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96 Cards in this Set
- Front
- Back
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Product Development |
The strategic, creative,technical, production, anddistribution planning OF GOODS
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Traditional Linear Supply Chain *The Linear Supply Chain is Outdated |
1. Fiber Production
2. Yarn Manufacturing 3. Textile Production 4. Apparel Manufacturing 5. Retailers 6. Final Consumer |
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Apparel Supply Chain ( Structure Today) |
-More complex & flexible than the traditional linear model
-Builds on CORE COMPETENCIES - Today the supply chain is collaborative |
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Core Competencies |
(quality result, cost effective, timelyness)- What you do best and maximize efficiency, make companies competitive, companies focus on what they do best
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Agile Manufacturing |
Can adapt to the ever changing speed of the market, focusing on your companies competency.
Pg 7 Chart 1.3 |
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Retail product development supply chain
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seeks to bypass the profit center of wholesale brand apparel manufacturers and procure exclusive product at a more competitive price
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Product development manager skills
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Communication skills( ability to listen),Strong negotiation skills
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Digital technologies make it possible for companies to coordinate their core competencies into a single effort
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Agile- able to move quickly (speed to market) and efficiently
Collaboration- Working together to achieve a goal Chart on pg 7 1.4 Pgs 4-11 |
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SCM |
Supply Chain Management-is a competitive, customer-enriching supply system Supply chain management ( provides solutions to achieve a competitive supply chain)The shorter the lead time, the more accurate we are on what the customer is telling us |
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Li and Fung |
The 7 KEY principles to their supply chain management philosophy:
-Customer centric/market-demand driven -Focus on one’s CORE COMPETENCY and OUTSOURCE noncore activities -Develop a close, RISK & PROFIT-SHARING relationship with business partners -Continuously IMPROVE the work flow, physical flow, information flow & cash flow in the supply chain -Top TECHNOLOGY to optimize operation of supply chain -Shorten production lead time & delivery cycles -Lower costs in sourcing, warehousing & transportation |
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PLM (Product Lifecycle Management) |
-Design the product
-Product data capabilities for specification development Seasonal Concept, Line Development, Specifications, Sourcing/Costing |
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MLM POS- Point of Sale CRM |
??? look up terms |
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Growth Strategies |
-Marketplace not yet saturated
-Emerging trends create new opportunities -Increased market share in a given market -New customers or markets |
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Sneakerization
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the process of transforming an inexpensive commodity product into a cutting-edge specialty product
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Differentiating |
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Vertical Integration ( A fully vertically integrated companyseeks to consolidate and grow its business ) |
Signature stores: Manufacturer-owned stores give the brand a direct line to their ULTIMATE customer
Outlet Stores: Provide a means of controlling excess goods Proprietary Brands:also called private label
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Diversification |
-Occurs when a firm expands its product mix to capitalize on brand recognition and increase sales, enhancing efficiencies for greater profit -May also be achieved through licensing or the acquisition of related or unrelated companies Ex. Tory Burch started out with the simple flat |
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Globalization |
-Major growth opportunity: Retailers are expanding overseas
-REQUIRES a strong understanding of a more DIVERSE consumer |
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The Role of Product Development & Its Variations
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-Consumer driven
-Goal is to ELIMINATE non-value-added steps such as warehousing -DEFINES THE PRODUCT through detailed STANDARDS & SPECS -Requires partners who share the RESPONSIBILITY & RISK for producing a QUALITY product -Lends itself to MULTIPLE CHANNEL DISTRIBUTION |
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Wholesale Brands |
Created and sold at wholesale for distribution to retailers that carry other wholesale brands, including:
-Department stores -Specialty stores -Chain stores -Discount stores Example – 7 for all mankind Discuss that these retailers refer to PROPRIETARY BRANDSAS THEIR EXCLUSIVE BRANDS NOTE: The text definition of proprietary brand is NOT how retail department stores refer to it
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Private Brands |
products are developed and merchandised for exclusive distribution by a particular retailer
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Private Label |
-Developed to compete with wholesale brands
-May make up 15 to 50 percent of a store’s mix Ex.Simply Vera, Vera Wangis a private label for Kohl’s DepartmentStores
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Store Brands |
Victoria’s Secret is a STORE BRAND
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The Role of Product Developers |
1.To develop or design the product
2.To write specifications for construction 3.To Put style selections together to form a product line |
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Merchandising |
the basic business function that includes planning and development of the product line
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Basic Business Functions |
Merchandising: Planning, development, and presentation of the product line from concept to delivery
Marketing: Advertising and promotional objectives, sales goals, and marketing programs and tools Operations: the upkeep of equipment used by employees Finance: Expenditures for materials and equipment, salaries of employees, and the overall budget Sourcing: Supply chain management |
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Strategic Planning |
Developed by the firm’s executive management teamShould be based on the firm’s mission, vision and values
Mission Statement: Articulates why they are in business, the customer they serve, and what makes them special Vision statement: Outlines goals for the future and how it wants the world to see its brand. It may need to be reviewed when goals have been reached or market conditions change. Budgets: ¤Written plans for anticipated monetaryincome and expenditures of the firm -Established during strategic planning phase |
