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THE DALLAS WHOLESALE LADIES' APPAREL MARKET

A CASE STUDY OF A MARKET IN TRANSITION

by

EDWARD KAY FISHER, B.S.B,, B.S.P.T.

A THESIS

IN

MARKETING

Submitted to the Graduate Faculty of Texas Technological College in Partial Fulfillment of

the Reqair«&ents for the Degree of

MASTER OF BUSINESS ADMINISTRATION

August, 1965 ( /

TEXAS TECHNOLOGICAL COLI rn^ •-UBBOCK. TEXAS ^ ' ' ' ' E « E LIBRARY

80^ T3 196J No. 7^ Coo. 2

To Evalena

xx

FOREWORD

The continuing tendency of our nation's distribution system is

to improve its efficiency; henee^ the reader should be avare of the trans

ition now oocuring throughout the marketing sector of our econosny* nie

many changes being observed in Dallas are also taking place in other areas

of the United States. This is not only an economic change, but also

involires soeiologieal and political aspects*

It vould be foolhardy to inirestifate all the facets of Dallas as

a wholesale distribution center, so this thesis tmdertakes to study the

ladies* apparel sector of that great market-place. This topic was selected

because of the writer's intimate knowledge of the changes and developuant

of the reglemal market located in Dallas. This is a case study of the

developnent of that priciary market, of how it reached its present status,

and to assess the future with the facts that are known. Pursuant to the

purpose it became apparent that certain related subjects were necessary

for discussion. With this in mind, our subject will not only Interest

the student of maiHketing, the apparel xnanufacturer, the drtmuer, the store

buyer, and the owners of the physical facilities of the market, but the

general business practitioner as well.

Since there are loany intricacies of any exhibition of thij iiHgi JL-

tude, the loajor ele&ients are br&ught to light with the hopes that sor:.e of

these probleias can be solved. In so doing, it is obvious t lat riany

casualties have occured in the channels of distributioi*, Wi.o vrili survive

is not speculation, but the calculations of those vAo have foresitiht cr

the future, lany of the reasons for these calculations will be ' own,

iii

loany are yet to be tmcovered.

The "trade secrets" of this industzy are closely guarded; how

ever, the persons interviewed, and who wish to remain anonyiaous, may be

considered as authorities in their respective fields. "How odd it is

that anyone should not see that all observation must be for or against

some view if it is to be of any service."^

Business history is not rcnaanee or scandal, propagandist expose*

or hero-worship. The business historian wakes an earnest effort to learn

and to set down in orderly fashion the facts and ideas that have under

lain the organized plan of using available and limited resources in order

to serve society*s needs.

On one pxlnciple^business historians seem to be unanimous; the

author must be given a free hand to tell the story as he sess it.^ As

a personal observer of the Dallas Wholesale Ladies' Apparel Mazicet for

thirty years, as a bi rer of apparel for many years, as a graduate student

in marketing, and as a friend of many hundreds of the people involved in

all fields of the apparel industzy, I attempt to approach the problems

concerned as a disinterested party and discuss only the facts as they

exist.

Throughout the years, the writer has been an observer, a stu

dent, and a participant in the activities herein described. Furthei*-

ffloz^, many notes have been taken, many people have been intei*viewed,

and a considerable amount of literature has been reviewed. All this

Charles Dai^n, More Lettei*s (New York: Appleton-Century, Crofts, Inc., 1903, Volume I), p. 195.

^C. S. B. Gras, Bulletin of the Business Historical Society, October, 1944, quoted in Texas Business Review. April, 1957, p. 7.

iv

has been dene in the hope that someday the essence of this information

could be eci^>iled for the benefit of those who are to study mariceting

in the future.

As tf^ as can be ascertained by the writer, little has be«i

written eoneeming markets in general or apparel markets in particular.

This is a fortunate result of the fact that markets are^dynaidLc. Also«

trade secrets have prevented the recording of luost of the events of the

past; and frcaa the many letters of inquiry sent by the writer to the

managers of the various primary mazicets of today, very little infozxaation

of value was obtained. Research in several college aad imiversity librar

ies was almost futile; hence, personal interviews and knowledge of the

subject wez*e of utmost importance.

Because many items referred to in this study are peculiar to the

ixidustry, the following terms axid definitions are submitted with these

meanings:

classic - an unadorned dress of very simple lines, usually asso

ciated with soi^stication.

depth - one particular fashion ordered or stocked in volume.

druMiier - a coaaaercial traveler.-'

fashion - a style which happens to be very popular at a given time.^

item - the samples of one manuifac&urer.

marketer - anyone involved in the disposition of goods or services

from the production line to the ultiiaate consumer.

1928).

3web3ter*s Collegiate Dictionary. Springfield, M^JS., 1946.

^Paul H. Nystrom, Economics of Fashion (New York: Ronald Press,

market - a place where a sale is zoade; the particular institu

tion or channel that carries on the transactions of buying

and selling.^

"aoBHand^pop" store - a very small retail operation.

nuBiber - a particular piece of merchandise, usually designed

by a number,

"open-to-buy" - the retail store biiyer lias needs for additional

merchandise at the time, is willing to purchase the needed

goods, and has funds to siake the purchase.*^

retailer - the person or outlet selling to the ultjj^te consui ier

of goods.^

style - a characteristic or distinctive mode or method of ex

pression, presentation, or conception in the field of some

art.^

Many people have given information in the writing of this study.

Several frie^ids have assisted in the mechanics, my dear wife witli un

tiring inspiration, xs^ business colleagues by assimdng added z*esponsi-

bilities in the operation of my businesses, and my professors at Texas

Technological College: John A. Ryan, Ph.D., Robert D, Aiiiason, Ph.D.,

and George Iv. Be^ry, Ph.D. by their valuable guidance. To U.ati and to

^Eoland S. Vaile, "Some Concepts of Mrkets and Maiiteting Strategy," ChanKing Structure and Stratefgy in Marketing;. (Urbaiia, Illinois University of Illinois Bulletin, October, 1957), pV 18.

"Webster's, op. cit. n

'ibid.

%ystrom, op. cit.

vi

those members af the apparel industry and managers of the various organs

izations connected with it, who gave their ti ie and conceit to answer

the many qu«<itions contained herewith, my heartfelt thanks.

The sources of most naterial used is shown in the footnotes, but

I wish to express siy apêciation to those anonymous contributors who

both inspired and assisted in the writing.

Several contiôversial subjects are touched, upon in a study of this

kind, and points-of-view with which the writer does not necessarily agree,

are expressed for fact only. I have att€Btpted, hoiêver, to use luiterial

sui^lied by those who, because of the positions they hold, tlie poiiit-of-

view they represent, or the reputations they have earned, are entitled

to be heard.

To understand the current situation in Dallas, it is iiiportant for

one to understand the backgroiind of both history of njarkets in general

and fashion itself. Therefore, both history and art play a part in this

writing. The reader will be taken from ancient tiiries to bh i present day

in the discussion of markets; and, from green buffalo hides to foiral

gowns in the transforiiation of the Dallas market.

vii

U S T OF TABLES

Table Page

I. Distribution of Buyers Purchasing Directly From Manufacturer 19

viii

LIST OF ILLUSTRATIONS

Figure Page

1. Relative Locations of Facilities of Dallas Ladies' Wholesale Apparel Mai^et 42

2. Fringe Areas of Dallas Wholesaler Market 90

ijc

TABLE OF CONTENTS

Page

DEDICATION ii

FOREWORD iii

LIST OF TABLES viii

LIST OF ILLUSTRATICmS ix

Chapter

I. BACKGROUND OF FASHION MARKETS 1

Power of Fashion Development of Apparel Distribution

II. DEVELOPMENT OF MARKETING LADIES' APPAREL IN THE UNITED STATES 11

Fashion Centers Marketing Concept Wholesale Trade Direct Selling to Retailers Consumer Demands Maz^et Forecasting "Feel-of-the-Market"

III. DEVELOPMENT OF DALLAS AS A MARKET THROUGH THE lEAR 1952 24

White Sea of Cotton Drummer Headquaz*ters Fort Worth Market Post War Boom Dynamic Dallas

IV. MATURITY OF THE DALLAS MARKET (1952-1962) 34

V. EXPANSICX4 AND PROBLEMS OF THE MARKET (1962-1965) . . . 38

VI. VARIOUS FACETS OF THE DALUS MARKET 45

X

TABLE OF CONTENTS (continued)

Page

Chapter

Buyer's Preferences Btg^r Shtertainment Transportation Housing Market Dates Publicity and Publications Organisation of Salesmen Apparel Manufacture

VII. BASIS FOR THE FUTURE OF THE MUAS WHOL^ILS APPAREL MARKET 56

Size of Future Retail Outlet Apparel Store Management Untapped Mazicets

VIII. OBSERVATIONS, RECa«ME3©ATI0NS, AND CONCLUSIC«f . . . . 6?

Recommendations: A Broad and Definite Educational, Advisory,

and Accounting Program be Instigated Educational Program Advisory Service Accounting Service

An Informative Program for the Salesmen and Manufacturer's Representatives

Revitaliasation of Mercliandise Mart Itonorail Legislation 2;nlarge the Trade Territory

Domestic International

Conclusion

APPENDIX 78

BIBLIOGRAPHY 91

XI

CHAPTER I

BACKGROtMD OP FASHICMI MARKETS

A trend is taking place in the fashion apparel industry; the

retail store buyer is placing his orders at a primary market rather than

buying frcsn the itinerant salesman. What we are witnessing in Dallas is

happening in almost every field of marketing which serves the consumer—

a transition in the distribution of goods. It is necessary to study the

history of trade fairs; the power of fashion; the background of the

apparel industry, including the importance of the fashion cycle, if >re

are to give the proper attention to the events occuring at the present

time.

As late as 1956^ textbooks on the principles of marieating over

looked the primary fashion zoarkets imder study. Converse, Huegy, and

Mitchell wrote,

"Fashion goods are commonly sold directly to the retailer by the manufacturer, that are reached by salesmen. Since the goods have a fashion element, it is desirable to get them to the retailer quickly, and without delay of going through the ^olesaler. However, the wholesaler and jobbers (italics mine) are important in supplying the smaller retailer, particularly those in snail tovvnc and outlying businesses in the larger city."^

In this study I'fe will place emphasis on the present day larger

regional ai^parel markets which draw the majority of the apparel buyers.

There are five primary apparel market regions in the United States; tl.Qse

^Converse, Huegy, and Mitchell, The Elements of liarketin;; (Engl< wood Cliffs, N. J.: Prentice-Hall, 1956), p. 224.

aret liortheMt served by New York City, Midwest served by Chicago,

lANit eerved by both Los AogeleB and San Fmieiaeo, Southwest by Dallas,

and the Sofutheaet by Atlanta, §Qy[ Miaai (italics mine) .^

la this fast ehanging world nothing is static; so this is a

difficult and precariotts peidod for the traveling aalesman. They, or

their forerunners, wrought these great warkatB and the dynamie growth of

the mftrkete may now be their widoingi these days of profit squeezes, conf-

•oiidatione and reallocations have affected the produoers of all goods

(apparel Ineladed) in so many ways that the coossiesioned salesman may

foresee hie warrant of elimination.

To a student of naxketing, one observation is vezy apparent;

the miMUman is being eliminated. It is not Just a matter of cutting

ooete or eln^plif ieatim&, but a eompHex situation involving these two

elmaents plua the fact that the operation between the producer and tno

consumer involves another coBEoponent, namely: SPEED.

Th9 Wsntieth century is an era of TIME, rather the lE^k ttiere-

of, so the faster wa oaii L<ove, theoretically, the riore i refit is involves.

This osieompasses voluEie, turnover of inventozy, :Ttcroi:b rat^o, i-i ..

effieleney from the factory to the coiisuuer. i:oiice, IIK fLi'pls-T ol-o

channel of distribution, the faster an item D C V ^ S .

Bower 5I; Fashion

A fashion is an accent ad Eitj le. As such, i'asldcn iiciC3ei3arily

involves people and their rosponso to .u^tijuic qualitiej u^bcli^d Iv the

^%nterview ..Ith 'Xi'iL.a-ol Ci*ov;, Pre.r•.;/.>!»v., Dall.MS lar'ct Conior, Dallas, Texas, i.ugust 27, 19<^4.

deaipi of a prodwit. With reapeet of apparel, the fashion elaaent xceans

that ai^parel ia more than Just something to elothe the body.

To eeparate fashion tvcm history would be iiqpoesible* The

aneienta foui^t wars to gain territory tliat would laroduee f£ûrles or

dye to elothe their womenfolk and themselves. This was not only true in

the eastern hemi8|tiere, but Ija the western hsEdsphere as well* The pre-

hlstorie Indiana of the Southwestern United States used feathers to

satisfy their vaidty. Later, a iôriicm of the English Colonies in the

New World produced two smjor crops for export to the motherland—cotton

for fibre and indigo for dye*

Do not underestimate the power of fashicm« Fashion is the great

11 governor of the world •' >l&ny people feel that ancient Hoeie fell because

Bomans drank too muoh and did all kinds of naui^ty things. JPerhaps they

did. ^ t there Is <me thing that had a great effect on the fall of Rome,

and that was the fashion in men's clothes. The s sn of Rcsae, including

tjie great IHtricians and Senators, just had to have âart togas a,^ the

toiSas had to be made of silk. That is fashion. V«liere did olio axik coi e

from? It caaie froi- Ciiina. ' Ixils the legions wore con'iuc- ing Gi*ijl ixaj.

sending in vast treasixrea th^ro wa^ plenty of fôl^ caîg i*itc Rce;:© uo

send to China to pay for the cloth, mon the conquest stoi t^^, no xu-s

gold came into Rome. Biit the money kept going out just the sa:u.<3, until

it 'as practicallj'- gone. Kojio^s r.on^ ran out and tliat is one cx tliu

l^îenry Fielding (1707-1754), British ixU.ijrigiit.

12 big reasons for the fall of the Roman £ iqpdLre«

The writer is not attempting to draw an analogy between the rise

and fall of that great empire and the effect of fashion but merely wishes

to esqphasise the in^rtanee of an iiKlustry. In contrast to the preceding,

the average American spends only eight per cent of his disposable income

for clothing. So we conclude that with mass production and distribution,

instead of cax*avan routes between China and Home, the vanity of nanlcLnd

has not changed—only methods of distribution.

Today, in the field of marketing, it is difficiilt to envision

a world without mass merchandising, daily newspapers, radio uid tele

vision advertising, pre-packaged goods, fixed prices at wholesola and

retail levels, and sized clothing. Of course, there az*e nations in the

world that still use haggling as a method of setting prices, but their

nuBibez^ are decreasing rapidly. But even in this country, the afore

mentioned factors were practically non-existent a century or so age.

Dey^pmffit o|: A p p a ^ D^sti-Lb^tion

It was characteristic of early tribal groups to congregate at

certain times and places for trading purposes, Xnacjea, iiark^tin^

originated in the bartar of primitive people, ana, I.enco, is oldar than

civilization.-^^

Markets seeeai to havs developed whenever people were free to

-^al\»er Iloving, Tlie Tobe* Lectiure in Retail Ltistribution at the Harvard Business School—1959-60 (Boston; Harvard University rro3s, 19^1), p. 43.

^Baul Converse and Harvey Huegy, Elements of ItxrLotin/ (Neu'

York: Prentice-Hall, 1962), p. 41

exchange their goods under condition of yeace and security. Whether the

exctiange liabits of African natives or of American natives are considered,

or the history of Ancient China, Egypt, or Rome examined, records of mar

kets in various stages of development are found.-^

Historically, the more accessible the market place, the more fre

quent were the trips to it. In places where frequent irarket trips were

not possible, intermediaries such as the yankee peddler arose to perform

the function of serving as a raedium. tfeîerstandably, when it was diffi

cult to reach the market in early times, trips were not as frequent or

as regular as \ên conditions of access v/ere iiiqproved.

