BUTT ARTIFICIALLY FLAVORE 900 CASE STUDY 11.1 Retailers Reap Rewards with Exclusive Lines S to you...

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BUTT ARTIFICIALLY FLAVORE 900 CASE STUDY 11.1 Retailers Reap Rewards with Exclusive Lines S to you want to buy a tank top from Miley Cyrus's clothing line. Or maybe you want a T-shirt from the Tony Hawk collection. Unless you know which retailer has the exclusive agreement for those apparel lines, you're out of luck. That's because, in an effort to avoid rounds of price-slashing with competitors over the same brands, retailers are increasingly relying on merchandise that can't be found anywhere else. So to buy Miley Cyrus clothing, you have to head to Walmart. For Tony Hawk apparel, Kohl's is your destination. Exclusive merchandise lines like these have existed for years, but the recent recession made them more preva- lent as even top designers became willing to cut exclusive deals rather than risk being cut from store floors alto- gether. Sometimes it's an entire collection; sometimes a specific color or material. Saks, for instance, has the exclu- sive on the "taupe" color of a Christian Louboutin ankle boot, while a metal-heeled Louboutin in beige is available only at Neiman Marcus. For retailers, these exclusives provide differentiation from the competition. Also, mark- ups and mark-downs can be made at their own discretion and pace, resulting in a far more profitable outcome than with a national brand. So what is the downside? For one thing, it can be dix- zyingly hard for consumers to keep track of what line is sold at what store. In addition, celebrity lines are tricky, since a star can wane in popularity almost overnight-or a scandal can hurt clothing sales. Nonetheless, the move to exclusive designer and celebrity lines will doubtless continue, both for the sake of retailers and of consumers who are tired of seeing the same clothes everywhere. Of course, it has to be the right match. Designer Pe Sinclaire felt that way when he signed an exclusive de with Saks, saying, "It's focused-it's one group of stores, it's one vision, and you build the business together. Every step of the way, from press, to merchandising, they we kind of the co-creator of the line." Or as noted Jeffrey Gennette, chief merchandising officer for Macy's, which has exclusive lines from Martha Stewart, Madonna, Donald Trump, and Sean John, among others, "When you get a great celebrity that has an authentic vibe that caten to a particular customer base, that can be really potent. [Customers] get the celebrity, and they get the product." Adapted from: Stephanie Clifford To Stand Out, Retailers Flock to Exclusive Lines, New York Times, February 14, 2011, www.nytimes.com/2011/02/15/ business/1Sretail mi?scp-1&sq-departmentstore&st-cse laccessed March 6, 2012). QUESTIONS 1. What other celebrity merchandise do you remember seeing or buying? Can you remember what store or stores carried the line? If only one retailer was selling apparel by a celebrity you admired, would you go out of your way to visit that store to see and purchase the clothing? 2. Suppose you are the designer of an apparel line for college students, but you are not a celebrity (yet). What marketing strategies would you use to enlist the aid of your wholesalers and retailers in reaching your target market? Would you consider an exclusive agreement with a retailer that you thought reached your target customers well? 368 PART HE FOCUSING MARKETING MIX ELEMENTS ON THE FASHION CONSUMER BUTT ARTIFICIALLY FLAVORE 900 CASE STUDY 11.1 Retailers Reap Rewards with Exclusive Lines S to you want to buy a tank top from Miley Cyrus's clothing line. Or maybe you want a T-shirt from the Tony Hawk collection. Unless you know which retailer has the exclusive agreement for those apparel lines, you're out of luck. That's because, in an effort to avoid rounds of price-slashing with competitors over the same brands, retailers are increasingly relying on merchandise that can't be found anywhere else. So to buy Miley Cyrus clothing, you have to head to Walmart. For Tony Hawk apparel, Kohl's is your destination. Exclusive merchandise lines like these have existed for years, but the recent recession made them more preva- lent as even top designers became willing to cut exclusive deals rather than risk being cut from store floors alto- gether. Sometimes it's an entire collection; sometimes a specific color or material. Saks, for instance, has the exclu- sive on the "taupe" color of a Christian Louboutin ankle boot, while a metal-heeled Louboutin in beige is available only at Neiman Marcus. For retailers, these exclusives provide differentiation from the competition. Also, mark- ups and mark-downs can be made at their own discretion and pace, resulting in a far more profitable outcome than with a national brand. So what is the downside? For one thing, it can be dix- zyingly hard for consumers to keep track of what line is sold at what store. In addition, celebrity lines are tricky, since a star can wane in popularity almost overnight-or a scandal can hurt clothing sales. Nonetheless, the move to exclusive designer and celebrity lines will doubtless continue, both for the sake of retailers and of consumers who are tired of seeing the same clothes everywhere. Of course, it has to be the right match. Designer Pe Sinclaire felt that way when he signed an exclusive de with Saks, saying, "It's focused-it's one group of stores, it's one vision, and you build the business together. Every step of the way, from press, to merchandising, they we kind of the co-creator of the line." Or as noted Jeffrey Gennette, chief merchandising officer for Macy's, which has exclusive lines from Martha Stewart, Madonna, Donald Trump, and Sean John, among others, "When you get a great celebrity that has an authentic vibe that caten to a particular customer base, that can be really potent. [Customers] get the celebrity, and they get the product." Adapted from: Stephanie Clifford To Stand Out, Retailers Flock to Exclusive Lines, New York Times, February 14, 2011, www.nytimes.com/2011/02/15/ business/1Sretail mi?scp-1&sq-departmentstore&st-cse laccessed March 6, 2012). QUESTIONS 1. What other celebrity merchandise do you remember seeing or buying? Can you remember what store or stores carried the line? If only one retailer was selling apparel by a celebrity you admired, would you go out of your way to visit that store to see and purchase the clothing? 2. Suppose you are the designer of an apparel line for college students, but you are not a celebrity (yet). What marketing strategies would you use to enlist the aid of your wholesalers and retailers in reaching your target market? Would you consider an exclusive agreement with a retailer that you thought reached your target customers well? 368 PART HE FOCUSING MARKETING MIX ELEMENTS ON THE FASHION CONSUMER