The keys to a Fashion Buyers heart: • • • • • • • •
Know your brand Edit your range Finalise your costings Research the retailer(s) Contact your networks Understand the Buying Season Present your range professionally Know your retail terms and prepare to negotiate
Your Brand... Knowledge of your brand is crucial to obtaining the attention of a Buyer. • What is the history behind your brand? • What does it stand for? • What is your USP (unique selling point)?
Your Target Market... Comprehensive knowledge of your target market is crucial. Research income, demographic, social activity and how they present themselves.
Your Range... Once you have designed the range and decided on your target market, look at your range in its entirety. • What is the story/stories for the season? • Are you on trend? • Do you have an appropriate category mix or are you focused on a single category?
Your Pricing... Ensure that you have priced your range, relative to the fabric and design behind your work, and ensure you are competitive against your brand adjacencies. It is imperative that you are aware of your freight and landed costs and account for those variables in your cost prices. Ensure your factories are organised well in advance. Research your factories. There are no excuses for unethical business practices. Consult the ILO (International Labour Organisation) before making any decisions regarding factories and manufacturing. Key terms (see end for definitions): • Cost price • Landed Cost
Your Retailer... Identify the ideal retailer(s) who you would want to work with and work backwards from there. Who is their target market? Know the Marketing campaigns and Social Media activity. How would your brand sit within this? What brands do you compare yourself to and how can your brand add to sales, rather than cannibalise sales from brands they already stock? Build a “Tier of Retailers”. Start with smaller retailers/boutiques to begin your approach to the major retailers, if that is your target.
Your Network... You will need to be strategic in your approach as buyers receive daily emails and mail from new brands. If you have previously worked in retail and have connections to Buyers there, speak to them about how they could potentially make introductions to other Buyers. Do not send samples to Buyers. More often than not, buyers will disregard these samples or simply reply with a “thanks” but “no thanks”, especially if you are yet to meet them. Use your own network to provide you with introductions. You may also see an opportunity in discussing your brand with Sales Agents. While Sales Agents will take a commission on sales, they often have a wide network of potential retailers you may want to work with.
Your Timing... Know when the Buying seasons are and attempt to communicate to Buyers in advance of the season. You do not want to make the effort to present your range, if they have no money to spend. Ensure that you are prepared well in advance of the season and have a clear understanding of the seasonality of your range.
Your Presentation... Buyers will need to see the product on the body. Take time in the presentation of: • Lookbook • Pricelist • Presentation Be prepared for a Buyer to give you feedback. Often Buyers may wait to see which other retailers will take on your brand and how you perform in the market, so do not feel discourage if they do not take on your brand in its early stages or first couple of seasons. Persist.
Your Negotiations... Once a Retailer has seen you range, there will be negotiations made. Some key terms you will need to understand (see end for definitions). • • • • •
Margins Payment Terms Guaranteed Sell Through Consignment SOR(Sale Or Return)
Key Terms: • Sell Through: The percentage of stock sold at full price before markdown (usually at 65%). • Margins: The profits the company pockets after accounting for costs, expressed as a percentage of total sales. Sales minus costs equals profits and profits divided by sales equals profit margin • Density: The sales achieved per square foot of retail space. Targets vary store by store. • SOR: Sales or Return is a zero risk option for stores as a designer supplies a collection and is only paid for what the store sells. The remiander is returned to the designer at the end of the season. • Trade and Settlement Discount: Trade is an automatic percentage reduction on all prices whereas a settlement discount relates to the speed of payment. Calculate which would method would be best. • Cost Price: The price at which goods are or have been bought by a merchant or retailer. • Landed Price: A landed cost is the total price of a product once it has arrived at a buyer’s door. The landed cost includes the original price of the product, all transportation fees (both inland and ocean), customs, duties, taxes, insurance, currency conversion, crating, handling and payment fees.
