of electronic
commerce used for business-to-consumer (B2C) transactions and mail order, are forms of
non-shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is done to obtain
necessities such as food and clothing; sometimes it is done as a recreational activity.
Recreational shopping often involves window shopping (just looking, not buying) and
browsing and does not always result in a purchase.

Retail pricing
The pricing technique used by most retailers is cost-plus pricing. This involves adding a
markup amount (or percentage) to the retailer's cost. Another common technique is suggested
retail pricing. This simply involves charging the amount suggested by the manufacturer and
usually printed on the product by the manufacturer.

In Western countries, retail prices are often called psychological prices or odd prices. Often
prices are fixed and displayed on signs or labels. Alternatively, when prices are not clearly
displayed, there can be price discrimination, where the sale price is dependent upon who the
customer is. For example, a customer may have to pay more if the seller determines that he or
she is willing and/or able to. Another example would be the practice of discounting for
youths or students.

TYPES OF RETAIL OWNERSHIP:-

Entrepreneurs have many forms of retail business ownership available to them. Each
business model has its own list of pros and cons. Choosing a type of retail business
to start will depend on why you want to own a business, as well as your lifestyle,
family, personality, basic skills and much more. Here are a few of the main types of
retail ownership and the advantages, disadvantages, and support system of each.

1. Independent Retailer

In independent retailer is one who builds his/her business from the ground up. From
the business planning stage to opening day, the independent retail owner does it all.
He/she may hire consultants, staff and others to assist in the business endeavor.
The opportunities are endless.

2. Existing Retail Business

Someone who inherits or buys an existing business is taking ownership and

responsibility of someone else's hard work. The foundation has already been laid.

3. Franchise

Purchasing a franchise is buying the right to use a name, product, concept and
business plan. The franchisee will receive a proven business model from an
established business.

4. Dealership

Retailers may find the business model of a licensed dealership as a mix of franchise
and independent retailer. The licensee has the right (sometimes this is exclusive) to
sell a brand of products. Unlike a franchise, the dealer can sell a variety of brands
and there generally no fees to the licensor. Dealerships may or may not be identified
as an authorized seller or by the company's trademark.

5. Network Marketing

Multi-level marketing (MLM) or network marketing is a business model where the

selling of products depends on the people in the network. Not only is a product being
sold, but other salespeople are being recruited to sell that same product or product
line. It's probably not a type of business one would initially consider when discussing
retail businesses, but Amway used this model quite successfully for many years.

TYPES OF RETAIL STORES

Discount stores
Discount stores offer a wide range of products, although they mainly offer value goods, such
as housewares, clothes, kitchen-wares, gifts and healthcare products. These are sold at
reduced prices, because many of them are either brand name or clearance products. A
discount store is a type of department store, which sell products at prices lower than those
asked by department stores and other traditional retail outlets. Most discount department
stores offer a wide assortment of goods; others specialize in such merchandise as jewelry,
electronic equipment, or electrical appliances. Discount stores are not variety stores, which
sell goods at a single price-point or multiples thereof (£1, $2, etc.). Discount stores differ
from variety stores in that they sell many name-brand products, and because of the wide price
range of the items offered. Discount stores are more popular in the United States than other
countries. Following World War II, a number of retail establishments in the U.S. began to
pursue a high-volume, low-profit-margin strategy designed to attract price-conscious
consumers.

DEPARTMENT STORE

A department store is a retail establishment which specializes in satisfying

a wide range of the consumer's personal and residential durable goods
product needs; and at the same time offering the consumer a choice multiple
merchandise lines, at variable price points, in all product categories.
Department stores usually sell products including apparel, furniture, home
appliances, electronics, and additionally select other lines of products such as
paint, hardware, toiletries, cosmetics, photographic equipment, jewelery,
toys, and sporting goods. Certain department stores are further classified as
discount department stores. Discount department stores commonly have
central customer checkout areas, generally in the front area of the store.
Department stores are usually part of a retail chain of many stores situated
around a country or several countries.

SPECIALITY STORE

Specialty stores (British: Speciality shops) are small stores which specialize in
a specific range of merchandise and related items. Most stores have an
extensive width and depth of stock in the item that they specify in and provide
high levels of service and expertise. The pricing policy is generally in the medium
to high range, depending on factors like the type and exclusivity of merchandise
and ownership, that is, whether they are owner operated or a chain operation
which has the advantage of bulk purchasing and centralized warehousing
system. They differ from department stores and supermarkets which carry a
wide range of merchandise. A specialty store is a store, usually retail, that offers specific and
specialized types of items. These stores focus on selling a particular brand, or a particular type of item. For
example, a store that exclusively sells cell phones or video games would be considered specialized.

The definition for specialty store is actually somewhat loose. Sometimes it includes
chain retail stores that sell a specific brand of clothing. This would make retail outlets
like Gap, Old Navy, Eddie Bauer, and Victoria’s Secret specialty stores, because all
the clothing sold there is manufactured specifically for that store. If you buy
something from the Gap, it will have a Gap label.

OFF PRICE RETAILERS

Off-price retailers offer a different approach to discount retailing. As discount houses tried to
increase services and offerings in order to upgrade, off-price retailers invaded this low-price,
high-volume sector. Off-price retailers purchase at below-wholesale prices and charge less
than retail prices. This practice is quite different from that of ordinary discounters, who buy
at the market.