Key sectors of the fashion industry

Once the clothes have been designed and manufactured, they need to be sold. The business of buying clothes from manufacturers and selling them to customers is known as retail. Retailers make initial purchases for resale three to six months before the customer is able to buy the clothes in-store.

Fashion marketing is the process of managing the flow of merchandise from the initial selection of designs to be produced to the presentation of products to retail customers, with the goal of maximizing a company’s sales and profitability. Successful fashion marketing depends on understanding consumer desire and responding with appropriate products. Marketers use sales tracking data, attention to media coverage, focus groups, and other means of ascertaining consumer preferences to provide feedback to designers and manufacturers about the type and quantity of goods to be produced. Marketers are thus responsible for identifying and defining a fashion producer’s target customers and for responding to the preferences of those customers.

Marketing operates at both the wholesale and retail levels. Companies that rely on third-party retailers—such as boutiques, department stores, and online sales companies—must place their products in those retailers’ hands at wholesale prices, since they do not have storefronts of their own. To do this, they use fashion shows, catalogs, and a sales force armed with sample products to find a close fit between their products and each retailer’s customer base. By contrast, companies that sell directly to consumers through their own stores or channels skip this intermediary step entirely; their marketers are primarily concerned with matching products to their own established customer base rather than convincing outside retailers to carry them. At both the wholesale and the retail level, marketing also involves promotional activities, such as print and other media advertising, aimed at establishing brand recognition and brand reputation for characteristics such as quality, low price, or trendiness.

Closely related to marketing is merchandising, which attempts to maximize sales and profitability by inducing consumers to buy a company’s products. In the standard definition of the term, merchandising involves selling the right product, at the right price, at the right time and place, to the right customers. Fashion merchandisers must thus utilize marketers’ information about customer preferences as the basis for decisions about such things as stocking appropriate merchandise in adequate but not excessive quantities, offering items for sale at attractive but still profitable prices, and discounting overstocked goods. Merchandising also involves presenting goods attractively and accessibly through the use of store windows, in-store displays, and special promotional events. Merchandising specialists must be able to respond to surges in demand by rapidly acquiring new stocks of the favored product. An inventory-tracking computer program in a department store in London, for example, can trigger an automatic order to a production facility in Shanghai for a certain quantity of garments of a specified type and size to be delivered in a matter of days.

By the early 21st century the Internet had become an increasingly important retail outlet, creating new challenges (e.g., the inability for customers to try on clothes prior to purchase, the need for facilities designed to handle clothing returns and exchanges) and opening up new opportunities for merchandisers (e.g., the ability to provide customers with shopping opportunities 24 hours per day, affording access to rural customers). In an era of increasingly diverse shopping options for retail customers and of intense price competition among retailers, merchandising has emerged as one of the cornerstones of the modern fashion industry.

Fashion shows

Fashion designers and manufacturers promote their clothes not only to retailers (such as fashion buyers) but also to the media (fashion journalists) and directly to customers. Already in the late 19th century, Paris couture houses began to offer their clients private viewings of the latest fashions. By the early 20th century, not only couture houses but also department stores regularly put on fashion shows with professional models. In imitation of Parisian couturiers, ready-to-wear designers in other countries also began mounting fashion shows for an audience that combined private clients, journalists, and buyers. Toward the 21st century, fashion shows became increasingly elaborate and theatrical, were held in larger venues with specially constructed elevated runways (“catwalks”) for the models, and played a more prominent role in the presentation of new fashions.

Couture shows are held twice a year in Paris (in January and July) and are hosted by the official syndicate of couture designers (comprising the most exclusive and expensive fashion houses). They present outfits that might be ordered by potential clients but which often are intended more to showcase the designers’ ideas about fashion trends and brand image. Ready-to-wear fashion shows, separately presenting both women’s and men’s wear, are held during spring and fall “Fashion Weeks,” of which the most important take place in Paris, Milan, New York, and London. However, there are dozens of other Fashion Weeks internationally—from Tokyo to Dubai to São Paulo. These shows, of much greater commercial importance than the couture shows, are aimed primarily at fashion journalists and at buyers for department stores, wholesalers, and other major markets. Extensively covered in the media, fashion shows both reflect and advance the direction of fashion change. Photographs and videos of fashion shows are instantaneously transmitted to mass-market producers who create inexpensive clothing copied from or inspired by the runway designs.

Media and marketing

Media of all kinds are essential to the marketing of fashion. The first dedicated fashion magazines appeared in England and France in the late 18th century. In the 19th century fashion magazines—such as the French La Mode Illustrée, the British Lady’s Realm, and the American Godey’s Lady’s Book—proliferated and flourished. Featuring articles, hand-colored illustrations (known as fashion plates), and advertisements, fashion magazines—together with other developments such as the sewing machine, department stores, and ready-to-wear clothing produced in standard sizes—played a significant role in promoting the democratization of fashion in the modern era. The development of effective and inexpensive methods of reproducing photographs in print media in the early 20th century led to the rise of fashion photography and of heavily illustrated fashion magazines such as Vogue. Magazine advertising rapidly became a principal marketing tool for the fashion industry.

The creation of cinema newsreels—short motion pictures of current events—and the rise of television made it possible for people all over the world to see fashion shows and to imitate the fashionable clothing worn by celebrities. The dominance of visual media continued in the Internet age, with fashion blogs, Instagram, and TikTok emerging as an increasingly important means of disseminating fashion information. Red-carpet events such as the Met Gala and awards ceremonies provide an opportunity for celebrities to be photographed wearing designer fashions, thus providing valuable publicity to the designers.