Hence, this study undertakes to decsonstrate that history has a

way of repeating itself, Appaz^l (or fabrics for that use), has been

distributed by cara\rans, peddlers, and riost recently, by traveling sales

men. Basically^ the pritiary narkets have recjained the bazaars of fashion.

Manufacturers tended to ccmgregate in the areas adjacent to the

great trade fairs. Indeed, it is difficult to detenrdne Triiic!i car.s

first—the chicken or the egg: did the location of the trade fair fellow

the location of the producers^ or îco-.-ersa? -vliac v c do >2io;.- is that

the custom ©\-or*tually developed of encouragii.g the ^^'jtallcr a.tten.'.ir.,;

the trad© fair to visit not only a specific booth, Svut also to visit the

factory or officer of the favored sitppliei-. GoL.e of the old guilds pr.3sod

sonorous resolutions forbidding aaJj i-s froij. enticlr ' i; siting ncrche^.t^

away from tha trade fair and ii:to the private ciricvj or '..o:.ie of a nieiiiber.

^Vernon A. Kund, Open Markets (New York: Harper & Bros., 194^), p. 3.

6

but these reeolutiona were rarely observed for very long.'^

Bound up as they are with the most vital concerns of our social

history, it aeems odd that so little has been written about fairs and

markets. The first book on fairs was Henry Morloy's Memoirs of Barthol-

mew Fair, published in 1859.

Centuries ago the primary distinction was that fairs were an

annual event in England, iifhile markets were usiaally a weekly occurrence;

and the market was an institution entirely the product of econoiuic need,

whereas the fair might have a festive element.^ (Mazêt as used here

is in a slightly different context from the manner in wliich it was defined

on page vi).

The survival of market and fair, both rural and urban, is as

curious and interestizig as their rise and fall, and cannot be explained

simply by observing that man does not quickly discard the habits and

cust<»is of centuries. let, just when it appeared that markets as an

institution had received their death warrant, t h ^ were suddenl; ^ revived

in a new and vigorous form.

On the continît, fairs were very important, occupying large

sections of cities, with as i^ny as 10,000 exhibits. Some of the iiiore

famous were in Leipzig, Germany; Vienna, Austria; Prague, Czechoslovaiiia;

^Ê, B, Weiss, The ^^nishing Salesman (New York: McGraw-Hi 11, 1961), p. 37 ff.

^ntfilliam Addison. English Fairs and Markets (London, England; B. T. Batsford, Ltd., 1953), P. v. and p. 188.

7

lyona, Pnmeei and Wenbley, aagland.^^

As this was the established bugring custom, theee trade fairs

were, and to some extent atill are, the buying centers for the European

retailer and various other »lddl«Bien.

The eoloniata broo^t that custom over to this country. Among

other reasons the same problems of tzmzisportatimi and economics that made

the trade fair an econcssic neeeeelty abroad applied here in the colonies.

Out of this developed the praotiee of the annual, segd-annual,

or acmetiaea quarterly buying visit by the retailer to the aiiq plier. In

the first half of the nineteenth eantury in this country, the lion^s

ahare of general constmser merchandise buying by retailers was done during

these buying tripe.

The oomBercial traveler (as he was called in his early days),

was a rarity in America almost up to the Civil War Era.

The traveling salesman really became an economic factor in

America Just about one htzndred years ago. New conc^ts of coiapetition,

a neif society, and the lurbanization of rural America, confined to cz*eate

a ooB^Aratively new business ftmction^—taking merchandise to oho distri

butor for hla selection. But even these concepts would not have u^x.&re^

in the great era of traditional personal selling ii' it had not do^n loi

1_L5 the simultaneous introduction of the "iron horse.'"^

• * Jolm W. lafin^te. Buying!: for Reta^ Stores (:_Ti lo'.food Cliflo, N. J.: Prentice-Hall, Inc., 1956), p. 379.

^ e i a a , pp. cit.. pp. 37-3:•

8

It was the railroad that made it both physically and econoezically

feaalble for manufacturers to put sales representatives on the road. With

the horse and buggy as tlie primary method of transpoz^tion, the ''knight

of the road" would n&vmr have esuergsd.^^

^ e relative importance of the marketing services performed by

middlnsn, in aplte of a noticeable trend toward saore direct loarketing,

increased ra|ddly as the voljume and variety of goods marketed to American

consuuiers greatly expanded during the late nineteenth ceritur; • Tlie value

of clothing items sold at retail increased aliiiost six times, while sales

of dry goods showed an increase of less than twenty p&r cent from L']Q9

to 1899.^

Along wiUi the trend tovûrd specialization of marketing insti

tutions and operations, there ims a parallel tendency to absorb 4:.:;.rLt->

ing specialists into large-scale business organizations. I'l.c gro>dng

apeeialisation of wholesaling in certain tjx-es of i crci ixilso i-:.rallelod

the relative decline in the importance of the general stor^ w*l the ir.-

crease in specialisation by commodity lines in retailing.

Hetailers in ILe United States during the lat-j rdnctôiith cou-

tury developed new tjrpes of x 'jlail i:iL.tit;utiori.5 .iiid nav ^tsrchaadisiii^

methods that were well adapted to Qcnt^xi-ô^nr^- oharî^^^ in i«ir.iv>a co.*di-

tions. As living standards increased and industrialization procjuued.

^PFrank G, Coolson, ikrkotini^ thought in the United 3tax>e3 i:, the Late Nineteenth Century (Lubbocy., Texas: Tho Texas Tscd iVeso, I960), p. 1$ ffT

there was a great Increase in the variety of goods handled by retail

aiorea. There was also a widespread developuênt of the HSM large-ecale

integrated types of retailing. Many earl; department stores gz w out of

dry fooda stores. They increased rapidly in iisportance and nidber, cc>:-

binlng epeelalty lines in one depart^coitalized establishmeat and offering

consumers a wide variety of Bierchandise. Both specialisation c id inte

gration characteriaed the new types of retail institutions that were

organised and expended in the late nineteenth century.

There was a general ineraase in the extent of direct buying by

retailers from manufacturers, and greater emphasis was placed upon rapid

retail stock turnover. Separation of retail management tasks from clerk

ing and the absorption of bber functions took place among large-scale

retailere. Increased competition and more cociplex retail a iiagi er.

problems led to a high rate of failure arong snail retailers during this

period.^

I . ! ^ O I t should be loade clear that although the traveling s u iciiLLrx

an izkstitution i s barely a century old, i t actually has not be ini in true

growth pattern for that entire c^^tury. To orife cou-uz'ai-j', trc^luic;^.!

pers^Hial selling reached i t s peak shortly i:î:-le7; vtorld ^ r i—ii^ t.:e <^rl^

1920* s . Bver since, i t has experloncod a gradual ueciiiisi ii. ra.*xo tc 22. our to t a l annual volujiie of general merciiiîdise.**' This does not i..:i.o>i.te

an increase in the efficiency of personal sel l ing, uut tliat wo.fe i-iethods

^ I b i d .

2ê i36 , op. c i t . , p . jcji.

10

have dlaplaoed its importanco.

Vlhen considering general merchandise, soft ,':cods are non.2lly

inferred, but to be more specific in this study it implies fs.f>hdor;

apparel. >ifhen fashion is observed, it is necessary to understand a

basic fundamental—the fashion cycle. !Rie period covered by the fashicm

cycle varies widely; on various occasions business groups Itava att i;apted

to control the fashion cycle, but most attetpts have been futiJi. 'VAQ

coneuoer seeBts to set the vogue. (See Appendix. A for discussion of t le

Fashion Cycle).

Even though fashion may originate any place on tlie face of the

earth, there are only a few localities that have becoae fashion centers,

and these cities vrere laarket places before they bacai.j foLiOUs icr

fashion.

CHAPTER n

mmwfmfft OF MAHKEnKG LADIES* APPARSL

IN THE imiTED STA^S

In the previous chapter it was stated that fashion may origiziate

anyMhere; however, ceartain cities originate far more than their share.

The creation of a style is a eoo^ex art because it may include painting

and aeulpture, even poetry and music. The distribution of a atyle is

beeooing a ecienee which will be discusaed in a later chapter.

IjMhion Centers

In Reurla there is a special atskosphere %Aiich nurtures creation

In all artlatlc fields and wideavors. Paris is a city of beauty. Des-

{dte partial success of the efforts of other cities of the world to

become fashion c«titers, Bsuris held the dominant position until the out

break of World )fk^r 11 • The leadership of Paris is explained in Appendix

B.

American Mom&n no longer look to Paris as their only source for

fashion. Thsy are tuinting niore and more to the American designer.

"Fashion," says Adel Sii^pson of Adel Simpson, Inc., "is just a reflec

tion of the way people live, European wamen are built diffei"ontl;>', oiir

^^elle» H. Bonnet, Haute Couture—Paris (lyon, France: Syndicat des Fabricants de Soieries et Tissue de Lyon, 1957), p. 4.

11

12

woBian drive ears...theyire more active. And they want clothes to fit

their way of life.«^

Mew York in the early part of this century began to duplicate

originals dealgned in Paris or other points on the continent. It must

be rcoianbered that standard sizes of garments are a relatively recent

innovation. Fkdor to 1900, most g^immts were not sass produced, but

made by dressmakers In various cities to the measurements of the lady

deelroua of a new froek.

Later, the fashion industry sprang up in Philadelphia, Cleveland,

Chicago, St. Louis, Kansas City, and many other cities. Ihiring the

'*Great Depr^aion," a group of designers and manufacturers clustered in

the Los Angeles area and achieved almost instant success.

These were markets in the true sense of the word. T h ^ qualified

(m all bases of what constitutes a market; however, most of the merchan

dise produced In these cities was sold on the "road" by druEsners; so it

would be more appropriate to classify them as i&anufacturing centers

zaUier than primary markets for apparel.

The first building of axxy great magnitude to be built for porely

mazicetizig purposes was the Kerehandise VlArt in Chicago. Vt/hen completed

in the nineteen thirties its main taiants were gift ccaapanics, but the

idea was implanted in the i.dnds of procjotionHEidnded z'eal estate r. en,

manufacturers, and retail store buyers everywhere. (It is not inferred

that there were not other large structures in the world prl^rily for

^"Fashion Shows Play to SRC,' OP. cit.. p. 31.

13

marketing uses, but this was the first constructed atrletly for this uae).

VlMlng the success of the Chicago "gift mart", the people in-

voXved In the apparel industry quickly converted office buildings and

warehouses in seversl cities for the display of manufactured gaxisents.

With the change from a "seller's market" In the time of the

*»gsneral atore" to a "buyer's BiMpkef of today, recognition of a new

marketing concept by the retailer was introduced to aid him to merchandise

suocessfolly. 3. B. McKitteriek, executive of General Electric, defined

this concept as follows;

"The new "masriceting concept" is not so much to be skillful in making the consiimer do wiM t suits the interest of the business as to be skillful in conceiving and then making the business do idiat suits the Interest of the consumer. "^5^

Changes in market patterns across the country are forcing iianu-

facturers to serve population concentrations from new facilities geared

to the needs of each specific region.^^

Hass-production industries are impelled by a great drive uo

produce al2 they can. Tlie prospect of steeply declining unit costs as

output rises is liiore than zoost companies can usually resist. Tue profit

possibilities look spectacular. All effort focuses on volume production.

The result is that marketing is n^lected.

^5j, B. McKitteriek, "WJ at is the liarkoting iianagQiuent Conceit? American Marketing Association, 1957, P* 74*

^J«eonard Xassen, Senior partner of the Fantus Co., iivterncitioii« l plant location cwasultant, quoted in Furniture Retailer t-^ozinv. DeceLibor, 1964, p. 39-

14

John Kenneth Qalbralth contends that mass production does indeed

geneimte great pressure to 'novo* the product. But vb^t usually g e U

MqpbAslaed Is selling, not marketing. Marketing, being a laore sophis-

tleated and ocaiiêx process, gets Ignored.^

Hartceilng management's problem has been to determine and forecast

the nature of the changes oocuring througliout our market econooy and to

decide what adjustmsnts are needed in marketing policies and practices.

This observatlui aoqi^slees the is^rtance of full understanding of tha

many develo|i&ents that have taken plAce and the many adjustments being

made and to recogniae the needs for modifications iîch might be made to

laprove the situation for the future . ^

Wholesale Trade

Significant changes have been taking place in the i holesale trade.

Some of these are directly associated witii the shifts occurizig in the

retail and ultimate consumer marketî. There is a pronounced sldd't away

from the general-line house and toward the specialty wholesaler.

By calling attention to these facts, it is not ii-eant to ii.dicute

that the wholesaler lias lost all usefulness as an instrument of distrl-

29 bution. They can and still lo ptsrfonii acmid functions vezy wîll.

^John K. Galbraith, Th® Aff;iuent Society (iioston: liouiîw-on-^ Mifflin Co., 1958), p. 152.

^Vklle, OP. cit.. p. 16.

* %alph S, Alexander, "The Clianging Structure of Infceniiediate Markets and Manufacturer's Marketing Strategy," Changing L^truoture ana Strategy in Marketing, pp. 71 ff.

15

Some of the functiozjis idiolesalers perfozm for their custoaoers

are: (1) anticipate consumer requirennnts; (2) assosdale goods fran a

multitude of sources; (3) buy in economical quantities; (4) asaintain a

reservoir of goods; (5) deliver proaqptly; (6) grant credit; and, (7)

provide infonaation and advisory services .30

Host wholesale outlets in New loz^ City are concentrated in cc»a-

paratively small areas. There is a distinct taidancy to locate in certain

blocks. TJOXB is particularly true in lines êre store buyers coaie to

market wishing to shop around coaqparing merchandise offered by various

vendors before placing orders. In such cases, it is advantageous for

dealers to be located in a ^nall area in order to make the shopping

easier for the buyer. Experience shows that remotely located dealers

have difficulty in getting buyers to inspect their merchandise offer-

ings.3^

iiiihereas, there are several buildizigs in New York City (and

other mazêt cities), for the buyer to view lines offered, the time and

inconvenience allow only a partial "look-see" method of buying. If the

buyer is to do his best, then the scientific approach of shopping first,

writing secoivi, and confirming last should be exercised.

Mai^ larger specialty shops, department stores, and diain organi

zations maintain "buying offices^' in New York and Los Angeles. Tldi;

3%erman C. Nolen, "Tlie Modem Distributor and His AdjusLi.ait to Today's Economic Pressures," Tobe' Lectures in Retail Distribution at Harvard Business School—19^8-59. Boston, Harvard University Press.

3îngate, op. cit.. p. 388.

\/

16

facilitates baying between market dates and gives the buyer advice on

the latest fashion. So far, Dallas has paid only passing attention to

this facility; however, this service will increase its potentiality in

the future. (See Chapter V.)

Djxect SelHng to Retailers

According to a study by the Twentieth Century Fund, fifty-nine

cents out of eyrrnxj dollar goes to the distribution of products, as com^

pared with their manufacturing cost of forty-one coats. This distri

bution cost includes more than the cost of transpoz^tion. Money spent

for marketing, sales, advertising, warehousing, insurance, materials

handling, taxes, packaging, elements of capital investmmt and inventories

are some of the other eoqpenses involved in distribution.*^

The wom^i's ready-to-wear industry distributes most of its

output direct to retail stores with very little use of wholesaler

intermediaries. Direct selling is only slightly less important in

lines less subject to rapid fashion change: i.e., sportswear, aprons,

housedresses, and underwear. Only in furs, hosiery, and icillinery is

distribution through wholesalers an important channel.

The major reasons why the merchandise flows from the maniLfacturer

directly to retail stores are:

1, Consumer buying habits for apparel tend to concentrate

retail distribution in relatively large outlets in large shopping areas.

