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One of the most globalized industries in the world 10% of world business USA consumes more product per capita than any where else More than 200 countries export products to the USA
Domestic production on the decline for 10 years
Product types
Home Textiles
Growth
Industrial
Road bed stabilizers Tyvek Tents Heart valves
Apparel
To protect or enhance the appearance of the human body
Merchandising
Many product types
Grocery, video, gas, clothing, etc
Merchandising Defined
Area of an apparel company that develops strategies to have the right merchandise, at the right price, at the right location to meet the wants and needs of the target customer
Burns and Bryant1997, pg.. 429
The process
Fiber Fabric Design Manufacturer Wholesale/buyer retail
Compared to Retailing
The process of planning , developing, and presenting product lines for identified target markets with regard to pricing, assorting, styling, and timing.
Kunz, 1998
Retailing
Selling goods and services to the ultimate consumer One component of the trade matrix
Material manufacturer and supplier Finished goods manufacturer Retailer Consumer
The activities involved in buying and selling: finding customers, providing them with what they want, when they want it, at prices they can afford, and are willing to pay.
Jarnow, Guerreiro, and Judelle, 1987, pg. 506
Compared to Marketing
Marketing is the act of bringing together buyers and sellers R. Kean: merchandising as a subset of marketing G. Kunz: Interactive yet equivalent functions
The process of planning , developing, and presenting product lines for identified target markets with regard to pricing, assorting, styling, and timing.
Kunz, 1998
Line development
Buying at wholesale Internal product development Combination
Product development
Design Line adoption Technical design/Samples
Line presentation
Internal
For adoption
Wholesale Consumers
Multi-channel
Constituencies
Executive Constituency
Management
Sets goals Mission and business plan Target markets, Price lines, Product selection,Quality
Merchandising Constituency
Interprets consumer preferences Profit center of company Plans, develops and edits product lines Sourcing and production capacities Oversees development of product
Design, fabrication, styles, assortments, pricing, visual presentation , timing
Job titles
CEO, COO, CFO, VPs, directors,manager, etc
Job titles:
Buyer Designer Merchandise manager Product development manager
Marketing Constituency
Defining target market Branding and imaging Promotion Sales opportunities Strategies for growth Research
Success measured by GM, inventory levels, turnover, ROI, markdown percentage, costs, sales per square foot, sell through
Job titles
Advertising manager Manufacturer representative Market researcher PR Sales manager
Operations Constituency
Manages people and physical property
Human resources Inventory Facilities Equipment Quality control
Jobs
Information manager Inventory controller Receiving manager Distribution manager Personnel manager Recruiter/headhunter Technical design functions here also
Success measured by employee retention, stock/sales ratios, materials utilization, labor productivity, breakeven
Finance Constituency
Evaluating profitability Setting future goals All the money stuff Jobs:
Financial analyst Accountant Investment manager
Chapter One
From Spinning Machine to Quick Response
Ramifications
Decrease in production time Increase in demand for ready made clothing
Increase in demand was an economic issue Need of sailor, miners and slaves Increase in middle class consumer who wanted affordable, not custom clothing.
Distribution changes
Catalogs Department Stores
Women's wear centralized in New York Men's wear decentralized - Chicago, Baltimore, New York.
Invention of the zipper Increase in marketing efforts (fashion magazines) increased demand - Vogue, DNR, WWD WWI - Uniform production helped to streamline production methods.
Beginning of globalization - Paris Synthetics - Rayon Depression of the 1930s dealt a hard blow
Recovery occurred after WWII
Nylon - DuPont
Subcontracting. Sportswear Industry immerged. Increase in information - More fashion magazines - Narrow target. Brand recognition - Arrow. Decentralization of industry occurred in the 1940s.
Incorporation
Increase in large publicly owned apparel companies. Growth in suburbia spurred the development of the shopping mall. Designer licensing. Rising labor costs
Discounters (Kmart, Target) Increase in imports - 581% (1961-1976)
Teen fashion flourished. Use of synthetics increased - Americas love affair with polyester (1970s). Couture copies in RTW.
Studies revealed that products were spending too much time in inventory resulting in huge inefficiencies.
66 week cycle (1 years)
Raw fiber to garment 84% of this time in inventory
Quick Response
A reduction in the amount of time between fiber production and sale to the ultimate consumer.
Increase speed of design Improve on communication Reduce warehouse and in-transit time Decrease reorder time Any activity that improves accuracy and reduces time
Industry Cooperation/Partnerships
Cooperation is critical to QR success Textile/Clothing Technology Corporation
TC
Premier source of assistance to the sewn products industry for improving business systems and manufacturing resources Really trying to find ways to improve efficiency, reduce labor costs, thus improve international competitiveness
Inter-Industry Linkages
Development of the National Apparel Technology Center Mission:
Demonstrate the latest technology. Educate apparel industry on ramifications of technology use. Short-term development of technologies. To encourage standards and increase accuracy Voluntary Inter-Industry Communications Standards Committee (VICS)
Bar-coding
UPC (universal product code) SKU (stock keeping unit) SCM (shipping container marking)
Track product and info about product flow EDI Standards Recently reorganized under new name Voluntary Interindustry Commerce Standards Association
Sharing and coordinating information across all segments of the soft goods industry.
Goals of SCM
The collection of the activities necessary to bring a product to market
Raw materials procurement Production Transportation Distribution Managing the selling process
(Abend, 1998)
Reduce inventory Shorten production time Provide better service Sharing of information as well as product
Forecasting POS Inventory Changes