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	<title>Fashion Incubator &#187; Sales and Marketing</title>
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	<link>http://www.fashion-incubator.com</link>
	<description>How to start a clothing line or run the one you have, better.</description>
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		<title>Selling to department stores pt.3 (compliance)</title>
		<link>http://www.fashion-incubator.com/archive/selling-to-department-stores-pt-3-compliance/</link>
		<comments>http://www.fashion-incubator.com/archive/selling-to-department-stores-pt-3-compliance/#comments</comments>
		<pubDate>Fri, 06 Jan 2012 20:47:37 +0000</pubDate>
		<dc:creator>Guest Author</dc:creator>
				<category><![CDATA[Fulfillment]]></category>
		<category><![CDATA[Operations]]></category>
		<category><![CDATA[Sales and Marketing]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=10672</guid>
		<description><![CDATA[Today we have a post from guest author Jim Wiebe. Jim provided the source material for the the second entry in the series based on the <a href="http://www.edibootcamp.com/" target="_blank">EDI BootCamp</a> class I took from him. Without further ado, here's Jim:
----------------------

In <a href="http://www.fashion-incubator.com/archive/selling-to-department-stores-pt-2-edi/" target="_blank">part 2</a>, Kathleen said “If you want to move up to another level sales-wise, the process and logistics of how you service those accounts will have to move up to another level first.”  Very true, but you are facing something of a chicken and egg situation here. You can’t put the necessary processes and logistics in place without the cash flow from orders to support it, but if you get the orders without the ability to handle them, it can be catastrophic.  So how can you deal with this successfully?  Well, you can have a carefully thought out plan in place, know what it will cost and how long it will take to come up to speed.

At this point, of course, you are going to have lots of questions. What is EDI and why do large retailers have all these 'compliance requirements? How is doing business with large retailers different than small stores and boutiques? Important stuff. For answers, you need to understand how large retail operations work.]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/selling-to-department-stores-pt-3-compliance/feed/</wfw:commentRss>
		<slash:comments>4</slash:comments>
		</item>
		<item>
		<title>Selling to department stores pt.2 (EDI)</title>
		<link>http://www.fashion-incubator.com/archive/selling-to-department-stores-pt-2-edi/</link>
		<comments>http://www.fashion-incubator.com/archive/selling-to-department-stores-pt-2-edi/#comments</comments>
		<pubDate>Thu, 29 Dec 2011 22:24:13 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Fulfillment]]></category>
		<category><![CDATA[Operations]]></category>
		<category><![CDATA[Sales and Marketing]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=10624</guid>
		<description><![CDATA[[amended 12/30/11]
In <a href="http://www.fashion-incubator.com/archive/selling-to-department-stores-pt1/" target="_blank">Selling to department stores pt.1</a>, I mentioned the advantages and disadvantages to independents who want to sell clothing to department stores. Please read that first for context or little of this entry will make sense or will simply overwhelm you.

Continuing on. In that entry I listed 5 things you need to know about selling to department stores and provided links to flesh out the topics. In many ways, the post was an amalgamation of the many entries I've written on how to sell in the big leagues. The one item on the list that got short shrift was EDI or Electronic Data Interchange. Today's entry is a start to correcting that omission.

Toward that end, I took a web based class last month called <a href="http://www.edibootcamp.com" target="_blank">EDI Bootcamp</a> with Jim Wiebe. Jim is the go-to guy for EDI and small apparel wholesalers. EDI could be described as an electronic protocol and software based logistics management tool. You can't sell in the big leagues without it. In part, <a href="http://en.wikipedia.org/wiki/Electronic_data_interchange" target="_blank">Wikipedia describes it</a> like so:

<blockquote><em>For example an EDI 940 ship-from-warehouse order is used by a manufacturer to tell a warehouse to ship product to a retailer. It typically has a ship to address, bill to address, a list of product numbers (usually a UPC) and quantities. Another example is the set of messages between sellers and buyers, such as request for quotation (RFQ), bid in response to RFQ, purchase order, purchase order acknowledgment, shipping notice, receiving advice, invoice, and payment advice. [...] In some cases, EDI will be used to create a new business information flow [...in the case of] Advanced Shipment Notification (856) which was designed to inform the receiver of a shipment, the goods to be received and how the goods are packaged.</em></blockquote>