3^George E. Neel, Jr., "Air Freight in Texas," Austin, Texas, Texas Business Review. Januazy, 1953. p. 7.

17

2. The speed with which gazments are designed and manufactured.

3» The seasonal nature of decAnd.

4. Fashion obsolsscence.^^

The operating costs TAd-ch the manufacturer incurs in connection

with sales directly to retail stores will obviously depend upon the

methods he employs for this purpose. These, in t\im, will depend largely

upon the type of retailer to whom the sales are made. In the case of

sales to corporate or voluntary chains, for example, where negotiations

may be consuranated at headquarters (house accounts), (italics mine) and

credit risks are negligible, costs will be low. On the other hand, if

thousands of retailers are solicited directly through a large sales

staff, if credit is extended, if inventories are maintained at strategic

locations to facilitate prosit deliveries, and if considerable super

vision and administration are made necessary, then the costs will be high.-^^

An advantage of the salesman on the z*oad, is that he is able to

select the retailer who will do him the most good. Then too, he can

introduce new styles that were not available at the previous market.

S(m9 of the limitations on selling direct to retailers bj the

salesman method are:

1. Since the manufacturer sells to a large number of retailers,

he is forced to build a large sales organization; therefore, he loist

recruit, train, comp«isate, and supervise this staff.

33wingate and Voorhees, Ilarketing Channels. (Homewood, Illinoio: Irwin, 1956).

34Daibert J. Duncan, Marketing; by ?ianufacturers. (Chic:*5o: ?dchari D. Irwin, 1951).

18

2. Only a single product or line is being boxight in tAiQ store.

Hsnee, there Is no way to shop or compare offerings with similar pro

ducts.

3. There is zio way to get the **feel-of-the-sArket." (See

Appendix D ) . Adequate information on trends and fashion is not gathered

from reading or from the sales floor in the store. The buyer must fore

cast the future, from the standpoint of fashion as well as of general

business conditions.

4* When fulfilling consimier wants, the buyer must purchase and

maintain a wide assortment of styles, colors, and sizes. Ilie biiyer must

put together a "picture"; i.e., accessories to bring out the best in a

costume. This is very difficult to do when buying only one line at a

time, particularly in a specialty shop where departmental buying is not

practiced.

The information gained from Table I below indicates that the

size and type of the retail outlet, population, and other factors are

involved when tlrxe direct method of distribution is discussed. It is

obvious that in small towns loost of tlie purchases were iioade from whole

salers or Jobbers, as they were not made directly from the manufacturer.

It is a known fact that the cities are growing larger and the haialets

are diminishing, so the future of marketing in apparel is licdted for

the wholesaler and jobber. Even though the table does not reveal the

breakdown for the stores under 4:250,000, it is apparent that the trenu

toward "giantism" will warrant an increasing proportion of purcha3e3

directly from the manufactuz*er.

19

TABLS I^^

DISTRIBUTIGK OF BUYERS PURCHASING DIRECTLY FRCM MANUFACTURER

Size of Per Cent Purchased Directly Coaaainity from Manufacturer

Less than 3000 2^% 3000 to 15,000 less than 50^ 15,000 and over more than 50^ .

Volume of Sales

^50,000 to $1 million 755 Over $1 million 90^

Humber of Women's Wear Manufacturers Selling to Various Classes of Bayers (by nusaber of firms).

Isrp* 0? sto^rf Department Store Specialty Shop Chain Operation Jobber or Eaq»ort MaJLl Order House Own Outlet

Total

Dresses 3699 3305 1940 403 223 181 9751

Coats & Suits

1729 814 182 133 44

2902

Lini^erie U 8 5 981 737 317 146

4S07

Of course, the salesman on the road must be compensated for his

efforts and this is another cost of distribution. The typical apparel

salesonan r^ecelves seven per cent coosmission on goods shipped to the

retailer (some companies pay only part of the c(»nmission until the goods

are entirely paid for by the retailer). There are some popular priced

(sometimes called volume) lines which pay five per cent to tiiG salejiiun.

For this reason it is feasible for a manufacturer to raaintaiii a display

room in one of the marts and hire either a receptionist or a representative

35"The Women's Wear Industry—1951," Mazicet fl;:.nnin Service, National Credit Office, Inc., New York, 1952.

v<

V

20

on a flat salary to maintain tho room and then send someone fron the

factory during market week to assist in placing orders, Tals method

would enable the company to make a sizeable saving, but many of the

druBBsers insist that the firms would not be able to open as many new

accounts or hold old ones, if no one was in the territory.

Consumer Demands

When considering the difference in selling ladies' apparel with

mens* or childrens' wear, it must be remembered that many ladies* ready-

to-wear retailers resiain loyal to only a tmr lines year in and year out.

The buyer usually adds and drops some of his resources during a year.

The reasons are many, but mainly his consumer's desires change.

The vogue for fashion will probably never die; change is too

valuable an asset for the maniifacturer—and, besides, people like change.

Whether, as "taste" becomes a stronger shibboleth among the masses, it

will necessarily inqprove is the question. Ideally, taste represents an

individual ability to judge the fit and aesthetic effect for an indi

vidual eaqpression.-'

In few industries are constimer tastes so fickle as in the apparel

business. Ilakers of textiles for the garment inlii >ry umst be geared for

fast change as one fabric or pattern after another comes suddenly into

vogue. Thoy usually adapt on the run by changing a process here or a

machine there. However, technologically a new plant has been built to

36"I Am Me Consumer," Business Week. December 23, I96I, p. 39.

21

make fabrle and pattern modifications in a hurry, i hich may charge the

fashion picture ev«D more in the years tc cw>e.^7

Most soft ^ oods is^mifactui^rs, essentially cr^Xl businesses,

depend on loyal customers for siu-vtvftl. Fvery conventional retailer

wants something different. There is tremendous diversity in size and

specifications on the orders,^^ Hence, not only the textile j!mRvfactiirer

must be able to change id.th the whims of the fashionHnindcd, but also the

manufacturer of the finished garment. Consumer tastes and desires change,

seemingly, overnight,

"Hi© total dependesice of the ultiT»«ite consumer on the advice of

the sales pezMK>n in the retail store is disappearing. Today the nev=r

Shopper feels z^smitment toward xmxij sales people, b?.Tt for 2 coir let:.ly

different reason than in the past. She feels today that salesmen do not

know as much as she does. Consxmaers are much better informed by the

various media of advertising.^^ Hence, the "pre-sold" brand, self-

service, and packaged goods are growijmg in linportance.

However, there are customers who rely on the retailer for expert

advice; e.g., Mrs. Lyndon B. Johnson shops by calling up Stanley Marcus

of Neiroan-45arcus and saying, "Send me three suits."^^

37"Te3ctile Mill that Rolls with the Whim," Business Weejg. October 26, 1963, p. 164.

35A. Ifewdlton Chute, 'Planned Buying and Controlled Merciiandirii.g For Retail Ftimituro Dealers." Retail Furnitiire j^^azino (of Taxa?), 1957, p. 2.

^"'Cbute, op, eit.

40r:A Fashion Czar in the White House," Business Weelc. liarch 21,

1964, p. 94.

22

Market Forecasting

There are about as many definitions of raarkot research as there

are active market researchers today, but they all have one thing in

common; market research is the arm of marketing that seeks out izifonca-

tion and thereby lays the basis for marketizig strategy and forecasts.

It is to forestall expensive failures that so many companies

have turned to market research. As yet, it is not a bazidwsgon rush—

though it is in some places where least expected—and the lure of market

research varies from company to company.^

Fashion forecasting must be one of the prime targets for anyone

involved in the Industry, whether it be designer, textile manufacturer,

buttcHi company, zipper producer or buyer. The general methods of fashion

forecasting are discussed in Appesidix C,

The market forecaster has a tougher Job than have prophets or

angels. They may focus their single vision on heaven or infinity. The

marketer, poor fellow, needs double, even triple vision. With one eye on

the past, he must train the other on both the immediate and distant future,

and his errors catch up with him far this side of heaven and infinity.

Tet proi^ists may make marketing sense. They do sometimes detect

with their long-range glasses the vezdties that have a habit of oirurginc

even in the world of selling. To borrow the prophet's mantlo, it i.ilgiit

be possible to see one of those verities emerging,^"^

41nscouting the Trail for Marketers," Business Week. April 1 , 1964, p. 90,

42"I Am Me Consumer," op, cit.. p. 3^,

23

"Feel-of-the-mrket"

In this day of automation, motivatiori research, electronic lata

processing, and statistical decision making, there is a facet tliat should

not be overlooked. It is a factor teraed feel-of-theHoarket." Obtaiu-

ing a feel of the market can be very useful when treated as a procGso.^5

Appendix D goes into further detail on the importance of the f eel-of-tho-

market,

In this chapter the component elemmats of the pecularities of the

ladies* fasliion industry have been discussed; now attention will be

focused on one phase of the chaimel of distribution.

It is apparcmt that Dallas did not become the tMrd largest pri

mary market for ladies* apparel in the United States^ overnight. In

subsequent chapters it shall be sho\m that the status was z eached in a

slow, consistent manner that involved much vision, labor, disagreements,

promotion, luck, and capital.

^%obert Schlaifer, Statistics for Business Decisions (Nei-; York: McGraw-Hill, 1961), p. 21.

^Dallas Times Herald. March 8, 1964.

CHAPTER III

DEVELOPMEMT OF DALLAS AS A MARKET

THROUCm THE TEAR 1952

Dallas has gone through several identifiable stages in its develop

ment as a carket center. It progressed from a buffalo hide rarket to a

railroad terminal to a major cotton zoarket to a druniner and Jobber head

quarters. The purpose of this chapter is to trace this development from

the early beginnings to 1952.

When Dallas was no more thaui a v agon stop on the East Bank of the

Trinity River in the 1850's, it proudly billed itself as "the world's

greatest market for buffalo hides." While Texas was still raw frontier

country, Dal,las achieved transportation advantages which shaped its des

tiny. Dallas civic leaders worked hard to secure designation as a depot

on the stage coach route which connected the Pacific Coast i/ith St. Louis.

Until the railroads came in the seventies, wagons were the sole means of

transport and even then they were used as feeders for railroads. In

those days, going across country meant following a buffa3.o trail or

finding your own way over the prairie as best you coiad.^''

Aggressive Dallaa citizens did not wait for things to lisppen in

the saga of the railroad era. They solicite-i $5,000 from the civic-cdjidea

45«fFrcan Wagon Trains to Evening Trains," Texas Fa8 ion__C.rjcttor3, Dallas, December 1, 1962.

24

2b

and encouraged the rails to be laid. A little guile and strategy

changed the intended course of another railroad so that soon thereafter

a second system coursed within a mile of the Dallas courthouse. The

first train arrived July 16, 1872; Dallas became the Junction point for

east-west and north-south railroads, and was teo^rarily the western

terminus for the east<-west line.

In that era, Dallas was the outfitting point for the buffalo

hunters on the western plains, and the market place for the hides which

they broui^t in each spring. In the same era, the farm implement iianu-

facturers established "branch houses" in Dallas to distribute their

plows and other agricialtural tools to the increasing number of cotton

farmers in Texas* rich blackland belt. Still another force which

entered the Dallas economy in that era was the "railroad mez*chants,"

who had foJUcwed the construction crews fr«a one rail tezminus to the

next. A number of these adventurers found Dallas to their liking, and

remained in the frontier village to establish mercantile enterprises—

both retail and wholesale—^riiich were to have lasting influence upon

the region as well as the city,^

White Sea of Cotton

Dallas became the number one distribution center of Texas—^the

concentration point for materials to be shipped south or east—the out

fitting point for passengers going west. It stepped up the traffic in

46tiDallas—^Dependable Business Climate,' Dallas, Texas, Chamber of Commerce, August, 1964.

26

buffalo hides, the manufacture of leather goods, and brought cotton

buyers to the city. In cotton ginning season lower Elm Street became a

curbstone cotton market as farmers' wagons jasiaed for blocks the section

around £la and Lamar. A Dallas paper in 1874, christened Elm Street as

"one snow ^ t e sea of cotton. " ^

As early as 1875, a city ordinance was passed in Dallas exempting

from taxation all manufacturing plants established within the next 12

months, having Machinery not costing less than $10,000 and employing as

many as 30 hands. That was long before apparel was manufactured, but

this move laid the ground work for developizig a manufacturing-minded

community.

The only daily newspaper west of the Mississippi River in 1880

was pia>lished in St. Louis, Missouri, Mass merchandlsizig did not exist,

even though s ^ well-known brands did. Some are still familiar, while

others have disappeared into the annals of history. Among those still

with us are: John B. Stetson hats, Levi Strauss pants, Calumet bakizig

powder. Singer seidjig machines, Borden milk, and a few patent medicines.

A glifflpse of the trade territory showed that many of the retail

merchants of the old west were larger than most of the early day whole

salers. After all the g^ieral store had to carry everything from the

cradle to the grave for both human and livestock. Since ordering vras

not done evezyday, a sizeable inventory was necessary.

Quality was paramount for the satisfaction of the consumer, since

their work called for long hoiu^s, exposure to the weather, and houses

^7"From Wagon Trains to Evening Trains," op, cit.

27

were not heated except by a cook stove (fuel being wood or cowchips—

dung). Style was not very lagjortant, fashionable colors less so. The

ideal frock for a woman of tho day was durable and practicable. And,

of course, there were only two changes of clothing a year—*arm for

winter, cool for sussser.

Most items at the retail level were not clearly nftrked so the

cozisumsr could see the |a*ice. Ready-to-wear was not sized, because very

little was manufactured. Most apparel was custom Bade by the wearer or

a professional dressmaker, therefore bolt goods were sold by the yard.

Millinery was purchased in shops located in most towns of any size.

Lingerie was also made at home, except the more expensive azid that was

also e\i»t<m, made.

From this, it can readily be seen that fabrics were sold from

the bolt. Laces, thread, and notions for the final touches were the

mainstay of the clothing business. Some of there were available in

Dallas, but for finer goods such as silks and fancy feathers (millinery),

the early merchants had to travel to the cities on the east coast and

seek out their purchases.

In the area west of a line from Fort Worth to San Antonio the

bullc of the business was done by general stores. The distance between

these outlets was sometimes as great as 200 miles, so the dnmmer had

little desire to travel to one of the stores to sell his wares. Because

of this, the commercial traveler did most of his selling in the more

densely izihabited areas of East Texas, Arkansas, and Louisiana

2B

The population W8.s rural in nature and the goods desired then

were wore in likellness to provisions for today's camping trip than

the frills of a feminine frock. Population was not great in the area,

except in Arkansas and Louisiana. In fact, in 1890, New Mexico had only

160,282 brave souls, Indian Territory (Qklahcaua) 258,657, and Arizona

88,243. Texas had 2.2 million people living jnostly east of the ICOth

meridian,^^

Drummer Headquarters

^y 1896, the olesale and jobbing business of the city totaled

$30,000,000, Dallas was becoming a vast warehouse from which hundreds

of "druanaers" set forth to cover the Southwest, The life of these druia-

mers seldom allowed them to return home for very long periods of time,

Thsy were on the "road" most of the time. They would have regular cities

or towns they could make on the week's end. They would meet at some

hotel, wijoy the companionship of their fellow travelers, play cards,

have a few drinks and be off on Monday for a swing of the territory.

Out of these weekend sessions m&uiy of the small markets have sprung and

some have evolved into larger shows.

In 1907, the late August Lorch established the state's first

ready-to-^rear jobbing house in Dallas. The Spring Merchant's Meeting

in 1909 registered 4OO buyers and that same year one Texas manufacturer

of work clothing exceeded the $1 million mark in sales. The local Job

bers and manufactiurers had a "transportation refund program," which pro

vided railroad fare for buyers at so much per mile depending on tho

^Ohe International Encyclopedia (New York: Dodd, Mead & Co., 1904), various volumes.