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Apparel Product Planning |
1. Creative planning
2. Merchandise planning 3. Production planning 4. Technical planning |
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Creative Planning |
Trend and design professionals track trends and interpret the for the company’s target market
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Merchandise Planning |
Merchandise budget: Identifies the resources needed to meet profit, sales, and margin objectives for a specific season
Lineor range plan:Sets sales and margin goals forlines Assortment plan: Breaks down the line plan into components that address customer preferences:What product, How much of it, What colors, What sizes, Delivery within what seasonal calendar |
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Merchandise Calendar |
A merchandise calendar controls the events required to get the planned apparel products to the customer at the right time
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Production Planning |
Links merchandising, creative design, and technical design decisions to the actual construction of products
Today, actual garment production often takes place in distant offshore locations. Therefore, production planners must: -Understand the cost of materials, trims, and value-added finishes and processes -Determine quantity and quality criteria - Specify assembly processes necessary to produce an acceptable final product |
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Technical Planning |
Further defines styles by developing:
-Fit standards -Materials -Construction specifications Technical designers evaluate a prototype garment before it is approved for production |
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The Apparel Product Development Process |
-Line concept
-Line development -Line presentation |
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Line concept: Results from trend research and includes the mood, theme, and key elements that contribute to the identity of the line
Line development: Begins as the design team translates the line concepts into groups of garments to be delivered throughout the selling season Line presentation: Consists of showing the proposed line of products to the technical design staff and sourcing managers for selection of styles to include in the season’s product line |
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Classification of Products |
Firms need:
1. Product Categories 2. Pricing Categories 3. Sizing Categories |
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Product Categories |
An apparel product category is typically defined by the use for which the product is
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Price Categories |
Cost versus quality: There is an implied relationship that may or may not be true
Customers have higher expectations for more expensive products
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Sizing Categories |
-Size range is one of the first decisions made
-Includes a sense of the overall shape, body dimensions, and garment ease preferences of a firm’s target customers |
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Product Positioning |
How the garment relates to others like it in:
1.Style 2.Complexity of design 3.Fabric 4.Quality 5.Price |
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Couture |
Considered to be the highest level of fashion and works of art
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Trend forecasters look to designer RTW for the next:
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-hot color
-new fabric developments - newest silhouette -detail -accessory |
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Contemporary Designer |
-Brands include Marc by Marc Jacobs, Catherine Malandrino, Alexander Wang, and M Missoni
-Offer clothes with a younger vibe and somewhat lower price point than found at designer RTW |
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Bridge |
A term coined to refer to a price point between designer and better markets
-Brands include Elie Tahari, Lafayette 148, and Eileen Fisher |
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Mass Markets |
Most customers buy mass-market brands from:
-Department stores -Chain stores -Mass merchants |
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Fast Fashion ( Mass Market) |
As contemporary fast fashion evolved it added edgy, sexy overtones
ex. H&M, Forever 21, BCBG, and Zara |
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Tween ( Mass Market) |
As contemporary fast fashion evolved its edgy, sexy overtones, parents sought age-appropriate apparel
Ex. Justice, Delias |
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Seasons |
Fall/winter:
-Shown in February/March for delivery during late summer into fall -Clothing is more costly and difficult to produce Spring/summer: Shown in September/October for delivery in February or March |
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Brand |
is the cumulative image of a business, product, or service communicated to consumers through a distinctive name, sign, symbol, or slogan
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Branding |
is a competitive strategy used to distinguish the brand through the development of product, advertising, and promotions
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Licensing Agreements |
grant a business partner exclusive rights to produce or sell products under a proprietary brand name
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Brand Image |
Defined by the consumer’s assumptions and feelings about products and/or services provided under the brand name
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Brand Equity |
The value that accrues for customers who may be willing to spend more for a brand’s product
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Brand Portfolio |
The management of multiple brands by a single company
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Exclusive Brands |
A licensing arrangement giving a retailer all rights to distribute a product under a brand name in a particular product category or categories
May be a means of: 1.Relaunching a brand at a lower price point 2.Capitalizing on the popularity of a cartoon character, celebrity, or sports figure 3.Collaborating with a well-known designer on a secondary line that is lower in price |
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Brand Development |
-Key to distinguish one product from another
-Including private brand & licensed goods |
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Firms that produce apparel have an organized structure that includes:
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-Marketing
-Merchandising -Production -Finance -Operations -Supply Chain Management or Sourcing Functions |
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Consumer Markets |
The ability to forge an emotional connection with consumers will increasingly drive the profitability of product development
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CONSUMER ANALYSIS AND MARKET SEGMENTATION
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Target market: a well-defined customer group
Niche market: a market that appeals to a focused target customer |
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Psychographics |
