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Understanding Fashion, Merchandising, Merchandise Management of Retail, Export & Buying House.
Fashion
Fashion
Accepted by a substantial group of people at a given time , in a given place.
Fashion movement is the ongoing change in what is considered fashionable from acceptance to obsolescence (the rejection of a fashion in favor of a new one) A fashion trend is the direction fashion is moving
Prashanth KC- Fashion Merchandising, AD VI, NIFT- Bengaluru.
OBSOLETE
Rise
Slowly increases in popularity
Decline
Decreases in popularity (saturation)
Introduction
New style is introduced (colors and textures)
Prashanth KC- Fashion Merchandising, AD VI, NIFT- Bengaluru.
Obsolescence
Discarded for a newer style
Kurtis
Skirts
Fashion Classics
Fashion Fads
HOTPANT S
Short-run fashions: Styles that are popular for a brief period of time.
Fads, usually lasting only one season Accepted and rejected quickly Teenagers fashions change the fastest and have the most trends. Styles are easy for the manufacturer to produce and are relatively inexpensive to the consumer. Styles typically have more details than seen in classics.
Long-run fashions: Styles that take a long time to complete the fashion cycle.
Classics, basics, and/or staple fashions Slow introduction, long peak, slow decline Styles have simple lines, minimal detail.
Obsolescence: The fifth stage of the fashion cycle when the style is rejected, is undesirable at any price, is no longer worn, and is no longer produced.
TRICKLE DOWN
Fashion trends start at the top of the social ladder
TRICKLE UP
Fashion trends start with the young or lower income groups
Prashanth KC- Fashion Merchandising, AD VI, NIFT- Bengaluru.
TRICKLE ACROSS
Fashion moves horizontally through similar social levels
Trickle-Down Theory
18th-19th Century
Change of speed
how quickly the lower class could obtain and copy the elite
Fashion leaders
highly visible elite served as models for lower class
Dynamics of change
drive for differentiation and imitation
Direction
down from elite class to working class
Prashanth KC- Fashion Merchandising, AD VI, NIFT- Bengaluru.
Trickle-Up Theory
Starts with young trendsetters May be lower income groups Fashion defined by street wear Examples may include:
Tattooing, body piercing, grunge looks
1960s Trickle-Across
Within group at similar social level Vietnam Civil rights Integration Mass communication Mass media Growing middle class Availability of quick, easy knockoffs Mass production makes fashion available at all price levels
Prashanth KC- Fashion Merchandising, AD VI, NIFT- Bengaluru.
Merchandise
Types of Merchandise
Staple Goods items that are constantly in demand by customers. Examples are toothpaste, milk, or bread.
Used consistently and replaced on a regular basis Sales are easily predictable because they are bought on a consistent basis.
Convenience Goods small, inexpensive items that customers purchase frequently. Examples are gum, bottled water, or magazines.
Fashion Goods items that are popular at a certain time. An example is clothing.
Includes any item that comes in or out of style Retailer will maximize sales by acquiring the product as it is gaining popularity
Seasonal Goods products that are popular only at a certain time of year. Examples are swimsuits, boxed chocolates, or snow skis.
Prashanth KC- Fashion Merchandising, AD VI, NIFT- Bengaluru.
Types of Merchandise
Merchandise Mix Strategies
Development develop new products to bolster the companys image or to expand their market share. Expansion businesses can choose to add either new product items or new product lines. Modification altering a companys existing product. Deletion may occur when a product is no longer useful, obsolete, not fashionable, or room is needed for another product.
Prashanth KC- Fashion Merchandising, AD VI, NIFT- Bengaluru.
Merchandising
Definition
AMA defines The planning involved in marketing the right merchandise at the right place at the right time in the right quantities at the right price.
Mantra of Merchandising
Achieving the five Right is the key to successful merchandising and many a times, this remains an elusive goal for most retailers.
Definition 2
Merchandising management can be termed as Planning, analysis, acquisition, handling and control of the merchandise investments of a retail operation
Contd.