29

aaount purchased at the time."^^

The Style Show Association, a group composed oJ app^iel .i*. ia-

facturers and Jobbers in 1920, did itself proud by digging into tne

pockets of individual members to the tune of *900 to finance its first

style show for retail buyers. It was held in the old Opera House,

located at Main Street and St, Paul Street. {By 1929, this group was

utilising the Fair Park Auditorium for its market shows,)

While the "Roaring Twenties" proved to be a golden era for

Dallas as industry, finance, and trade flourished the apparel industry

did not actually get its big start until the mid 30»s, Under govern

ment regulations during the time the NRA (National Recovery Act) was

in effect, Dallas apparel manufacturers felt the need for an organi

zation to interpret the rules. Thus, the first foi-mal apparel associa

tion was fozned. The maziest was becoming noticeably fashion conscious

as the old beruffled housedress was left behind to bedeck attics and

the interioz*s of antique trunks. The apparel group sponsored South

western Style Shows which showed to buyers a variety of newest designs

as they \fere modeled at the State Fair of Texas to the times of big-name

bands,^^

^^Interview with M, Hayes, Dallas Manufacturing and Wuoiaoaicir Association, Dallas, Texas, August 28, 1964.

5QMo8t of the associations mentioned were formed basically to promote marketing in the region and more particularly in Dallas, However, their by-laws laid down ethical tenets that set up the machiiior/ for a formalized laarket. In fact, some of the sonorous iNiiSolutioiu forbidding members from doing certain acts (mentioned in Charter I), were placed into effect. One of the most important is still in force— a salesman is not cuUowed to "button-hole" or pressure a buyer in the halls of a hotel or maz*t,)

file:///fere

30

Fort Worth Market

Texas celebrated its centennial year in 1936, and Dallas was

awarded the privilege of having the central exposition at the state fair

grounds. Since it was obvious that hotel rooms would be at a premium

in Dallas, the salesmen decided to have a market in Fort Worth. From

this developed the National Fashion Exhibitors of America and for seven

teen years this group maintained a maz^et in the Fort Worth hotels.

It was in the Spring of 1938 that the American Fashion Associa

tion was formed in Dallas by a group of progressive manufacturers' repre

sentatives led by Mr. 6. M. Comer, a personal friend of the writer. At

the first market held in July of that year there were 124 classification

listings of merchandise, shown by 55 men. By the Spring season of 1939

there were 103 mmbers.

The Dallas market realized its potentialities in June, 1942,

when the Dallas Fashion & Sportswear Center (later the Dallas Fashion

Center, and eventually Texas Fashion Creators), was bom. Later, during

the war years, traveling was difficult and the Office of War Transporta

tion issued a directive canceling all conventions and trade shows.

Post War Boom

A growing problem in 1946 was the shortage of hotel rooms for

buyers wishing to attend the market, A housing committee was established

to assist in finding rooms in private residences where buyers could stay

during Market Week, After the war, business was booming as r:x)re goods

became available and the association grew rapidly,^-^

51„ elation

J-MThe First 25 Years—A Brief History of American Fashion A?3o-," American Fashion Association. May, 1963, PP. A--i:).

31

One of the particularly significant developnents in Dallas* econ

omy after World War II was the establishment of a "merchandise mart"

facility, Kdiieh would give new stature and new "reach" to make it one of

the nation's major market centers for all types of consumer goods. Bal

anced growth in hotel and exposition facilities enabled the city to

compete successfully for larger conventions and trade shows,^^

With wartime Impetus, local fashion flair, and a long-time role

as the Southwestern regional distribution hub, Dallas was witnessing

amazing growth of the gaziamt indtistry. Business Week magazine toasted

the fashion market by saying that fashion was in the air, "Something of

the Texas way of living, and the color and frankness of the West gives

Dallas styles a fresh note. Its stores are noted for fashion zeal, its

women are known for their grooming and clothes-consciousness,^'^

In fact, CV.R. Thompson, the noted syndicated British colimmist

wrote that many of the finest clothes that are made come into the salons

of Neiman-Marcus; that a woman can examine imder one roof what a New York

5/, woman could see only b y visiting 27 different stores.''^

Dynamic Dallas

Dallas has a number of people of wealth and i n f l u e n c e — a network

of leadership rather than a pyramid. Since no one roan, no one fariily.

^^"DALLAS—Dependable Business Climate," Dallas (Texas) Chamber of C<MmRerce, August, 1964.

^^Business Week. June. 1950.

5^Fz«ink X. Tolbert, Neiman-Marcus—Texas (New York: Henry Holt, Co., 1953), p. 9.

32

or no small group could exercise ultimate influence, each of those who

wished to wield influence had to cosspete with others. 3ach coiild be a

civic leider but had to develop his own special sphere of influence,

much as the great powers of Surope cnG^ had to compete with other powers

in Africa and Asia. Accoi^ling to Heyerscn, Dallas is beoojning one of

the most stimulating a M ®con«Hrilcally viable cities on the North Aasri-

ean Continent, It is unlikely that Dallas could have cade sany of

these gains, if it had not diffused economic power and leadership,55

With such a group cf civic-iainded individuals the idea of organis

ing a forsDSl jisarketlng group and constructing a building to hous« var

ious trade sho*«i became a dream. But scwsething „of this magnitude Just

does not happen ovemijît.

Durln:; this period, th» Jobber axid wholesaler had already seen

their la^rtance in the channel of distribution being displaced by the

dnjaaaer who rei^resented the manufacturer. A lar -? part of the whole

saler and Jobber apparel business was transacted in an area cantez^

around Coaraeroe and Poydras Streets in downtown Dallas, One br.ildlng

was predominant in the area; it was the Miolesale Itorchants Building,

At a meeting in the Adolphus Hotel on Dececêr 14, 1943, the

Dallas Manufacturers and Vôlesalers Association laid plans to construct

a building *Wlthin a reasonable time on a site in downtm/n 'JaUjxs. i,uch

a building where distributors and manufacturers can sliow inerc:ii.iuii>e

has long been needed. It was planned to have showrooms open every

iiw«1ii'»«r« »iiiii»iMii

^^Martin Msyerson, "Business Leadership- and Revival of Cities," Ths Tobe* Lecture in Retail Distribution at tne Harvard Luainess School— 195?-6Q (Boston: Harvard University Press, Fourth Series, 1961), p, llu.

33

working day of the year,"^^ The city council, on September 20, 1949,

granted the group permission to close certain streets in downtown

Dallas for construction of said building,^7 Meanwhile, lines were

being flodiibited at the Adolphus, Baker, Southland, and Bluebonnet

Hotels, By the May mazket of 1950, the membership of the American Fash

ion Association had grown to 445.

Rather than cozistruct a new building, an ideal piece of real

estate containing 611,829 square feet of floor space on nine floors was

negotiated. In Noves&er of 1952, the Investor's Life Insurance Ccxnpany

bought the Butler Brothers warehouse at Ervay and Young Streets from

J. N. Fisher, a Dallas real estate operator. The building, renamed the

Merchandise Mart, was then r«EBOdeled, acoustical ceilings installed,

modem lighting added, partiticms built to make the necessary showrooms,

and completely aircondltioned,^^

At the time, the Merchandise Mart was considered adequate for

the future growth of the Dallas wholesale ladies' apparel market.

However, the Southwest grew both in population and in voliune of retail

sales at a much faster rate than was anticipated. Other factors which

tended to weaken the competitive position of this facility are discussed

in Chapter IV,

56Dallas Times Herald. December 15, 1948,

57ibid,. September 21, 1949.

5Qlbid.. November 2, 1952,

CHAPTER IV

MATURITY OF THE DALLAS MARKET (1952-1962)

Promotion and a special "Southwestern fashion flair" built the

Dallas apparel market,^^ The stores buying at the market were mostly

specialty shops, but many Junior department stores azKi a few full-time

department stores did attend. It became the meeting place for buyers

and sellers of ladies* appareli it was one step in the channel of dis

tribution of merchandise consumed primarily by the middle income group,

althou^ soiae popular priced goods were marketed there. Eventually

some couturier lines sent representatives and this added prestige to

the reputation of the market.

In 1953, the Dallas Wholesale Apparel Market was scattered in

several buildings, some as far as a mile apart; there were two floors

in the Merchandise Mart Building occupied by the National Fashion

Ejdiibitorsj there was the Southland Fashion Market in the Southland

Hotel; and the American Fashion Exhibitors had rooms on many floors of

the Adolphus Hotel, Baker Hotel, Bluebonnet Hotel, and the Dallas Hotel

(in the latter, were the remnants of the Fort Worth show).°^

^^Personal interview with Velma McKee of the Texas Fashion Association, August 2S, 1964.

^^Personal interview with Maud Tims, Managing Director of American Fashion Association, August 27, 1964.

34

All the while, the drunmier las making his rounds in the tsrritory,

selling goods, and at the same time inviting the buyers into Dallas to

visit the market and see other lines.

Cities sprang from southwestern villages, bopulation followed

the decentralization of national industry and the salesman -rho had tvo

or more stctes, found Lis territory beir-g divided -r^ th^m v'^tX^nr.Â,

Sometimes tho position of scutrnvsct srr. salss nanager was cr3C.te.i, 'jut

njorc often, ths drujmer >^s laade to produce laore from his dimii^shjjis

area.

Ilie weekîds are lonel;/ for a laan on the road, so tho ' raveli r'

would B»^t at some hotel that catered tc their whims. Y^s^r of the

salesmen, raaintalned hones or apartment a in ." llag,, f?,p they v'-er'? sxire to

be ther^ for the four i!:>rk't;? a year."**-

•HiQ eKhib:lts houee-l in the hotels were a wonderful stopgap for

the expanding; jmrkf!ft. And hho salesmen that remained in the 'ciTtelries

di(?. a grand bius^jiess; however, the tfxie care when effic,'_. ncy ira tho

order of the day. It nmst bs remerhered. tliat th'? hotels- \fere constructed

for purposes other tlian for sainple rooit/:, so the exliib:*.tor i T.'ho moved to

the !'Iez*ch&ndi??e Mart at Lr'. iy and Yomig Streets .':ri.i a bette.- /..et? cti of

showing their wares.

The rooms in the Merchandise Mart Imd glass s:cr',- vdjfidows similar

to those of retail stores and displays could be erected to entice t!ii?

61A8 a point of interest, the Internal Revenue Service requires a person to have a permanent address so that expenses on the road may be deducted, lu his inttji.'vieK& with many salesiueri, the v i.-.ter Touiid that salesu'.en estimated their expenses from v6,000 armually to '"18,000. This is overhead not borne by the iîanufacturer, lut by the ...lesiran.

file:///fere

36

buyer to enter, "look*8ee« and then hopefully to BAke a purchase.

There wias one disadvantage shared by the hotels and Merchandise

Mart alike. This was the delay in going frwa floor to floori at one

market time, a buysr was involved in rooms scattered on 54 floors in

six different buildings, soi&e as far as a mile apart. Then too, the

hotels had to roserve rooms for the Q diil.lfcorc and regular guests were

Inconvenienced by the coKitiotion and ovorcrovided elevators.

Because of their downtown location, both the hotels and the Mer-

ehandlse Mart had very little paridng facilities available for automo

biles. Unless a buyer came by jOane or ia?«ln, he had to pay for parking

his oar and walk to the eliowrooms. k loOLti-storied garage was added .o

the Itochazidise Hart, but ims Incapable of holding both salesiaeti*s and

buyer*a cars, at the saiae time. TtiS hotel garages were hazaurdous for

the buyiNr sd.^0 because of the narrow entrances and c»ie-<%fay streets.

Beeaiise of this transportation problem, a "courtesy bus" was

available for the buyer to get from the hotels to and from the Merchan

dise Mart, but tills was still time consimdng.

As liati been mentiotjiti ii; other chctptez's, the buyers attending

were primarily from specially shopji and junior department stores. How

ever, the t^\^,or chain organia&tions tldid. encugli of the "feel-of-the-

markef tiud they rjaiii-uii*: ' bu^ln^-^CiV-laoro- ii J.-.Uas,

Soars xk>ebuck lias established officer li* jal-lau for the South'..est,

This office does no buylzig on its ovjn, but rather, advises its Chicago^

^ jdT?>fard Gudenan, 'A Profile of Sears Roebuck and Co.," Tobe*

gtures on lietail i)lstrlbution at Harvard Business School—1939-60. ston: Harvard University Press, I96I), p. 75.

37

merchandise department. J. C. Penney has offices in New York, Los

Angeles, and Dallas for the same purposes.^^ Other concerns either

maintain advisors or send someone to view the market with an open eye

and ear, but most of their orders are placed directly with the manufac

turer (house account) and the Dallas exhibitor seldom gets credit for

the sale.

Because of the trade secrets that bar the disclosure of statistics,

it is not possible to state the increase in the sales volume of this

era. If it were possible, the figures would show a manyfold increase.

It may be said that the Dallas Ladies« Wholesale Apparel Market went

from an almost insignificant ejdiibition to the third ranking market in

the Iftiited States within ten years.

One of the points that came to light in an interview with a direc

tor of the National Fashion Exhibitors was the fact that all the exhib

its then in Dallas could have been housed in the Merchandise Mart Build

ing, The salesmen feared that if the hotel ro<Mns were emptied, then the

manufacturers not showizig would send in representatives to fill these

rooms and competition would be keener and perhaps the salesman would be

unneeded. These fears were real, as this is actually what happened,

except the building was not the Merchandise Mart, but the Apparel iart

as we shall see in the succeeding chapter. However, it can be said that

the increase in competition because of concentration of merchaniice

offered, as a whole, does not harm business and is more important to

the retailer for a better selection.

^^A. W. Hugis, Tobe* Lectures on Retail Distribution at Harvanl Business School—1957«'58 (Boston: Harvard University Press, 1959), p. H I .

CHAPTER V

EXPANSIC»I AND PROBLEMS OF THE MARKET (1962-1965)

The Merchandise Mart Building located at Ervay azid Toung Streets

has eight usable floors; however, some of the floor space was leased

azid occupied by offices of the Iftiited States Government, the Southwestern

Bell Telephmie Conâny, and others. In addition to the lease problem,

factors previously discussed in Chapter IV help create an opportunity

for a nmr building to be erected.

All of the rooms occupied by salesmen showing in the hotels were

on a year-to-year basis. The majority of the space leased in the Mer

chandise Mart was signed by both the individual salesnan and by the

National Fashion Exhibitors Association (a loosely knit group organized

for promotional purposes).

As aforementioned, Dallas has mî with vision and courage to

transplant that vision into concrete, steel, azKl beauty. However, the

people connected with the Merchandise Mart did not use this foresight

or they could have maintained a maz4cet in that building for years to come.

Because of disunity in their ranks, they were unable to create an atraos-

lêre of organized strength.

In the sunaner of 1964, turmoil existed in the ranks of the Ameri

can Fashion Association preparing to have their market in one hotel

(Adolphus); and the National Fashion Exhibitors Association housea in tlo

Merchandise Mart with 831 salesmen showing more than 2400 linaa of a- [ic rol

38

39

and accessories?^ The Apparel Mart in the Dallas Market Center was

nearlng ocapletlon and had signed many of the salesmen and manufacturers

holding BMberships in the two orgaunlzsations. Hence, the fashion asso-*-

elatl<ms were thrown into a state of confusion. As a degree of chaos

did and still does exist at the time of this writing, some of the prob4

lems are both difficult to describe and assess.

The average buyer was unaware of the many uncertainties that

existed in August, 1964, nor did he care. In fact the buyer was rather

happy with the market when it was confined to the Merchandise Mart,

Adolphus, and Southland Hotels. After all, the three buildings were a

great improv«ment over the previously spread markets.