attitudes |
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We define our customers via lifestyle segments
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1.Demographic Data
2.Psychographic Data 3.Generational Data |
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1. Demographic Data |
-Age
-Gender -Marital Status -Family Size -Income -Spending Habits -Occupation -Education -Religion -Ethnicity -Region |
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2.Psychographic Data |
Life Stage: The typical junctures of adult life that have an impact on decision making, such as marriage, divorce, having children, and retirement
Attitudes: A person’s opinions about issues, products, services, and institutions, as influenced by experience, peer group thinking, demographics, and personality Class Consciousness: Reflects an individual’s desire for social status Motivation: An internal or external stimulus that causes an individual to act |
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3. Generational Data |
Members of a generation are linked through shared life experiences in their formative years
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Customers at different ages use or apply different criteria to:
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1.Styling
2.Price 3.Fit 4.Care 5.Performance |
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Women tend to buy more clothes than men, but men may spend more on individual items, such as business suits
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Education and Occupation |
A consumer’s occupation –
-student -service provider -business entrepreneuror -professional generally carries informal or formal dress expectations |
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Regional Demographic Data |
-Analysis of data provides information that guides the stocking/assortments of new stores
- Weather and allegiance to sports teams may influence the content of regional advertising supplements |
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Generational Marketing |
The study of the values, motivations, and life experiences that drive generational cohorts, influencing how they spend and save their money
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Millennials (or Generation Y)
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Confident, optimistic about the future, globally oriented, technically savvy and prefer social media
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Baby Boomers |
-Represent 23 percent of the population
- Health and wellness are priorities - As they retire or near retirement, their spending decreases |
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Matures |
Their respect for institutions and their desire to conform translates into enduring BRAND LOYALTY
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Generation C |
describes a generation born into a very complex global community that are very connected to one another through creative communication.
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Quantitative Research |
Objective methodology in which data are collected about a sample population and analyzed to generalize behavioral patterns
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Qualitative Research |
Relies on methodology such as observation and case studies in which experiences are recorded as a narrative to describe observed behaviors within the context of environmental factors
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Point of Sale Data |
-Relies on the use of software, scanners, and universal product codes (UPCs)
- Captures transactional data regarding style, size, and color of products -Tracks how purchases are paid for, average price at which a product sells, key selling seasons, and returns |
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Fashion Independence |
Millennials pride themselves on their individualism
-Women want to express their own personal style |
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Defining the Target Customer |
The following elements of a customer profile can be used to define the target customer :
1.Price point 2.Fashion point of view/S T Y L E 3. TIMING 4.Where customer shops 5.Benchmark brands 6. Aspirational brands 7.BRAND IMAGE |
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PROMOStyl |
International style and trend office - Head Office in Paris |
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Shopping the market |
-Shopping the competition
-As well as a cross-section of their own stores, helps to understand HOW they are performing |
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Determining where to shop |
Most full-service trend resources offer shopping reports that detail what is selling and key shopping venues in fashion cities all over the world
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Shopping Internationally |
As more wholesale and retail product developers aspire to grow globally, international trend research takes on added importance
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Concept Stores |
- put a spin on the st -are popular with trend researchers, designers, and buyers |
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Color Associations |
The largest color organizations are:
-Color Marketing Group -International Colour Authority (ICA) -Color Association of the United States (CAUS) Color associations are 1-3 years in advance, not only the fashion industry |
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Color Forecasters |
Color forecasting specialists include:
1. Huepoint 2. D3 Doneger Design Directions 3.Cotton Inc. 4.Color Marketing Group 5.CAUS |
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Fabric Shows |
Designers and product developers can:
-Confirm developing trends -Identify new resources -Order sample fabric yardage |
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Trend (is the direction in which something tendsto move in a way that affects culture, society, or business) |
Trends may refer to innovation in:
-Popularity of a certain COLOR -FIBER or FABRIC -A certain SILHOUETTE Can also be a particular DETAIL – i.e. pleats, cuffs |
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Trend Forecasting |
1.Apparel
2.Literature 3.Architecture 4.Home furnishings 5.Automobiles 6.Technology 7.Food |
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BOF 500 |
The most influential and authoritative list in the global fashion industry
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Womens Wear Daily |
Reports on London shows & all the trends
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4 Main Fashion Weeks |
-London Fashion Week
-Milan Fashion Week -New York Fashion Week -Paris Fashion Week |
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Street Fashion |
Street fashion is fashion that is considered to have emerged not from studios, but from the grassroots.
Street fashion is generally associated with youth culture, and is most often seen in major urban centers |
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Classics |
Styles that never go out of fashion
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Trickle-Down Theory |
New fashion ideas start on designer runways
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Trickle Up Theory |
Ideas that start form street fashion |
