3.4 revise the report
duty13
Week2TheBuyingCycleandGlobalFashionIndustry.pptxModule: FMAN3000
Fashion Management
Tutor: Claire Marsh
Week 2
Buying Cycle & The Global Fashion Industry
DMU Fashion Management
Week 1 - Introduction & Briefings
Homework Discussion
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
Get in to groups of 4-6
Discuss the which retailers you have looked at for your homework
Choose 1 retailer to focus on for this lesson and then discuss:
What was the name?
What type of clothing did they sell?
Who was shopping in there?
Describe the store environment
Where the garments cheap, expensive or in the middle?
Describe the customer
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
Which group would do you think your retailer belongs to and why?
Value
Couture
Fast Fashion
Supermarket
Mid-Market / High Street
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
You will then feedback to the class on your findings
It is ok for you to use translation tools
DMU Fashion Management
Week 1 - Introduction & Briefings
Customer Is King
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
A successful buyer understands their customer. This is vital.
Everyone wears clothes, therefore most people buy clothes
What are the reasons people will buy clothes?
keep warm
hide themselves
keep cool
feel part of a group
make a statement
attracted to the design
attracted to the brand
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
What are the deciding factors when a consumer buys clothing?
price
style
colour
fit
availability
outfitting
past experience
peer engagement
ethical credentials
sustainability credentials
uniqueness
fashionability
brand
dressing for an occasion
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
What are the deciding factors when a consumer buys clothing?
price
style
colour
fit
availability
outfitting
past experience
peer engagement
ethical credentials
sustainability credentials
uniqueness
fashionability
brand
dressing for an occasion
EMOTION
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
Every single one of these retailers exist to fulfil the purposes we have just discussed
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
However, they don’t sit on an equal playing field. Each retailer has a position in what is known as the “retail pyramid”
KPI’s: Brand Status, aspirational, market leading, £££ turnover
KPI’s: Aspirational, brand identity, market value £££
KPI’s: Design, brand identity, diffused commercial trends, market value £££
KPI’s: Market value: volume, entry price points, perceived value for money
Luxury
Luxury Value
High Street Volume
Fast Fashion / Discount
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
Work in your groups and discuss where you think your chosen retailer sits on the Retail Pyramid & why do you think this?
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
However, they don’t sit on an equal playing field. Each retailer has a position in what is known as the “retail pyramid”
KPI’s: Brand Status, aspirational, market leading, £££ turnover
KPI’s: Aspirational, brand identity, market value £££
KPI’s: Design, brand identity, diffused commercial trends, market value £££
KPI’s: Market value: volume, entry price points, perceived value for money
Luxury
High Street Value
High Street Volume
Fast Fashion / Discount
DMU Fashion Management
Week 1 - Introduction & Briefings
Retailer Objectives
DMU Fashion Management
Week 1 - Introduction & Briefings
Every retailer’s objective is to get the customer to buy their product.
Do do this, they must provide what the customer is looking for.
Not all customers have the same values, wants or needs…
DMU Fashion Management
Week 1 - Introduction & Briefings
… so not all retailers think the same
Let’s explore the differences…
DMU Fashion Management
Week 1 - Introduction & Briefings
Retailers will have their own set of KPI’s
KEY PERFORMANCE INDICATORS
DMU Fashion Management
Week 1 - Introduction & Briefings
Examples of
KEY PERFORMANCE INDICATORS
Quality
Trend Followers
Trend Leaders
Price
Ethical Polocies
Exclusivity
Design
Aspirational
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
Explore KPI’s (Key Performance Indicators)
Estimated nett worth of $51 million
KPI’s: Brand Status, aspirational, market leading, £££ turnover
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
What would a buyer do to achieve the KPI’s?
Advertising
Luxury brands offer exclusivity & status
Source: Vogue, WWD
KPI’s: Brand Status, aspirational, market leading, £££ turnover
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
Source and further reading: https://wfc.tv/en/articles/trending/balenciaga-first-quarter-of-2022, hisnobiety.com
KPI’s: Brand Status, aspirational, market leading, £££ turnover
Collaborated with leading global brand Adidas
Introduces Balenciaga to a new customer with high male engagement
Engaged with a new demographic
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
Source and further reading: https://wfc.tv/en/articles/trending/balenciaga-first-quarter-of-2022, hisnobiety.com
KPI’s: Brand Status, aspirational, market leading, £££ turnover
Why would they do this?