During the ten year period covered in the previous chapter a

revolution had occured in the retail sector of the channel of distribu-t

tion—shopping centers had begun to challenge the downtown business

districts.

The history of the shopping center is similar to that of the

maz^et under study, in that both originated in ancient times. The shop

ping center is merely the reversal of a single area to purchase most

necessities—namely downtown. Ruins of civilizations and the cities

thereof reveal a market place around the water well of a residential

neighbozi&ood. Until recently, similar circumstances decided that the

marts for wholesaling were restricted to the central business district.

In many ways the retail buyer is no different than the retail

consumer. The lure of a paved parking lot in the proximity of a shopping

64Files of the National Fastiion Exhibitors Aasociation, Dallas, Texas, August 27, 1964.

40

oenier has pulled many a dollar f roa the hmi^btg of milady that would

othendee have gone to a dmmtown store. The point here is that until

1964« the biuyer did net have free parking doimtcfwn while shopplsg at

elêr the hotels or the Iforehandiee Hart. The Appard Mart was paving

an area for paxicliig 5#000 autcnobiles at (me tine, iîereas the Merchan

dise Mart had an agressnent with pazidzig lot operators to honor their

tlekete.

In 1964, It became eiddcnt that the Bellas Market Center had

enc^Bpaseed more and seore of the functions of the downtown core, bec<»Dlng,

In effect, an exteaaion as far as functiîs and facilities go, of the

j re&ost downtown areas from which it is less than five minutes ride.

The Dallas l^rket Center covers 150 acres of land to which

so&e $70 million already have been cotsnitted.^^ The buildings for the

wholesale trade are: (1) the Decorative Center; (2) Home Furnishing

Mart; (3) Trade Mart (primarily gifts and furniture); (4) Exhibit Hall

(t«Bporary shows and overflow for eodiibits of other buildings); and

(5) Appard Mart. This ecaplex connects with many main arteries in

BallAs and is bordered wltii Interstate Highway 35E which gives access

to the rest of the world. Three differait railways are on the site to

facilitate the moving of large objects and the Dallas Airport (U>re

Field), is but el^t minutes away. Two of the world's largest motor

hotels are In the C<MI^1«X along with several smaller ones for the buyer* s

lodging.

On August 24, 1964, the American Fashion Association signed a

65Daiias Morning News^ January 18, 1965, pp. 9-10.

a contract with the Apparel Mart Inc . , to occupy the fourth floor of the

nmr building and the icagazine American Fashions was to be the of f ic ia l

publication of the Apparel Mart. The market days were set to allovr a

show from Sunday, 9 A. K. to Friday noon.^

In October of 1964, the Dallas Wholesale Apparel Mart was again

geographically scattered with inany types of rdddlemen housed in various

biiildings within the c i ty . The raaiicet could be grouped into the follow

ing categories:

1 . Permanent and seml-perEmnent showrooms located in:

a. Apparel Mart Building at 2100 StCTanons Expressv.ray (see

Figiure 1 ) ,

b. Merchj&ndise Mart Building at 500 South Ervay Street (see

Figure 1 ) ,

c. Wholesale Merchants Building at 912 Corrjnerce Street.

2. Hon-^rEianent sample rooms in various hotels (see Figure 1 ) ,

3 . Factor^r showrooms of cianufacturers located in Dallas.

4. Displays maintained by various jobbers in downto :7i Dallas.

Approximately*' eight thousand retail^srs witnessed the oxerdji£ of

the Apparel L'art on October 25, 1964; also present vsre rueniers of tha

national press. The general comment >ras "no mercliant in the Soi;thi :>st

can afford to stay away from ths Dallas market no .'' '

The October ::iiark$t foiina eCKhibitors of the Appirel h , / t net qr.ite

ready with the finishing touches on their rooms, but - od sales -er:;

recorded by most of the 15jries.

66p©rsonal jrtcrviaw \±t\i >'aud Tins, op. c i t . . August 27, 1964.

^7soutliwestem Retailer. Dallas, Texas, January, lVo5, p. 36.

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Fair Park

FIGURE 1: REU'lTViJ IX)CATIONS OF FACn,!'!.! - 0^ O. Uu> L - X ' • I'CI^-SALE APPAREL

DALLAS, TEXAS 0 APPAREL MART

(B) MERCHANDISE MART

(C) HOTELS

43

Bie corridors of the Merchandise Mart were not quite as full as

they were in previous times and this affected a meeting in early Novem

ber which 8«it many an occupant to an attorney to attempt to "break" his

lease contract with the Merchandise Mart.^^

The overwhelming majority of individual members of the National

Fashion Exhibitors moved to the Apparel Mart for the January Market.

This majority included all the officers and directors of that organiza

tion. It was said that they would no longer sponsor markets in the Mer

chandise Mart,^^ (See Appendix E for categories of merchandise shown in

the Af^rel Mart).

The Apparel Mart contained more than 90^ of all the exhibitors

during that market week, leaving only a very few z*eniaining at the hotels

and at the Merchandise Mart. However, many of those showing at the

Apparel Mart still had existing contracts to honor at the Mez*chandise

Mart and were only showing on a temporary basis at the new building.

At this writing, it is understood that almost 300 of the salesmen

are returning to the Merchandise Mart for the May, 196$, show.Ô Very

few of the mSLnufactiirers are retiuming, but will remain in the Apparel

Mart. It is the salesmen not tied to the \>rill or whims of tho riinuicc-

turer that are retumijig.

By March, 1965, there were slightly over 600 permanent leases in

^Long distance telephone c a H to writer from coni'iiîtial source, member of National Fashion Association, Dallas, Texas, to Big Spring, Texas, November 16, 1964.

^Âmerican Fashions. Dallas, Texas, January, 1965, p. ^

70confidential source, February 6, 1965.

44

the Apparel Mart, which when analyzed show approximately 60^ salesmen

and 40^ manufacturers holding leases."^^

This concludes the historical development of the Dallas Wholesale

Ladies* Apparel Market. In the following chapter we shall coi^ider the

various facets that concern the exhibition, and have a bearing on its

future as well as its growth.

7lLetter to writer, Wm. E. Cooper, Executive Vice President, Dallas Mazicet Center, Dallas, Texas, March 9, 1965.

CHAPTER VI

VARIOUS FACETS OF THE DALLAS MARKET

There are many facets of a market as great and dynamic as the

one in Dallas. A market is made of people, not statistics. These people

have preferences I thsy need transportation, housing, and enterUinment;

thsy need a convwiient date to attend j and t h ^ need publications for

infonaation. This chapter also disciisses other markets in the Itaited

States, the organization of salesmen, and an ally of the market—«anu-

facture of apparel in Texas.

Buyer* s Preferences

Buyers give many reasons for their preferring to purchase merchan

dise in a central mart or a primary market rather than in their own

store. Appendix F states preferences as well as the advantages of hav

ing a salesman making a call on the buyer.

It might be wise at this point to separate the forest from the

trees. Until recently the traveling salesman was the usual way or manner

for the retailer to view a line unless he was large enough to make tho

long journey to some distant market.

The automobile changed the shopping habits of the average con

sumer. No longer was she confined to the trolley or bus lina; she liid

new freedom. The same might be said in our study. The same automobile

which made the drummer mobile, also makes the buyer mobile. Tho buyer

45

46

is now able to drive to the front door of a building, get out, buy all

day, drive to a motor hotel, return to the mazlcet and drive home.

Etayer Entertainment

Over the years, many forms of entertainment have been offered to

the buyers. Style shows (sometimes called clinics) have been the main

form of getting attention of the buyers for both the publicity axxi re

action to the styles shown. For many years this sometimes fozmal and

sometimes iziforaal show was presented at a breakfast; in other years it

was an evening event.

Game nights, dances, Broadway productimis, and sundry other

entertainment has given the buyer scaaething to write home about. How

ever, most of the buyers are ^Fery weary at the close of a day or have

to return to their hotel rooms in order to calculate their purchases, so

the attendance was far from 100 per cent. Because of this, hospitality

rooms were established for the comfort and relaxation of the buyers dur

ing the day.

One year (1957) the various organizations joined together and

sponsored a combined fashion show and buyer entertainment. But this

lasted only for a short time.^^

The events before mentioned were sponsored by several market

groups, such as the American Fasiiion Association, National Fasliion i-uJ.lo

iters and the Dallas Fashion Center. During the past few years, textile

manufacturers (DuPont, Celanese, Kodel, and other manufacture! j of syii-

thetlc fibers) have staged more spectacular and colorful shows featuring

7«"Afflerican Fashions. Hay, 1963, p. 25.

47

styles available at the market. These productions have drawn thousands

of buyers, and as food and cocktails were available at the expense of

the fiber company, many attended that woiad not have otherwise.

Not to be overlooked are the various forms of entez^irmient

offered by Dallas itself. The Cotton Bowl has football during the fall

and many a sportsHoinded buyer arrives a day before market to view some

of the gridiron classics. The State Fair of Texas is also held during

the fall and many of the buyers attend the various functions. Many

Broadway plays are enacted in Dallas or Fort Worth during market week,

and occasionally, the opera coincides for the buyers' delight. For the

more playful, many night spots and restaurants offer a wide selection

of entertainment and food for the gourmet.

Transportation

Because Dallas is the hub of amny means of transportation, it is

accessible from the fo\xr comers of the earth. Of course, no steamship

line has a dock in the city, but that is the only facility lacking. In

this modem air age, Dallas is not only on the map for domestic travel,

but for international flights also; Latin America has many connections

with Dallas, not only by air, but also in conanerce and industry.

Housing

Many conventions, trade shows, football classics (Cotton I3oi;l),

and the State Fair of Texas have kept Dallas ahead in hotel ..i.d riDtel

accomodations. For the buyer with modest means or for one v.ith chai -

pagne tastes, the x»ooms are available; however, at certain narkut tlr.us,

rooms in certain hostelries are at a preirdum. The construction of nany

4d

hotels In recent years has kept pace with the growth of the mazicet.

Maricet Putes

One of the technical points of the retail apparel business is that

the buyer must usually project his sales into the future period of from

thirty to 120 days ahoad.

There are four major laarket weeks scheduled annually in Dallas

(and most of the other primary markets). Tlisse maz^ets ai*e held in

January, May, August, and October. (An additional uazicet has been added

in receaat years for the purchase of transitional daric cotton goods, knit

wear, flU-ln needs for suBiBer, and certain other goods for fall; this

is held In early April).

It Is the concensus that stores only want to assimilate four market trips a year. This would shift the obsolete resort or cruise season wear to selling transitional lixies (dark cottons for suBBier) and eliminate the fifth market which is attempting to laake its entree .73

The January market is for the purchase of late spring and summer

frocks. The May 2^rket is the largest market week, both from attendance

and volume of sales, the reason being that fall and winter goods sell

for a higher pzlce per unit and domand is also greater.

Holiday and cruise wear is purchased in August and many stores

anticipate their Christmas needs in May or place a rush order in October,

so this is the snttHest market of the year. The October market is the

one at which initial ixirchases are made for the first spring and early

sum&er fashions.

73'«Timlng—Retail Success Key," Women's Wear Daily. Deca-aber 6, i960, p. IB.

49

Publicity fffid Publications

Publicity and promotion have played a great role in the developnent of the Dallas MaHcet; for without them, it woiOd not have been possible to create a favorable climate for nationwide knowledge that such a market existed. So d\iring the years, m^abers of the Dallas Fashion Center have »tooted their horn in several ways.* Nationally-known fashion personalities have served as commentator for market shows; mssabers have shown their fashions with flair and fanfare at other markets throughout the nation; and fashion editors from coast-to-coast have attended Dallas sarket press showings.

From the market's inception, news stories worth millions of dollars in newspaper lineage have been devoted to Texas fashions; as well as radio ar«d television coverage. To augment publicity effoarts, semi-annual press previews were launched before the May and October mai^ets for local and regional fashion editors so that news stories vrould be concentrated during market periods.'^

Many magazines are published in Dallas and sailed to buyers across

the iGuid. Some of these concern more than women's wear market azid there

are saam whose interest is in certain aspects of women*s wear. Tex^s

Fashions is published primarily for fashions created and manufactured

in Texas. Fashion Tr^fids (suspended at the time of this writing) was

printed for the National Fashion Exhibitors in the Merchandise Mart,

but since many of its members are showing at the Apparel liart, the news

of its members is reported in the magazine American Fashions.

Southwestern Retailer has been published since 1901 and has a var

iety of news concerning the retail business in gaieral, but most recently

has featured ladies' and children's wear. All these magazineti hiava one

primary motive, and that is to promote Dallas as the predominant market

in the region.

74nFyQm Wagon Trains to Evening Trains,'^ Texas FasLion Creator^. Dallas, Texas, December 1, 1962.

50

Ifarket Comparisons

Many trade secrets are structured into the apparel industry and,

therefore, statistics are not available on this subject for all the

primary raaricets. The writer questioned various sources in New Tork,

Los Angeles, San Francisco, Atlanta, Chicago, Miacd, and Dallas^ but

the results were disappointing. The foUowinf: figures were r vealed in

a California trade paper:

San Francisco Market week drew its peak turnout during the week of January 15, 1963> when 2,596 attended. The market is sponsored by the San Francisco Fashion Industries.

Les Angeles real estate developers have a second wing on their now California Mart building, this will bring the total square feet to 1,400,000.

As industrial developex-s of the fashion trades center, they are mez^ely translating what they learned as Bianufacturers into practical, functional facilities for the trade.

This was long needed, as buyers were becoming less productive because of the 'taxi» time wasted in travel between outlying display rooms.'^

The Los Angeles market had their largest attendance in January, 1965, with 3,491 (-I'srsus 3,460 in January, 1964), reported 3. spokesman of the Pacific Coast Travelers Association.'^

The New York Market is heterogeneous and is located in an area

centered around Seventh Avenue. There could be no accurate measure of

the number of buyers at this market as it is continuous throughout the

year; however, there are certain times that "showings" do start a ne;/

season.

75caUfomia Apparel News. Los Angeles, California, January 22,

1963, p. 1 ff.

'?'6ibid., January 15, 1965, p. 1.

51

The other markets would not reveal their figures and therefore

it is impossible to make a comparison. The United States Department of

Connerce is also unable to give any light on the subject as the orders

placed in a primary market do not necessarily appear in their wholesale

trade Index.' '

Just as closely guarded a secret is the Dallas situation; however,

it was learned that in the May, 1964, market there were over 6,000 buyers

present from 32 states and several foreign nations.^^

With the added facilities provided at the Apparel Mart, the attend

ance of the Januazy, I965, mazêt climbed to approximately 6,500 buyers

trosi 11 states. Actually, some 35 states were represented, but the pre

dominance (more than 99^), came from eleven states,^^

Among the other trade shows held in Dallas each year are: gift, jewelry, cosmetic, men's wear, boys' wear, shoes, home fumishizigs and countless smaller ones. Many of these iise the same facilities as mentioned in this thesis. It is estimated that over 100,000 persons attended these shows in 1963.^^

Not to be overlooked are the other ladies' apparel markets in the

United States. A count shows that there were 132 cities that had markets

durlz^ the fall of 1964. ''* This staggering figure illustrates that the

chazmels of distribution can easily be streamlined and simplified, both

from the expense and overlapping facets.

' ' Dsllas, Texas, Field Office, U. S. Department of Co:.j::erce, August 28, 1964.

"^Ânonymous Source, Dallas, Texas, August 27, 1964.

*7?Mr. William E. Cooper, Executive Vice President, Dallas l^rhet Center, Dallas, Texas, in a letter to the writer, March 9, 1965.

^Dallas Chamber of Commerce, interview, August 23, I964.

^Âdvertisement of Ship »n Shore, Inc., Upland, Penna., Sept., I964.