Acquisitions because the merchandise needs to be procured from others, either distributors or manufactures. Handling involves seeing that the merchandise is where it is needed and in the proper condition to be sold. Control is required since the function of merchandise involves spending money for acquiring products it is necessary to control the amount of money spent on buying
Merchandise Planning
Behavioral
Market Segmentation
Psychographic
Geographic
Prashanth KC- Fashion Merchandising, AD VI, NIFT- Bengaluru.
Demographic Segmentation
Mainly grouped on the basis of:Population Age Income Sex Occupation Education
Geographic Segmentation
Mainly grouped on the basis of:Cities States Regions Climate plays an important role
Psychographic Segmentation
Grouped on the basis of the lifestyle
Behavioral Segmentation
Grouped on the basis of opinion on specific products or servicesRating of usage of products & services. Help in improving the service/product and make it different from others.
Size- Preciseness of Fit Sensory factors- Touch, Taste, Smell, etc. Ease and cost of care Brand- Identity of manufacturer or distributor of an item Utility- Extent of usefulness and service Appropriateness-Degree of suitability and acceptability Price- Value placed by individual customer
Prashanth KC- Fashion Merchandising, AD VI, NIFT- Bengaluru.
What is Merchandising?
IN RETAIL ORGANISATION Merchandising is a specialized management function within the fashion industry. It is the business that moves the world fashion from designers showroom to retail sales floor and into the hands of consumers.
It is the internal planning that takes place within a retail organization in order ensure adequate amount of merchandise are on hand to be sold at prices that the consumers are willing to pay to ensure a profitable operation.
Marketing Vs Merchandising
Marketing function Focuses on broadly defining a companys market and characteristics. It pinpoints new opportunities for growth through self analysis and market research and promotes companys image and products. Merchandising function is more specific concerning itself with the development, execution and delivery of the product line with its close ties with the market it serves. Merchandising is not only able to adjust to market variations rapidly but is capable of actually anticipating and helping to create market changes.
Merchandiser
Merchandiser is a person who get converted inspiration into design , use technology to conceptualize and address the planning , production, promotion and distribution of products in the fashion industry to meet the consumer needs and demands
Organizational structure includes the clear understanding of the authority and responsibility for each job to be done.
Organizational system differs with the difference in type of merchandise, size of retail firm, and target customer.
The Specialty Store, Discount Store are also few of the other formats
Personnel and Branch Store Division may function separately if the store operations are very large.
Prashanth KC- Fashion Merchandising, AD VI, NIFT- Bengaluru.
-BUYING OFFICES -COMPARISON BUREAU -DIVISIONAL MANAGERS -department managers -assistant buyers -sales people -FASHION COORDINATORS -HOME PLANNING BUREAU -MERCHANDISE PLANNING & CONTROL -MERCHANDISE RESEARCH
-ACCOUNTING OFFICE -ADJUSTMENTS -a/c payable -ARCHITECTS OFFICE -cash office -CUSTOMER SERVICE -general a/cing -sales people -inventory taking -service desk -insurance & taxes -telephone & mail orders -bridal registry -payroll office -sales audit -DELIVERY -statistical -ELEVATORS -CREDIT OFFICE -MAIL DIVISION -billing customers -MAINTENANCE -PACKING & PICK UP -cashiers in office -charge a/cs -PRINTING -charge authorization -PURCHASING DEPT. -credit interviewers -RECEIVING & MARKING -RESTAURANTS -defered payments -CREDIT UNION KC- Fashion-STORE PROTECTION Prashanth Merchandising, -EXPENSE CONTROL -TRAFFIC AD VI, NIFT- Bengaluru. DEPT. -LAYAWAY OFFICE -WAREHOUSE -MERCHANDISE STATISTICS -WORKROMS
-EMPLOYMENT OFFICE -interviewing -placement -termination -HOUSE ORGAN -PERSONNEL BUDGETS -PERSONNEL TESTING -RECORDS & REVIEWS -budgets & records -job analysis -rating & reviews -TRAINING -induction & system -on the job -WELFARE & HEALTH
-Audit -credit -store planning -maintenance -receiving -transfer of merchandise -employment training -merchandising -sales planning -advertising -displays -special events -liaison with main store
Buyers
Assistant Buyers
Product Knowledge Decision-making skill Mathematical ability Communication skills Negotiation skills Managerial skills
Design
Finance Marketing/PR
Planning
Based on 2 factors
-How much the store expects to sell? -How much inventory is needed to achieve that sales goal?
