Neiman Marcus 2010 Annual Report Download - page 7

Table of Contents
Industry Overview
We operate in the luxury apparel and accessories segment of the U.S. retail industry and market and sell merchandise from
luxury-branded fashion vendors, including, but not limited to, Chanel, Gucci, Prada, Estee Lauder, David Yurman, Giorgio Armani,
St. John, Theory, Akris and Christian Louboutin. Luxury-branded fashion vendors typically manage the distribution and marketing of
their merchandise to maximize the perception of brand exclusivity and to facilitate the sale of their goods at premium prices, including
limitations on the number of retail venues, both in-store and online, through which they distribute their merchandise. The in-store
locations typically consist of a limited number of specialty stores, high-end department stores and, in some instances, vendor-owned
proprietary boutiques. Retailers that compete with us for the distribution of luxury fashion brands include Saks Fifth Avenue,
Nordstrom, Bloomingdales, Barney's New York, vendor boutiques and other national, regional and local retailers.
Customer Service and Marketing
We are committed to providing our customers with a premier shopping experience through multiple retail channels. Critical
components of our customer service are our in-store relationship-based model, superior merchandise selection and elegant store
settings. Our customer service model is supported by:
• knowledgeable, professional and well-trained sales associates;
• in-store and online marketing programs designed to promote customer awareness of our offerings of the latest fashion
trends;
• loyalty programs designed to cultivate long-term relationships with our customers; and
• a proprietary credit card program facilitating the extension of credit to our customers.
We believe we offer our customers fair and liberal return policies consistent with the practices of other luxury and specialty
retailers. We believe these policies help to cultivate long-term relationships with our customers.
Sales Associates. We seek to maintain a sales force of knowledgeable, professional and well-trained sales associates to
deliver personal attention and service to our customers through our relationship-based customer service model. We compensate our
sales associates primarily on a commission basis and provide them with training in the areas of customer service, selling skills and
product knowledge. Our sales associates participate in active clienteling programs, utilizing both print and digital media, designed to
maintain contact with our customers between store visits and to ensure that our customers are aware of the latest merchandise
offerings and fashion trends that we present in our stores. We empower our sales associates to act as personal shoppers and, in many
cases, as the personal style advisor to our customers.
Marketing Programs. We conduct a wide variety of omni-channel marketing programs that allow us to engage with
customers in multiple ways. We use our marketing programs to develop and maintain relationships with customers, communicate
fashion trends and information and generate excitement about our brand. The programs include in-store and online events, social
promotions and targeted communications leveraging digital and traditional media.
We maintain an active calendar of events to promote our sales efforts. The activities include integrated in-store and online
promotions of the merchandise of selected designers or merchandise categories. Many of these events are connected to our loyalty
program, InCircle®. In addition, events include seasonal in-store and online trunk shows by leading designers featuring the newest
fashions from the designer, and participation in charitable functions and partnerships in each of our markets. Trunk shows and in-
store promotions at our Neiman Marcus and Bergdorf Goodman stores feature a variety of national and international vendors such as
Chanel, Akris, Givenchy, Lanvin, Oscar de la Renta and Christian Louboutin.
Neiman Marcus and Bergdorf Goodman's social media platforms include blogs, Twitter feeds and Facebook pages. Social
content includes insider fashion news, designer profiles, product promotion, customer service, and event support. Posts and replies to
customers are updated multiple times per day. Each platform is designed to reinforce our position as a fashion leader as well as to
highlight the expertise and insider knowledge of our fashion directors and merchants.
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