52

Organliatlon of Salesmer^

At the American Fashion Association director's meeting in 1945,

there was discussion relative to a meeting in Chicago of scmie regional

market leaders for the purpose of forning a Naticmal Association of

Wanen's and Children's Apparel Salesmen (NAWJAS).^

Some of the objectives of the group concern not only dealing with

the manufactiurer, but car leasing, professional selling seminars, various

working and selling contracts, and lodging for salesmen on the road.^^

Tirenty years later this organization had 15,000 traveling men in

its ranks and was in the process of affiliating with the Teamsters

Ihilon or the International Ladies* Garment Worker's Union.^

The Federal Trade Commission investigated the group for some of

their activities, particularly: arbitration of salesmen-manufacturer

disputes, trade show rules, and activities against uncooperative manu

facturers .°*

The main difficulty in the FTC and NAWCAS dispute is the rule that

the National Labor Relations Board excludes independent contractors i'rchi

unionization: many members may be classified as such. Moreover, about

five per cent of the organization's maabers are not only salesmen, but

maniifacturers as well.^^

^^American Fashions. Dallas, Texas, May, I963, p. 25.

^^Califomia Apparel News. Sept«nber 4, 1964, p. 54.

^^Ibid.. December 25, 1964, p. 1.

^%omefl'8 Wear Daily. August 20, 1964.

^6califomia Apparel News. September 4, 1964, p. 54.

53

The one bastion of strength the Independent salesman had left

was the trade show; when they go, nothing will be left. The deteriora

tion of tho NAWCAS affiliate trade shows has resulted in the most serious

situation faced by the group in the twenty years of its existence. The

trade show collapse in Dallas was one of the great defeats of the organ

ization as it was one of the strongest trade show cities in the nation.

Several otiier cities have siif f ered primarily as the result of the new

merchandise mart. '

Not only is the National Association of Women's and Children's

Apparel Salesmen predicting the passing of the drusnaer, but observation

of the age of the men involved confirms this prediction. One 1ms but to

walk down the corridors of a maz cet and take notice of the age of the

salesman I very few &re under 40 yeaz^.

Of the raaiQr salesmen the writer has known to leave the road, many

have been quizzed and many reasons have been given for their changing

vocations. (See Appendix G).

Apparel Manufacturers

When discussing trade fairs and markets in Chapter I, it was learned

that manufacturing was usually nearby. It cannot be determined which

caused the other, but thsy ^re interdependent and support each other.

Dallas is not an exception to the rule and the needle trade is well

entrenched, for in 1963 Dallas garment manufacturers sold $170 million

worth of merchandise.^^

^^Caiifomia Apparel News. December 18, 1964, p. 1.

88 "At Home with High Fashion," Dallas Times Herald Magasino.

August 23, 1964, pp. 4-7.

54

The number of Texas fizros engaged in the manufacture of apparel

continues to increase rapidly. The industry is hi#ily con5>etitive, and

small differences in the cost of labor and materials can mean the differ

ence between profitable and unprofitable operations. Labor costs in

Texas are substantially lower than in Eastern apparel centers.^^

Apparel manufacture is largely concentrated in the Dallas area,

and although there are also important centers elsewhere in the state—

especially at San Antonio and El Paso—Dallas accounts for a large por

tion of the total.90 The trend, therefore^ is to locate the plants in

smaller oommtmities In the vicinity of Dallas, where rent and taxes are

lower Mid the labor supply is generally stable.^-^

Appaz^l manufacture represents only a small, part of Texas' yearly

total manufacturing output, but the making of garments is becoming an

increasingly important component in the state's economic picture. In

1958, the output in the needle trades represented some one-third of a

billion dollars, compared with approximately $40 million before World

War II, fimd there are nearly three times as many wnployees as in 1939-'

In fact, it is the state's sixth ranking industry with regard to the

^ ^ b e r t Drenner, "Texas Industry: 1955-1956," Texas Business Review. March, 195^, p. 9.

90lbid.. "Texas IiKiustry: 1956," March, 1958, p. 9.

^^Stanl^ A. Arbingast, "Texas Industrial Expansion,'' Texas Business Review. February, 1964, p. 24.

92joe Carroll Rust, "The Texas Apparel Industry," Texas Business Review. January, I960, p. 1.

55

total number of employees.^^

By 1959 there were 163 apparel manufacturing jlants i.rhich esiploysd

more than 50 people, though the oajority of Texas pj^mts eriplo: les2 than

that nuiriber. The state continues to attract a large nt:unb©r of r airnfac-

turers every year, and the growth of the Southwest market region has

been supporting notable expansions of plant and troduction by existing

manuf actixrers. ^

Many new plants were added duidng I964 and by December of that

year, Texas listed 43,900 i ersons woi4cing in nanufacturing apparel.* By

the end of I965 employment should be increased substantiall^r^ \ihen sev-

95 oral new plants begin to produce the finish^ garment.'*^

93James J. Kelly, "Texas Industrial Ejqvansion,'• Texas Business Rgjvigw, February, 1962, p. 29.

9^Eobert H. Drenner, "Texas Industrial Expansion," Texas Business Review. March, 1959, p. 11.

95stanley A. Abrigast, op. cit.. February, I965, l . 31.

file:///ihen

CHAPTER VII

BASIS FOR THE FUTURE OF THE DALLAS

WHOLESALE APPAREL MARKET

One of the fallacious Interpretations of the coming population

SQcploelexi is that if there ar© many more people tc clothe, the institu

tions now existing in the channels of distribution will increase their

volume manifold. In previous chapters we have discussed the waning

iisportance of the drummer, jobber, and %ôlesaler. Marketing struc

ture will be subject to rapid and far reaching shifts during the Sixties

and hfgyai^. The eiaerganoe of innorations in marketizig (nev/ outlets,

channels ef distribution, etc.), are just as revitalizing as new products

in the structure.^

The road to the solutl<»i of many marketing problems is often paved

with a sharp analysis of the distzlbution setup. But an analysis is

only as effective as the accuracy of the distribution data used.97 This

chapter will discuss the reiâil outlet, sôre management, and untapped

imrkets. It will become obvious in tliC followirig chapter wty these

facets are the basis for the futmê of the Dallas Wholesale Apparel

Mazêt.

963iiaw and CSittinger, Mazêting in Business Management (New York: MacmiUlan Ccrapany, 1963), p. 97.

^"How to Keep Tabs on Distribution," Printer's Ink. Juiie iv, 1964, pp. 53-55.

57

Sl8e of Future Retail Outlet

IWo increases are apparent in the retailizig field: one is the

increase in the number of retailers going out of business, the other is

the increase in the volume of sales done by the giants in the field.

Hence, if the past is any indication of events in the future, then

there will be fewer, but larger, stores.

Many people find it hard to realize that there was ever a thriv

ing establishment known as the "comer grocezy store." The growth of

the supermarket has shown its powerful effectiveness.9^

Ihe chain of events Uiat caused this transition in the food field

will take place in other retail fields, but in most of these merchandise

lines, sales policy, sales organisation, and sales procedures nay con

tinue to be f izmly based on the concept of the traditional personal

selling fimction.^

The trend toward retail giantism shows no signs of abating, but

to the contrary, shows erery indication of picking u^ additional momen

tum. The flood of retail mergers that took place in I96I and 1962 is

ample proof of the validity of this assertion. There are 50 retail giants

who control about 40^ of the nation's total retail volume in their major

"LOO merchandise categories.'*'^^

Comparizig 1962 with I963, we find tliat "apparel stores of all

types" declined nuBiberwlse by .7 per cent. This fluctuation shows tliat

9^Theodore Levitt, "Marketing Myopia," Harvard Business Review. July-August, i960, p. 45.

99E, B. Weiss, The Vanishing Salesman, p. 13.

^^Ibid., p. 49.

53

regardless of else, the manufacturer must eophasize the continuing need

to be in step with the distribution outlets handling his product. A

distribution uzdverse is not a static thing. Records on which sales

territories and stores (italics mine) are based could be far from fact

uiaess a continuing check is kept on what is happening and where.^^

According to the Audits Surv^ report the trend is towazxi fewer

outlets, but larger stores with relation to population. In 1958, there

were 96 people for every retail store; four years later (1962) the

average store served 100 people.^^^

A hundred per cent increase in apparel sales in the Southwest in

the next ten years is the forecast. Texas alone has shown a 40 per cent

increase in women's wear sales betweai 1958 and 1962; whereas New Toric

and California had recorded sales increases of 32 and 28 per cent res

pectively in the same period. -

And i4io is going to sell this increase in volume? Is it going

to be the small retailer biiying from a druxsmer? Is it to be sold by

the manufacturer directly to a large chain? Or will it be a small

retailer buying from a manufacturer eodilbiting in a primary market?

The fact is that no one can answer this complex series of ques

tions. However, it is known that a rapidly growing percentage of total

^Q^Frinter's Ink, op. cit.

lO^The Showcase. Dallas, Texas, May, 1964, p. 6.

^^^Amos H, Griffin, Vice President and Maz^eting Director, hast-man Chemical Products, Inc., at opening ceremonies of Apparel lUrt, Southwestern Retailer. November, 1964, p. 12

59

volume of manufacturers is sold to direct accounts. These accounts do

consist of the sales to the giant retailers—departmental and other chain

groups. ^

In a report to the 49th Annual Conventl^ of the National Retail

Merchants Association in i960 it was disclosed "that the day of the

individual single unit d<qpartiB«iit and specialty store was numbered."'^^^

One of the most influential magazines catering to the American

woman is MeCall's. Their thoughts are "five years from now, the American

fashion business %fill be split into two camps 5 both will be followed by

tNo typoo «f fetalX outlets.

"In the first eajBtp will be the monster organizations and their

retail outlets. There will be more m a n order houses and discoimters.

These elanents will account for 98 per cent of the business.

"In the second camp will be a select group of manufacturing firms—

usually designez^-owned. T h ^ will cater to the remaining luxury outlets.

}9aaxy firms and shops in the expensive category will fall by the wayside.

Only the best in each camp will survive. "^^

Usually wh«i a significant trend is found, it will have a counter

tr«id. To some degree, the small specialized store is on the way out;

however, as was just stated, the elite specialty shops will still be

around. Department stores will tend to become high-quality specialty

^*%ei8s, OP. cit.. p. 263.

^Q^omen's Wear Daily. January 14, I960, p. 1.

106»Q jj. Top Faahion Import is Authorityl" MeCall's Dress Merchan-diser. April-May, I965, p. 49.

60

stores. The dleeount stores tend to go conventional and have turned

to better fixtures and equlFnent, with higher prices. This has forced

specialty stores to operate on lower markups and higher efficiency.^^

The Harvard Business Review says that many of the four«and-a<*4ialf million email business enterprises in our oountry are actually not deserving of anytme«s time and attention. However, the SB»11 buslnessinan performs a needed service, and he eoul4 run his business successfully, if con^tltive conditions ware equal, should he receivs the needed help that would allow him to con^pete on a basis of equalitv. (See Appendix H for reasons snail businesses go broke).

In order to stay in business in our complex occ»K3my, the small businesranan of today must have professional guidance for better management; access to new capital at a fair rate of interest, a fair break in taxation; and, protection from the unfair and illegal pzgctlces of other buoinessos, whether they be large or VBAH,^^

Every debate has its pros and cons, and thez*e are many expez^

who think that the fsie-nmn institution, the aiiall shop, is da{5tined to

make a eoaiebaek, offering devoted craftsmanship and excellent, irdivi-

dual servi.ce.^^

The small, specialty ohop does not usually purchase mercliandise

In depth (quantity), so the stock looks varied as to color s:nd style;

in contrast, the large store often buys a garment in gross lots. So

the saall concern that catches tho public fancy rr&y •;-;oll wind up a . a

large corporation. T M s esiphasizes the point that big cor-paniec in

creasingly realise tho value of the "specialty store" field.

^^Hsmiltcm Chute, Dallas Morning News. March 21, 1965, Section 3, p. 1.

^^Benjamin Phillips, "Why Small Businesses Go Broke," California Apparel News, February 12, 1965, p. 2.

^^^^Emest Havemann, "Leisurs, the Great New Challenge," Reader's Digest. August, 1964, p. 126f.

c'l

The creative marketer, big or small, enjoys one compensation for

all of the difficulties the identity seekers create. He will "ind that

he can content himself with taking the Tnarket a piece at a blne.^^

Management decisions regarding tin selection of distribution

channels are in a state of constant flux, and those irarketers who have

kept in tune with the changing importancs havs gained tramandous cou*-

petltive advantages.^^ This is particularly tniQ in the retail business,

for if there is anything that is normal in the field—it is change.^^^

If the giants get larger and the sraaller operations either go out of

business or do a smaller volume, in the .judgment of the vrriter, then

there will be little use for the Dallas Wholesale -Apparel Max^...so,

something must be done to strengthen the snialler operations and the

market will be strengthened at the same time.

Apparel Store Management

It is interesting to note that in the women's ready-to-wear field

of retail stores the yearly figures are rising for the nimdaer of fail

ures, both in numbers and amount of liabilities.'*-*-- Even though several

of the national chain organizations have people scouting the Dallas market

for nev<r items, the actual buying is done primarily by the small department

^QBusiness Week. December 23, 1961.

•^-^Lyndon 0. Brown, "Marketing Research Foundations for Changing Marketing Strate^," Chanf in <s Structure and Strategy in Marketing (Url^ana, Illinois: University"^Illinois Bulletin, October, 1957), p. 101.

^2jo8eph B. Ilall, President o2 Krogt r Cor ran: , - pealsine w tho New York Society of Security Analysts, quoted in Business Week. June B, 1963, p. 47.

^^Southwestern Retailer. Dallas, Texas, October, 1964, p. HA.

62

store and specialty shop. Therefore, it can be assumed that they are

the firms to be romanced and assisted in tiieir maintenance of sales

voliaae or there would be no reason for the existence of the Dallas Whole

sale Apparel Market.

In 1953, the American Fashion Association took a poll which

indicated that buyers appreciated merchandising help and service in

preference to lighter types of entertainment.

The trend toward better merchandising led to the first American

Fashion Association seminar for retail management in the summer of 1955.

It was accepted with such enthusiasm that it was repeated in 1956 and

1957.^^

Faced with the keenest coiqietition in the long history of retail-

izig—when one move can mean the difference between profit and loss-

small retailers must realize the importance of banding together. They

must help each other individually by the exchange of ideas. This v/as

the general consensus of the panel and attending audience of the recent

and first Texas "Small Stores" seminar sponsored Jointly by the Texas

Retail Federation and the National Retail Merchants Association.^°

They must band together for self-pz»eservation and preservation of the

Dallas market.

iimerican management has changed more over the past ten years than

^American Fashions. Dallas, Texas, AFA, May, 1963, p. 25.

^^Ibld.

^ ^ e x a s Fashions. August, 1964, p. 60.

63

in all its previous 150-year history. The coiq?uter alone has created a

vast and far-reaching revolution in management, one which is still con

tinuing. New marketing techniques are being replaced by others almost

as soon as they have been developed. It takes more than just a faithful

willingness to 'mind-the-etore.' It eozmotes a constant necessity to

be a jump ahead, while at the same time retaiziing the basic stznicture

of good business practices.^"^

In a talk before a recent National Retail Merchants Association

seminar, Milton Bogen, a well-known Certified Public Accountant, dis

cussed his experience with three unrelated women's specialty stores in

the $500,CXX) to $1 million annual sales class in nearby areas o agreed

to adapt automation to their requirements on a cooperative basis. He

first set up a code to consist of numerical designations applied to all

departments and classifications which were under the control. Then as

more iziformation was z^uired such as fabrics, resource, price, and so

forth, the code, being so flexible, was easily expanded. The reports

given to each store were:

1. Detailed weekly sales report by department, classification,

manufacttirer, style, fabric, and color.