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
=
“I want to buy a pair of Crocs”
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
Balenciaga X Crocs previous collabs have already provided engagement with the “rubber shoe” customer
X
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
Source and further reading: https://wfc.tv/en/articles/trending/balenciaga-first-quarter-of-2022, hisnobiety.com
KPI’s: Brand Status, aspirational, market leading, £££ turnover
100% profits
Work to their own launch dates
Full creative control on product & marketing
Why would they do this?
Establishing the brand within growth sector of footwear
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
KPI’s: Brand Status, aspirational, market leading, £££ turnover
Retailers usually measure their performance within the market by either VALUE or VOLUME
Because the luxury sector has a high price tag, they are measured by VALUE
£5,100
This is one of Balenciagas highest priced products.
Luxury brands often produce campaigns around each to maintain it’s elevated status
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
Celebrity Endorsements are invaluable
DMU Fashion Management
Week 2 - Buying Cycle and Global Fashion Industry
However, they don’t sit on an equal playing field. Each retailer has a position in what is known as the “retail pyramid”
KPI’s: Brand Status, aspirational, market leading, £££ turnover
KPI’s: Aspirational, brand identity, market value £££
KPI’s: Design, brand identity, diffused commercial trends, market value £££
KPI’s: Market value: volume, entry price points, perceived value for money
Luxury
High Street Value
High Street Volume
Fast Fashion / Discount
DMU Fashion Management
Week 1 - Introduction & Briefings
Any Questions or Comments?
DMU Fashion Management
Week 1 - Introduction & Briefings
Think about your chosen retailer, which of the below are their top 3 most important KPI’s? Or are there any others?
Quality
Trend Followers
Trend Leaders
Price
Ethical Polocies
Exclusivity
Design
Aspirational
DMU Fashion Management
Week 1 - Introduction & Briefings
Structure of the Buying Office
DMU Fashion Management
Week 1 - Introduction & Briefings
The Buying Office Org Chart
The buying office usually consists of the following teams:
Buyers
Merchandisers
Designers
Garment Techs
Sourcing
Marketing
DMU Fashion Management
Week 1 - Introduction & Briefings
The Buying Office Org Chart
Each team is responsible for different parts of the buying cycle:
Buyers - product, retail price, sales budgets, profit (margin) & supplier relationships
Merchandisers - deliveries, cash flow, stock management, markdown
Designers - trend research, design packs, colour palette
Garment & Fabric Techs - size spec, grading, garment performance, product safety
Sourcing - sourcing factories, compliance & ethical policies
Marketing - customer communication
DMU Fashion Management
Week 1 - Introduction & Briefings
What is a Critical Path and why is it needed?
DMU Fashion Management
Week 1 - Introduction & Briefings
The Critical Path - Group Task
When would you expect to see the items below selling in a UK store?
DMU Fashion Management
Week 1 - Introduction & Briefings
The Critical Path - Group Task
What would happen if they were delivered 2 months late?
DMU Fashion Management
Week 1 - Introduction & Briefings
The Critical Path
The Critical Path is a timeline of when each path of the buying cycle should occur to ensure the product is delivered on time.
DMU Fashion Management
Week 1 - Introduction & Briefings
The Buying Cycle
DMU Fashion Management
Week 1 - Introduction & Briefings
Turkey
China
Fabric
2 weeks
CMT, Packing & Inspection
2 weeks
Truck
1 week
Fabric
3 weeks
Printing, CMT, Packing & Inspection
6 weeks
Shipment
6 weeks
5 weeks
15 weeks
DMU Fashion Management
Week 1 - Introduction & Briefings
Critical Path
DMU Fashion Management
Week 1 - Introduction & Briefings
Homework
Choose a retailer & a product
Research the product & retailer
Choose a competitor and find 3 differences in the products
DMU Fashion Management
Week 1 - Introduction & Briefings
Homework Example
DMU Fashion Management
Week 1 - Introduction & Briefings
Take photos
DMU Fashion Management
Week 1 - Introduction & Briefings
Take photos
DMU Fashion Management
Week 1 - Introduction & Briefings
Take photos
DMU Fashion Management
Week 1 - Introduction & Briefings
Take photos
DMU Fashion Management
Week 1 - Introduction & Briefings
Take photos
DMU Fashion Management
Week 1 - Introduction & Briefings
Differences
Price Point £45 V £65.99
Country of Origin China V Mayanmar
Care Instructions Machine Wash V Dry Clean
DMU Fashion Management
Week 1 - Introduction & Briefings
Any Questions or Comments?
DMU Fashion Management
Week 1 - Introduction & Briefings
Thank you & see you next week!
DMU Fashion Management
Week 1 - Introduction & Briefings
DMU Fashion Management