The buyer must plans stocks so that the store image is reflected in the merchandise. Preparation of 6 months buying plan with knowledge of fashion trends, market conditions, economic factors, other records of the past seasons. Flexibility is the most important factor to be kept in mind. Includes provision for constant adjustment to actual results.
Buying
Adequately stocking the departments price lines and securing the best possible mark ups on all purchases. Supervising the physical inventory or stock counts to verify the accuracy of stock records. Establishing and maintaining effective buying relationships with vendors.
Selling
Communication and promotional activities. Determining the selling features of the merchandise for promotion purposes and the timing of these promotions.
The buyers role in USA includes the administrative and financial input part also besides core buying responsibility. In USA buying is often a subdivision of the merchandising team, whereas in many companies in UK, Buying is perceived as central role and merchandising as parallel department to buying. Job Details for both these profiles are different with different organizations and are quite overlapping but all fashion buyers are responsible for overseeing the development of range of products aimed at a specific type of customer and price bracket.
BUYING PATTERNS
CENTRAL BUYING
The centralization of all buying activities from a central headquarters with the authority and responsibility for the selection and purchase of merchandise limited to buyers of particular merchandise categories
SOURCING
Local Manufacturers Importer wholesaler Exporter Foreign selling agents Resident buying Office Import trade fairs
Buying trips abroad to market & Manufacturers Foreign Buying Office Foreign trade fairs
Specification buying
Other Problems
Language Barriers Unethical practices (e.g. Child Labor) Political unrest
Domestic importers
Liaison Offices
Direct Exporters
Domestic Importers/Wholesalers
Stockers of foreign merchandise Prove to be more useful for smaller stores Goods can be bought closer to the time of need Risk involved lies with the importer Costs higher than direct buying Offers less exclusivity No concessions are offered Very small qty. of merchandise can also be purchased. Sells through showrooms or directly from warehouse
Import Trade Fairs Fairs organized in the importing countries with the goods from the exporting countries Some trade fairs feature the fashion merchandise of only one country, such as Italian Donna Moda. Although there is an advantage in being able to view so many lines in one place, because of space limitations ,most manufacturers can only show a small portion of what they can manufacture.
LIAISON OFFICE Store owned foreign buying offices Located in major fashion centers & in exporting bases of the world Advise buyers about new trends Accompany buyers on their market visits acting as interpreters and planning market itineraries Because of their broad & strong base in the local market they get the best resources according to the need of the buyer Function as a follow up service to ensure prompt delivery and quality control Each liaison office works as a separate profit centre Types of stores that have such offices are Prashanth KC- Fashion Merchandising, AD VI, NIFT- Bengaluru. GAP,NIKE
Direct Exporters
The manufacturer- exporter undertakes the entire export process. Increases its profit margin by saving on payments to an intermediary Develops a closer relationship with the overseas buyer. Cost of establishing another market may overweigh the monetary benefits of direct exporting The exporter may be exposed to more direct risks.
Export House
Coordinator of all activities at the manufacturer's end Correspondence with buying Agencies Could be handling many buyers at a time Takes care of PD, sampling, costing, negotiations, delivery schedules, production planning, fabric and trim orders, regular follow up. Sources of information are limited as compared to buying house merchandiser Is directly responsible for the merchandise Ensuring inspections and quality levels.
Buying House
Could be looking after one account/ one division of a buyer but many vendors Product exposure is much more Depends for all information on vendors Are responsible for- PD, sampling, costings, negotiations,delivery schedules, production planning Responsible for vendor selection and development