2. A monthly price report.

3. A separate monthly size report.

The last two reports were givoi in a store-by-store comparison.•

p. 34.

^^Southwestern Retailer. Dallas, Texas, August, I964, p. 23-

lld>rProfit Parade," Furniture Retailer Magazine, September, 1964,

64

The majority of the national chain organisations have adopted

electronic systaais for the benefit of management ccaitrol. The system

gives thtts full details of every transaction on a dally basis, making

the job of retail marketing much more of a science. As a result, con

sumers will be served faster and merchandise will be controlled with

pinpoint accuracy.^

Untapped Markets

The present friziges of the Dallas market area are shown on the

map in the app^Kiix. The buyers in those fringe areas have a choice

of going to Los Angeles, San Francisco, Atlanta, New York, Chicago, or

Miami. (See map for market area covered by Dallas).

It will be noted, however, that most marketers in our country

neglect to include foreign fields as ripe for distribution. This is

myopia. This may be one of the ways to assist building the Dallas

Wholesale Apparel Market. For geography shows that Monterrey, Mexico

is closer to Dallas tJian £1 P&so or Brownsville, Texas.

The growth of Mexico, both in population and gross national

product, is increasing at a tremendous rate. As a good will mission to

Mexico, a group of Dallas citizens went to that nation in June of 1964.

The trip was made to prcnnote trade between the friendly nations. A

special edition of the Monterrey, N. L. newspaper carried advertisements

120 of Dallas retail stores showing dresses and suits."^ The major department

^9ycR Total Systems New Report. Dayton, Ohio, December, 1964, p. 1.

^ Q E I Norte. Monterr^, N. L., June 7, 1964.

65

stores in downtown Dallas have signs in their display windows saying

that the store has an Interpreter of Spanish.

Many retail apparel storee along the Rio Grande do a great per

centage of their sales volume with cltisBens of Mexico who journey to the

border cities to make purchases. It should be noted that there is a

prohibitive Import duty on unused apparel ($8.86 per pouiKl). There

fore most of the cozisumers take their newly purchased articles to a

laundry, wash th«n, and this makes tham used gazn«its; hence, no duty.

In years past, most Latin American wholesale buyers merely used

Miami, Florida as a place of entxy and departure while on purchasing

tripe to Atlanta, Philadelphia, and New Tork. Now the buyers are util-

iilng Miami as their major point of purchase because they find the com-

manity oompatible to their own customs and language, and with a full

range of products now available they can eliminate the time and cost of

further travel. (One Central American department store, which five

years ago bought ziothlng in Miami, now makes 100 per cent of its pur

chases in Miami) .

New Toz^, Chicago, and San Francisco have hosted World Trade

Fairs. The foreign sellers could talk the trade's language of price,

style, quality, and delivery schedules. ^

Las Vegas, Nevada uses another slant to attract the international

limelight by inviting a score of the world's leading couturiers, and

^^Pleld Office, U. S. Department of Commerce, Dallas, Texas, August 28, 1964.

^^Economic Survey of Metropolitan Miami. Miami, Florida, I960, Section 22, p. 7.

^^3women'8 Wear Daily. April 21, 1958, SecUon 2, p. 1 ff.

66

their favorite mannequins, to pronier some of their most significant

creations to an audience of selected buyers from across these United

States.-^

World famous Neiman-Marcus, which is located only two blocks away

from the Dallas Merchandise Mart, has a two-week exhibition nearly

every year called a fortnight. This quasi-fair has displays of wares

and talents of the nation or nations being emphasized at the time. The

flavor of the nation is shown not just by fashion, but by foods, music,

literature, and the various other facets that make up a nation's cul

tural side. A world trade centez*—something large and imposing is

planned as a natural follow-up on the tract adjacent to the Apparel

Mart.^^^ It appears this should be done in order to preserve the Dallas

wholesale market.

In this chapter the problems involved in the future of the whole

sale apparel mazicet in Dallas have been discussed; in the following

chapter some of the possible solutions of these problems will be pre

sented.

^^^alifomia Apparel News. March 12, 1965, p. 13.

^^Dallas Mominft News. October 18, 1964, Section 7, p. 1.

CHAPTER Vin

OBSERVATIONS, REC(»fl4gNDATI0NS, AND CONCLUSia^

Cognizant of a bright future for the ai^rel industry in general,

azid of the facts uncovered in the study of the Dallas Wholesale Ladies*

Apparel Market ii\ particular, the writer fixwly believes that the present

channels of distri^bution need not be weakened or eliminated, but possibly

strengthened if certain steps are takmi in the near future to ren edy the

fast changing sitiiation.

Without a doubt, the leaders of the Dallas Wholesale Apparel

Market, and particularly the proraoters, developers, and owners of the

Kerehandise l^rt and Apparel Mart buildings are aware of nm^y facets

that were not revealed to the writer, as various phases of a market must

not be exposed for tho bemefit of the other primary markets.

Because of the unsettled conditions existing at the time of this

writing within the !»«arket itself, it is difficult to make a clear-cut

approach to the ceeientiiif of relations between the two major exhibitor

edifices.

Tlis study doep not undertake to delineate the sttributes oi

either small shops or giant chains, as the writer believes both have

their place in the distribution of apparel and that together* they have

made the United States the best dressed nation in the world. Our stan

dard of living is among the liighest ever enjoyed by any nation at sii:'

67

68

tlaej and a great deal of this achiereoent has been accooqaished by

our eyetfoi of dletribution.

There is a great need for the small retailer In towns and cities

of under 50,000 popuUtloa, as the giants are prone to place their

operatl^ms la metropolitan areas. Also In the laz^r city, there is a

need for the smaller shop as taste does not necessarily mean stero-

typed seleetlon of apparel. The woman preferring individualism will

do her shoppizig In smaller operations as she does not want to see her

garment stocked In depth.

What we are witnessing In Dallas is merely another chapter in

the distribution of goods, and who will benefit rcmaizis to be written.

Transition is constantly going on in every field of endeavor; some call

it evolution, others progress. There is one thing for sizre—women's

vanity will never be satiated.

If one were to review the list of buyers attending the market

over the years, it would be interesting to note the differences in

owners or operators of the stores that have attended and those now

attending. The turnover would be very noticeable, and unless something

is done to preserve the "independent" or at least prolong his life, the

market itself cannot survive.

Not ozily does the maz^et need smaller stores and shops, but loany

manufacturers have told the writer that the manufacturer must have them

to survive; the larger organizations demand a larger discount, coopera

tive advertising, and special designs. All this eats into the pro

ducer's profit; i^ereas the smaller shop takes what is offered and re

ceives no favors.

69

It Is the beUef of the writer that our elvlllsatloii has become

hli^hly over-organiaod. However, orgmlsation Is needed to give the

O H O I retailer etringth. Pexiiape there are orginliatlone already in

exlateoee to give the needed MDoentum for the benefit of the entire

Indutiiy. Tet, the majority of epeelalty stops and ameOl departiMnt

storee are managed aind owned 1^ people who are rugged individuals that

have a dletaete for any sort of reglaiaetation. This is lAiat mkkes the

apparel buelneee so wcmderful and dynasle. Ikrlety of teaqpezement and

•tyX* !• * -art to uoc. . fMhloB world.^

Sliiee fashion, by definition, requires consianer aeeeptance. It

eaimot be eeparated tron. aazicetizig. In distributing to a mass market.

It afty be eald that if the trend toward giantim is not decelerated,

the eterotyped style mty be the rule, rather than the exception.

^^elle» H. Bonnet, Haute Couture (lyon, France: Syndicat des Fabrlcante de Soieries et Tissus de lyon, 1957), p. 3.

70

RECdOfENDATIO^

* A Bt^OAD AND DEFINITE EDUCATIONAL. ADVISORY. AND ACCOUNTING PROgUM

m INSTIQATEDi

Sdttffational Pax>grsmt Operation of a smaU business is simUar in

many respects, but not Identical with the managamsnt of a large one.

The small shop operator must be educated in the ways of cont«q)orary

business administration. The days of a "mom^-ead-pop" shop are gone,

but the well managed, individualised store can survive with additional

knaw*-how. Hence, a seminar should be held one ziight during each market

wei^. A fast moving and well organised program could inform the opera

tor (usually toe buyer), of maty subjects pertinent to the management

of a business, ^ s seminar should definitely include sales traiziizig,

budgeting, accounting, dlsplaylzig, advertisizsg, and the many other

{biases in day-to-day plarming; however, the end restdts should be focused

on the facets involved in making the maz^eting and distribution factor

in our econcsny stronger.

Advisory Sez*vlcet An advisory service should be established to

assist in working out the problems pertaining to the retail apparel

industry. An office staffed by competent personnel could answer ques

tions by mall, phone, or in person. This service could advise those

contemplating openizig new businesses and could serve as a clearing house

for infoziaatlon. Statistics and various ratios either scare or are

unknown to the average small operation.

Accounting Services: The thousands of stoz^s that send buyers to

the Dallas market have at least one thing in coni!ion...the need to survive!

71

If a eomputer center could be arranged for the use of the desirous

storee, then 921 fiscal and inventory controls could be correlated with

other operations. As it is, most store operators do not know of the

various ratios that show whether or not they are making the right or

wrong deeielon. The larger eorporetion, has guidelines to chart its

course; the independent specialty shop has none, nor usually has any

idea where to obtain figures or balance sheet ratios.

National Cash Register and tfiiited Factors Retail Service Corpora

tion have systems set up to enable the independent retailer to con^te

favorably with the large department store and chains. In today's busi

ness climate this is mandatory.^^ Peiiiaps the management of the

fashion organisations could align the computer enterprises to coordinate

the thousands of retailers involved in the market.

This may be accomplished by sendizig tapes for electroziic data

processing froaa each retail store to a service bureau to perform the

computing on a contract basis. The clients would use add-punch office

machines which punch holes into strips of paper tape to give the same

type of inforsaation. The service bureau would receive the tape, process

it through their equipment and disseminate the information.

p. 34.

^^Califomia Apparel News. March 5, 1965, p. 58.

128«Ji5j,ojfj ^ ftirade," furniture Retailer Magazine. Septenber, 1964,

72

^- AN INFORMATIVE PROGRAM FOR THE SALBSMQI AND MANUFACTURER'S REPRB-

SBaiTATIVES;

Teehnological ensployment displacement is cruel, in that it affects

not only the Ineffieient but the efficient as well. All the words in

the world cannot ciiange facts, but the words of a soothsayer tried to

warn Caesar of the Ides of March—«aybe they are applicable here for

the druBBier.

The full usefulness of the druaaner dlmizdJihed by the construc

tion of the several marts in the primary market places of this nation.

However, the use of the printijog press has done equally as well st

selling scans staple items as has the mart. Cleverly designed, artfully

colored brochures have assisted the manufacturer in selling many items

that need reordering between market trips.

The drunsser can again find his position in the channels of dis

tribution. For one thing he can assemble several different, but allied

lines into one showroom, making it attractive and comprehensive for the

buyer of one type of specialty shop to find needs of variety v/ithin one

exhibit.

Many of the druimaers that have shown in hotels and only recently

conittenced «]diibltlng in a mart must realize that a gooi in the improper

setting does not have the lustre that the same gem does when shown in

different surroundings. Even though the majority of the salesmen

traveling have seen shops with taste and finesse and have viewed show

rooms in the same corridor as theirs, they still have no decor within

their room. A little bit of ingenuity and a barren room can be trans-

foztted into a display ro<»n worthy of the merchandise inside.

73

The salesman can make market analyses of retailers* needs, offer

promotional services, and assist with inventory control.^^ An infor

mative service and educational program should be devised to assist the

salesman in the mazicet.

III. REVITALIZATICaJ OF MERCHANDISE MART;

Whereas the National Association of Women's and Children's Apparel

Salesmffid is very concerned with the present sittiation of exhibits, a sug

gestion could be made to the organization proposing the promotion of

a trade show in the Merchandise Mart Building. There are hundreds of

manufacturers throughout the nation that do not have their lines shown

in the Southwest.

A concerted effort to find these lines and establish them in the

territory is no easy endeavor, but it is feasible. Since rental space

is less costly in the Merchandise Mart than in the Apparel Mart, it

would be worth the effort to accomplish this feat, and at the sajiie time

strengthen the Dallas Wholesale Ladies' Apparel Market in general.

IV. MONORAIL;

Even though the Dallas Market Center is served by three rail lines,

and many highways including the 16 lane Stesiimons Freeway (Interstate

35E), it is wise to think of the traffic in a quarter century herco.

Because railroad compaziies own right-of-way and it is yrory dear

in cost, this land could be double-decked with a rail line runnixig .-ver-

129Robert liays, "Profile of Tomorrow's Wholesaler," De par Want Store Economist. December, 1963, p. 124.

74

head, not too diseiailar to the »L" or elevated rails in New Tork City,

or the "IC" or Illinois Central in Chicago. One particular advantage

of a monorail is the speed by which it is able to travel across a busy,

congested metropolitan area.

Dallas has long been known for the spectacular, so the proposal

of a monorail does not shake the imagination in an atiaosphere that

exists in a BMtropolls of such grandeur. The proo»tional effects of

this futuristic mode of transportation would be felt around the world.

The monorail could serve more than just the "narkets". It could serve

the citizens of Dallas and later Fort Worth as a method of cocimitlng.

The right-of-way would be fairly simple and coiild follow a line

of least resistence; along present rail lines or discontinued "inter-

urban lines." The system could originate in the downtown Dallas area

(MerehiUidise Mart), stop at the Dallas Market Center, Love Field (Air

port), thence to the Southwest International Airport (Amon Carter Field),

and terminate in downtown Fort Worth.

This line would not only facilitate btiylng, but would allow the

populace and buyer alike the use of the present airports, hotels,

motels, entertainment, restaurants, azid shopping facilities of both

cities.

The days of thinking of Dallas and Fort Worth as separate cities

are over. The situation is not imlike the megalopolis extending from

Washington, D. C , to Boston, Mass., only on a smaller scale.

Currently, Seattle; 3 the only monorail system in public rapid-transit use j.:,i .e United States. However, serious discussions are boizig held with civic officials and private interests in Los Angeles, San Francisco, Chicago, Bl Paso, Las Vegas, San Diego, Newark, and 11 other cities on the

75

feasibility of monorail fysteoe as a solution to their aass transporUtlon javblems.^^

•• LEGISLATION!

For the apparel industry to stand like an ostrich with its head

in the sand is ridiculous, because the people involved are always

operating at a fast pace and sometimes are not aware of the dynamic

events taking place.

It Is time to think seriously about leather our tax activities

are aiding the esqpansion of small business or proraotlzig concentration

and the increase of ecozKHoie power in the hands of a few huge corpor

ations. Thoee who believe that mtdl business is essential to a pros

perous and democratic free «:iterpzdse economy will not hide behind such

pious platitudes as—taxation is for revenue purpose only. Instead,

th<^ w i n work for a tax system which does not penalize small business.

Many proposals have been presented to various governmental groups.

It is not the purpose of the writer to offer means in this thesis, but

to bring to the attention of the reader another facet involved in the

future of the Dallas Wholesale Apparel Market.

Along this line, it is highly conceivable that if tariffs were

lowered in Latin .American countries, Dallas, because of its geographi

cal location, could grow as a world trade market at a much faster pace.

VI. ENLARGE THE TRADE TERRITORY:

Domestic: Buyers located at the preswit fringes of the Dallas

13QNational Observer. New Tork, Dow Jones Co., August 24, IV^, p. 6.

76

Wholesale Apparel Market have a choice of going to Phoenix, Denver,

Kwaeae City, St. Louis, New Orleans, or Men^Ms for eub-reglonal mar

kets. With a Uttle inducement, these people could be «itlced to att«jd

a more comprehensive market in Dallas.