In short, EDI is a means to satisfying vendor compliance standards established by your customer.]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/selling-to-department-stores-pt-2-edi/feed/</wfw:commentRss>
		<slash:comments>3</slash:comments>
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		<item>
		<title>Assume stupidity not malice. And, a PR job opening</title>
		<link>http://www.fashion-incubator.com/archive/assume-stupidity-not-malice-and-a-pr-job-opening/</link>
		<comments>http://www.fashion-incubator.com/archive/assume-stupidity-not-malice-and-a-pr-job-opening/#comments</comments>
		<pubDate>Thu, 01 Dec 2011 23:20:49 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Contractors]]></category>
		<category><![CDATA[Rants]]></category>
		<category><![CDATA[Sales and Marketing]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=10456</guid>
		<description><![CDATA[Any time a situation doesn't work out in whatever way, our natural default response is to presume malice when incompetence is more likely. Try to keep that in mind.

In the vein of <a href="http://www.fashion-incubator.com/archive/how-can-we-make-it-easier-to-do-business-with-us/" target="_blank">How can we make it easier to do business with us?</a> (and <a href="http://www.fashion-incubator.com/archive/how-can-we-make-it-easier-to-do-business-pt-2/" target="_blank">pt.2</a>) many took the position that sewing contractors are bad, evil, arrogant or whatever because they didn't have web pages so potential customers could find them easier. I said it was more than that.

Hard as you may find this to believe, the problem is that the businesses you want to find don't know how to do what it takes for you to be able to find them -but they're willing to hire it out. Sounds like a slam dunk, right? Think again.

There is a critical lack of PR firms with sufficient grounding in the trade to understand the value of manufacturing products and services, much less know where to find or how to target a client's potential customer base. Lest that sound overly critical of PR firms, it's a near impossible job because this business is highly fragmented. There's no  single publication or site where PR firms can place editorial to promote their client's interests. We used to have a variety of niche and regional publishers (<a href="http://catalog.tedthorsen.com/catalogs.htm" target="_blank">Needle Trader</a>, Kogos etc) but most of them are long gone. Others are too limited in distribution (<a href="http://mannpublications.net/magazines/fashion-mannuscript/" target="_blank">Mannuscript</a>, <a href="http://www.apparelnews.net/" target="_blank">California Apparel News</a>). Too few people read WWD anymore and besides, it's for retailers not manufacturers. <a href="http://apparel.edgl.com/home" target="_blank">Apparel</a> is an option but it's intended for C-level execs rather than companies like you and even fewer read that now. Maybe a few of you read it but it's too darn few to be cost effective.]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/assume-stupidity-not-malice-and-a-pr-job-opening/feed/</wfw:commentRss>
		<slash:comments>14</slash:comments>
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		<item>
		<title>Competitive Analysis</title>
		<link>http://www.fashion-incubator.com/archive/competitive-analysis/</link>
		<comments>http://www.fashion-incubator.com/archive/competitive-analysis/#comments</comments>
		<pubDate>Sat, 10 Sep 2011 00:20:09 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Design]]></category>
		<category><![CDATA[Newbies]]></category>
		<category><![CDATA[Sales and Marketing]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=9995</guid>
		<description><![CDATA[A topic in the forum gave me this idea. Or rather, it brought the point home for me. So many designers start lines because they've shopped the market and can't find what they like so they think the product or item doesn't exist. Once they get out there and mingle, they discover this isn't so true. There are plenty of product lines they didn't know about -and with much more competitive price points and positioning so said start ups are stuck trying to position themselves after the fact and in a defensive position no less. The tragic fact is that too many start ups don't look far enough afield. So my proposition is this:

