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How do fashion retailers decide which clothing to buy from manufacturers?
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fashion industry
A model walking the runway wearing an outfit from Off-White women's spring and summer 2020 collection during Paris Fashion Week, 2019.
Fashion retailers determine which clothing to purchase by analyzing consumer preferences and market trends to ensure they stock the right products at the right time and price. This process, known as merchandising, relies on several key strategies:1
- Data Analysis: Retailers utilize sales tracking data, focus groups, and media coverage to understand what customers want.1
- Industry Events: Buyers attend fashion shows during international Fashion Weeks to view new collections, which help them identify trends and select merchandise that fits their specific customer base.12
- Manufacturer Collaboration: Wholesalers and manufacturers present their products through catalogs, sales forces with samples, and runway shows to help retailers find a close fit for their stores.12
- Inventory Management: Retailers typically make these purchasing decisions three to six months in advance. Modern systems, such as inventory-tracking computer programs, can also trigger automatic reorders based on real-time demand.1
Ultimately, the goal is to maximize profitability by aligning inventory with the evolving desires of the target consumer.13