To Increase the number of buyers att«jding the market, it might

be wise to repeat the project undertaken by the early day wholesalers

promoting Dallas as a trade center. The transportation refund idea

brought many buyers to the city. It is recomended that their program

be modified; arrange with the various airlines to emplane buyers in

key cities of the fringe area, give tham a "charter flight rate,''

transport them to Dallas, and allow them to return on regularly scheduled

f H ^ t s at the end of their buying trip.

Mf^^^^P^i- No city in the world is ''land-locked'* anymore;

air transportation has become the key to world coia-aerce. The ap;carel

industzy should cooperate with the World Trade Coranittee or the Dallas

Chamber of Conanerce in promoting the buyers of Latin Arueric n stores

in using the Dallas trade facilities. In vould be i-d.se to uand emissar

ies to the various nations to advise them of the itejme available in the

exhibits.

COITCLUSIOKS

The mazicet is changing every minute of our dynauic world; narket-

ers obviously cannot afford to sit back and consider any definition of

the market as a final pronouncement. All too often, the market either

contracts or expands suddenly because of the general econoiaic situation,

the appearance of competition, or a major change in the channels of

http://i-d.se

77

distribution. In short, mai^cetlng should be integrated into a develop

ing program and should continue to function and develop ar changes

permit.

Tl-ie success of a laarket depends upon its special features and

detewalnation of the featiures desired by both buyers and sellers.

Wliether a market expazids or rciii:ains static, it must have direc

tion, motivation, and coordination. Initial discussion about the

desirability of cooperation and strengthening the Dallas liarket should

b«€3J^. Liaison between the varioiis facticxis should be juaintained and

much useful plaiming could be brou^t about.

78

APPENDIX A: DlSCUSSIOi OF THE FASHION CYCI£

Obeervatiim indicates that the great majority of fashiw travel

a fairly comparable cycle. A certain style of dress is introduced to,

and aoeepted by, people well known as leaders in fashion. At first

gndually ai«l then rapidly the style is taken over by others so that

sales of dresses of this style begin to rise. After a period of time

sales of this particular style will begin to slow, and then decrease

rapidly. Usually the acceptance of a certain style is much slower

than is its discard, so that the upswing of the cycle is more gradual

end covers a longer period than does the dowziward movement.

Many years ago there was a tendency to think that fashions origin

ated with a small group of wealthy people or with royalty or nobility.^

I^is is no longer true, fashions can originate anywhere—anywhere there

are people with minds to understand, atid to execute the direction of

the mind.^^

Actually, the majority of fashions origiziate in the odnds of a

fairly small number of designers who sell their products to a group of

people who are widely known for their "good taste."

The type of outlet distributing the style is another factor in

volved in the fashion cycle. After the "original" dress is accepted

by the fashion leaders, then the style is featured first in the more

exclusive and high-priced specialty stores, closely followed by the

^^%ystrom, pp. cit.. p. 167.

13%4Arcu8, OP. cit.. p. 105.

79

leading department stores. Then, cheaper reproductions are ready for

•ale through the lower-priced departmant store, chain stores, and luMl-

order caipanles. As the ai^parel is now worn by nearly everybody, it

is cleared out in bar^ln basements, discount houses, and stores serv

ing the lower-income groups.^^

With a change in fashion, large markdowns are necessary to clear

out existing stock. To avoid excessive nArkdowns the retailer must

try "hand-to-«iouth" biqring—thus buying more frequently and in smaller

lots.^34

While it is practically non-existent now, there was also a geo

graphic lag in the fashion cycle before the days of motion picture and

television. When a fashion was popular in a large city it might take

six months to a year for it to be accepted in the snaller town. If

this lag was not taken into account, retailers outside the fashion

centers might stock "high-style" fashions before their consumers were

prepared to adopt them.

With the increased population mobility in our nation this geo

graphic lag has all but disappeared. The television screen shows the

same fashion to the person at a rural crossroads that it does to some

one living on Pazic Avenue, and at the same instant of time.

^^Delbert J. Dimcan and Charles F. Phillips, Retailing—Prin-ciplfs and Methods (Chicago, Illinois: rdchare J. Irv.'in, Inc., 1947), pp. 59-65.

3-34Businees Week. December 23, 1961, p. 38.

80

Stores have become known for high fashion, or the middle-of-the-

road fashion, or for classics. Fundamentally, a store must know at

i*hat point it wants to get on the fashion cycle and idien to get off.

The human desire for individualism is so great that consumer

dcnand beglne to make Itself heard.-^^^ Clothes no longer are being

sold because "they are wearing this," but rather because "this is the

garment for you.*''^^

Izistead of btiylng to iji sress the cconunity, the consumer is buy^

ing to express Identity, or to ia^ress themselves. People seem Intent

on building up a personal private iaage, just as conqpanies have recog

nised the need for a more identifiable cooporate image.

N. W. Ayer and Son, advertising agency, urges narketers to "thizik

small" for a change—in other words, to think in terms of individuals,

not masses. In its study of how women look to other women. Social

Research, Inc., c^acluded that for American women, the final fashion

authority is not an "austere expert," but each woman^s opinion of how

she ou^t to look and behave.

One can even speculate whether demand for quality—even in fash

ion—has come to have so strong a lure that it might one day slow up

the fashion cycle and design obsolescence. The persistent cry for

quality could, in fact, slow down selling. Maybe fewer, costlier pur-

chases will becwae the order of tomorrow.-^'

^35stanley Marcus, "Merchandising Fashion," The Tobe' Lectures in Retail Distribution at Harvard Business School—1959-60. (Boston. Mass.: Harvard Ifciivarsity Press, 1961), p. 105.

^^"Fashion Shows to SRO," Business Week. June 16, 1962, p. 31.

•'' "The Marketing Pattern," Business Week. December 23, 1961, p. 38F.

61

APPENDIX B: REASONS FOE PARIS* DOMDUTION A3

THE LEADING FASHION C^ITSR

"Hie leadership of Paris as the outstandlzig fashion center in

the world Is cacplained by a variety of factors:

1. Highly trained and cheap labor supply from which to draw.

2. Many email fabric manufacturers who were glad to experi-

msnt with a small order for a new fabric.

3. The French had a skill in design not found in other nations,

4. Paris art ooUeetiozis were a source of izispiration and a

source of ideas.

5. The city itself was a resoz^ and attracted wealth.

6. The location on the continent was a crossroads of persons

goiz^ to and from resorts.

7. Paris seemed to house people who made '-being in fashion"

their aim in life.^^

•^%y8trom, op. cit.. p. 112.

S2

APPENDIX C: METHODS OF FCStsaSTING PASHIC^J

The three general methods of fashion forecasting are:

1. The principle of the fashion cycle; this involves statistical

analysis of the frequency with which styles, color, and so forth are

worn or purchased. Counts of frequency with which styles or fashion

f eatiires occur are made ii^erever people representative of the market

may be found ccmveniently In large nun^rs—streets, hotels, football

games, and the like.-^9

2. Leader-group analysis: this method is based on the psychology

theory of emulation (keeping up with the Joneses). Certain classes of

people are kziown as fashion leaders. It is possible to forecast the

likely course of future public acceptance by observing the styles v/om

by the social set, the country^-club crowd, and students at certain col

leges. ^^

3. Customer-jury opinion: New York's Seventh Avenue either

tests its fashions by inviting buyers to town and waiting for orders,

or goes directly to the public.-^^ Since the market week in Dallas is

usually scheduled caie week prior to the showings in Ix>s Angeles or

New Tork, it is a testizig ground and serves the purpose of eliminating

certain styles and colors. For this reason there are sonie nuctoers

(a designation of a garment) that may be shown in Dallas and if the

resp<Mise is too small they may be dropped from the line.

139Lyndon 0. Brown, larketing and Distribution Research (How York Ronald Press, 1955), p. 510.

^Qlbid.

141"Scouting the Trail for Marketing," op. cit.. p. 90.

-<»> ' - ' . >

APFSNDUC D: SCPL J IATION OF "Fn .L-OF~T !E-.l!*.rvIGT"

The "feel.-of-theHBarket" iM a many-sided htman or psyohologleal

factor involving the motive of poeeesging or wanting; of oatôrislng

theee iteits?; and the declsl<m of quantity.

The buyer must decide ^ wit to inmshase and what to pass; yth&t

i t sns w i l l f i t in what departp«ent; what i s to be desired this season;

how many anci eo forth tmtll the purehaeii^ con^sined mke a big picture.

One store may s^ll one i t«a aial the next door operator may have to put

the iter, on eloararce. There i s an oli! proverb that says, "one per

son's meat rngj-y be another's poison."

I t BBist be rmspfcored tlrnt nozmnUy th^ buyor i.:'!Rt project Jiis

inventory raquirccmits t^ irt:,- to 120 da^m ' head of conotirer v/artn.

Ivith a l l tho conflicting cross-currents, buyers have their work cut

out. But when they take on the stanco of tho prophet for a rioiaont,

they woiild do well to remSE^r that the gena of identity i s catching.

I t fapoaises to grow into a hearty virus izêed.*^*^

Tho fe0l^-of-tho4tmrk©t ir y be emxlained anctl;er vay. r.e year

1958 \ms a turning point in \/fxrjm^s fashion; t .3 "chemise" wc^ intro

duced and the fasliior crrde which vs^^-^Xiy takes six. ' cnt-c to a -car

to 7^m i t s gajsut Tra,^\ cn-^ttirier to th-*3 bar^âin hasesr mt ran Itc coui-se

in three vealcs. The faslîcc-i-lnded kept thc:^r eld Bldrtmiilcer c r ss ana

I t rfr iinod, in VD,:-UG,. hrY'cr- a riild conru-. - r ro-.'olt'.+dor:. /.Iso. L.) ./:d

to the panic the laonufacturers introduced five other radical styles

that yoLi- and Vy:^..\-'d- conT'isevl the faeh5-Ofi idctiu--?.

^^^'I Am Me Conaumer." op. c i t .

84

Those buyers who could sense the death of the cycle bought- the

shirtmakers (that had be«ci in style for years) and continued to sell

milady. Those who did not heed the signal lost their proverbial

shirts. The important point here is that the buyer must take time and

shop for the latest fashion while keeping in touch with the psychology

of the market. (This does not mean a fashion dies overnight normally,

but a trend may be setting in). The expertenced buyer often gains a

f eel-of-thOHsarket merely walking and observlzig in the halls of the

exhibits.

So it may be said that the f eel-of-the-market is so intangible

that its effects canziot be measured until the profit and loss statonent

of the retailer is issued.

85

APPENDIX E: CUSSIFiaTION OF MERCHANDISE SHOW

AT DALLAS APR^IREL MART

The Apparel Mart classifiw the merchandise offered for purchases

in the following categories: Accessories; aprons; at home—^lotmgewear;

brassiers, foundation garments; blouses, skirts, jackets; coats, suits,

toppers; car coats: Coordinates (sportswear); couture; dresses—juziior

and te^as, junior petite, misses, misses petites, woman's azid half

sizes, fonml dinner, cocktail, weddizig; furs; gifts and perfumes;

handbags, belts, gloves; hosiery, slippers; costume jewelry; kziitwear—

dresses, sweaters, suits; llzigerle; maternity wear; millinery; novels

ties, flowers; neckwear, handkerchiefs, scarves; rainwear, umbrellas,

rain boots; sleoFwear, pajamas, robes, gowns; small leather goods;

sportswear—slacks, shorts, playtogs, resortwear; swimwearj tallwear;

tapers; uzdforms; western wear; coats—suedes and leather.

In the miscellaneous classification: artificial flowers, plants;

boudoir accessories and boutiques; display store equipment; luggage;

paper products and gift wrapping.

Also listed are men's wear, textiles, and shoes.

^3Buver'8 Guide. The Apparel MaH, Dallas, Texas, January, 1965, 890 pages.

86

APPKNDIX F: BITXER'S PREFERENCES CONCESNING 'ffiE MARKET

Buyers give many reasons for their preferring to purchase mer-

chai»liee in a central mai-t or a primazy market rather than in their

own store, among the most important:

1. Lost time in the general course of business when buying in

their store.

2. Ifeable to compare price, quality, and style with other lines

available.

3. No chares to get the "feel-of-the-asarket." (See AK)endix D)

4. Easier to shop at one time and not in ''dabs" from various

salesmen t ^ call—at market it is possible to keep a systematic buy

ing plan and begin a season with a "big picture" (accessories to match

dresses, etc.)

5. Difficulty in obtaining new lines, so must rwjftin with old

ones.

6. Many salesmen are very, vezy persistent and insist on -.n

order, whether the buyer is "open-to-buy" or not.

144

7. Opport jaiity to pick up new it«ns and lines.

8. Entertainm^it and excitement of market—per se.

In a survey taken by de Vos at the Home Furnishing and Gift

Shows, which have exhibits in adjacent buildings to the Apparel Mart,

queetiozis were asked 220 buyers attendlzvg that market.

^^^nfomal survey taken by writer over the past ten yea:

87

These buyers answered with regard to antertainffient facilities-

ISO or 81 per cent thought that Dallas area had "sufficient." Only

26 buyers indicated that witertainment facilities were not sufficient.

As to motel and hotel facilities—100 per cent expressed thean-

selves favorably impressed with preset conditions.

Only 16 buyers said that transportaticm facilities needed improve

ing.145

There are many advantages in having a saleassan call at the store.

Although the time factor is involved, a little time with a salesuAn

has made a "season" for the store. Some of the most noticeable advazi-

tages fr^^ this aspect:

1. Possible to fill in merchandise if store is having a good

"season" and is short of items.

2. Salesmen s<»setimes give tips and infonnation on how certain

"numbers" are moving.

3* For the smaller retailer, the uzmecessary costs of trans

portation, lodging, and food.

4. If no one is able to "mind-the-store," all goods co\ild be

purchased within the store.

5. On staple items, a check of the inventory coiild be quickly

made to fill in on sizes, color, or styles.^^

•^^Gerrlt Thomas Blentje de Vos, The Economic Sijgnificance of the Dallas Market Center for the Retailer and Distribution of Home Fum-j^ahings. unpublished thesis. Southwestern Methodist University, Dallas, Texas, June 7, 1963.

•^^'Infonjal lnt'.rvi<-3 v'3 .vith buyers and s.-lesmep..

APPENDH G: REASONS DRUMMERS 0173 FOR lEAVBKJ THE ROAD

Among the diverse reasons given by the ex-dznaraakers for leavizig

the road &re:

1. No hmm life, as they are away from their family most of

the time.

2. Rising expenses OR the road.

3. Sparsely settled Southwest is not adapted to vajay sales

per day.

4. Sales s&nagers from other sections of thf* nation unable

to see the reascms for Number 3 above.

5. Bayers would rather buy in a primary market (see section

on Buyer's Prefez'wices.)

6. Long, irregular hours.

7. Difficulty in seeing buyer and confirmizig order in store.

8. Ho advancement in the futiure."^'

147pej.8onal Iziterviews with many ex-drunmers.

o9

Dun & Bradstreet, in its I96O report on why small businesses

fail, divided the causes into two general categories:

1. surrounding ciro\im8tance3

a. disaster i,^^

b. fraud x,2

c. Kdsoel l,ti;n'3ous 2.7

2. Personal factors

a. neglect 3.O

b. iiiexperdencd a id inc(»2^tence 90.2

c. inadequate ^^ales 51,2

d. aooipetitive weakness 24.1

e. inventory difficulties 4.9

f • heavy operatizig e^^penses 3.0

g« excesisive fixed assets 3.7

h. poor location 4.1

i. luiscellaneous 3.7

( I M s totals joore tliaii 100^ since tliere is often umre than one reason

for business failure. ) ^ ^

nia Apparel News. February 12, 1965, p. 2.

90

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BIBLIOCaiAPHI

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93

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94

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