On page 40 of my book is a worksheet one can use to define their target customer. Mine isn't the only one; it's SOP in most books. The departure should be a separate extensive list of related brands in the marketplace with a worthwhile and serious contemplation of their strengths and weaknesses. Some of this is done if one writes a business plan but again, I've never seen a plan that respected the exercise of competitive assessment with due diligence beyond the cursory. Frankly, if you do the job well, the conclusion one should come to at least half the time is that the market has been addressed and one should think of something else.]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/competitive-analysis/feed/</wfw:commentRss>
		<slash:comments>20</slash:comments>
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		<title>The top rated city for luxury goods</title>
		<link>http://www.fashion-incubator.com/archive/the-top-rated-city-for-luxury-goods/</link>
		<comments>http://www.fashion-incubator.com/archive/the-top-rated-city-for-luxury-goods/#comments</comments>
		<pubDate>Tue, 30 Aug 2011 21:42:09 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Sales and Marketing]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=9958</guid>
		<description><![CDATA[My friend Andrea (not her real name) sends a link to <a href="http://maosuit.com/shopping-malls/what-china-should-learn-from-hong-kongs-luxury-malls/" target="_blank">What China Should Learn From Hong Kong’s Luxury Malls</a> and I know you're thinking, "so what does that have to do with me?". A lot -particularly in the context of a recent post from Iconoculture called <a href="http://blog.iconoculture.com/2011/08/23/fury-over-fakes/" target="_blank">Fury Over Fakes</a>. Before I get to that, were you aware of the controversy of <a href="http://www.bbc.co.uk/news/technology-14503724" target="_blank">fake Apple stores in China</a>? The case -which was <a href="http://birdabroad.wordpress.com/2011/07/20/are-you-listening-steve-jobs/" target="_blank">discovered by a traveling blogger</a>- has spurred international attention and fear among commercial enterprises. The summary of international discussion is that if Chinese businesses are ballsy enough to open fake Apple stores so convincing that employees thought they worked for Steve Jobs, what hope is there for any brand's integrity?

But back to Iconculture's Michael McCune who says:

<blockquote><em>...while US consumers are familiar with China’s fake iPhones and Fendi bags, fewer likely know that Chinese brands suffer the same fate. More important, Chinese consumers themselves are hurt when their children are at risk from toys with lead paint or their milk is tainted with melamine.

When national pride, health and their hard-earned yuan are on the line, Chinese consumers demand the genuine article. According to a China Market Research Group survey, the “overwhelming majority” of consumers said that their biggest fear in life was buying products that could harm their health (CNBC.com, 28 July 2011). The masses of angry consumers who’ve stormed the copycat stores and joined class-action lawsuits are an even better testament to how fed up they are over being duped.</em></blockquote>

Meaning, Chinese citizens are -surprise, surprise- your unlikely partner in maintaining your brand's integrity because it serves their best interest. Which circuitously returns us to the matter of luxury malls in mainland China vs those in Hong Kong because dontchaknow, <a href="http://maosuit.com/real-estate/hong-kong-ranked-worlds-best-city-for-luxury-shopping/" target="_blank">Hong Kong is ranked as the world's best city for luxury shopping</a> and by extension, a place you want to sell stuff.]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/the-top-rated-city-for-luxury-goods/feed/</wfw:commentRss>
		<slash:comments>6</slash:comments>
		</item>
		<item>
		<title>Email marketing espionage</title>
		<link>http://www.fashion-incubator.com/archive/email-marketing-espionage/</link>
		<comments>http://www.fashion-incubator.com/archive/email-marketing-espionage/#comments</comments>
		<pubDate>Fri, 26 Aug 2011 22:47:55 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Sales and Marketing]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=9949</guid>
		<description><![CDATA[Context: I encourage members to add me to their email marketing lists so I'm indirectly (impersonally) updated as to their progress. I read emails and usually delete them and then go on about my day. I changed that policy over the past year. Now I save them in a special file with the idea of analyzing them for frequency, timing of special offers etc -with the idea of making suggestions to the broader readership.

I don't have anything hard and fast to suggest today but wanted to make mention of a practice I've noticed with a new-to-me company that is not apparel related. I ordered a catalog from this company but haven't placed an order yet. At least once a week  I get an email from them with some kind of special offer -say free shipping or 15% off of an order I place. The day before the offer runs out, I get another email reminding me that this offer is expiring so I'd better get it while the getting's good.

Rather than create a sense of urgency, it's created complacency on my part. I've only been on their list for a month but owing to the number of emails with reduced cost offers, I know that if and when I do decide to order, I'd be crazy to pay full price so I should time my purchase to coincide with an offer.]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/email-marketing-espionage/feed/</wfw:commentRss>
		<slash:comments>7</slash:comments>
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		<item>
		<title>Smack Marketing</title>
		<link>http://www.fashion-incubator.com/archive/smack-marketing/</link>
		<comments>http://www.fashion-incubator.com/archive/smack-marketing/#comments</comments>
		<pubDate>Wed, 17 Aug 2011 17:46:58 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Sales and Marketing]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=9898</guid>
		<description><![CDATA[Courtesy of Simon Doonan, via the <a href="http://www.observer.com/2010/culture/pricey-landscaping" target="_blank">New York Observer</a>:

<blockquote><em>There is a wicked new marketing strategy currently sending shock waves through the high-stakes competitive world of luxury fashion. It’s devious, delightful and deliciously dirty.

Here’s the deal: Remember how Snooki, drunk or sober, was never seen without that Coach bag dangling from the crook of her arm? Snooki and her Coach were as synonymous as The Situation and his six-pack. But then the winds of change started blowing on Jersey Shore. Every photograph of Guido-huntin’ Snooki showed her toting a new designer purse. Why the sudden disloyalty? Was she trading up? ... The answer is much more intriguing.

Allegedly, the anxious folks at these various luxury houses are all aggressively gifting our gal Snookums with free bags. No surprise, right? But here’s the shocker: They are not sending her their own bags. They are sending her each other’s bags! Competitors‘ bags!</em></blockquote>

I thought it too hilarious not to mention. I found the link via comments on MR; <a href="http://marginalrevolution.com/marginalrevolution/2011/08/markets-in-everything-14.html" target="_blank">the given post</a> mentioning that Abercrombie &#38; Fitch Co. wants to pay Michael Sorrentino <a href="http://jamesjchoi.blogspot.com/2011/08/anti-endorsement-contracts.html" target="_blank">to not wear their brand</a>. This of course reminds me of Burberry's <a href="http://www.timesonline.co.uk/tol/news/uk/article504849.ece" target="_blank">less than warm reception</a> of its burgeoning customer base among hip hops and chavs. The lesson boys and girls is to be careful what you wish for because you just might get it. Burberry's popularity with its unintended demography contributed to dismal sales figures...]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/smack-marketing/feed/</wfw:commentRss>
		<slash:comments>6</slash:comments>
		</item>
		<item>
		<title>What are the margins of an apparel distributor?</title>
		<link>http://www.fashion-incubator.com/archive/what-are-the-margins-of-an-apparel-distributor/</link>
		<comments>http://www.fashion-incubator.com/archive/what-are-the-margins-of-an-apparel-distributor/#comments</comments>
		<pubDate>Wed, 03 Aug 2011 23:24:08 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Fulfillment]]></category>
		<category><![CDATA[Sales and Marketing]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=9837</guid>
		<description><![CDATA[Judging from increasing questions on the web from start up clothing lines about the margins a clothing distributor expects, it has become apparent that people think they can streamline sales by contracting with one. So let's start with that. 

In the apparel industry, a distributor is a middleman between a manufacturer and its wholesale customers. There are three instances in which one might need the services of a distributor:
<ol><li>The manufacturer is a very large brand -on the order of Ed Hardy.</li><li>The manufacturer seeks market presence in a foreign nation.</li><li>The manufacturer produces unbranded commodity items such as tees, tube socks etc.</li></ol> Of these, only the second item applies to small firms. You'd contract with a distributor in a given country to represent you to their wholesale customers. The reverse is also true; it is common for showrooms to act as distributors for offshore brands here in North America. 

This is where the confusion comes in. People think hiring a distributor is a streamlined way to get products into stores. It is not that. Or rather, it can be true in limited circumstances but it isn't an option for smaller companies. When the term "distribution" is used, <a target="_blank" href="http://www.google.com/search?q=what+is+apparel+distribution&#38;ie=utf-8&#38;oe=utf-8&#38;aq=t&#38;rls=org.mozilla:en-US:official&#38;client=firefox-a">it most commonly</a> refers to distribution channel and distribution logistics.]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/what-are-the-margins-of-an-apparel-distributor/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>No competitors is worse than many competitors</title>
		<link>http://www.fashion-incubator.com/archive/no-competitors-is-worse-than-many-competitors/</link>
		<comments>http://www.fashion-incubator.com/archive/no-competitors-is-worse-than-many-competitors/#comments</comments>
		<pubDate>Wed, 22 Jun 2011 22:29:35 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[Newbies]]></category>
		<category><![CDATA[Sales and Marketing]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=9655</guid>
		<description><![CDATA[Contrary to what we think or would like to believe, having an  original product isn't always a sure sell to buyers. Having no competition can be worse than the alternative. It could be much harder to get retail shops to buy your stuff if there is no competition in your niche. Before we jump to conclusions, let's clarify a few things:

Are you sure your product idea is original and has no competition? It is more likely that you're  not looking in the right places. If the item doesn't exist  where <em>you</em> shop, you need to look farther afield to conduct competitive analysis. If the product doesn't exist where you shop, it is probably because there's no market for it there. That doesn't mean to throw in the towel, it means you must reconsider where you thought to sell it because your product idea may be a  mismatch  due to price, styling, need or whatever.

So let's say it truly doesn't exist, having no competition can be the kiss of death rather than an advantage. <a href="http://www.google.com/search?q=behavioral+economics&#38;ie=utf-8&#38;oe=utf-8&#38;aq=t&#38;rls=org.mozilla:en-US:official&#38;client=firefox-a" target="_blank">Behavioral economics</a> is based on reasons people buy stuff. People don't buy because of presumed risks some of which are:]]></description>
		<wfw:commentRss>http://www.fashion-incubator.com/archive/no-competitors-is-worse-than-many-competitors/feed/</wfw:commentRss>
		<slash:comments>9</slash:comments>
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		<item>
		<title>Open tabs 5/4/11</title>
		<link>http://www.fashion-incubator.com/archive/open-tabs-5411/</link>
		<comments>http://www.fashion-incubator.com/archive/open-tabs-5411/#comments</comments>
		<pubDate>Wed, 04 May 2011 23:03:47 +0000</pubDate>
		<dc:creator>Kathleen Fasanella</dc:creator>
				<category><![CDATA[News From You]]></category>
		<category><![CDATA[Sales and Marketing]]></category>
		<category><![CDATA[Small Business]]></category>
		<category><![CDATA[Sustainability]]></category>

		<guid isPermaLink="false">http://www.fashion-incubator.com/?p=9356</guid>
		<description><![CDATA[Following the <a href="http://www.fashion-incubator.com/archive/open-tabs-3811/" target="_blank">previous entry of open tabs</a> (tagged News From You) and the ADHD side effect of having too many windows open, here is today's edition.

I should mention the open tabs thing is worse now that I've upgraded to <a href="http://www.mozilla.com/en-US/firefox/fx/" target="_blank">FireFox 4</a>. Now you can group tabs according to different subjects in the background (I love it!). Mine are production scheduling, business, cotton and vanity sizing. I have <span style="text-decoration: line-through;">33</span> <span style="text-decoration: line-through;">37</span> 55 open...

<strong>Manufacturing:</strong> Yet another mega consulting firm has realized that <a href="http://www.manufacturingnews.com/news/11/0429/accenture.html" target="_blank">outsourcing doesn't work</a>. Here's a quote:
<blockquote><em>[...]Accenture found that 61  percent are considering moving some of their manufacturing back to their home market. Ferreira and Heilala describe this as being a "secret  shift" and a "quiet trend."

Many manufacturing companies that shifted production offshore  "likely did so without a complete understanding of the 'total costs,'  and thus, the total cost of offshoring was considerably higher than  initially thought," write the two analysts. "Part of the issue is that  not all costs of offshoring roll up directly to manufacturing; rather,  they impact many areas of the enterprise."</em></blockquote>
Not that I've ever said differently, (I know folks e-pat me on the head and wink behind my back over my irascible inflexibility) I still think the best move anyone can make is to <a href="http://www.fashion-incubator.com/archive/why-you-should-start-your-own-sewing-factory/" target="_blank">start their own sewing factory</a> because you'll be<a href="http://www.fashion-incubator.com/archive/circularity-cotton-colanders-value-and-the-specialty-store-market/" target="_blank"> much better positioned</a> by the time everyone else figures they need domestic cut and sew and finding any open production slots in the US will be an even harder scramble.

Speaking of, many domestic cut and sew operations are expanding. <a href="http://www.wsaz.com/news/headlines/PROOF_200_Sewing_Jobs_Continue_Olive_Hill_Tradition_121191479.html" target="_blank">This operation in Olive Hill KY</a> is hiring 200 sewing machine operators.]]></description>
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		<slash:comments>14</slash:comments>
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